APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both...

26
1 APEC Project Completion Report SECTION A: Project profile Project number & title: CTI 19 2017A Capacity Building Workshop on addressing Non-Tariff Measures in FTAs/RTAs under the 3 rd REI CBNI Project time period: 1 Jan 2018 – 30 Aug 2018 Date submitted: 27/07/2018 Committee / WG / Fora: Committee on Trade and Investment (CTI) Project Overseer Name / Organization / Economy: Erika Webb / Ministry of Foreign Affairs and Trade / New Zealand SECTION B: Project report and reflection 1. Project description: In 3-4 sentences, please describe the project and its main objectives. This project was a capacity building workshop focusing on how FTAs/RTAs have sought to address the issue of non-tariff measures (NTMs) and how future trade agreements may address them. Attendees heard from a range of speakers with backgrounds in government, non-government organizations and business. The discussion included consideration of how an eventual FTAAP might address NTMs. 2. Meeting objectives: Describe how the project met each of its proposed objectives. Please outline any challenges you may have encountered in delivering the activity. Objectives: A. To increase knowledge and build in-depth capacity on the issue of NTMs for government officials who are directly involved in FTA/RTA negotiations, as well as representatives of the CTI and trade policy makers The workshop achieved this by targeting expert speakers from a range of backgrounds to speak on the issue of addressing NTMs in FTAs from various angles, to an audience of NTM specialists, CTI representatives and trade policy makers. B. To share best practices and experiences of how NTMs have been addressed in bilateral FTAs and RTAs (not limited to the Asia-Pacific region), including looking at the issue of placing disciplines on NTMs, as well as how to reduce the overall stock of existing NTMs. Experience should also include any difficulties encountered during negotiation processes and how/whether those difficulties were overcome The workshop achieved this by focusing on a number of examples of FTAs/RTAs, including the ASEAN Trade in Goods Agreement (ATIGA), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Southern/Eastern Africa and Continental Free Trade Area. C. To explore how NTMs may be addressed in future trade agreements, including with respect to an eventual FTAAP if it were to be realized via an agreement. During the concluding panel discussion, speakers addressed how NTMs may be addressed in future trade agreements, including an eventual FTAAP.

Transcript of APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both...

Page 1: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

1

APEC Project Completion ReportSECTION A: Project profile

Project number & title: CTI 19 2017A Capacity Building Workshop on addressing Non-Tariff Measures in FTAs/RTAs under the 3rd REI CBNI

Project time period: 1 Jan 2018 – 30 Aug 2018 Date submitted: 27/07/2018

Committee / WG / Fora: Committee on Trade and Investment (CTI)

Project Overseer Name / Organization / Economy:

Erika Webb / Ministry of Foreign Affairs and Trade / New Zealand

SECTION B: Project report and reflection

1. Project description: In 3-4 sentences, please describe the project and its main objectives.

This project was a capacity building workshop focusing on how FTAs/RTAs have sought to address the issue of non-tariff measures (NTMs) and how future trade agreements may address them. Attendees heard from a range of speakers with backgrounds in government, non-government organizations and business. The discussion included consideration of how an eventual FTAAP might address NTMs.

2. Meeting objectives: Describe how the project met each of its proposed objectives. Please outline any challenges you may have encountered in delivering the activity.

Objectives:

A. To increase knowledge and build in-depth capacity on the issue of NTMs for government officials who are directly involved in FTA/RTA negotiations, as well as representatives of the CTI and trade policy makers

The workshop achieved this by targeting expert speakers from a range of backgrounds to speak on the issue of addressing NTMs in FTAs from various angles, to an audience of NTM specialists, CTI representatives and trade policy makers.

B. To share best practices and experiences of how NTMs have been addressed in bilateral FTAs and RTAs (not limited to the Asia-Pacific region), including looking at the issue of placing disciplines on NTMs, as well as how to reduce the overall stock of existing NTMs. Experience should also include any difficulties encountered during negotiation processes and how/whether those difficulties were overcome

The workshop achieved this by focusing on a number of examples of FTAs/RTAs, including the ASEAN Trade in Goods Agreement (ATIGA), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Southern/Eastern Africa and Continental Free Trade Area.

C. To explore how NTMs may be addressed in future trade agreements, including with respect to an eventual FTAAP if it were to be realized via an agreement.

During the concluding panel discussion, speakers addressed how NTMs may be addressed in future trade agreements, including an eventual FTAAP.

3. Evaluation: Describe the process undertaken to evaluate the project upon completion. (e.g. evaluation through participant surveys, peer reviews of outputs, assessments against indicators, statistics demonstrating use of outputs etc.). Provide analysis of results of evaluations conducted and where possible include information on impacts on gender. How has the project contributed to APEC’s capacity building goals, objectives and operational principles? Evaluation data needs to be included as an appendix.

