Committee on Trade and Investment - Asia-Pacific Economic Cooperation
 

Committee on Trade and Investment

 

Trade and investment liberalisation and facilitation are the cornerstones of APEC's mission and activities, and the Committee on Trade and Investment (CTI) is the coordinating body for all of APEC's work in these areas.

The CTI provides a forum for APEC's 21 member economies to deliberate trade and policy issues. It works to reduce impediments to business activity in the areas outlined by the Osaka Action Agenda, with the objective of helping APEC economies achieve the Bogor Goals of free and open trade and investment.

The CTI oversees:
  • Nine sub-groups: Business Mobility Group (BMG), Electronic Commerce Steering Group (ECSG), Group on Services (GOS), Intellectual Property Experts' Group (IPEG), Investment Experts' Group (IEG), Market Access Group (MAG), Sub-Committee on Customs Procedures (SCCP), Sub-Committee on Standards Conformance (SCSC); and
  • Three industry dialogues: Automotive Dialogue (AD), Chemical Dialogue (CD) and Life Sciences Innovation Forum (LSIF).
The CTI was established in November 1993 by the Declaration of an APEC Trade and Investment Framework. APEC Leaders and Ministers direct its work and APEC Senior Officials provide guidance. The scope of the CTI's work was expanded and further clarified by the Osaka Action Agenda in 1995.

Achievements

Average applied tariffs in APEC economies have been reduced from 16.9 percent in 1989, when APEC was established, to around 6.6 percent in 2008. APEC's total trade (goods and services) has increased from US$3 trillion in 1989 to US$17 trillion in 2008. Intra-APEC merchandise trade (exports and imports) has grown from US$1.7 trillion in 1989 to US$9.3 trillion in 2008, accounting for 65 percent of APEC's total merchandise trade.

In 2009, the CTI focused on accelerating regional economic integration by reducing at-the-border, behind-the-border and across-the-border barriers to trade. The 2009 CTI Annual Report to Ministers outlines advances made by the Committee. Those advances and other achievements during 2010 include:

  • The launch of an APEC Pathfinder for Self-certification of Origin which seeks to reduce the administrative burdens and costs associated with navigating complex rules of origin documentation and procedures when utilising FTAs. Nine economies are now fully participating in the pathfinder. They include Australia; Brunei Darussalam; Canada; Japan; Korea; Malaysia; New Zealand; Singapore; and the United States.
  • The endorsement of the APEC Self-Certification of Origin Capacity Building Programme at the second CTI meeting (CTI2) in June 2010. The programme consists of a general workshop and three in-economy workshops aimed at supporting the further participation of APEC economies in the Pathfinder and contributing to the successful implementation for participating economies.
  • The adoption of a set of APEC Elements for Simplification of Documents and Procedures Relating to Rules of Origin (ROOs) by the MAG and the SCCP.
  • Agreement on an APEC Transparency Initiative on Tariffs and ROOs to improve the transparency and accessibility of tariffs and ROO information in APEC economies. The initiative (to be undertaken by the MAG) involves the provision of up-to-date and accurate tariff and ROOs information in English on a designated public website in each member economy. An APEC webpage on Tariffs and ROOs ("WebTR") has been created to consolidate links to the individual members' sites in June 2010.
  • The adoption of a Supply-Chain Connectivity (SC) Framework which sets out new work streams to address eight priority chokepoints that impede the smooth flow of goods, services and business travellers in the region. The APEC Policy Support Unit's (PSU) study to improve the flow of goods and services by land, air, and sea has been completed. The study's findings will be used as a basis for future work in the area.
  • Agreement on a Transparency for Ease of Doing Logistics Business initiative which is aimed at (i) raising awareness of the complex regulatory environment affecting logistics companies; and (ii) encouraging economies to make important information about logistics businesses readily available. A website that serves as a repository of information on the region's logistics regulations has been launched (www.logistics.apec.org).
  • Agreement on an APEC Services Action Plan (SAP) which aims to provide common direction and coherence to APEC's work on services trade and to establish a forward work programme that fosters the development of open and efficient services markets in the APEC region. The CTI completed an update of the SAP matrix of actions to reflect the services-related activities underway across the various sub-fora. The updated SAP will assist economies in prioritising and planning future services actions.
  • Agreement on a set of APEC Principles for Cross-Border Trade in Services which will serve as a comprehensive policy framework to support the expansion of services trade in the APEC region.
  • Agreement on an APEC Environmental Goods and Services (EGS) work programme which aims to promote the development of and trade in EGS, by eliminating barriers to trade and investment.
  • The launch of the Environmental Goods and Services Information Exchange (EGSIE), a gateway to access and exchange information on EGS (see http://egs.apec.org/).
  • An update to the 2008 Convergences/Divergences Study on APEC FTAs. The study was expanded to cover 12 additional intra-APEC FTAs/RTAs (i.e. 42 in total) and deepened to include a new chapter on e-commerce1. The updated information can be found at http://www.mincetur.gob.pe/apec_fta/.
  • With assistance from the APEC Policy Support Unit, the completion of several pieces of analytical work relating to CTI's priorities for 2009, including:
    • A study on good regulatory practices for goods and services necessary or desirable for climate change mitigation and adaption.
    • A report on establishing a methodology and selecting key performance indicators (KPIs) for measuring progress in the implementation of APEC's Investment Facilitation Action Plan (IFAP).
    • An interim assessment of the implementation of APEC's Second Trade Facilitation Action Plan (TFAPII) which advised on the appropriate methodologies and approaches to quantify the impact of TFAPII on trade transaction costs, and reviewed progress made at the mid-way point of TFAP II (2008). The final assessment of TFAPII is due in 2011.
  • The Russian Federation joined the APEC Business Travel Card Scheme (ABTC) as a transitional member with the result that all of APEC's 21 members now participate in the scheme.

