[asia-apec 1194] Trade Ministers Statement - Auckland APEC
Gatt Watchdog
gattwd at corso.ch.planet.gen.nz
Sun Jul 11 15:20:06 JST 1999
Meeting of Ministers Responsible for Trade
(Auckland, New Zealand, 29-30 June, 1999)
STATEMENT OF THE CHAIR
APEC Ministers Responsible for Trade met in Auckland on 29-30 June
to progress APEC’s work programme in accordance with instructions
given by Leaders in Kuala Lumpur.
2 Ministers met in an environment of shared confidence that the
region was in the process of recovering from the economic crisis
which has beset it over the past two years, but were aware that
continuing challenges remain. They recognised that the commitment of
APEC economies to the maintenance of open markets and individual
reforms in the face of the crisis had played a significant role in
moderating the impact of the crisis and in hastening recovery.
Ministers emphasised that open, transparent and well governed
markets are key to a return to sustainable economic growth in the
region and to the prosperity of its peoples. At the same time
Ministers acknowledged the significant economic and social impact of
the crisis around the region, and drew attention to the extensive
array of work APEC has underway to help address these issues.
3 Against this background, Ministers focussed their discussion
around the three themes that New Zealand as Chair has established
for APEC 99: expanding opportunities for doing business throughout
the region, strengthening markets and broadening support for APEC.
Theme 1: Expanding opportunities for doing business throughout the
region
4 This area of work recognises that business has the task of
generating growth, employment and prosperity in our economies and
that keeping markets open - and opening them further - is vital to
the development of sustainable business opportunities. The work aims
to make business easier throughout the region, particularly for
small and medium enterprises, through the elimination of red tape.
Individual and Collective Action Plans
5 Actions taken individually by economies are the principal means of
achieving APEC’s goal of free and open trade and investment by
2010/2020. Ministers welcomed the indication by economies of
substantial improvements in preliminary Individual Action Plans this
year. Fourteen have implemented tariff reductions, fourteen have
liberalised their investment regimes, and seventeen notified
measures in the area of competition policy and/or deregulation.
Nonetheless Ministers, reflecting business concerns, agreed to
further improve the credibility of their Individual Action Plans.
The Plans needed to be more comprehensive, more transparent, and
more user-friendly. They agreed to seek the advice of their business
communities, and to submit improved Plans by the August deadline.
6 Ministers emphasised the importance they attached to the review of
the Individual Action Plan process this year, in order to take stock
of the progress made to date and the challenges which remain in
achieving the Bogor Goals. They welcomed PECC’s contribution to the
review process. Ministers directed officials to report in September
with recommendations on ways to improve the process. They welcomed
the offers by Thailand and Peru to volunteer for peer review.
7 Ministers were pleased with progress to date on Collective Action
Plans, including in the areas of customs procedures, mutual
recognition of standards and conformity assessment procedures,
mobility of business persons, government procurement, and
professional services. Such measures are critical to boosting trade
and investment flows through lowering the transaction costs of
business. Ministers agreed that APEC needed to work better at
communicating the value of this work to business and to receive
feedback from business on their priorities. Ministers instructed
officials to develop a package of concrete measures in September.
8 Given the evolution of circumstances since 1995, Ministers
instructed officials to review the Collective Action Plan component
of the Osaka Action Agenda including the need to broaden, deepen or
modify this component of the Agenda, and instructed officials to
report on this issue in September.
APEC Food System
9 Ministers welcomed the progress being made by the Task Force
studying the APEC Business Advisory Council (ABAC) proposal for an
APEC Food System. Ministers agreed the proposal offers a useful
approach to food issues by focussing on the development of rural
infrastructure, dissemination of technological advances in food
production and processing, and promotion of trade in food products.
Ministers emphasised the importance of addressing these three areas
in a balanced way. They looked forward to receiving a final report
and recommendations, for their consideration in September, on what
APEC needs to do to respond effectively to the proposal. Ministers
were also informed of ABAC’s ongoing work on the APEC Food System.
APEC/World Trade Organisation
10 APEC is committed to open regionalism and supports the
multilateral trading system. Ministers noted the mutually
reinforcing role of the goals of both APEC and WTO. Ministers
recognised the importance of this area of APEC’s work to the
region’s business community, particularly as a response to
protectionist pressures in the region.
