CTI Chair's Report 2021/SOM2/008 - Session 1.2 - APEC Meeting Document Database
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
___________________________________________________________________________
2021/SOM2/008
Session 1.2
CTI Chair’s Report
Purpose: Consideration
Submitted by: CTI Chair
Second Senior Officials’ Meeting
2-3 June 2021Executive Summary
The Committee on Trade and Investment (CTI or “the Committee”) met virtually in plenary for
the second time on 25 to 27 May 2021. Prior to the CTI plenary meeting, ten events were
held, seven at the CTI-level and three at the sub-fora level. In addition, meetings for the
Automotive Dialogue (AD) and the Regulatory Harmonisation Steering Committee (RHSC)
(under the Life Sciences Innovation Forum’s (LSIF)) took place on 18 and 20 May
respectively. The Sub Committee on Standards and Conformance’s (SCSC) subsidiary body,
the Food Safety Cooperation Forum (FSCF) Plenary meeting took place on 28-29 May.
Intersessionally, the CTI endorsed the Sub-Committee on Customs Procedure’s (SCCP) Best
Practice Guidelines for APEC Customs Administrations to Facilitate the Distribution of COVID-
19 Vaccines and Related Goods while at the CTI2 meeting, CTI members endorsed the
Interim Review of the 2020 Declaration on Facilitating the Movement of Essential Goods.
CTI’s work program is organized around four priority areas that contribute to the APEC 2021
priorities. Those four priorities are: i) support for the multilateral trading system; ii) deepening
regional economic integration; iii) strengthening trade facilitation and connectivity; and iv)
inclusion.
This report highlights the progress and development of key initiatives under CTI’s 2021 work
program. Economies worked collaboratively intersessionally and at the CTI2 meeting, to
make progress, on many agenda items that make up the work program.
This report provides details on the status of all activities in the CTI agenda at present.
Senior Officials are asked to take particular note of CTI-led activities as follows:
Endorsed projects and initiatives underway in 2021:
Supporting the Multilateral Trading System (MTS)
1. Economies’ implementation of the WTO Agreement on Trade Facilitation
2. Dispute Settlement Mechanisms (DSM) in Trade Agreements;
3. Enhancing Trade Policy Transparency in APEC: Tariff Policies;
4. Initiative on Promoting Transparency of Technical Barriers to Trade (TBT) World Trade
Organization (WTO) Notifications: Improving Completeness and Clearness of
Information;
5. APEC-funded Public Private Dialogue on Initiative on Promoting Transparency of TBT
WTO Notifications: Improving Completeness and Clearness of Information;
Promoting Regional Economic Integration
1. A Review on Measures Facilitating Essential Movement of People Across Borders;
2. The role of government procurement in responding to COVID-19;
3. Study on Tariffs – Analysis of the Regional Comprehensive Economic Partnership
(RCEP) Tariff Liberalisation Schedules;2
4. Consumer Protection in Digital Trade / E-commerce: Towards Building an APEC
Regional Consumer Protection Framework;
5. Implementation of the Peer Review and Capacity Building for APEC Infrastructure
Development and Investment;
6. APEC Investment Commitment Handbook Project;
7. Work Plan on Digital Trade and E-Commerce for the Realization of the FTAAP;
8. FTAAP Capacity Building Workshop on E-commerce Elements in FTAs/RTAs (Phase
2);
9. Enhancing Trade Policy Transparency in APEC as part of the work plans on FTAAP
Trade Facilitation & Connectivity
10. Study and Workshop on Toward Building Resilient Supply Chains - A Possible Role
of Investment Policy;
11. APEC Single Window Interoperability Action Plan;
12. APEC Webinar on Stabilizing Supply Chain to Support Trade and Economic Recovery
during/after the COVID-19 Pandemic;
13. Workshops on Utilizing digital technology in the field of trade facilitation under the
current COVID-19 pandemic and beyond (3 workshops remaining out of 4);
