[asia-apec 516] Statement from the APEC Trade Ministers' Meeting (part 1)

[PAN Asia Pacific]

MEETING OF MINISTERS RESPONSIBLE FOR TRADE
(Kuching, Sarawak, June 22-23, 1998)

STATEMENT OF THE CHAIR

APEC Ministers Responsible for Trade met in Kuching on 22 – 23 June
to review progress on the implementation of instructions given by
Leaders in Vancouver and the ongoing APEC work programme on trade and
investment liberalisation and facilitation. Ministers exchanged views
on the current economic situation, developments in international
trade and on APEC’s contribution to the work of the World Trade
Organisation. Ministers also engaged in a dialogue with ABAC on
APEC’s response to the 1997 ABAC’s recommendations and on broadening
APEC outreach to a wider segment of the business/private sector.

The Meeting of APEC Ministers Responsible for Trade is being held
during a period of financial and economic turmoil in the East Asian
constituents of the APEC region. It was noted that the turmoil has
had its impact on a broad spectrum of economic sectors, curtailing
the capacity to generate economic growth. It has also brought about
social ramifications that are and will continue to be far-reaching.
APEC member economies recognised that regional and global economic
inter-linkages and interdependence can have a contagion effect on
other economies outside the region. While individual APEC economies
affected by the financial turmoil must undertake domestic policy
initiatives to effect economic recovery, other APEC member
economies could, where possible, assist in the process of economic
recovery. APEC may not be the mechanism for direct intervention,
but it is important that APEC supports initiatives to manage the
financial crisis – both in terms of the causes and impacts. 

 

Early Voluntary Sectoral Liberalisation 

3. Ministers considered the report of the SOM Chair and noted that
officials have made significant progress since Vancouver in further
developing the EVSL initiatives, based on APEC’s principle of
voluntarism. Ministers recognised that specific concerns have been
raised by individual economies in each sector. 

4. There is emerging consensus on product coverage, target end rates
and target end dates, and Ministers endorsed the recommendations of
Senior Officials, as a means to further progress work in the
fast-track sectors. 

5. Participation in the 9 sectors and all three measures (trade
liberalisation, facilitation, and ecotech) in each sector will be
essential to maintain the mutual benefits and balance of interests,
which Leaders had established when selecting the sectors in
Vancouver. 

6. In order to enable finalisation of the sectoral arrangements that
would maximise participation, Ministers agreed that flexibility would
be required to deal with product-specific concerns raised by
individual economies in each sector. Such flexibility would generally
be in the form of longer implementation periods. In principle
developing economies should be allowed greater flexibility.

7. Ministers agreed that consideration of other forms of flexibility
should take into account the broader goal of maximising mutual
benefits, and the need to maintain the balance of interests.

8. Ministers also noted the significant work done on NTMs,
facilitation and ecotech, and endorsed the existing implementation
schedule, and the related work programme in these areas. Ministers
regarded facilitation and ecotech as important elements of the EVSL
initiative, and agreed that such measures continue to be identified
for implementation. 

9. Ministers agreed that all sectors containing tariff
liberalisation proposals be communicated to the WTO by APEC Chair
for transparency purposes once all details of the sectoral
proposals are finalised. 

10. Ministers instructed senior officials to continue work to
finalise by September the sectoral arrangements on the fast-track
sectors on the basis of decision taken at this meeting, and further
develop the other six sectors. 

11. Ministers will consider the final agreements/arrangements of
each sector in its entirety at the Ministerial Meeting in November,
with a view to commencing implementation in 1999. 

 
Individual Action Plans

12. Ministers welcomed and endorsed the preliminary plans of member
economies to implement and improve their Individual Action Plans
(IAPs) for 1998. Ministers noted that despite the adverse impacts of
the current financial crisis, members remained committed to IAP
improvements and implementation. They reaffirmed that the IAP is the
primary mechanism for implementation of APEC’s trade and investment
liberalisation and facilitation (TILF) agenda. Ministers recognised
that improving IAPs is a continuous and progressive process and urged
members to continue to strengthen their IAPs in terms of
transparency, level of detail and specificity. Ministers stressed
that faithful implementation would lend credibility to the Plans.

13. An added value of IAPs is that they provide member economies
with the opportunity to draw on the experiences and approaches of
other member economies in undertaking liberalisation and
facilitation. Members can draw on these experiences and adopt and
incorporate such best practices in improving their IAPs. 

14. In an effort to make IAPs more effective in meeting the needs of
business, Ministers noted that IAPs should continue to take account
of ABAC recommendations. They noted that some of these
recommendations have already been implemented while others are
under consideration. Member economies will continue to take into
account the views of the business/private sector in the
improvements of the IAPs. 

15. Ministers commended Malaysia for submitting its IAP for peer
review in Kuching. They welcomed Korea’s decision to present its
IAP for peer review in September at the margins of SOM III. It was
acknowledged that bilateral consultations and voluntary peer
reviews are confidence building measures that will facilitate
exchange of information and contribute towards transparency and
comparability of the IAPs. In this context, interested member
economies were encouraged to volunteer their IAPs for peer review. 

16. To further advance work on IAPs, Ministers agreed that:

 member economies submit revised IAPs, including the financial
sector, according to the revised format guidelines by October 15; 
 member economies continue to give consideration to the views and
opinions of the business/private sector in formulating their IAPs. 

17. Ministers called for a report on revised IAPs to be submitted to
them in November for their review. 

Collective Action Plans

18. Ministers reaffirmed the importance of Collective Action Plans
(CAPs) for advancing APEC’s TILF agenda. Ministers welcomed work to
further enhance and implement CAPs, including work underway on more
than 80 CAPs activities. They stressed the importance of trade and
investment facilitation activities in APEC in the 15 areas under
Part I of the Osaka Action Agenda. Ministers took note of the SOM
Chair’s Report on collective actions and endorsed the list of over
30 TILF outcomes for 1998. These outcomes are expected to
contribute towards reducing transaction costs and facilitating
business activities such as movement of goods, capital, services
and business people. 

 

19. At this time of financial turmoil in the region, APEC’s trade
facilitation activities would contribute to improving the capacity
and confidence of members in their liberalisation efforts. In this
context, Ministers also noted the need to prioritise projects in
order to make efficient use of limited resources and maximising
benefits to members. 

20. In advancing work on CAPs, Ministers : 

          endorsed the collective commitments of APEC economies to
grant multiple entry visas to regular business travellers through
unilateral or bilateral means, unless there are reasonable grounds
not to do so; and 

          agreed that capacity of member economies be enhanced
through training and technical cooperation programmes to ensure
effective implementation of CAPs. 

21. Ministers further instructed that a report be submitted in November on:

          achievement of TILF outcomes in 1998; 
          training and technical cooperation programmes in the TILF areas; 
          areas for priority work in 1999; and 
          APEC’s response to ABAC’s recommendations.