Asia Pacific Economic Cooperation forum and World Trade Organization members; sectoral market opening agreements negotiation,
[Federal Register: May 15, 1998 (Volume 63, Number 94)]
[Notices]
[Page 27113-27116]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my98-142]
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Negotiation of Sectoral Market Opening Agreements
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of negotiation of sectoral market opening agreements, and of goods and services that might be affected by such negotiations.
SUMMARY: The United States is participating in discussions with member economies of the Asia Pacific Economic Cooperation (APEC) forum and negotiations with Members of the World Trade Organization (WTO) to enhance market opening in fifteen sectors, including possible elimination, modification or continuance of U.S. tariffs and non-tariff measures, opening of certain service sectors; and certain other sectoral and structural issues. Public comment is being sought on issues associated with these discussions and negotiations.
FOR FURTHER INFORMATION CONTACT: Jane C. Earley, Director, APEC Affairs, Office of Asia Pacific and APEC, USTR (202-395-6813).
SUPPLEMENTARY INFORMATION: In their 1996 Subic Bay Declaration, APEC Leaders directed trade ministers 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 the region.'' In May 1997, APEC trade ministers affirmed that APEC should continue to act as a catalyst to promote the global opening of markets, as it had with the Information Technology Agreement. They therefore directed officials to conduct an intensive process for selecting such sectors, for review and final action by the time of the APEC
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ministers and leaders meetings in November 1977. In selecting such sectors, ministers instructed officials to have regard for three factors: the possibility of encompassing both tariff and non-tariff issues, as well as elements of facilitation and economic and technical cooperation; ensuring the fullest possible private sector input and support; and consideration of ``critical mass'' by developing initiatives supported by significant groups of APEC members, and where appropriate for incorporation in the WTO.
In November 1997, APEC ministers received information on over 40 potential sectors that had been proposed and reviewed by officials. From this list, ministers recommended 15 sectors to APEC leaders for a program of early liberalization. The proposals for liberalization in these sectors are described in detail in the Annex to this notice.
Of the 15 selected sectors, ministers identified nine for early action in 1998: Environmental goods and services, chemicals, energy, medical equipment, forest products, fish and fish products, toys, gems and jewelry, and conclusion of a mutual recognition agreement on telecommunications. In these nine sectors, it was agreed that detailed proposals defining parameters, such as scope of product coverage, phasing of liberalization, and measures covered (i.e., tariffs and/or other measures) would be completed by the date of the APEC trade ministerial meeting in June 1998, with a view toward beginning implementation, in the WTO context where appropriate, in 1999. In addition, ministers directed that work to develop proposals proceed in six additional sectors: oilseeds and oilseed products, food, automotive, civil aircraft, fertilizer, and natural and synthetic rubber. In these sectors, officials were directed to further develop proposals for review and assessment by ministers at the June trade ministers meeting, for possible recommendation to leaders in November 1998.
In accordance with this guidance, APEC officials will work intensively in 1998 to complete plans for early liberalization in the identified sectors. APEC officials meetings are currently scheduled for June, September and November 1998 in Malaysia.
Advice From the U.S. International Trade Commission
On March 18, 1998, the United States Trade Representative (USTR) requested, pursuant to section 332(g) of the Tariff Act of 1930 (19 U.S.C. 1332(g), that the U.S., International Trade Commission (USITC) provide advice concerning trade liberalization among APEC countries in the nine sectors listed above. On March 25, the USITC initiated an investigation, Inv. No. 332-392, pursuant to section 332(g) of the Tariff Act of 1930 and published a notice requesting public comment and providing notice of a public hearing in connection with the investigation. (63 FR 15861, April 1, 1998). The notice included a list of harmonized tariff system (HTS) numbers that comprise goods under consideration in the nine sectors. The USITC's report will include (1) profiles of the industry sectors (including a description of U.S. and foreign sectors and their competitive positions); (2) an assessment of patterns of U.S. sector imports and exports to APEC trading partners and other trading partners; (3) summaries of U.S. and foreign tariff rates and reported non-tariff barriers affecting the sectors; and (4) information about increased market access opportunities resulting from liberalization. The USITC plans to transmit its report to USTR by June 16, 1998.
Public Comments
In conformity with the regulations of the Trade Policy Staff Committee (``TPSC'') (15 CFR Part 2003), the Chairman of the TPSC invites written comments from interested persons on the desirability, the scope, and the economic effects of these proposals for sectoral liberalization. Comments in particular are invited on: (a) Economic costs and benefits to U.S. producers and consumers of the removal of tariff barriers to trade between and among APEC economies in the above- listed product and service sectors; (b) economic effects and benefits to U.S. producers and consumers of removal of non-tariff barriers to trade between and among APEC economies, and of other aspects of the above-described proposals, including their provisions for economic and technical cooperation, (c) existing barriers to trade in services between and among APEC economies, and economic costs and benefits to removing such barriers; and (d) any other measures of practice within these sectors among APEC economies that should be addressed in sectoral market opening negotiations. In addition, comments are invited on other aspects of these sectoral market opening initiatives, including the possible labor and environmental effects.
