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A. OVERVIEW

1. INTRODUCTION

The APEC Committee on Trade and Investment (CTI) coordinated the preparation of action plans which address the Collective Actions contained in 14 of the 15 issue areas of Part 1 (C) of the Osaka Action Agenda (OAA). It contributed too to the remaining area, which was coordinated by the Economic Committee. These Collective Action Plans (CAPs) are intended both to progress activity in each area, as well as to provide a means of monitoring and reporting the achievement of objectives.

The OAA embraces a broad and diverse range of issues, some of which (eg competition policy, deregulation, intellectual property) are among the "new wave" of trade liberalisation issues. Others (eg Customs procedures, standards and conformance, government procurement) are issues of long standing in which the CTI has already the considerable experience of dedicated sub-groups. Rather than impose a rigid and common reporting format, therefore, Convenors were appointed to progress the preparation of CAPs for each of the issue areas and, within certain guidelines, were given flexibility to develop reporting matrices which reflect the nature and stage of development of each issue.

The CTI met five times in the course of 1996, always in association with meetings of its sub-groups, addressing not only CAP reporting matrices but also progressing the considerable body of work for which the OAA calls. There has been a constructive interplay between issues of form and substance as a result, and debates on the design of CAP reporting matrices have entailed thorough discussion of underlying issues. Given that the CAP reporting process will be now rolled-over annually to create "living" documents, the sharing of information and perspectives that it requires should prove to be of ongoing value.

Section B comprises in each case the relevant summary matrix and an associated report from the APEC member which has been acting as Convenor.

The CAP reports have in common the use of a matrix format which identifies the participation of individual APEC members in particular Collective Actions. They also provide an indication of time-frame. The CAP reports on different issue areas nevertheless vary in important respects. Some (eg Customs, standards and conformance, investment) are highly detailed, reflecting work undertaken already by CTI sub-groups in developing comprehensive action programmes in their respective areas. Others (eg tariffs, non-tariff measures, rules of origin) are newly introduced as specific items on the CTI agenda and, in this initial year, adhere quite closely to the text of the OAA. Several (eg intellectual property, business mobility, dispute mediation) adopt a narrative approach to describe the actions of APEC member economies, while a few (eg UR implementation, government procurement, rules of origin) summarise implementation steps submitted by member economies.

These variations are to be expected in the initial year of a new process requiring detailed consultation between 18 member economies over 15 diverse issue areas. A review will be conducted in early 1997, however, to see if experience might not suggest ways in which greater standardisation could be introduced in the future. CTI members will be asked also to consider how best to achieve a more comprehensive coverage of the issue areas for which the Committee is responsible.



2. OUTPUT AND EXPECTED BENEFITS

Although APEC members have adopted a careful and measured approach to the initial year of the CAP process, the content of CAP formats reveal an encouraging level of APEC "tangible outputs" in the short term. They are listed below, together with a notation of the expected benefits which will result.

Tariffs (convened in association with Non-Tariff Measures)

  1. Output
    • In 1997, an APEC database of Customs information and the applied tariffs of member economies which will be publicly accessible by electronic means (eg Internet, CD-ROM)
    • In 1998, an expanded APEC database containing information and data on Customs, tariffs, trade flows and non-tariff measures
    • In 1999, a submission to APEC Ministers, based on consensus among members, listing priority sectors in which the progressive reduction of tariffs and non-tariff measures may have a positive impact on trade and economic growth, or for which there is regional industry support for early liberalisation
  2. Expected Benefits

Additional transparency will improve the knowledge of APEC members about the regional trading environment, assist policy development and facilitate trade by enabling businesses to enhance their understanding and to access information at lower cost. The APEC database will be the first to contain information on applied (as opposed to bound) tariff rates. When expanded to include information on trade flows and non-tariff measures, the database will have additional value as a tool to assist all APEC members to achieve their free trade and investment goal.

Non-Tariff Measures (convened in association with Tariffs)

  1. Output
    • In 1998, a list of measures recognised as non-tariff impediments to trade among APEC economies and a list of products affected by them
    • In 1998, an expanded APEC database containing information and data on Customs, tariffs, trade flows and non-tariff measures
    • In 1999, a submission to APEC Ministers, based on consensus among members, listing priority sectors in which the progressive reduction of tariffs and non-tariff measures may have a positive impact on trade and economic growth, or for which there is regional industry support for early liberalisation
  2. Expected Benefits

Additional transparency will improve the knowledge of APEC members about the regional trading environment, assist policy development and facilitate trade by enabling businesses to enhance their understanding and to access information at lower cost. The APEC database will be the first to contain information on applied (as opposed to bound) tariff rates. When expanded to include information on trade flows and non-tariff measures, the database will have additional value as a tool to assist all APEC members achieve their free trade and investment goal.