14. Final Review for the Supply Chain Connectivity Framework Action Plan (Phase II)
(SCFAPII);
15. The APEC GVCs Blueprint 2020-2025: Realizing the Role of the Digital Economy
Within GVCs;
16. Blueprint 2.0.: Compilation of modern-day factors affecting the formation and
development of global value chains;
17. Blueprint 2.0.: Work Plan on Cooperation on Implementing and Taking Full Advantage
of Statistics Related to GVCs;
18. Capacity Building and Technical Assistance to Implement Programs Related to WTO
TFA Article 8 (Border Agency Cooperation);
19. APMEN Workshop on Advancing Resilience of Logistics through Collaboration
among E-Ports Response to Pandemic;
20. 13th APEC Alliance for Supply Chain Connectivity (A2C2) meeting
Others
21. 2021 Digital Trade Policy Dialogues;
22. APEC Global MSME Forum (28-30 June 2021);3
23. Promoting Smart Cities through Quality Infrastructure Investment in Rapidly
Urbanizing APEC Region;
24. Public-Private Dialogue (PPD) on Advertising Standards in the Digital Economy;
25. PPD on promoting Consumer Protection in the dispute resolution and redress
mechanisms in E-commerce;
26. Outcomes on the Application of the Test of Ex Ante Control of Regulations on
Advertising;
27. Work Program on Environment-related Provisions in FTAs/RTAs;
28. Project on APEC Cross Border E-commerce Training (CBET) Workshop II
“Accelerating Digital Transformation toward Inclusive Growth – the COVID-19
Impact”;
29. APEC Webinar: Recyclable Materials Policy Program (RMPP) (16 June);
Projects or initiatives completed in 2021:
Supporting the MTS
1. Symposium and Virtual Preparatory Meeting on APEC Supporting the WTO
Negotiations on Trade Related Aspects of E-commerce;
2. Workshop on APEC Best Practice in Addressing Subsidies that Contribute to Illegal,
Unreported, and Unregulated (IUU) Fishing; - COMPLETED
Promoting REI
3. An Interim Review of the 2020 Declaration on Facilitating the Movement of Essential
Goods
4. APEC Trade in Value Added (TiVA) Database;
5. Initiative on the Progress of the APEC Cross Cutting Principles on Non-Tariff
Measures; - COMPLETED
6. Study on APEC Non-Tariff Measures (NTMs) on Essential Goods During COVID-19:
Lessons for the Future; COMPLETED
Trade Facilitation & Connectivity
7. 12th APEC Alliance for Supply Chain Connectivity (A2C2) meeting - COMPLETED
8. Building Resilient Supply Chains 2020: Survey and Analysis;
9. Capacity Building and Technical Assistance to Implement Programs related to WTO
Trade Facilitation Agreement Article 3 (Advance Rulings) – Phase 3 - COMPLETED
10. Asia Pacific Model E-ports Network (APMEN) Annual Work Plan; COMPLETED4
11. APMEN – Report for the First Phase of Air Freight Logistics Digitalization Project - E-
AWB Implementation on Export Air Freight Project at Xiamen.
Others
12. Final Review of the Boracay Action Agenda to Globalize MSMEs (BAA);
13. Workshop on Protection of Intellectual Property Rights in Digital Content Trade;
14. APEC Seminar "Advancing Economic Inclusion through Trade and Investment in
Asia Pacific Region”
15. Building Capacity in Promoting Inclusive and Responsible Business (IRB) for
Sustainable Growth in Digital Society;
Proposals still under discussion:
1. Non-paper on Environmental Goods;
2. Free Trade Area of the Asia-Pacific (FTAAP) Work Program on Labor-related
Provisions in FTAs/RTAs, including information-sharing on Technical Assistance and
Capacity Building provisions;
3. Work Program related to FTAAP addressing State-owned and Controlled Enterprises
(SOEs) APEC FTAAP Investment Provisions Focused on SOEs;
4. Report on “Taking Forward the Lima Declaration on the Free Trade Area of the Asia-
Pacific (FTAAP) Work Plan on Digital Trade and E-Commerce”
5. APEC Green Supply Chain Network (GSCNET) 2021 Annual Work Plan;
6. GSCNET Terms of Reference;
7. Proposal on policy discussions on trade-related policies to promote trade in
environmental products and technologies, including regulatory issues
Recommendations
CTI recommends that Senior Officials:
endorse the CTI Chair’s report from this meeting.
