Annual Report: January 1, 2017 – December 31, 2017: US-APEC Technical Assistance to Advance Regional Integration (US-ATAARI)

Key achievements during this period include progress on key performance indicators (KPIs), which are detailed in Annex A. The KPIs enable US-ATAARI and United States Agency for International Development (USAID) staff to measure progress toward expected results and guide adaptive management of the activity. Program Area 1: Green Growth focused on Fossil Fuels Subsidy Reform (FFSR). US-ATAARI continued its work on a fossil fuel subsidy reform peer review assessment in Viet Nam. The peer review team conducted an economy-level review, meeting with the Ministry of Industry and Trade (MOIT) of Viet Nam and other relevant stakeholders to discuss selected subsidies and their efficiency and effectiveness in Viet Nam's current political and economic environment. US-ATAARI drafted the Viet Nam FFSR report, outlining key findings and recommendations to reduce inefficient fossil fuel consumption and better meet policy objectives. US-ATAARI also implemented the APEC FFSR Workshop on Effective Pricing Mechanisms and Mitigation Strategies in Jakarta, Indonesia in July. Major takeaways included substantial recent progress on subsidy reform across the region, particularly on transport oil subsidies, and the discovery that a majority of subsidies in the APEC region are now in the residential sector, specifically for electricity, gas, and LPG. The key challenge identified was to make all reforms resilient to price increases and to implement mitigation measures to ensure their sustainability. In addition to FFSR, US-ATAARI collaborated with the U.S. Department of Energy (DOE) and the U.S. Department of State (DOS) to organize a workshop on Clean Energy Investments. The workshop provided capacity building and shared tools to assess the connection between health and environmental impacts resulting from power generation investment decisions. This event was the second in a two-part series co-sponsored by APEC and ASEAN, entitled "Trainings in Renewable Energy Best-Practices." The workshop resulted in the finalized eight technical reports, implemented 22 workshops, and trained 1,208 participants. Program Area 2: Trade and Investment Facilitation focused on several initiatives, including the implementation of the APEC Trade Facilitation Agreement (TFA). US-ATAARI worked with the Royal Malaysia Customs Department (RMCD) to conduct a diagnostic study on the implementation of the TFA in Malaysia. The study aimed to identify areas for improvement and provide recommendations for the Malaysian government to enhance its trade facilitation efforts. US-ATAARI also collaborated with the Transport Development Strategy Institute (TDSI) of Viet Nam to conduct a study on the impact of trade facilitation on the transportation sector in Viet Nam. The study analyzed the effects of trade facilitation on the transportation sector, including the reduction of transit times and the improvement of logistics services. In addition, US-ATAARI implemented the APEC Trade Facilitation Workshop on Customs Procedures in Manila, Philippines in October. The workshop aimed to enhance the understanding of customs procedures and provide recommendations for the improvement of customs procedures in the APEC region. Program Area 3: Regulatory Reform focused on several initiatives, including the implementation of the APEC Regulatory Cooperation Advancement Mechanism (ARCAM). US-ATAARI worked with the Ministry of International Trade and Industry (MITI) of Malaysia to conduct a study on the implementation of the ARCAM in Malaysia. The study aimed to identify areas for improvement and provide recommendations for the Malaysian government to enhance its regulatory cooperation efforts. US-ATAARI also collaborated with the National Customs Service of Chile (NCSC) to conduct a study on the impact of regulatory cooperation on the customs sector in Chile. The study analyzed the effects of regulatory cooperation on the customs sector, including the reduction of non-tariff barriers and the improvement of customs procedures. In addition, US-ATAARI implemented the APEC Regulatory Cooperation Workshop on Good Regulatory Practice in Santiago, Chile in November. The workshop aimed to enhance the understanding of good regulatory practice and provide recommendations for the improvement of regulatory practices in the APEC region. Program Area 4: Human Security focused on several initiatives, including the implementation of the APEC Counter-Terrorism and Secure Trade (CT/ST) initiative. US-ATAARI worked with the Counter-Terrorism Working Group (CTWG) to conduct a study on the implementation of the CT/ST initiative in the APEC region. The study aimed to identify areas for improvement and provide recommendations for the APEC member economies to enhance their counter-terrorism and secure trade efforts. US-ATAARI also collaborated with the Emergency Preparedness Working Group (EPWG) to conduct a study on the impact of human security on the emergency preparedness sector in the APEC region. The study analyzed the effects of human security on the emergency preparedness sector, including the reduction of risks and the improvement of emergency response capabilities. In addition, US-ATAARI implemented the APEC Human Security Workshop on