11 Ministers agreed on the importance of ensuring full
implementation of existing WTO agreements. Ministers encouraged
acceleration of outstanding accession negotiations in accordance
with WTO rules and based on commercially viable market access
commitments with a view to achieving a universality of WTO
membership.
12 Ministers recalled the particular importance which Leaders in
Kuala Lumpur attached to early progress being made on broad-based
multilateral negotiations in the WTO, achieving an overall balance
of interests of all members. Ministers expressed satisfaction with
the preparations in the WTO of the agenda for the Third WTO
Ministerial Meeting in Seattle. They noted that a number of
proposals have been tabled and agreed that APEC economies should
take the lead in ensuring that all proposals are put on the table,
desirably by the end of July. They agreed on the need for an
intensification of activity in Geneva in the final phase of
preparations for the Seattle Ministerial and endorsed calls for work
to begin on drafting the Seattle Ministerial declaration during
August. They agreed that the Seattle Ministerial Declaration should
contain agreement on both the subject matter for negotiations and on
the modalities for progressing negotiations. They also agreed that
further consideration should be given to the possibility of specific
decisions to support the launch at Seattle of such broad-based
negotiations.
13 Ministers agreed that the negotiation agenda should be broader
than that already specified in the built-in agenda principally on
agriculture and services, and that these areas and negotiations on
industrial (non-agricultural) tariffs should serve as an integral
part of the forthcoming negotiations. Ministers agreed that the
negotiations should be concluded within three years.
14 Ministers further agreed on the need to ensure that the concerns
of developing economies, including the least developed economies,
are addressed in any new WTO negotiations. They noted that this was
something to which APEC, with its broad membership and unique
approach to trade and investment liberalisation, is well placed to
contribute. Ministers instructed officials to consider the concerns
of developing economies and least developed economies together with
other possible issues for inclusion on the agenda for the Seattle
WTO Ministerial Meeting including transparency in government
procurement, electronic commerce, and trade facilitation and to
report to Ministers at their September meeting.
15 Pursuant to their agreement in Kuala Lumpur on the front nine
EVSL sectors, Ministers of participating economies emphasised the
importance of the Accelerated Tariff Liberalisation (ATL) initiative
in providing impetus to the wider negotiation on industrial
(non-agricultural) tariffs which they agreed should be launched at
Seattle. They welcomed progress in the initiative since November,
including the support it had received from a number of non-APEC WTO
members and instructed officials to continue to promote the
initiative, endeavouring to conclude agreement in the WTO in 1999.
They also agreed that participating economies should engage again
with WTO members in July on their reaction to the initiative and on
how it will tie into the launch, conduct, and outcome of any new WTO
negotiations.
16 Ministers of participating economies noted the growing support
for new WTO negotiations on industrial tariffs, and agreed that the
atmosphere in the WTO was now positive for the negotiation in the
WTO of the tariff elements of the remaining six EVSL sectors (Early
Voluntary Sectoral Liberalisation) sectors - automotive (no tariff
element), civil aircraft, fertilisers, food, oilseeds, and rubber.
In this regard, they recalled the instructions received from Leaders
in Vancouver to pursue an ongoing programme of voluntary
liberalisation, and their intention that APEC continue to act as a
catalyst for promoting trade and investment liberalisation globally,
and in Kuala Lumpur to further advance work on the remaining six
EVSL sectors.
17 Ministers of participating economies therefore resolved that the
tariff elements of the remaining six EVSL sectors should be
negotiated in the WTO during the course of the negotiations on
agriculture already mandated in the WTO under the BIA, and the
negotiations on industrial (non-agricultural) tariffs which they
agree should be launched at the Third WTO Ministerial meeting. They
took note of the efforts made by participating APEC economies to
develop a framework for the reduction or elimination of tariffs in
these sectors within an expedited timeframe, in accordance with the
principle of flexibility, and called upon the WTO to take these
efforts into account in the upcoming WTO negotiations.
18 APEC’s EVSL initiative has always been about more than tariff
liberalisation. Ministers welcomed progress made on implementing the
non-tariff measure, facilitation and Ecotech elements agreed at
Kuala Lumpur and the further initiatives developed since then, a
list of which is attached. Ministers emphasised the need to continue
implementation of all three elements and requested that officials
report in September on further deliverables in this area.
