Ministers Support Launch of New WTO Round
Dr Lockwood Smith
New Zealand Minister for International
Trade
Chair, APEC Ministerial Meeting
Ministers
Support Launch of New WTO Round
APEC Trade Ministers
today took another significant step towards the launch of a
new Round of multilateral trade negotiations at the World
Trade Organisation.
The Ministers attending the APEC
Ministerial Meeting agreed to support the launch of a new
WTO Round. They also encouraged the acceleration of
accession negotiations for APEC¡¦s non-WTO members, and
agreed that these economies should be able to participate in
some capacity in the forthcoming WTO Round.
APEC
Ministerial Meeting Chair Dr Lockwood Smith said the outcome
was a positive reaffirmation of APEC¡¦s resolve, unity and
vision for the multilateral trading system.
"I am pleased
that such a broad ranging outcome has been achieved.
Ministers have had extensive discussions on many aspects of
the contribution that APEC can make to the launch of the WTO
Round in Seattle this year.
"We have identified ways in
which the WTO can achieve results at Seattle and can build
on these progressively in the course of a short focused
three year round. Key short term outcomes for Seattle are
the commitments on accelerated tariff liberalisation,
extending the moratorium on electronic commerce, and efforts
to reach an agreement on transparency in government
procurement.
Ministers have indicated their support for
advancing the WTO agenda on the basis of results being
implemented as a single package. They have also agreed that
this does not preclude early results on accelerated tariff
liberalisation where the aim is to conclude early
liberalisation linked to single package by the end of 2000.
Sectors include fish and forests, which are of key interest
to New Zealand.
Other significant outcomes include the
recommendation to leaders for the abolition of export
subsidies.
"The APEC Ministers¡¦ commitment on services
and industrial tariffs foreshadows a very positive approach
to the market access elements of the new Round. We hope this
will be reciprocated by others.
"APEC¡¦s blend of
developed and developing, large and small economies lends
particular credence to its words on the needs of developing
economies in the WTO," Dr Smith said.
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Attachment: Why the Ministerial
Agreement on WTO Issues is Important
Attachment
Why
the Ministerial Agreement on WTO Issues is Important
„h
Ministers have agreed to support the launch of a new WTO
Round. This marks a significant forward movement by a number
of economies who in June were unable to commit to anything
more than new negotiations.
„h They have encouraged an
acceleration of accession negotiations for APEC¡¦s non-WTO
members and have agreed that they should be able to
participate in the forthcoming WTO Round. The acceleration
question is particularly important for the China and Chinese
Taipei accessions that are very close to conclusion.
„h
They have agreed that the negotiations should be based
around the concept of a single package under which the
agenda is decided at Seattle and those issues agreed for
inclusion are then negotiated with outcomes being finalised,
bound and fully implemented together. This was resisted by
several economies until this meeting. The outcome ensures
that no economy can pocket an early result and then walk
away from difficult issues. It does not however preclude an
early result from the negotiations so long as this is
related to the single package.
„h Ministers have agreed
to negotiations on industrial tariffs being comprehensive.
This means that all tariffs on non-agricultural products
will be subject to negotiation without exception. Again
several economies had not agreed with this position before.
This outcome increases the potential value of the result of
the industrial tariff negotiation and therefore increases
the potential ambition of a result on agricultural tariffs.
This also answers one of the final questions from the EU
about the APEC position in this area. The EU has been
requesting that APEC move to such a position.
„h APEC
Ministers will support the extension of the current
moratorium on duties on electronic commerce transactions.
Given the growing importance of such transactions for New
Zealand and the global economy this is a very important
decision as it will allow this area of activity to continue
its phenomenal growth without interference from Government
duties. This will help business and consumers also.
„h
They also supported efforts to reach an agreement on
transparency in Government procurement. Many WTO members
have non-transparent regimes that make it difficult to
access a huge market. On average economies spend 15% of GDP
on Government Procurement worth globally US$3.1 trillion
each year.
„h The outcome on agricultural tariffs, NTMs
and export subsidies was announced yesterday. On tariffs and
non-tariff measures Ministers will be recommending to
leaders that APEC would actively and constructively
participate in the forthcoming agricultural negotiations in
accordance with Article 20 of the WTO Agriculture Agreement.
This sets an objective of substantial progressive reduction
in support and protection. Tariffs on agricultural products
remain high and have a very restrictive impact on trade.
Non-tariff measures such as quotas are also a major
difficulty for agricultural exporters.
„h On export
subsidies they will be recommending that APEC convey to the
WTO Membership APEC¡¦s support for the abolition of
agricultural export subsidies and unjustifiable export
prohibitions and restrictions. With all of APEC calling for
the abolition of export subsidies it sends a powerful
message to the EU which is the only significant entity
advocating the continuing use of such measures. Export
subsidies give subsidised product an unfair market share,
distort production opportunities including for developing
economy farmers and depress global prices. Global export
subsidies in 1998 were US$6.4 billion ($2.2 billion was on
dairy products).
„h On services APEC is now supporting a
comprehensive negotiation for the first time. We have also
highlighted four areas - transportation, tourism,
environmental and energy services where APEC¡¦s work leaves
members well placed to play a particularly influential role
in the forthcoming negotiations.
„h The agreement on ATL
is particularly significant for the fish and forest product
sectors - of key interest to the New Zealand economy. With
the other six sectors - chemicals, energy, environmental
goods, gems and jewellery, medical equipment and toys - the
ATL package in total constitutes 44% of industrial product
tariff lines. APEC is now seeking liberalisation and
implementation commencing before the end of 2000 ie as an
early harvest within the new Round. APEC has recommitted to
a 1999 target for reaching an initial WTO agreement to
deliver this result.
„h The endorsement of the concept
of provisional binding is particularly significant as it
will allow an early result to be achieved at the same time
as tying the result into the single package.
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