The workshop project was evaluated through participant surveys that were handed out during the workshop. The survey template is attached as Annex I. Evaluation data is attached as Annex II.

According to the evaluation survey, participants generally agreed that the workshop had clearly defined objectives, achieved its objectives, covered topics that were relevant, and had well-organized content. Participants strongly agreed that the speakers were knowledgeable and well prepared. Participants differed as to whether they thought gender issues were sufficiently addressed (note: the project organizers encouraged female speakers and moderators, and women were well represented at the workshop). Participants also differed as to whether they thought the time allotted was sufficient.

Page 2: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Comments from participants included:

The workshop brought together different perspectives on the issue of NTMs (economist, business, and trade negotiators’ perspectives)

My interest in this topic is much higher than prior to this workshop due to the good quality of speakers The workshop had balanced perspectives and views from government and private sector The workshop provided insight into impacts, advantages and disadvantages, and challenges of NTMs

that vary across the globe This project will help my economy’s officials to understand the role of NTMs in trade and how to prevent

them from creating barriers to trade

The project contributed to APEC’s capacity-building goals and objectives under the Sub-Fund on Free Trade Area of the Asia-Pacific and Global Value Chains, by carrying out capacity-building in pursuit of FTAAP.

4. Output indicators: Describe the main project outputs below. This may include workshops, tools, research papers, reports, recommendations, best practices, action plans..Indicators(Edit or Insert rows as needed)

# planned # actual Details or notes

# workshops / events 1 1 Held during SOM2 2018 in Port Moresby# participants (M/F) 80 72 35 male; 37 female

# economies attending 21 18 ABAC also attended# speakers engaged 9 9 4 male; 5 female

# other organizations engaged 4 4 Food Industry Asia, UNCTAD, ERIA, Korea Institute for International Economic Policy

# publications distributed 0 0# recommendations agreed on 0 0

Other: Report produced 1 1 Summary report finalized

Comments:

5. Outcomes: Describe any specific medium-term changes to policy, processes or behaviour that can be attributed to result from this activity. Please include details on: What indicators were used to measure medium-term impact? (Example indicators: type/number of policies/

regulations/processes changed, % of businesses conforming to new standards, change in sector’s commercial activity, # individual action plans developed, # agencies using resource or tools etc.)

How capacity has been built through the project. Monitoring plans in place and proposed indicators to measure impacts, including any impacts on gender.

Please summarise relevant information.

All participants who completed the survey reported an increase in their knowledge of and skills in the topic after participating in the event. This indicates success in building capacity through this project. Comments from participants also indicated that the project had been relevant and useful for economies.

6. Participants/ Speakers Summary Table (compulsory for events): Must be gender-disaggregated.

Economy(Insert rows as needed) # male # female Total

Australia 2 0 2

Brunei Darussalam 0 1 1

Canada 1 0 1

Chile 1 0 1

China 2 1 3

Hong Kong, China 1 1 2

Indonesia 4 2 6

Malaysia 2 2 4

New Zealand 1 3 4

Papua New Guinea 12 8 20

Page 3: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Economy(Insert rows as needed) # male # female Total

Peru 1 1 2

Philippines 0 6 6

Russia 0 1 1

Singapore 2 2 4

Chinese Taipei 0 2 2

Thailand 1 4 5

United States 0 3 3

Viet Nam 2 1 3Speakers 4 5 9

Comments: What was the approach undertaken for participant nomination/selection and targeting? Please provide details. What follow-up actions are expected? How will participants/beneficiaries continue to be engaged and supported to progress this work?

Economies were invited to nominate participants through the Committee on Trade and Investment (CTI). CTI representatives were encouraged to disseminate the invitation to FTA negotiators and trade policy makers in their economies.

Participants were urged to consider the ideas that were presented by speakers and how they could be taken forward by CTI or other APEC fora. New Zealand has reported / will report on the outcomes of the workshop in CTI and MAG, including encouraging these fora to consider how further work could be taken forward on this topic.

Participants identified the following areas for future work by APEC on the issue of NTMs:

APEC commitments on transparency, good regulatory practice and non-discrimination Monitoring of NTMs of each economy Creation of an NTMs Framework Capacity building on impact assessments and improving transparency

7. Key findings: Describe 1-3 examples of key findings, challenges or success stories arising from the project (e.g. research or case studies results, policy recommendations, roadblocks to progress on an issue, impacts on gender).

Throughout the workshop, speakers highlighted two challenges in particular in relation to NTMs:

- There is often a lack of transparency around NTMs, which creates unpredictability for businesses. Transparency should be addressed as a priority.

- Regulatory divergence across economies or ‘regulatory distance’ between markets increases the cost of trade. Economies should work together on mutual recognition or harmonisation of standards.

Key findings included:

- Panellists emphasised transparency mechanisms as one of the most effective ways to address NTMs through FTAs/RTAs.