Theme 2: Strengthening the Functioning of Markets
19 The pace of globalisation and the scope and depth of the economic
crisis have underscored the need for broader policy responses to
support sustainable long term economic growth and prosperity in the
region. Trade liberalisation on its own is not enough. Efficient,
innovative and competitive businesses require efficient, flexible
and competitive markets. Ministers agreed on the need to improve the
openness and efficiency of domestic markets in the region. This
requires strengthened competition frameworks to support wider
structural and regulatory reform, improved economic governance
(public and corporate) arrangements, and accelerated efforts to
reduce business costs in all markets.
20 Ministers agreed to intensify work in these areas and welcomed
the strengthening markets approach this year to underpin recovery in
the real economy. They noted that the sound operation of markets
would improve the welfare of citizens by giving them better choice
and better quality at lower costs. Strengthening markets provides a
means of linking and reinforcing APEC’s efforts on trade and
investment, regulatory reform, and capacity building. Ministers
highlighted the importance that business, SME Ministers and Women
Leaders attached to reducing compliance costs on small business,
improving the capacity of financial markets to meet the needs of
small business, and building management capability. Ministers agreed
to intensify work under the Collective Action Plans and Ecotech
programmes on these issues.
21 Ministers recognised the importance of developing a framework for
advancing work on the strengthening markets approach. They supported
the work underway to develop non-binding principles on competition
and regulatory reform and instructed officials to complete
recommendations by September. They appreciated PECC’s contribution.
Ministers welcomed initiatives undertaken by the Finance Ministers
on international financial issues and on strengthening financial
markets. They welcomed Japan’s initiative to strengthen market
infrastructure. Ministers also recognised the critical importance of
building relevant institutional capacity and human skills, and
agreed to develop further specific proposals in this area by
September.
Economic and Technical Cooperation
22 Ministers welcomed work underway to improve the effectiveness of
APEC’s Economic and Technical Cooperation (Ecotech) agenda through
strengthening coordination and intensifying work on priority areas.
They expected this work would be reflected in the 1999 report on
Ecotech activities and instructed officials to report in September
on concrete outcomes achieved including the following specific
initiatives:
developing a matrix to assist in the evaluation of Ecotech
project proposals; and
an electronic "clearing house" to enhance Ecotech information
flows.
They also requested officials to evaluate the effectiveness of
projects implemented and to report in September.
Electronic Commerce
23 The Electronic Commerce Steering Group updated Ministers on
progress in implementing the APEC Blueprint for Action on Electronic
Commerce adopted by Ministers in November 1998. Key areas for action
are:
improving the legal environment;
paperless trading - aimed at streamlining transport, freight,
customs and other transactions throughout the region;
developing a readiness template for benchmarking policies
against best practice in areas that drive electronic commerce
development;
development of comparable measures and indicators of e-commerce
among APEC economies.
They instructed officials to report further in September on
progress achieved.
Y2K
24 Ministers emphasised that it was a matter of utmost urgency to
ensure regional economies were as prepared as possible to manage the
Y2K problem. When Leaders met in September, little more than 100
days before the new millennium, they would want to be confident that
everything possible was being done. Ministers focussed in particular
on the need for effective contingency planning and cross-border
cooperation among economies to reduce risks from potential
disruptions. They welcomed the activities underway in APEC, and
directed officials to prepare a full and substantive report in
September on actions underway.
25 Ministers therefore instructed officials to accelerate work on
cross-sector and cross-economy dependencies including testing,
information dissemination and improving systems to bolster regional
contingency plans and continuity of operations. Specifically,
Ministers urged economies to respond urgently to the questionnaire
circulated by Canada, Japan and Singapore and the request for
contact information from each economy on the key sectors, in order
to develop a Y2K readiness and network of contact points. They
agreed that the website being developed by Canada and the US was a
useful means of exchanging information and develop contingency
planning, and welcomed the US proposal for a Y2K risk assessment
toolkit for cross-border issues, which would be posted on the this
website.
Theme 3: Broadening Support
26 Ministers agreed that the understanding and engagement of
communities was increasingly critical to APEC’s credibility and its
capacity to deliver on its goals. Drawing on the outcome of the
seminar ‘Bridging the Gap: Explaining Trade and Investment
Liberalisation’ held in Auckland on 28 June, Ministers noted that
perceptions about liberalisation are often distorted because the
substantial benefits of liberalisation are widely dispersed whereas
the adjustment costs are localised and more visible. Ministers
endorsed the emphasis of the seminar on the importance of developing
innovative tools for communicating effectively with communities; the
need to eliminate jargon; to focus on things that are directly
relevant to people’s experience; and to improve transparency. They
agreed that the Seattle WTO Ministerial Meeting would be a key
opportunity for conveying a strong message on trade and investment
liberalisation.
