PASC’s role in supporting Free Trade in the region

Issues to Discuss

• Standards assist increase World Trade

• Regional Linkage in Standards and conformance

• Specialist Regional Bodies (SRBs) and Asia Pacific Economic Cooperation (APEC)

• Draft SRB strategic plan

World Trade Trends Global trade increasing faster than World

production Real costs associated with non-tariff barriers to

trade - more subtle than tariffs as a cost International trade policy moving from tariffs and

quotas to technical barriers & standards underpinning these

International institutions such as the WTO giving status to ‘international standards’ to foster trade

Free Trade Agreements proliferating National standards increasingly based on

international standards - & subject-matter widening

Barriers to Trade

OECD have estimated at least 80% of Trade is affected by non-tariff barriers - 80% of USD 6 trillion

In NZ 51% of top 100 exporters report problems

33% of NZ exporters incur costs through standards and conformance regulations - typically $10k - $50k per annum. 5% report standards and conformance costs are greater than 5% of production costs

NZ Exports est at NZD 24.7 billion in 2000 Impact on NZ exporters in excess of $1 billion

Standards assist in the following objectives of

FTA’s• Confidence that each Country has in

the other’s regulatory outcomes and conformity assessment systems

• Implement the principles of mutual recognition, unilateral recognition or harmonisation that provide the most appropriate or cost-efficient approach to the removal or reduction of technical, sanitary and phytosanitary barriers to the movement of goods between the Countries

For Example AFTA and ASEAN

• Within three years from the launching of AFTA, exports among ASEAN countries grew from US$43.26 billion in 1993 to almost US$80 billion in 1996, an average yearly growth rate of 28.3 percent

• As the level of tariff barriers between nations are lowered, the significance of non-tariff barriers such as technical regulations (including standards) become more important

promotion of the use of international standards

allowing for regulatory autonomy to protect legitimate interests

avoidance of unnecessary obstacles to international trade

Why use International Standards

• WTO and links

APEC Member Economies

Brunei DarussalamAustralia

ChileCanada China

Hong Kong, China

Indonesia

Japan

Republic of KoreaMalaysia

Mexico

New Zealand

Papua New Guinea

Peru

Philippines

Russia Singapore

Chinese Taipei

United States of America

Vietnam

Thailand

PASC - APEC Membership

Brunei DarussalamAustralia

ChileCanada China

Hong Kong, China

Indonesia

Japan

Republic of KoreaMalaysia

Mexico

New Zealand

Papua New Guinea

Peru

Philippines

Russia Singapore

Chinese Taipei

United States of America

Vietnam

Thailand

Colombia

Fiji

MongoliaSouth Africa

Specialist Regional Bodies - Draft Strategic Plan

• Draft Strategic Plan posted on PASC website

• Objective - to work with the Asia Pacific Economic Cooperation (APEC) Standards and Conformance Sub-Committee (SCSC) to facilitate the development and implementation of Standards and Conformance infrastructures in each member economy

• Final objective is a standards and conformance infrastructure that meets the needs of APEC member economies.

Specialist Regional Bodies - Draft Strategic Plan

• Plan summarizes the activities undertaken by the SRBs in recent years and outlines some projects and activities planned for the next five years.

• SRBs will seek feedback from their members as a result of the SRB workshop held on 22-23 Jan 2007, and comments received from APEC SCSC.

• SRBs invite APEC SCSC to review and comment on this paper and plans. We request that comments be provided to the SRB Lead Shepherd by 31 March 2007 to enable them to be incorporated into the plan for presentation to APEC SCSC II.

Thanks and Questions

Please!