Interested persons may submit written comments, in five (5) typed copies or less, no later than noon, June 15, 1998, to Gloria Blue, Executive Secretary, TPSC, Office of the U.S. Trade Representative, Room 503, 600 17th Street, N.W., Washington, D.C. 20508. Comments should state clearly the position taken and should describe with particularity the information supporting that position. Any business confidential material must be clearly marked as such on the cover page (or letter) and succeeding pages. Such submissions must be accompanied by a non-confidential summary thereof.
Non-confidential submissions will be available for public inspection at the USTR Reading Room, Room 101, Office of the United States Trade Representative, 600 Seventeenth Street, N.W., Washington, D.C. An appointment to review the file may be made by calling Brenda Webb at 202-395-6186. The Reading Room is open to the public by appointment only from 9:30 a.m. to 12:00 noon and from 1:00 p.m. to 4:00 p.m., Monday through Friday. Frederick L. Montgomery, Chairman, Trade Policy Staff Committee.
Annex--Description of Sectoral Market Opening Initiatives
Environmental Goods and Services: Elimination of tariffs on environmental goods and liberalization of trade in environmental Services based on the General Agreement on Trade in Services, to be agreed by consensus by June 1998, and to be bound in the WTO. Implementation of commitments would begin six months after the date on which the agreement is concluded. A proposal for addressing non-tariff measures in APEC economies that impede trade will be included. On economic and technical cooperation, economies are encouraged to develop proposals for projects such as seminars to achieve the objective of liberalizing trade.
Medical Equipment. Tariffs would be eliminated in a short period, e.g., 3 years. Proposed schedule and method of implementation would be based on the approach of the Information Technology Agreement. Specific non-tariff measures would be identified and addressed. Economies would be prepared to explore a program of technical assistance in cooperation with the private sector.
Forest Products. Includes pulp and paper products (HS Chapters 47 and 48), wood products (HS Chapter 44), printed materials (HS Chapter 49); wood furniture and pre-fabricated housing (parts of HS Chapter 94), certain vegetable and rattan mats and baskets (parts of HS Chapter 46), and certain rosin products (parts of HS Chapter 38). The proposal has four components: elimination of tariffs on theses products in the 2000-2004 timeframe; a study of
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non-tariff barriers and other trade distorting policies which may impeded market access in these products; development and adoption of performance-based building standards; and, development of economic and technical assistance measures designed to enable members to develop their industries and to achieve early trade liberation in these industries.
Fish and Fish Products. The objective of the proposal would be to eliminate tariffs no later than December 31, 2005. Tariffs currently applied at 20% or less would be phased out more quickly. There would also be flexibility for economies to phase out tariffs over a longer period on a limited number of products. Officials would be directed to present a plan for eliminating non-tariff measures for approval at the APEC's November 1998 Trade Ministerial meeting, with the objective of eliminating non-tariff measures no later than December 31, 2007. APEC economies would recommit to elimination of WorldTrade Organization (WTO)-inconsistent subsidies and sanitary and phytosanitary measures, of which there would also be studies, and commit to some of many suggested ecotech proposal. An annual report to Ministers would also be done within APEC on fisheries management cooperation in the Pacific Ocean, and adjacent regions.
Toys. The proposal is for progressive reduction of tariffs on targeted, toys, beginning from 1998 and completed by a date to be determined by participating economies (2000, and no later than 2005). It would comment to identification of existing technical, regulatory, and other unnecessary non-tariff measures by the end of 1998 and to consultation on actions and a scheduled for elimination of NOMS by the end of 1999. Progressive elimination of all identified non-tariff measures would be determined, preferably by 2000 and no later than 2005.
Gems and Jewelry. This proposal would reduce tariffs to 0-5% by 2005 on products in HTS Chapter 71m, which includes pearls, diamonds, precious stones, silver, gold, platinum, ``fine'' jewelry, silverware made of silver and silver plate, gold articles, imitation jewelry, and commemorative coins. The proposal would also address non-tariff measures in the same time period and include economic and technical cooperation on education and training.
Mutual Recognition Agreement for Telecommunications servicers. Proposes that interested APEC economies work to implement an Agreement for Mutual Recognition of Test Results and Certifications, and to complete work on a Mutual Recognition Agreement and Phase Agreements by June 1998.