Services

Energy

  1. Output
    • In 1996, adoption by Ministers of 14 non-binding energy policy principles
    • In 1996, phase II of the Power Infrastructure Initiative, aimed at identifying policies and institutional arrangements conducive to facilitating business sector investment in power infrastructure
    • In 1997, phase III of the Power Infrastructure Initiative, involving implementation of the work programmes of the Ad Hoc Business Forum and the Electricity Regulators' Forum, endorsed by Ministers, to mobilise capital for power infrastructure investment
  2. Expected Benefits

Huge amounts of investment capital will be required in the power sector over the period to 2010 to meet the rapid growth in demand for electricity. "Traditional" sources of investment capital - government budgets and multilateral lending agencies - will be inadequate to meet these investment requirements, and mobilising business sector investment will be crucial to ensure that electricity supply does not act as a bottleneck to economic growth. The business sector has clearly indicated that the level of investment provided will depend on the success of electricity supply industry reforms and associated policies.

Transportation

  1. Output
    • In 1996, completion of Phase III of the Road Transportation Harmonisation Project to analyse 51 priority vehicle design features subject to regulation in the region
    • In 1996, establishment of an expert group on the privatisation of transportation infrastructure projects
    • In 1996, EDI messaging trials in 10 APEC economies
    • In 1996, completion of Phase III of the Study of Transportation Congestion Points, including production of a "best practices" manual outlining policies to alleviate transportation congestion
    • In 1996, an options paper on more competitive air services for consideration by Transport Ministers
    • In 1996, completion of Phase I of the Seafarers Project evaluating the supply and demand of trained seafarers in the region
  2. Expected Benefits

The Road Transportation Harmonisation Project will lead to greater transparency of road vehicle standards and will identify areas where standards can be harmonised and MRAs agreed, facilitating trade in vehicles. The EDI messaging trials will identify difficulties and problems businesses encounter in using EDI for international trade and transport, enabling wider use of EDI for international regulatory and commercial purposes. The Congestion Points Study will result in the identification of problems affecting the movement of goods and people throughout the APEC region, and the "best practices" manual will provide examples and guidelines that can be used to alleviate congestion. The eight options identified could lead to the provision of more competitive air services in the region. By identifying any imbalances in the demand for and supply of seafarers, APEC will improve the efficiency of sea transport and improve trade.

Telecommunications

  1. Output
    • In 1996, agreement by 16 APEC economies to conform by 1998 to the APEC Guidelines for Trade in International Value-Added Network Services
    • In 1996, adoption of a reference list of elements of a fully liberalised telecommunications services sector expected to be present in each APEC economy by or before 2010/2020
    • In 1997, development of a model MRA on conformity assessment and implementation on an elective basis
  2. Expected Benefits

Improved harmonization of telecommunications standards and conformance will remove impediments to the telecommunications industry. Liberalisation of telecommunications services markets will enhance the development of APEC members and provide improved access to information technology.

Tourism

  1. Output
    • In 1996, a seminar (Chile) on overcoming impediments to tourism movements and investment in tourism
  2. Expected Benefits

Tourism is an important sector for APEC economies and has the potential to become an even greater contributor to the economic growth of the region. Removing impediments to tourism will promote this.

Other Services

  1. Output
    • In 1996, work commenced on developing a work programme to seek collective actions in sectors other than the four covered by APEC Working Groups, to begin with information exchanges on barriers and impediments to services trade
  2. Expected Benefits

The services sector is a large and expanding component of the economies of all APEC members. Increased transparency, and improved understanding of services-related issues, will assist APEC to meet its targets for liberalising and facilitating all services trade in the region.

Investment

  1. Output
    • In 1996, publication of a new edition of the APEC Investment Guidebook in both electronic and hard copy formats
    • In 1996, organisation of a business symposium in Tokyo (September).
  2. Expected Benefits

The collection and exchange of information will enhance the understanding of the regional investment environment on the part of APEC members and business communities, and expand members' knowledge of the priorities of the APEC business sector. The transaction costs of individual investment decisions will be reduced by the availability of authoritative and comparable information on the investment regimes of all APEC members.