- Consultation mechanisms were also emphasised as an important element of FTAs.- Panellists agreed that technological innovations had great potential to be used to address NTMs.- Speakers considered the use of specific NTM chapters that could provide general principles on good regulatory

practice.- In relation to a potential FTAAP, speakers emphasised that it was important to have high ambition while focusing on

practical steps to take forward.- Panellists agreed that, as the final users of FTAs, it was critical to incorporate business needs when developing

provisions on NTMs.

8. Next steps: Describe any planned follow-up steps or projects, such as workshops, post-activity evaluations, or research to assess the impact of this activity. How will the indicators from Question 5 be tracked? How will this activity inform any future APEC activities?

This project followed on from the APEC 2nd CBNI Seminar on addressing NTMs in Asia Pacific Economic Integration held in Seoul from 1-2 December 2014, which focused on WTO jurisprudence. It also built on New Zealand’s Trade Policy Dialogue on NTMs in the Food Sector, February 2017.

Page 4: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

This project is part of a wider body of work led by New Zealand on non-tariff measures. Next steps include the agreement of a set of APEC Cross-cutting principles on NTMs, which we intend to have adopted at Ministerial level, and a possible workshop on implementation of the NTMs principles in 2019.

The project identified possible next steps for APEC economies in addressing NTMs in FTAs, which are detailed in the Summary Report.

9. Feedback for the Secretariat: Do you have suggestions for more effective support by APEC fora or the Secretariat? Any assessment of consultants, experts or other stakeholders to share? The Secretariat examines feedback trends to identify ways to improve our systems.

We would like to thank the PSU’s Carlos Kuriyama for his valuable contribution to the workshop through a presentation on how FTAs have addressed NTMs in the APEC region.

We would have appreciated greater flexibility from the APEC Secretariat on budget reallocation, as our initial budget allocations provided were a rough estimate. It is often difficult to know in advance the likely number of participants and costs covered by the host economy.

SECTION C: Budget

Attach a detailed breakdown of the APEC- provided project budget, including: Planned costs: (using most recently approved budget figures) Actual expenditures Variance notes: An explanation of any budget line under- or over-spent by 20% or more.

SECTION D: Appendices

Please attach the following documentation to the report. Note that the contact list for participants/ experts/ consultants is a mandatory requirement for all Project Completion Reports.

Appendices Notes Participant contact list, including name, email address, gender,

organization (mandatory)Annex VI

Experts / consultants list, including name, email address, gender, organization (mandatory)

Annex V

Event Agenda Annex IV Reports, websites or resources created: links or soft copies Annex III Post activity survey or other evaluation data (raw and/or aggregated) Annex I & II

Other information or resourcesFOR APEC SECRETARIAT USE ONLY APEC comments: Were APEC project guidelines followed? Could the project have been managed more effectively or easily by the PO?

Page 5: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Budget

Actual spend

Variance notes (approved application for reprogramming)

Page 6: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Annex I

APEC Workshop Evaluation Survey

Instructions: Please indicate your level of agreement with the statements listed in the table below.

Strongly

AgreeAgree Disagree COMMENTS (Continue on back if necessary)

The objectives of the workshop were clearly defined

The workshop achieved its intended objectives

The agenda items and topics covered were relevant

The content was well organized and easy to follow

Gender issues were sufficiently addressed during implementation

The speakers were well prepared and knowledgeable about the topic

The time allotted for the training was sufficient

1. How relevant was this project to you and your economy?

5 4 3 2 1 very mostly somewhat a little not muchExplain

:____________________________________________________________________________________________

Page 7: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

2. In your view what were the workshop’s results/achievements?

Explain

:____________________________________________________________________________________________

3. What new skills and knowledge did you gain from this event?Explain

:____________________________________________________________________________________________

4. Rate your level of knowledge of and skills in the topic prior to participating in the event:

5 4 3 2 1 very high high medium low very low

5. Rate your level of knowledge of and skills in the topic after participating in the event:

5 4 3 2 1 very high high medium low very low

Explain

:____________________________________________________________________________________________

6. How will you apply the project’s content and knowledge gained at your workplace? Please provide examples (e.g. develop new policy initiatives, organise trainings, develop work plans/strategies, draft regulations, develop new procedures/tools etc.).

Explain

:____________________________________________________________________________________________

7. What could be done next by APEC on the issue of NTMs, under the REI CBNI Action Plan Framework or other

areas of APEC’s work? ____________________________________________________________________________________

________________________________________________8. How could this project have been improved? Please provide comments on how to improve the project, if relevant

(continue on back if necessary).