27 Ministers reiterated the critical importance of direct dialogue
with business. ABAC urged Ministers to take work forward in five
main areas: continued trade and investment liberalisation,
strengthening Individual Action Plans, the APEC Food System,
capacity-building, Y2K and aviation liberalisation. Ministers took
note of all the comments. In particular they noted the strong links
between tourism and air services liberalisation, and agreed that the
Chair should write to APEC Transport Ministers urging them to
implement the four priority recommendations for air services
liberalisation that have been developed by the Transportation
Working Group in the areas of doing business matters, air freight,
multiple airline designation, and airlines cooperation arrangements.
Ministers instructed officials to report to Ministers on APEC’s
response to ABAC’s recommendations in September.
28 A Trade Roundtable with business representatives from around the
region was held for the first time as part of the Ministerial
meeting. Ministers welcomed the conclusions of the Roundtable and
directed officials to examine the conclusions to make sure that they
inform our work. The conclusions of the Trade Roundtable are
attached. Ministers were also briefed on the outcomes of the
Business Symposium held in Auckland 24-26 June. The symposium
identified the critical importance of macro-economic adjustment,
structural reform and transparent regulatory regimes to support
open, market-based economies.
29 Ministers agreed that women in APEC are an enormous untapped
potential for improving economic and social well-being and
recognised the unique contribution of indigenous businesswomen in
APEC. They welcomed the recommendations from the Women Leaders’
Network meeting held in Wellington 21-23 June, and the Indigenous
Women in Business Seminar held on 18-20 June. Recognising the
differential impact of trade on men and women, Ministers agreed that
particular attention needs to be paid to women’s access to finance,
information, technology and their full participation in APEC.
Ministers reinforced the importance of the Framework for the
Integration of Women in APEC as requested by Leaders. They looked
forward to finalising the Framework by September for forwarding to
Leaders.
30 Ministers also welcomed reports from representatives of the
Pacific Economic Cooperation Council (PECC), the South Pacific Forum
and the Association of South East Asian Nations (ASEAN).
Annex A
EVSL: Non-Tariff Measures, Facilitation and
Ecotech Elements
(as noted in para 18)
a study on the full range non tariff measures and their impact
in the forest products area;
a study on the consistency of global fisheries subsidy practices
with WTO rules;
an Automotive Dialogue involving the auto industry and
governments across APEC to map out strategies for increasing
integration and development of the auto sector;
a seminar on implementation of ISO safety standards for the toy
sector;
implementation of training programmes for Jewellery Testing,
Assaying and Hallmarking;
a survey of environmental goods and services markets in APEC;
a programme of training and development of designers and sample
makers in the toy and novelties industry;
an APEC Gems and Jewellery Conference.
Further deliverables are being prepared for the APEC Ministerial
meeting in September.
Annex B (refer paragraph 28)
APEC TRADE ROUNDTABLE DIALOGUE WITH APEC MINISTERS RESPONSIBLE FOR
TRADE
AUCKLAND, NEW ZEALAND
30 JUNE 1999
CONCLUSIONS
Introduction
We are all faced with the challenges of responding to
globalisation and the interdependency of markets -
the role of governments is to create a competitive
policy environment.
the role of business is to operate efficiently and
create value.
value creation in APEC economies raises living standards
and well being of APEC communities. It is the basis for
sustainable economic development, growth in jobs and
consumer well being.
the quality of policy has a decisive influence on the ability of
business to operate effectively and efficiently, and create
value.
business values and supports APEC’s objectives and processes but
is disappointed by the slowness of progress. It urges Ministers
to act with greater urgency and effectiveness and is ready and
willing to assist. It recognises that there will be difficult
trade-offs for all economies.
participants consider that this forum was valuable. It
contributes "grass roots" views into the APEC trade processes.
It should be repeated.