In 2009, the CTI also held trade policy dialogues (TPDs) to help members better understand the technical and policy aspects of: (i) ROOs; (ii) trade logistics; and (iii) a Free Trade Area of the Asia-Pacific (FTAAP).

1. The other chapters include market access, rules of origin, customs procedures, environment, investment, trade remedies, competition policy, cross-border services, sanitary and phytosanitary measures, technical barriers to trade, government procurement, intellectual property, labour and dispute settlement.


Current Activities

In 2010, the CTI will continue to advance the CTI-related actions outlined in the 2007 Regional Economic Integration (REI) report and in its 2009 Annual Report to Ministers. The Committee met for the second time in Sapporo on 1-2 June 2010 to discuss and progress its work programme focused on advancing REI and priority issues as tasked by Senior Officials, including implementing the APEC new Growth Strategy.

Key elements of this work programme include:

Supply-Chain Connectivity (SC) Framework
  • The CTI created eight focus groups within its Friends of the Chair (FOTC) group on Trade Facilitation to develop action plans that address the eight chokepoints identified for action in the Supply-Chain Connectivity Framework. The focus groups will continue to work on the draft plans in consultation with relevant fora/sub-fora including the Senior Finance Officials' Meeting (SFOM), the Small and Medium Enterprises Working Group (SMEWG), the Telecommunications and Information Working Group (TEL), the Transportation Working Group (TPTWG), the MAG, the ECSG, the SCCP, the SCSC, and the APEC Business Advisory Council (ABAC) with a view of finalising them for consideration at the third CTI meeting (CTI3) to be held in September in Sendai, Japan.

  • The CTI will continue to collaborate with the Economic Committee (EC) and the TPTWG in advancing the SC Framework.

  • The CTI will organise another APEC Supply Chain Connectivity Symposium in the margins of CTI3 from 20-21 September. The 2010 Symposium will garner more inputs from relevant businesses, particularly those from the logistics and transportation sectors, and other APEC working groups will also be invited to share experiences and ideas.

APEC's Second Trade Facilitation Action Plan (TFAPII)
The CTI received progress reports and updates on the implementation of the revised KPIs for TFAPII and for the Authorised Economic Operator (AEO) action plan.

Making Rules of Origin (ROO) More Business Friendly
The CTI continues to encourage additional economies to join the APEC Pathfinder for Self-certification of Origin. A one and a half day workshop is being planned for the last quarter of 2010 to promote understanding on how self-certification works and to build interest in APEC economies to consider implementing self-certification systems.

The CTI and its relevant sub-fora (the MAG and the SCCP) will continue to implement the "APEC Elements for Simplification of Documents and Procedures Relating to ROOs" initiative and the "APEC Transparency Initiative on Tariffs and ROOs."