Chemicals. This is a proposal for tariff liberalization, starting with a commitment to bring tariffs into conformity with rates established in the Uruguay Round Chemical Tariff Harmonization Agreement (CTHA) in two tranches: starting from applied rates, by 2001 for tariffs up to and including 10%, and by 2004 for tariffs over 10%, and to bring these rates in the WTO. Requests for longer staging would be considered for sensitive products. Once a critical mass has committed to the CTHA, further tariff liberalization would be undertaken starting with subsectors (e.g., fertilizer, cosmetics) where there is interest in moving ahead on an expedited basis. This process would lead to the eventual elimination of all chemical tariffs. Participants would initiate a work program on non-tariff measures. They would also compile a list of customs and regulatory barriers faced by chemical exporters to give to APEC's Committee on Customs Procedures for simplifying and harmonizing customs procedures and facilitating trade. The proposal would also task APEC's Investment Experts Group to undertake a review of investment policy and practices with respect to the chemical industry, which would be used to derive a list of liberalization options that could be selected either for individual action plans, or for collective action. It would additionally encourage economies to participate in international work already ongoing on chemical standards and testing. In cooperation with the private sector, it would develop a program of economic and technical assistance, including but not limited to workshops, seminars, and training activities.
Energy. This proposal includes certain primary energy commodities, electricity, energy products, technologies, services, and equipment. It would progressively remove tariffs on coal and gas and energy-related equipment by 2005, and identify and address existing technical, regulatory, and other non-tariff barriers, including standards and certification. It would establish a work program to identify and remove barriers to trade in services, to commence March 1998. Additionally it would review work of the APEC's Group of Experts on Government Procurement (GPEG) on principles of transparency in government procurement and work with GPEG in any areas where the generic elements and principles of transparency need to be developed to ensure full transparency in this sector. Finally, it would extend the investment facilitation work of APEC's Energy Working Group and develop a linked database on mining and energy-related investment opportunities, and reduce costs through cooperation on energy standards between 1998 and 2000.
Autos. This proposal calls for a four part work program aimed at establishing a more integrated and competitive auto industry in the region: (1) Standards harmonization, including obtaining APEC endorsement of the ``global agreement'' on automotive standards; (2) identification of customs issues and barriers, and development of steps to address them; (3) development of an economic and technical cooperation program; and (4) establishment of a regional dialogue of automotive issues, which would discuss trade and investment policy issues, and develop means of addressing them. Industry would participate in parts of the dialogue.
Food. The proposal calls for tariff reductions on a number of 4- digit H.T.S. categories in three food subsectors (fresh fruits and vegetables, processed foods and beverages) and other trade facilitation and ecotech activities, as well as market research studies. The proposal calls for tariff reductions on more than 50 H.T.S. 4-digit categories in three food subsectors: (1) fresh fruits and vegetables; (2) processed foods; and (3) beverages. The initiative proposes a reduction in tariff and other non-tariff measures from 1999 to 2004 to bring applied tariffs to 5% or less by 2004 with the aim of eliminating all tariffs in these subsectors by 1010/2020. An annex contains some additional H.T.S. categories of food products for possible future consideration.
Oilseeds and Oilseed Products. During the Uruguay Round, the United States proposed a ``level playing field'' initiative on oilseeds and oilseed products. The APEC proposal, which is jointly sponsored by the United States, Canada and Malaysia, exactly tracks this Uruguay Round initiative. The proposal covers basic oilseeds in H.S. 1201, 1203-1207 (e.g., soybeans, rapeseed, sunflowerseed, cottonseed), meals and vegetable oils derived from those rapeseed oil, safflower oil) and soy protein concentrates and isolates. There would be no exceptions on product coverage. The proposal calls for elimination of tariffs, non- tariff measures, export subsidies and other trade-distorting policies on all products by 2002, allowing for limited flexibility for extended staging on a product-by-product, economy-by-economy basis that would be agreed to by consensus of participants.
Rubber. The proposal would establish details for gradual reductions and/or
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elimination of tariff and non-tariff measures. It would also call for economic and technical cooperation to cooperate in the development of domestic industries in rubber-producing economies through the transfer of production and manufacturing technology in order to reduce the risk of price fluctuations.
Civil Aircraft. All tariffs would be eliminated in two equal cuts on January 1, 1999 and January 1, 2000 and bound in WTO Schedules at zero. Commitments by non-WTO members could be made on an autonomous basis until WTO accession is complete. There would also be commitments by APEC economies to eliminate all customs duties and other charges of any kind levied on civil aircraft and related products and services (e.g., manufacture, repair, maintenance, etc.).
Fertilizer. This is a proposal to eliminate tariffs by 2002 and bind them in the WTO. It would also call for, by January 1, 2000, collective implementation of national transportation regulations governing the shipment of sulfur and fertilizers in accordance with the International Maritime Dangerous Goods Code, and encourage the development of technical assistance projects that would facilitate trade liberalization in this sector.
[FR Doc. 98-12908Filed5-14-98; 8:45 am]
BILLING CODE 3190-01-M