Page 8: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

________________________________________________________________________________________________

Page 9: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Annex II

Evaluation data

Page 10: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Annex III

Capacity Building Workshop on Addressing Non-Tariff Measures in FTAs/RTAs under the 3rd REI CBNI

17 May 2018, Port Moresby, Papua New Guinea

SUMMARY REPORT

Executive Summary

Speakers discussed that non-tariff measures (NTMs) can be legitimate tools to support public policy objectives, but that officials needed to ensure that any regulation was done well in order to reduce or eliminate trade distorting effects of NTMs.

Throughout the workshop, speakers highlighted two challenges in particular in relation to NTMs:- There is often a lack of transparency around NTMs, which creates unpredictability for

businesses. Transparency should be addressed as a priority.- Regulatory divergence across economies or ‘regulatory distance’ between markets increases the

cost of trade. Economies should work together on mutual recognition or harmonisation of standards.

Speakers demonstrated that FTAs and RTAs are one method of addressing these challenges. They currently do so across various chapters, and a very large proportion of the chapters of FTAs could be considered to be dealing with NTMs.

Speakers outlined a range of approaches to addressing NTMs in FTAs. FTAs can contain both WTO-plus provisions and WTO-extra provisions on NTMs, and contain differing degrees of legal enforceability.

Speakers compared the content of Trade in Goods chapters and SPS chapters in agreements signed by APEC economies, finding that agreements cover slightly different areas, with varying levels of ambition.

Speakers gave specific examples of how NTMs are addressed in the ASEAN Trade in Goods Agreement (ATIGA), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Southern/Eastern Africa and Continental Free Trade Area.

Private sector representatives described the impact of NTMs on businesses, particularly SMEs. From a business perspective, FTAs can assist by creating a more predictable and streamlined business environment, and regional FTAs can reduce NTMs across multiple markets by providing a single rules framework.

Several speakers spoke about regional agreements as a potential starting point for how a future Free Trade Area of the Asia-Pacific might address NTMs.

The workshop found wide support among speakers and participants for further work on NTMs in APEC.

Page 11: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Background

The one-day Capacity Building Workshop on Addressing NTMs in FTAs/RTAs under the 3 rd

Regional Economic Integration Capacity Building Needs Initiative was held in Port Moresby, Papua New Guinea on 17 May 2018 as part of the SOM2 and Related Meetings. The workshop was held as a Committee on Trade and Investment (CTI) event partially funded through the APEC Support Fund (sub-fund on FTAAP and GVCs), organised by New Zealand with the co-sponsorship of Australia, Korea, Mexico, the Philippines, Peru and Singapore.

APEC has identified an increasing trend in the number of NTMs affecting trade in the region. APEC economies continue to progress work on NTMs through a series of workshops, dialogues and other initiatives under CTI and sub-fora. The purpose of the workshop was to provide capacity-building to APEC economies with respect to addressing NTMs in FTAs and RTAs, with a focus on recent developments and innovations.

The workshop was attended by 8 speakers and around 60 participants. Participants were primarily officials from domestic agencies with an interest in NTMs or FTA/RTA negotiations, and CTI delegates.

Speakers included policy makers, experts from academia and international organisations, and business representatives.

This report provides a summary of the discussions from the workshop. The agenda from the Workshop is attached as Annex I, and the biographies of speakers are attached as Annex II. All presentations from the workshop can be found on the APEC Meeting Document Database.

Session 1 – Overview: The role of FTAs/RTAs in addressing NTMs

This session provided the context for the workshop through an overview of the rise of NTMs in the APEC region and their impact on trade. Speakers then reviewed specific provisions that could be included in FTAs to address NTMs, and how trade in goods chapters in FTAs involving APEC member economies had addressed NTMs to date.

Dr Doan Thi Thanh Ha of the Economic Research Institute for ASEAN and East Asia (ERIA) presented data on the rise of NTMs in the APEC region as compared to overall tariff reductions. Challenges relating to NTMs that could be addressed through FTAs included lack of transparency around NTMs, and regulatory divergence between economies. Key considerations and principles for policy-makers addressing NTMs in FTAs/RTAs were transparency and simplicity; non-discrimination; international standards/scientific evidence; least trade restrictive measures; right to respond; and dialogue and cooperation. Specific actions that could be taken in FTAs/RTAs included the establishment of specialized committees in charge of monitoring NTMs; establishment of notification mechanisms; recognition of international standards; mutual recognition agreements; and a regular review process.

Christian Knebel of the United Nations Conference on Trade and Development (UNCTAD) gave an overview of UNCTAD’s NTMs classification programme and global NTMs transparency initiative. UNCTAD was working to make mandatory regulations public and accessible, in part to address low rates of WTO notifications. In discussing NTMs, it was important to make a distinction between traditional non-tariff barriers and different types of technical measures, as well as between regulation and procedure. Knebel showed that regulatory convergence between economies could significantly reduce the costs of trade. Two recent RTAs (the Southern/Eastern Africa and Continental Free Trade Area and CPTPP) were used as case studies for how NTMs can be addressed in regional agreements. Knebel provided an update of work on NTMs that was occurring at a multilateral level, including the WTO Seventh Triennial Review on TBT and the “Friends of MSMEs” group, which was proposing increased WTO transparency obligations.

