Meeting of Ministers Responsible for Trade
Montreal, Canada
May 8-10, 1997
STATEMENT OF THE CHAIR
We, the Ministers responsible for trade of APEC economies, met in Montreal
from May 8 through 10, 1997 to review progress in APEC work programs and to
identify new initiatives to fulfil directives given by our Leaders in Subic
Bay on liberalization and facilitation of trade and investment, and with a view
to preparing for the meeting of Leaders and Ministers in Vancouver in November.
We also reviewed developments in international trade with a focus on defining
how APEC could best continue to support the multilateral trading system under
the World Trade Organization (WTO).
APEC's Agenda for Trade and Investment Liberalization and Facilitation,
and Economic and Technical Cooperation
Individual Action Plans
Ministers agreed that the Individual Action Plans are key to the implementation
of APEC's trade agenda. The Plans should define the state-of-play of the access
regimes for individual Members, and describe commitments and intentions for
moving to liberalize restrictions, facilitate trade and establish business-friendly
policy regimes. They should describe in a transparent manner future directions
that can guide business and investment decisions.
At Subic Bay, our Leaders committed to improving Individual Action Plans. Ministers
agreed on the importance of this commitment, reaffirming the general principles
enunciated in the Osaka Action Agenda, and ongoing review and assessment of
these plans. Ministers welcomed the engagement of the private sector, particularly
through the APEC Business Advisory Council (ABAC) in this process. To this end,
Ministers agreed on the following course of action:
- Ministers agreed to provide reports, by the target date of August 15, on
actions taken to implement commitments for 1997 set out in Individual Action
Plans, and directed officials to compile a report for our November meeting.
- Ministers agreed to adhere in 1997 to the format guidelines for Individual
Action Plans to enhance the transparency and the comparability of the Plans,
and endorsed the ongoing work of officials to improve the guidelines.
- Ministers agreed to commit to the importance of taking Individual Action
Plans forward progressively and continuously, with effective means to assess
and review them over time. Ministers further agreed to provide information
on improvements to Individual Action Plans by the target date of August 15,
and directed officials to compile a report for our November meeting.
Promoting Liberalization of Trade and Investment
Ministers affirmed that APEC can and should continue to act as a catalyst for
promoting trade and investment liberalization globally. They recalled that at
Subic Bay, Leaders instructed them to:
"... identify sectors where early voluntary liberalization would have
a positive impact on trade, investment, and economic growth in the individual
APEC economies as well as in the region, and submit recommendations to us on
how this can be achieved."
Acting on this instruction, Ministers reviewed ways in which early voluntary
liberalization, complemented by trade facilitation measures and economic and
technical cooperation, in APEC could achieve these objectives and contribute
to multilateral liberalization of trade and investment in a manner consistent
with and complementary to the WTO. Ministers confirmed their willingness to
consider favourably opportunities for voluntary liberalization through Individual
Action Plans.
Ministers acknowledged the importance of a stable and transparent financial
infrastructure to ensure the availability of long-term capital. Accordingly,
they supported fully the commitment of APEC Finance Ministers at Cebu, Philippines
to urge all WTO members to work together towards a full MFN financial services
agreement in the WTO with significantly improved market access and national
treatment commitments from a broad number of participants by December, 1997.
Ministers encouraged offers to be tabled in the negotiations by the July date
established in Geneva. It was recognized that under certain circumstances phase-in
commitments for liberalization within a reasonable time-frame may be needed.
Ministers recalled APEC's leadership that led to the successful conclusion
of an Information Technology Agreement (ITA) and the WTO Agreement on Basic
Telecommunications Services last year. Participants in the ITA agreed to work
together to broaden participation in the agreement and in expanding product
coverage at this fall's review ("ITA II").
Ministers reaffirmed their determination to continue APEC's leadership and
credibility in trade liberalization in accordance with the general principles
set out in the Osaka Action Agenda and in that regard discussed a number of
sectors that might be candidates for early voluntary liberalization. Ministers
agreed to direct officials to examine the merits of pursuing comprehensive liberalization
in such sectors having regard to defining scope and coverage, including those
that support enhanced infrastructure and sustainable development.
Accordingly, Ministers instructed officials to complete their study by the
end of August and to report to us on their findings in sufficient time so that
Ministers would be in a position to make recommendations on specific liberalization
initiatives to Leaders in Vancouver in November. Ministers instructed officials,
in undertaking this work, to have full regard to:
- encompassing, to the
extent possible, tariff and non-tariff dimensions and elements of facilitation
and economic and technical cooperation;
- the fullest possible
private sector input, consultation and support, including through ABAC;
- critical mass, by developing
initiatives supported by significant groups of APEC members, taking into account
the different levels of economic development and diverse circumstances of
APEC member economies and, where appropriate, providing a foundation for participation
beyond our region, and, where appropriate, for incorporation into the WTO.
On receipt of the report, Ministers will work to ensure mutually beneficial
and balanced recommendations for early voluntary liberalization.
Trade Facilitation: Lowering the Cost of Doing Business
Ministers reviewed a range of key APEC activities designed to facilitate trade
and lower the costs of doing business. This is important for all exporters but
particularly benefits small and medium-sized enterprises. Recalling that at
Subic Bay, Leaders instructed Ministers to "...intensify work in 1997 on
simplification of customs clearance procedures, effective implementation of
intellectual property rights commitments, harmonization of customs valuation,
facilitation of comprehensive trade in services, and enhancing the environment
for investment," and agreed to "... align our national standards with
international standards and to recognize each others' national standards,"
Ministers endorsed current APEC activities and work programs, and emphasized
the importance of intensifying efforts, in these priority areas.
