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.
Electronic Commerce
22. Ministers welcomed the report of the Task Force on Electronic Commerce
and noted the progress of work in both the Task Force and other APEC sub-fora.
23. Ministers endorsed that the second stage of the work programme which would
include possible development of principles and practical cooperative activities
for promoting the use of electronic commerce in the region, recommendations
on technical cooperation and capacity-building activities, including on public
sector use of electronic commerce, as well as outreach and training programmes.
Ministers also endorsed the programme of information exchange and technical
cooperation to address the "millennium bug/Year 2000" problem and
to identify impediments to electronic commerce in the region.
24. In advancing the work programme, Ministers requested the Task Force to
take into account:
- the views of the private
sector;
- differing levels of
development in member economies; and
- the need to avoid duplication
of work in both APEC and international fora.
Supporting the Multilateral Trading System
27. Ministers expressed satisfaction with the outcomes of the Second WTO Ministerial
Conference and welcomed the agreement to embark on a work programme which include
the implementation of existing Uruguay Round Agreements, the built-in agenda,
and recommendations concerning other possible future work on the basis of the
work programme initiated in Singapore and recommendations on other matters proposed
by members. In this regard, Ministers welcomed the Statement presented by the
APEC Chair at the Conference, which underlines APEC's commitment to open regionalism
and multilateral trading system.
28. Ministers recognised the importance of APEC's on-going programme of activities
which support work in the WTO, in particular seminars and training activities
on the implementation of WTO agreements such as customs valuation, subsidies
and CVD, TRIPs and Services. They agreed that these activities should be continued.
Ministers also agreed that APEC's on-going information exchange on electronic
commerce would be an important contribution to the WTO.
29. In recalling APEC's role in ITA I, Ministers called for a successful conclusion
of the ITA II, with a balanced outcome that takes into account interests and
concerns of members.
ABAC
30. Ministers welcomed the briefing by Mr. Timothy Ong on the 1998 priorities
of ABAC and confirmed APEC's intention to continue to work closely with ABAC.
Ministers noted ABAC's view on APEC's work in EVSL, electronic commerce and
APEC action plans. ABAC acknowledged the need for capacity building to complement
APEC's liberalisation efforts.
31. Ministers' confirmed that APEC fora have responded positively to the recommendations
contained in ABAC's 1997 Report to Leaders in the areas of promoting cross-border
flows, enhancing private investment in infrastructure and access to capital
as well as in implementing economic and technical cooperation. Ministers expressed
their desire to continue to work closely with ABAC for liberalising and facilitating
trade and investment in the region. Minister also called upon ABAC to reach
out to domestic business groups including small businesses so that APEC activities
would permeate through a broader cross-section of the business sector.
Other Matters
32. Ministers welcomed remarks from members-designate, Peru, Russia and Vietnam
on their preparations to assume full membership in APEC in November. Ministers
also received reports from representatives of the Pacific Economic Cooperation
Council (PECC), the South Pacific Forum (SPF) and the Association of South East
Asian Nations (ASEAN).