Carlos Kuriyama, APEC Policy Support Unit (PSU) Senior Analyst, gave an overview of how FTAs involving APEC economies had addressed NTMs. In Trade in Goods chapters, most FTAs addressed import/export restrictions and prohibitions and administrative fees and formalities, whereas few addressed internal taxes or quantitative measures. Within Rules of Origin (ROO) chapters, some FTAs featured a De Minimis clause which established the maximum value for waiver of origin certificate. In SPS chapters, some FTAs included WTO-plus elements, such as a required time period to start consultations after receiving a request, or requirement that the party detaining goods notify importers of why the measure was implemented.

Page 12: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Session 2 – Recent approaches to addressing NTMs in FTAs/RTAs

This session saw four speakers delve more deeply into how specific FTAs or FTA chapters had recently addressed NTMs. The discussion drew from a wide geographic range within APEC, including North Asia (bilateral FTAs involving Japan, China and Korea), North America (Canada-European Union Comprehensive Economic and Trade Agreement), ASEAN (the ASEAN Trade in Goods Agreement) and Latin America (Pacific Alliance).

Dr Bo-Young Choi from the Korea Institute for International Economic Policy (KIEP) distinguished between WTO-plus (reconfirming existing commitments and/or adding substantive new disciplines) and WTO-x (outside the mandate of the WTO) FTA provisions, and distinguished between differing levels of legal enforceability in NTM-related provisions. Korea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008, China had increased the number of WTO-plus and WTO-x provisions in its FTAs, and was converging practice with Korea and Japan.

Myrene Sabina Bedaño from the Philippines Department of Trade and Industry introduced the ATIGA and ASEAN initiatives to address NTMs. Minimising trade protection and compliance costs caused by NTMs is a key objective of the ASEAN Economic Community. ATIGA contains an NTMs chapter, which includes commitments to ensure that NTMs are transparent, do not create unnecessary trade obstacles, are notified to other Member States with the opportunity for consultation. ATIGA also established an NTM database, and provides formal mechanisms to hear and resolve trade complaints. Increasing transparency is a priority, achieved through ATIGA’s notifications system, the ASEAN Trade Repository and the publication and accessibility of information. ASEAN is also mainstreaming good regulatory practice (GRP) through the ASEAN Work Plan on GRP 2016-2025.

Edsel Aytona from Global Affairs Canada presented on how NTMs were addressed in the CETA. CETA’s Technical Barriers to Trade (TBT) chapter contains a commitment to encourage cooperation in technical regulations, standards and conformity assessment and to promote harmonisation of standards in sectors of mutual interest. CETA’s Regulatory Cooperation chapter enhances cooperation and information sharing while regulations are being developed. CETA also contains a Conformity Assessment (CA) Protocol, which allows for the acceptance by Canada and the European Union of product certifications by recognised bodies of the other party. Once this is implemented, European Union companies in selected product categories will be able to have their products tested and certified in the European Union for the Canadian market, and vice versa.

Rubisel Velázquez Lugo from Mexico’s Ministry of Economy compared the Sanitary and Phytosanitary (SPS) chapters of FTAs signed by Mexico, finding a variety of levels of ambition. Chapters ranged from simply reaffirming rights and obligations of the WTO SPS Agreement, to inclusion of a broad range of provisions such as the establishment of SPS Committees, equivalence provisions, recognition of disease-free or pest-free areas, notification systems and dispute resolution.

Session 3 – The view of business: what can FTAs/RTAs do to contain the growth of NTMs?

This session featured two private sector representatives, who each shared their views on priorities for business in addressing NTMs and how policy-makers should be using FTAs to better address NTMs.

Jiang YiFan from Food Industry Asia (FIA) noted that there was a significant gap between business perspectives (87% believe compliance costs are increasing) and public sector perspectives (50% believe compliance costs are decreasing) on NTMs. The food sector in particular was highly regulated, impacting businesses with costs, uncertainty and reputational risk. YiFan described ASEAN’s work to drive harmonisation in the F&B sector, including through promoting mutual recognition. APEC, the CPTPP and the Regional Comprehensive Economic Partnership (RCEP) were further opportunities to address NTMs through regional economic integration.