Standards and Conformance

  1. Output
    • In 1996, undertake alignment of member economies' standards with international standards in the following priority areas: electrical and electronic appliances (airconditioners, televisions, refrigerators, radio and its parts, and video apparatus); food labelling; and rubber gloves and condoms
    • In 1996, completion of an APEC guide on alignment of member economies' standards with international standards
    • From 1996, participation in standardisation activities of international standardisation bodies (ISO & IEC) in the following priority sectors: building and construction and hazardous area equipment
    • In 1996, publication of the Report on Case Studies of Alignment with International Standards
    • In 1996, completion of APEC Mutual Recognition Arrangement on Conformity Assessment of Foods and Food Products (APEC Food MRA)
    • In 1996, completion of Arrangement for Exchange of Information on Toy Safety between APEC Member Economies
    • From 1996, establishment of and participation in a network of mutual recognition arrangements in voluntary sectors
    • In 1996, adoption of a Mid-term Technical Infrastructure Development Programme (1996-2000)
    • In 1996, an APEC Seminar on Bulk Pharmaceuticals in Vancouver (January), an APEC Seminar on Electromagnetic Compatibility in Singapore (August), and the first APEC Conference on Standards and Conformance in Manila (October)
    • In 1997, a survey on technical infrastructure development for measurement standards, laboratory management and accreditation; inspection bodies' quality systems, and certification bodies accreditation
    • From 1997, implementation of a Partners for Progress (PFP) project on standards and conformity assessment schemes
    • By 1997, a survey to assess the availability of, and access to, standards and conformance information in APEC member economies with a view to establishing a database and network system.
    • In 1997, an APEC Seminar on Environmental Management Standards
  2. Expected Benefits

Alignment with international standards and the achievement of MRAs will reduce substantially the costs of cross-border trade among APEC members. They will assist also in reducing technical barriers to trade. While all business sectors will benefit, SMEs stand to gain in particular because of the reduced complexity of trade-related technical procedures. Consumers will also benefit with the availability of better quality products at competitive prices.

Customs Procedures

  1. Output
    • In 1996, harmonisation of tariff nomenclature among APEC members to the six digit level through adoption of the WCO Harmonised System
    • In 1996, Customs seminars on computer applications (Singapore, August) and risk management (China, September)
    • In 1996, a direct Customs-Industry Dialogue through an exhibition and symposium in Manila 15-16 October
    • In 1997, adoption of the principles of the WTO Valuation System
    • From 1997, implementation of a Partners for Progress (PFP) project on standards and conformity assessment schemes
    • By 1997, a survey to assess the availability of, and access to, standards and conformance information in APEC member economies with a view to establishing a database and network system
    • In 1997, an APEC Seminar on Environmental Management Standards
    • In 1998, a publicly available information manual on APEC members' Customs laws, regulations, administrative guidelines, procedures and rulings
    • In 1998, adoption of the principles of the Kyoto Convention
    • By 1999, computerisation of APEC Customs procedures via UN/EDIFACT
    • By 2000, introduction of an Advance Classification Ruling System
    • By 2000, adoption of the principles of the WTO TRIPs Agreement
    • By 2000, clear appeal procedures introduced by all APEC members
    • By 2000, facilities for temporary importation provided by all APEC members.
  2. Expected Benefits

Customs procedures have an immediate and tangible effect on the cost of cross-border trade in goods. The simplification of procedures and efficiency gains resulting from APEC work will reduce such costs and benefit both traders and consumers. They will also facilitate trade participation by a broader cross-section of enterprises, and SMEs in particular, through a reduction in the complexity of transactions. The direct involvement of the private sector in the APEC process will accelerate simplification and harmonisation goals.

Intellectual Property Rights

  1. Output
    • In 1996, compilation of a Contact Points List and, from 1997, dissemination of the list on the APEC Secretariat Internet Home Page
    • In 1996 and 1997, a scheduled programme of workshops and symposiums, including the APEC Industrial Property Rights Symposium in Tokyo (August 1996)
    • In 1996, a survey of domestic IPR legislation
    • In 1996, a study of trademark systems in each member economy for the purpose of facilitating the application of trademark registration in multiple APEC economies
    • In 1997, an exchange of information on current practice concerning well-known trademarks, to study and explore ways in which the protection of well-known marks can be further enhanced
    • In 1997, a survey of enforcement systems to develop principles for enforcement
    • In 1997, a survey on technical cooperation to promote implementation of the TRIPS Agreement
    • From 1997, a Partners for Progress (PFP) project on Industrial Property Rights, with the first training project to be held in Thailand (February-March 1997)
  2. Expected Benefits

The collection and dissemination of information will improve the understanding of IPR issues among APEC members and provide a basis for a programme of technical cooperation to facilitate TRIPS implementation. It will also support ongoing work in the WTO and WIPO. Enhanced information on IPR contacts will facilitate follow-up of specific issues as needs arise.