Recognizing that simplification and harmonization of customs procedures can
make a major contribution to trade facilitation, Ministers particularly welcomed
and support fully the recommendations from the APEC Customs-Industry Symposium
held May 7-9 in Montreal. They affirmed their commitment to close collaboration
with their Customs colleagues and the business sector in pursuing the agreed
work program. Ministers noted the importance attached by the Symposium to finding
technological solutions to expedite frequent traveller clearance, incorporating
the best practices of business and government. They also noted the announcement
by Hong Kong and Chile of their intention to participate in the project for
an APEC Business Travel Card.
Ministers reviewed a preliminary list of outcomes related to trade facilitation
this year and agreed that it should be made publicly available, noting that
work on trade facilitation engages almost all APEC fora. Ministers instructed
officials to compile a specific set of deliverables, actions, and recommendations
on trade facilitation for their consideration in November. Ministers received
proposals from Japan and Mexico to enhance APEC investment work and from the
Republic of Korea
to establish an APEC Centre for Conformity Assessment. Ministers directed relevant
APEC fora to consider the proposals.
Engaging Business and the Broader Community
Ministers reaffirmed the central role of the business sector in the APEC process,
and expressed their determination to encourage greater business sector participation
in liberalization and facilitation of trade and in economic and technical cooperation.
The results of our meeting as set out above reflect this commitment. Ministers
also received reports from representatives of the Pacific Economic Cooperation
Council (PECC) and the South Pacific Forum (SPF).
Ministers were unanimous in their view that continuing trade and investment
liberalization and facilitation is essential to economic growth and employment
in our economies, and acknowledged their responsibility for helping to promote
a better understanding of these benefits. To this end, Ministers reviewed the
experience and plans of various member economies in conducting economic research,
outreach, and liaison with academic, business and other sectors. With a view
to enhancing communication and dialogue with domestic constituencies, Ministers
agreed to continue to share their experience, to exchange information, and to
identify opportunities for cooperation and collaboration between institutions
and entities engaged in these activities in their respective economies. Senior
officials were asked to carry this work forward.
Ministers confirmed their firm intention to continue to work closely with ABAC
on an ongoing basis. They conducted an extensive exchange of views with representatives
of ABAC on their plans and priorities for 1997.
- We welcome business views on APEC's work, and thus asked ABAC to provide
to us by mid-year an analysis of the responsiveness of Individual Action Plans
to business priorities, and to continue their monitoring role on an ongoing
basis.
- Ministers confirmed their willingness to respond constructively to the recommendations
contained in ABAC's 1996 Report to Leaders, and their desire to work closely
with ABAC respecting in particular their recommendations on facilitating the
movement of business people; enhancing investment flows; strengthening investment
protection through transparency, predictability, arbitration and enforcement
of contracts; aligning professional standards in the region; involving the
private sector in infrastructure planning; the development of policies supportive
of small and medium enterprises; and encouraging greater business sector participation
in economic and technical cooperation.
Supporting the Multilateral Trading System
In the company of the Director General of the WTO, Renato Ruggiero, we had
a useful exchange of views on how APEC can best support the multilateral trading
system. Ministers affirmed their strong support for a rules-based international
trading system of universal membership, and confirmed their support for the
early accession of applicants in accordance with WTO rules and based on effective
market access commitments. Ministers reaffirmed the primacy of an open, multilateral
trading system under the WTO. Ministers acknowledged that regional trade agreements
complementary to the WTO and consistent with its rules can promote further liberalization
of trade and investment.
Ministers confirmed their intention to implement fully existing WTO commitments,
and reviewed the WTO's built-in agenda for further negotiations and reviews
in accordance with agreed timeframes. APEC economies that are WTO members affirmed
their commitment to engage in the necessary analysis and exchange of information
to allow members to better understand the issues involved and identify their
interests. In our view, APEC's work programs on investment, competition policy,
government procurement, and trade facilitation including on customs matters
demonstrate our continued leadership respecting the multilateral trade agenda,
and can contribute positively to the WTO's work in these areas. Ministers endorsed
the efforts arising from the Singapore Ministerial Declaration to integrate
the least developed countries into the global trading system, to consider favourably
enhancing their market access on autonomous basis, and to improve their capacity
to take advantage of the opportunities such integration creates.
Ministers expressed their optimism that APEC would continue to provide leadership
to further concrete improvements in the environment for conducting world trade.
The WTO work program offers important opportunities for this APEC leadership.
Ministers instructed their officials to consider these possibilities and to
report to them prior to their Vancouver meeting, and undertook to encourage
officials in Geneva to meet regularly to ensure that APEC perspectives are brought
to bear on the WTO's work program.
Both APEC and the WTO, by promoting liberalization and facilitation of trade
and investment and economic and technical cooperation, foster jobs and economic
growth in our economies. Ministers therefore affirmed their commitment to political
engagement in both organizations on an ongoing basis. We look forward to commemorating
the 50th anniversary of the multilateral trading system in the first half of
1998, and at that time to continue an exchange of views on developments and
directions in the international trading system.