Page 13: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Stephanie Honey, Policy Advisor from ABAC New Zealand, highlighted that as well as increasing costs, NTMs created uncertainty for businesses, increased risks in new markets, and had a disproportionate impact on SMEs. FTAs could assist by creating a more predictable and streamlined business environment. Bigger regional FTAs could reduce NTMs across multiple markets by providing a single rules framework. For example, CPTPP contains provisions on regulatory coherence and good regulatory practice; mutual recognition; encouraging transparency and regulatory cooperation on SPS and TBT measures; trade facilitation; customs procedures; services trade liberalisation; digital trade provisions; and liberal region-wide ROO. In Honey’s view, CPTPP could be a good starting point for FTAAP in the context of addressing NTMs. APEC could also look at adoption of cross-cutting principles on NTMs; the expansion of the APEC Trade Repository to include all agriculture and food requirements; digital channels and automated processes; and accreditation of third party laboratories for conformity assessment.

Q&A session – In response to a question on how CPTPP’s SME chapter addresses NTMs, speakers responded that the objectives of the chapter are to provide increased regulatory transparency, provide capacity-building (as some SMEs may not have in-house expertise on NTMs), and increase trade facilitation and provide overall streamlining. In response to a question on using sectoral annexes versus cross-cutting approaches to address NTMs in FTA chapters, speakers emphasised that both approaches are necessary – NTMs are heterogeneous, and business would not want to see particular sectors excluded from coverage.

Session 4 – Where to from here? How future trade agreements could practically address NTMs

This session concluded the workshop with a forward-looking discussion featuring representatives from each of the previous sessions. Panellists and workshop participants were encouraged to share their views on how future FTAs could address NTMs, including looking ahead to a potential FTAAP.

Panel participants: Stephanie Honey, ABAC New Zealand Policy Advisor (moderator) Jiang YiFan, Food Industry Asia Christian Knebel, UNCTAD Rubisel Velázquez Lugo, Ministry of Economy Mexico

Panellists emphasised transparency mechanisms as one of the most effective ways to address NTMs through FTAs/RTAs. Mandatory commitments at the multilateral level were another method of increasing transparency. However, governments often had good transparency commitments that were implemented poorly due to the difficulties involved in keeping information up to date. One panellist suggested public-private partnerships as one way to address this issue, as some industry organisations already maintain regulatory databases.

Consultation mechanisms were also emphasised as an important element of FTAs. Informal technical consultations and bilateral dialogue mechanisms could provide a middle ground for economies to resolve NTM-related issues without recourse to legal action. A variety of possible tools and instruments could be incorporated into FTA chapters.

Panellists agreed that technological innovations had great potential to be used to address NTMs. Blockchain and e-certification could be used to enhance trust in data and share it amongst stakeholders. Telecommunications could be used by businesses to instantly report trade obstacles from the ground, which could enable them to be addressed quickly by government. Such reporting systems could inform future priorities in FTA negotiations.

Speakers considered the use of specific NTM chapters that could provide general principles on good regulatory practice. One approach was to combine standard TBT and SPS chapters with a more experimental chapter on NTMs. Speakers agreed that NTM chapters had the advantage of being able to include issues beyond the scope of SPS and TBT chapters, such as procedural obstacles or obstacles to trade in services.

In relation to a potential FTAAP, speakers emphasised that it was important to have high ambition while focusing on practical steps to take forward. Transparency commitments were an example of a possible first step, whereas regulatory convergence would need a longer time horizon. The high level of diversity amongst APEC economies was a challenge, but also an opportunity for different economies to learn from each other’s regulatory practices and build each other’s capacity.

Page 14: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Panellists agreed that, as the final users of FTAs, it was critical to incorporate business needs when developing provisions on NTMs. Private sector involvement needed to be inclusive and include the concerns of SMEs. SME chapters were one way in which this could be done. It was also important to provide capacity-building opportunities to help SMEs take full advantage of the opportunities provided by FTAs. As there were many different opinions within the private sector, it was important to provide a transparent negotiating process in so far as possible, and to communicate the broader picture of interests.

Next steps

This report is submitted to CTI for its consideration. Economies are urged to consider the ideas that were presented by speakers and how they could be taken forward by CTI or other APEC fora.

Although there was wide support expressed for further work on NTMs and a range of ideas were offered by speakers and participants during the Workshop, the exact detail of any future work should be decided through discussion and consensus of all economies in the appropriate fora.

Erika WebbProject OverseerNEW ZEALAND

Page 15: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Annex IV: AgendaTime Schedule8:30 - 9:00 Registration9:00 - 9:10 Welcome remarks

Mr Justin Allen, Chair of the Committee on Trade and Investment

Session 1 Overview: The role of FTAs/RTAs in addressing NTMs9:10 - 9:40 Keynote: The rise of NTMs and the role of FTAs/RTAs in addressing this

phenomenonDr Doan Thi Thanh Ha, Economic Research Institute for ASEAN and East Asia

9:40 - 10:10 Recent approaches to addressing NTMs in FTAs/RTAs: an international perspectiveMr Christian Knebel, UNCTAD

10:10 - 10:30 How FTAs/RTAs have addessed NTMs in the APEC regionMr Carlos Kuriyama, APEC Policy Support Unit