Competition Policy (convened in association with Deregulation)

  1. Output
    • In 1996, a second workshop of APEC experts convened in Davao (August) to discuss competition policy and deregulation issues
    • From 1997, implementation of APEC Partners for Progress Technical Assistance Seminars on Competition Policy.
  2. Expected Benefits

Improved transparency and understanding of the inter-relationship between competition policy and law, deregulation and other policies related to trade and investment will help APEC members to enhance the competitive environment in the region, to the benefit of producers, traders and consumers.

Government Procurement

  1. Output
    • In 1996, development and distribution to APEC members of a list of Government Procurement (GP) contacts
    • In 1996, establishment of an APEC GP Homepage on the Internet with linkages to the GP Homepages of individual members where available
    • In 1996, an APEC seminar on GP Agreements convened in Manila (October)
    • In 1997, completion of a survey on the GP systems of APEC members and arrangements to publish APEC information on GP
    • In 1997, an APEC Seminar on GP Bid Challenges Procedures (Chinese Taipei) and a GP Training Course (China).
  2. Expected Benefits

APEC work will enhance the transparency of members' GP regimes, facilitate access to GP opportunities, and contribute to the evolution of work on government procurement in multilateral fora.

Deregulation (convened in association with Competition Policy)

  1. Output
    • In 1996, coverage of the benefits of regulatory reform in a workshop of APEC competition policy experts convened in Davao (August)
    • In 1997, reports from individual economies covering reforms to their domestic regulatory regimes and remaining regulatory barriers through the IAP process
  2. Expected Benefits Improved transparency and understanding of APEC economies' regulatory regimes will assist in correcting distortions which impact on free and open trade and investment in the Asia-Pacific region.

Rules of Origin (Policy, convened in association with UR Implementation)

  1. Output
    • In 1996, a seminar on rules of origin convened in the Philippines (August)
    • In 1996, member assessments of compliance with procedural obligations under the WTO Agreement on Rules of Origin, including notification responsibilities
    • In 1997, publication of a comprehensive Guidebook on preferential and non-preferential rules of origin
  2. Expected Benefits

APEC initiatives will enhance understanding of the policy and practice of rules of origin, result in comprehensive information being made available to the private sector, and will help to ensure implementation of the WTO Agreement on Rules of Origin.

Dispute Mediation

  1. Output
    • In 1997, publication of a list of the arbitration, mediation and conciliation services available in APEC member economies
  2. Expected Benefits

The availability of comprehensive information on alternative dispute resolution services will assist in the amelioration of disputes between private parties in the Asia-Pacific region, and between private parties and APEC economies.

Mobility of Business People

  1. Output
    • In 1996, publication of an APEC Business Travel Handbook providing information on the short-term entry and visa arrangements of APEC member economies.
  2. Expected Benefits

Business travellers in the APEC region will benefit from readily available information on business travel requirements. Information exchange on business mobility issues will improve understanding of member economies' regulatory regimes and assist dialogue on streamlining and accelerating the mobility of business people.

UR Implementation (convened in association with Rules of Origin Policy)

  1. Output
    • In 1996, convening of UR Implementation Seminars on Agriculture (Mexico City, March), SPS/TBT (Manila, May), and the WTO Anti-dumping Agreement (China, December).
  2. Expected Benefits

The 1996 seminars complement a series of four seminars held in 1995 on different UR Agreements (GATS, Rules, TRIPs and ROO). Together, they will assist APEC members in understanding and meeting UR commitments and constitute an important element in APEC's contribution to the WTO process.

Information Gathering and Analysis

  1. Output
    • In 1996, activation of a Trade and Investment Data Database
    • In 1996, publication of a report on Foreign Direct Investment, including coverage of Competition Policy and Intellectual Property issues
    • In 1997, research on the significance of formal and informal sub-regional trading arrangements
    • In 1997, a report of case studies on member economies' investment rule-making and liberalisation, and their impacts on specific industries
    • In 1997, an econometric model based on a general equilibrium framework and qualitative analysis of the economic impact of trade liberalisation under the Manila Action Plan for APEC (MAPA)
    • In 1997, publication of the 1997 APEC Economic Outlook which will include coverage of the benefits of trade and investment liberalisation
  2. Expected Benefits

These outputs will provide information required to implement fully several areas of Part 1 (C) of the OAA, and will also provide APEC members with information needed to assess progress and guide the direction of future work. They will also help APEC members to demonstrate to wider constituencies, including the business sector, the returns accruing from the progressive implementation of the OAA.



3. CONCLUSION

In summary, 1996 has been a valuable period of development of the new and important procedures arising from the OAA. There has been a positive response to the transition of the APEC process from design to execution. Expectations of initial year outcomes have been realistic, but tangible results are evident even at this stage. They are likely to be increasingly attainable as the CAP process becomes less novel and more routine. Experience in the initial year will be evaluated, with a view to refining future formats and procedures.

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