1997 Meeting of APEC Ministers Responsible for Trade

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).

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.

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.

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.

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.