STRENGTHENING THE MULTILATERAL TRADING SYSTEM
some tariffs in APEC are too high and it’s hard to see APEC’s
successes (ETM exporter). Business needs more effective action
to reduce tariffs, and soon. The WTO processes are too slow and
the delay is costing APEC economies and consumers.
push ahead with EVSL and work towards multilateral support for
the ATL initiative.
speed up work to eliminate market distorting measures such as
export and capacity subsidies especially in the agriculture
sector. Work to reduce tariff peaks in the agriculture sector,
eliminate non-tariff barriers to trade such as the use of
phytosanitary restrictions (eg. bananas, pineapples and mangoes
from the Philippines into Australia and the United States), and
remove quantitative restrictions.
improve the WTO’s dispute settlement mechanism - make it more
robust and effective.
increase APEC’s focus on knowledge based industries by promoting
initiatives that develop people and eliminate distorting
taxation incentives.
Leaders and Ministers must implement what has already been
agreed in the area of e-commerce in APEC and broader forums
(such as the WTO in the area of telecommunications). Avoid
imposing additional restrictions on e-commerce - regulations,
duties, taxes and non-tariff barriers. Emerging technologies
should be encouraged.
review anti-dumping policies.
support the use of regional agreements to facilitate WTO
processes.
Trade Facilitation issues
better communicate APEC’s work on trade facilitation in order to
improve understanding and increase support from business and
others for this work, which is important.
improve the ease of business travel by simplifying arrangements
and reducing the amount of paperwork associated with moving
people on short term assignments. Urge all APEC economies to
join the APEC Business Travel Card Scheme.
reduce the compliance costs associated with trade, which are
especially severe for SMEs, through improved cooperation in such
areas as customs and standards. Existing processes are unduly
complex and inconsistent and APEC’s progress is too slow. Also
cross border costs are often arbitrary, too high, changeable and
not appealable.
modernise and harmonise customs systems across the region
including by establishing electronic data interchange systems
and shared data banks. Harmonise product and commodity
classifications. Simplify and harmonise customs procedures,
guidelines and documentation requirements. Benchmark progress
against best practice standards. Again, progress is too slow.
improve coordination of APEC work on electronic commerce and
recognise the role of the private sector in leading the work
agenda in this area. Needs more effective ministerial
involvement/leadership.
there are no borders in e-commerce but there are in legal
systems. APEC should intensify work on cross-border fraud and
virus contamination issues associated with electronic commerce.
This is an area of increasing significance and cross-border
enforcement is essential.
work towards harmonising qualifications and recognising skills
acquired in the region.
the complexity and inconsistency of tax systems is a major
problem.
STRENGTHENING THE FUNCTIONING OF MARKETS
encourage a more competitive and less intrusive market
environment by implementing "competition policy" in the broader
sense. Open markets are the strongest.
adopt competition and regulatory principles in APEC to assist
with the creation of such an environment. Ensure these
principles are discussed with business.
support the creation of a more competitive market environment by
building capacity and strengthening institutions in developing
economies.
use a partnership between the government and the private sector
to improve transparency. Better transparency has many benefits.
help improve transparency by reforming government procurement
systems. Work to harmonise regulatory regimes.
liberalise international aviation rights and air cargo/freight
services - 40 per cent of world trade (by value) is by air.
open markets to imports as a primary source of competition.
provide transparent and consistent treatment to foreign
investors.
limit the activities of export monopolies and cartels in
international markets. Competitive pricing of goods and services
is essential. Governments should eliminate the fixing of prices
and market shares.
OTHER ISSUES
improve and strengthen intellectual property rights in the
region especially in the area of biotechnology (genetic
patterns). APEC needs an integrated, consistent process. Patents
on naturally invented products should only be granted with
caution. The desirability of patents for software also needs to
be examined. Copyright is preferable.
better communicate APEC’s achievements and actively promote the
benefits of trade and investment liberalisation. Innovative
approaches are required. 24 hours in the life of APEC? Rethink
the role and involvement of the media in APEC meetings.
improve and build on the way APEC operates. Assist APEC members
to liberalise trade and investment through economic and
technical cooperation. Focus more on implementation. Identify
ways for business people across the region to network and drive
APEC’s agenda. Work in ways that encourage people to bring
creative ideas to the table. Business should be involved in peer
reviews of APEC Individual Action Plans.
develop innovative models to address environment, labour and
human rights but don’t link them to trade issues and penalise
developing economies.
strengthen monetary/financial systems in the region to assist
stability in currencies.
public sector charges are often excessive and unpredictable.
For further information, contact
the Director (Public Affairs), APEC Secretariat, Singapore.
Telephone: (65) 276 1880; Fax: (65) 276 1775; Email:
ccj at mail.apecsec.org.sg
Please also check the website for APEC documents and other
information:
http://www.apecsec.org.sg
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