Automotive Dialogues - Asia-Pacific Economic Cooperation

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The automotive industry is a vital sector of global trade. In recent years, automotive products have accounted for ten percent of global merchandise trade. The APEC Automotive Dialogue serves as a forum for APEC Member Economy officials and senior industry representatives to work together to map out strategies for increasing the integration and development of the automotive sector within the region. The Automotive Dialogue (AD) was also established in recognition of the crosscutting nature of the automotive industry and the broad benefits to many economies of trade liberalization and facilitation in this sector. APEC public-private sector dialogues are seen as a way of improving mutual understanding for developing future policy and enhancing the competitiveness of these sectors.

The AD participants discuss the current status of the auto sector in the Asia Pacific region, identify existing barriers to growth, and develop effective mechanisms for APEC economies to cooperate in addressing and reducing these impediments.

The goals of the AD are to engage participants in cooperative efforts to foster the growth and development of the regional auto industry and to provide recommendations for action to APEC Trade Ministers. In 2007, active members included Australia, Canada, China, Indonesia, Japan, Korea, Malaysia, Mexico, the Philippines, Chinese Taipei, Thailand, Viet Nam and the United States.

The AD first met in 1999 in Indonesia and has continued to meet every year since then.

During the 9th Automotive Dialogue in Melbourne, Australia (17-20 April 2007), the respective Chairs reported on developments in their groups.

Achievements

Road Safety Initiative
The AD held a Road Traffic Safety Summit in Adelaide, Australia on March 28, 2007. The event featured presentations by leading authorities from various international organizations and a number of AD participating economies. Topics included road safety and its economic and public health implications. Speakers also discussed targeted road traffic safety programs being implemented in APEC Member Economies that are effective and have the potential to make a significant difference in injury and fatality rates.

Air Services Arrangements in the APEC Region
While there is strong evidence of reasonable levels of market growth in largely adverse circumstances, this growth has taken place with different degrees of liberalization, APEC members found at the completion of the project, "Progress on Liberalization of Air Services Arrangements in the APEC Region, 1995-2005". Based on the data available, the study found that, in general, APEC economies are moving toward more liberal provisions in the 310 air service agreements they have with each other. The study will facilitate APEC economies to consider practical ways to monitor progress and keep moving forward liberalization of air services.

Current Activities

During the 16th meeting of the Automotive Dialogue Steering Committee, which was held in Singapore from 14-16 November 2007, members discussed proposed priorities for 2008 including the following key themes:

Consideration and development of FTA model measures for the automotive industry, including opportunities for increased harmonization of preferential Rules of Origin (ROOs).
Support for SME development and opportunities for increased regional economic integration.
Environmental imperatives facing the automotive industry, including the development of harmonized standards for fuel quality and the implications of increased use of biofuels.
The importance of protection of intellectual property rights through promotion of best practices in the automotive sector.

Harmonization of Regulations and Road Safety Working Group
The Working Group agreed to become more active in the area of fuel harmonization, including bio-fuel compatibility.

Customs and Trade Facilitation Working Group
A Customs best practices initiative is being pursued by the AD and the Sub-Committee on Customs Procedures (SCCP). The meeting recognized that the AD should gain support for the expedited clearance and periodic filing initiatives. It was also agreed the group undertake a new initiative to address Rules of Origin issues relating to FTAs, with an emphasis on issues associated with the change in tariff classification (CTC) method.

Market Access Working Group
The group agreed that the future market access work program should focus on three key priorities:

Monitor and review the implications of efforts to reinvigorate WTO Doha Development Agenda negotiations;
Re-examine the implications of different rules of origin regimes in RTAs/FTAs for the automotive industry in the Asia Pacific region and consider the prospects and potential advantages of increased harmonization of these arrangements; and
All participating economies were encouraged to submit up-to-date automotive industry profiles.

Intellectual Property Rights Working Group
Member economies recognized the importance of addressing counterfeit problems because IPR infringement products have negative impacts on human health, the environment and the healthy development of the automotive industry.

A seminar on best practices by APEC members in IPR protection was proposed. The objectives of the seminar are: (i) to increase the awareness of IPR issues among relevant government officials and the public in APEC Member Economies; and (ii) to share Members' experiences and to deepen understanding of Members' efforts through discussions.

APEC Port Services Network Initiative
The APEC Port Services Network Initiative integrates various sectors in shipping business, facilitates convenient and secure cargo transportation, enhances exchange and cooperation among ports and related sectors and promotes their development, improves efficiency and security of logistics system, and stimulates trade and investment in APEC region.