10:30 - 10:50 Coffee break and group photoSession 2 Recent approaches to addressing NTMs in FTAs/RTAs

10:50 - 11:15 Addressing NTMs in Preferential Trade Agreements: Towards Deeper IntegrationDr Bo-Young Choi, Korea Institute for International Economic Policy

11:15 - 11:40 The ASEAN Trade in Goods Agreement and ASEAN initiatives to address NTMsMs Myrene Sabina Bedaño, Department of Trade and Industry, The Philippines

11:40 - 12:05 NTMs in the Canada-European Union Comprehensive Economic and Trade Agreement (CETA)Mr Edsel Aytona, CETA Secretariat, Global Affairs Canada

12:05 - 12:30 Recent approaches to addressing NTMs through SPS chaptersMr Rubisel Velázquez Lugo, Ministry of Economy, Mexico

12:30 – 2:00 Lunch BreakSession 3 The view of business: what can FTAs/RTAs do to contain the growth of NTMs?

2:00 – 2:20 What can FTAs do to contain the growth of NTMs? The view of businessMs Stephanie Honey, ABAC New Zealand

2:20 - 2:40 Addressing NTMs in ASEAN and other FTAs/RTAs: A perspective from the Food IndustryMs Jiang YiFan, Food Industry Asia

2:40 – 2:50 Q&A session

2:50 – 3:10 Coffee breakSession 4 Where to from here? How future trade agreements could practically address NTMs

3:10 - 3:40 Panel discussion (moderated by Ms Stephanie Honey, ABAC New Zealand)Mr Christian Knebel, UNCTADMr Rubisel Velázquez Lugo, Ministry of Economy, MexicoMs Jiang YiFan, Food Industry Asia

3:40 - 3:50 Summary and concluding remarksGemma Cornelissen, New Zealand CTI Representative

Page 16: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Annex V: Experts / consultants list

Dr Doan Thi Thanh HaEconomic Research Institute for ASEAN and East Asia (ERIA)[email protected]

Christian KnebelUnited Nations Conference on Trade and Development (UNCTAD)[email protected]

Carlos KuriyamaAPEC Policy Support Unit (PSU)[email protected]

Bo-Young ChoiKorea Institute for International Economic Policy (KIEP)[email protected]

Myrene Sabina C. BedañoDepartment of Trade and Industry, the [email protected]

Edsel J. AytonaGlobal Affairs [email protected]

Rubisel Velázquez LugoMexico Ministry of [email protected]

Stephanie HoneyABAC New Zealand Policy [email protected]

Jiang YiFanFood Industry Asia (FIA)[email protected]

Page 17: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Annex VI: Participant contact list

Economy / Observer /

Secretariat / Guest

Title

First Name Last Name Department/Organisation Email

Australia Mr Lee Mclean Department Of Foreign Affairs And Trade

[email protected]

Australia Mr Maurice Munsie Department Of Agriculture And Water Resources

[email protected]

Brunei Darussalam

Ms Noramali Dato Jumat Ministry Of Foreign Affairs And Trade

[email protected]

Canada Mr Edsel Aytona Global Affairs Canada [email protected]

Chile Mr Sebastian Omar Sufan Piñeiro

Direcon [email protected]

China Mr Yi Han Ministry of Commerce of China

[email protected]

China Mr Lei Zhang Ministry Of Commerce [email protected]

China Ms Nang Geng CALTEC [email protected]

Hong Kong, China Miss

Wing Yi Winnie Chien Trade And Industry Department

[email protected]

Hong Kong, China Mr Chun Yuen Tse Trade And Industry Department

[email protected]

Indonesia Mr Danang Danial Ministry Of Trade [email protected]

Indonesia Mr Mohamad Djamil Ministry Of Trade [email protected]

Indonesia Miss

Aska Perdini Ministry Of Trade [email protected]

Indonesia Mr Ryan Pratama Ministry Of Trade [email protected]

Page 18: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Indonesia Miss

Amarillis Rahmita Ministry Of Trade [email protected]

Indonesia Mr Fitria Purwadie Sopandi

Ministry of Trade [email protected]

Malaysia Mr Ahmad Bakhtiar Abd Razak Ministry Of International Trade And Industry

[email protected]

Malaysia Mr Izzat Baihaqi Bin

Abu Bakar Ministry Of International Trade And Industry

[email protected]

Malaysia Ms Siti Arfah Binti Kamaruzaman

Ministry Of International Trade And Industry

[email protected]

Malaysia Ms Nurulhidaya Mohd Aluwi Ministry Of International Trade And Industry

[email protected]

New Zealand Mr Justin Allen Ministry of Foreign Affairs And Trade

[email protected]

New Zealand Ms Gemma Cornelissen Ministry Of Foreign Affairs And Trade

[email protected]