Environmental goods and services (EGS)
The CTI approved an action plan developed by the FOTC on EGS to implement the 2009 APEC EGS work programme. The work will involve:

  • Identifying a "package" of follow-up actions that would enable economies to enhance sustainable economic development in the APEC region. Three key aspects of this would be to identify: (i) goods and services that, if used more, would enable an economy to contribute to climate change mitigation and sustainable economic development; (ii) concrete steps to encourage the use of climate-friendly and other EGS technologies and to find areas of technology transfer that are of interest to economies; and (iii) capacity-building activities to ensure members, especially developing member economies, are able to develop their EGS sectors and meet sustainable growth goals.

  • Promoting EGS by raising awareness of the differing EGS-related needs of economies; addressing non-tariff barriers and enhancing market drivers for EGS through close cooperation among relevant fora; exploring greater harmonisation and convergence of standards, particularly in energy efficiency; facilitating investment in the EGS sector; and

  • Improving understanding of, and market access for, environmental and climate change mitigation related services.

A TPD on EGS (as proposed in the action plan) will take place in the margins of CTI3 on 17 September to further expand and assess the implementation of the 2009 EGS work programme.

The lead economies (Australia, New Zealand and the United States) continue to develop a proposal for initiating case studies on the EGS markets of several developing APEC economies. With a view to identifying the key EGS policies, market drivers and challenges, these case studies would also better equip economies with knowledge about their own domestic marketplace and how they can better pursue sustainable growth. In this way the CTI's work on EGS will contribute to the sustainable growth component of APEC's new growth strategy.

Investment Facilitation Action Plan (IFAP)
The CTI agreed that the FOTC on IFAP Implementation will continue consulting economies on the recommendations of the PSU study on "Establishing a methodology and selecting KPIs for measuring progress in implementing APEC's Investment Facilitation Action Plan (IFAP)" to determine the way forward.

Convergences/Divergences Study on APEC FTAs
An overview and a matrix of a new chapter analysis on cooperation was completed by Thailand, bringing the total number of chapters analysed to 16. The analysis of the cooperation chapter showed that a broad convergence among the cooperation chapters of the analysed FTAs is highly feasible. Most of the objectives, forms/activities, mechanism/work programme of cooperation are common in content.

The CTI held a TPD on 31 May in Sapporo, Japan on investment and standards/technical barriers to trade (TBT). The TPD contributed to the development of the Road Map on Investment through discussion of (i) the core elements in the work undertaken by the United Nations Conference on Trade and Development (UNCTAD); and (ii) findings of the Convergences/Divergences Study as possible contributions to the development of the APEC Investment Principles. The discussion on standards/TBT was aimed at raising awareness of the gamut of methods in which overcoming Non-Tariff Measures (NTMs) could be facilitated. The need for better alignment of standards and increased understanding through regulator collaboration was emphasised.

Digital Economy and Intellectual Property Rights (IPR)
The CTI will advance the work plan on Digital Economy and IPR that includes IP-related initiatives put forward by the Intellectual Property Experts' Group (IPEG). The CTI will also implement the APEC Digital Prosperity Checklist in collaboration with the Electronic Commerce Steering Group (ECSG). A survey of the Digital Prosperity Checklist will be conducted and results will be shared at CTI3 in September. A workshop focusing on the innovation section of the Checklist and the development of a more detailed 2011 work plan will also be held in the margins of the meeting.

Government Procurement Experts' Group (GPEG)
Noting that there was no quorum at the past few meetings of the Government Procurement Experts' Group (GPEG), the CTI has decided to disband the GPEG and incorporate consideration of government procurement related issues in the Committee's main agenda.

More information about the CTI's work programme can be found on the CTI's sub-fora webpages.

 
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Committee on Trade and Investment (CTI) - Key Contacts

Chair
Ms Mary Elizabeth CHELLIAH
Deputy Director
Ministry of Trade and Industry
100 High Street #09-01
The Treasury
Singapore 179434
Tel: (65) 6332 5748
Fax: (65) 6334 5848
Email: mary_elizabeth_chelliah@mti.gov.sg, Mti_apec@mti.gov.sg

APEC Secretariat
Special Assistant to CTI Chair
Ms Catherine Wong
Director (Program)
Email: cw@apec.org

CTI Coordinator
Mr Takeshi Komoto
Director (Program)
Email: tk@apec.org

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Reviewed on: 5 August 2010