New Zealand Miss

Erika Webb Ministry Of Foreign Affairs And Trade

[email protected]

New Zealand Ms Samantha White Ministry Of Foreign Affairs And Trade

[email protected]

Papua New Guinea

Mr Joe Ande Jr Investment Promotion Authority

[email protected]

Papua New Guinea

Mr John Maigu Department of Prime Minister & National Executive Council

[email protected]

Papua New Guinea

Ms Sila Orake Department Of Commerce & Industry

[email protected]

Papua New Guinea

Mr Desmond Pokajam Investment Promotion Authority

[email protected]

Papua New Guinea

Mr STEWART Rom Investment Promotion Authority

[email protected]

Papua New Guinea

Mr Simon Yaukah PNG APEC Secretariat [email protected]

Papua New Guinea

Ms Betty Arikapu Department Of Commerce & Industry

[email protected]

Page 19: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Papua New Guinea

Ms Betty Nime Uri Department of National Planning

[email protected]

g

Papua New Guinea

Mr Nime Kapo Department f Agriculture and Livestock

[email protected]

Papua New Guinea

Ms Dehamenda Kokup Sanga

Department Of Foreign Affairs And Trade

[email protected]

Papua New Guinea

Ms Merie Unagi Department of Agrculture and Livestock

[email protected]

Papua New Guinea

Mrs Jackie Molgos Department of Agrculture and Livestock

[email protected]

Papua New Guinea

Mr John Lakani Bank of Papua New Guinea [email protected]

Papua New Guinea

Mr Martin Bongu Department of Petroleum and Energy

[email protected]

Papua New Guinea

Mr Joelson Anere Department of National Planning and Monitoring

[email protected]

Papua New Guinea

Mr Ishmel Libitino Bank of Papua New Guinea [email protected]

Papua New Guinea

Mr Brian Kunai Department of National Planning and Monitoring

[email protected]

Papua New Guinea

Mr Komuna Karo Department Of Foreign Affairs And Trade

[email protected]

Papua New Guinea

Mrs Dorcus Kanekane Bank of Papua New Guinea [email protected]

Papua New Guinea

Ms Diana Tuam Bank of Papua New Guinea [email protected]

Peru Mr Julio Chan Sanchez

Ministry Of Foreign Trade And Tourism

[email protected]

Peru Ms Daniela Huertas Mendoza

Ministry Of Foreign Trade And Tourism

[email protected]

Philippines Ms Marie Sherylyn Aquia Department Of Trade And Industry

[email protected]

Philippines Ms Myrene Bedaño Depertment Of Trade And MyreneSabinaBedano

Page 20: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

Industry @dti.gov.ph

Philippines Ms Raissa Faminial Department Of Trade And Industry

[email protected]

Philippines Mrs Maria Theresa Paclibare Tariff Commission - Government

[email protected]

Philippines Ms Ramonette Serafica Philippine Institute For Development Studies

[email protected]

Philippines Miss

Beverly Tumbagahan

Tariff Commission [email protected]

Russia Mrs Olga Ismafilove Russia APEC Study Centre [email protected]

Singapore Ms Theodora D'cruz Ministry Of Trade And Industry

[email protected]

Singapore Mr Jia Jie Loh Ministry Of Trade And Industry

[email protected]

Singapore Ms Su Ling Peh Ministry Of Trade And Industry

[email protected]

Singapore Mr Benjamin Tan Ministry Of Trade And Industry

[email protected]

Chinese Taipei Miss

YU-HSUAN FU MOEA [email protected]

Chinese Taipei Miss

Ching-Ching Shih MOEA [email protected]

Thailand Mr Jesada Arromdee Department Of Foreign Trade

[email protected]

Thailand Mrs Piraporn Kijpaitoon Ministry Of Commerce [email protected]

Thailand Miss

Dutnet Maneejamnong

Ministry of Commerce [email protected]

Thailand Miss

Butsara Pradpriaw Ministry Of Commerce [email protected]

Thailand Miss

Puttachart Wongmongkol

Ministry Of Commerce [email protected]

Page 21: APEC Project Completion Report - Asia-Pacific … Docs/3390... · Web viewKorea and Japan both tended to sign ‘deep’ agreements with a high level of enforceability. Since 2008,

United States Ms Emily Fischer U.S. Department of State [email protected]

United States Ms Christina Tilghman U.S. Department of State [email protected]

United States Ms Lida Noory U.S. Department of State [email protected]

Viet Nam Mr Tuan Nguyen Ministry Of Industry And Trade

[email protected]

Viet Nam Mr Tri Nguyen Ministry Of Industry And Trade

[email protected]

Viet Nam Mrs Huong Vu Ministry Of Industry And Trade

[email protected]

Viet Nam Mr Pham Anh Tuan Ministry Of Industry And Trade

[email protected]

ABAC Mr Aaron Soans ABAC Australia [email protected]