note the Best Practice Guidelines for APEC Customs Administrations to Facilitate the
Distribution of COVID-19 Vaccines and Related Goods (Annex A)
note the Interim Review of the 2020 Declaration on Facilitating the Movement of
Essential Goods (Annex B)
note the document “Items for Noting” (Annex C)5
31 May 2021
The SOM Chair
Second APEC Senior Officials’ Meeting (SOM2)
New Zealand
APEC COMMITTEE ON TRADE AND INVESTMENT (CTI): CTI CHAIR’S REPORT
Introduction
1. The Committee on Trade and Investment (CTI or “the Committee”) held its second plenary
meeting from 25 to 27 May. The virtual meeting was hosted by New Zealand. All 21 APEC
economies were represented and participated virtually. Representatives from APEC
Business Advisory Council (ABAC) and Pacific Economic Cooperation Council (PECC)
also joined the meeting. Guests included the OECD and World Economic Forum (WEF).
The APEC Policy Support Unit (PSU) was also present and contributed to a number of
items in which it is leading work for CTI.
2. The Chair welcomed members to the second CTI plenary for 2021 and thanked New
Zealand for hosting the virtual meeting. The Chair noted that prior to the CTI meeting,
there were a number of subfora meetings and workshops. Two policy discussions were
held during the CTI meeting. The first was on “Trade and Sustainability” where CTI invited
ABAC and the WEF. The second was on “Trade policy responses to COVID-19” with
speakers from the OECD and the PSU.
3. The Chair encouraged observers, ABAC members and guests, to join the discussions and
share experiences.
4. The 2021 work program was discussed under four key areas:
a) support for the multilateral trading system;
b) deepening regional economic integration, including through discussion of the Free
Trade Area of the Asia Pacific Agenda;
c) strengthening trade facilitation and connectivity;
d) inclusion and other issues.
5. Eight CTI events were held prior to the meeting:
Symposium on APEC Supporting the WTO Negotiations on Trade Related Aspects of
E-commerce (24 March);
Workhop on “Protection of Intellectual Property Rights in Digital Content Trade” (20-
21 April);
Public-Private Dialogue (PPD) on “Promoting Consumer Protection in the Dispute
Resolution and Redress Mechanisms in E-Commerce” (27-29 April);
Workshop “Utilizing Digital Technology in the Field of Trade Facilitation under the
Current COVID-19 & Beyond: Best-Practices Sharing Workshops” (11 May);
Workshop on “Toward Building Resilient Supply Chains – A Possible Role of
Investment Policy” (13-14 May);
Seminar on “Advancing Economic Inclusion through Trade & Investment in the Asia
Pacific Region” (14 May);
Digital Trade Policy Dialogue (18 May);6
Workshop on “Promoting Inclusive and Responsible Business for Sustainable Growth
in Digital Society” (19-20 May)
6. Three sub-fora events were held prior to the meeting:
SCSC “SPS Document Digitalization, What Industry and Economies Need: Seminar to
Collect Perspectives on E-Certification in the Past and Future” (18-19 May);
GOS “Trade Policy Dialogue – The COVID 19 Effect” (19 May);
SCSC-FSCF events, including workshops and the Partnership Training Institute
Network (PTIN) Steering Group Convention (22-26 May)
7. One CTI sub-fora, the Automotive Dialogue, met on 18 May while the Life Sciences
Innovation Forum’s (LSIF) subsidiary body, the Regulatory Harmonisation Steering
Committee (RHSC) met on 20 May. The Sub Committee on Standards and Conformance’s
(SCSC) subsidiary body, the Food Safety Cooperation Forum (FSCF) Plenary meeting
took place on 28-29 May, after the CTI2 plenary meeting.
8. The Summary Record from CTI1 2021 (2021/SOM2/CTI/IS10) was endorsed
intersessionally.
Progress on the 2021 CTI Work Program
9. The main discussion points of the CTI2 meeting were as follows.
(a) Support for the Multilateral Trading System (MTS) / WTO)
10. Under the agenda “Support for the MTS”, CTI conducted the first of two policy
discussions. The first discussion focused on “Trade and sustainability”. Introducing the
topics were Tom Harley ABAC (Australia), and Jeremy Stewart, Project Fellow, Climate
Trade, International Trade and Investment, World Economic Forum.
11. ABAC highlighted the inter-related challenges from the pandemic and climate change,
and then need to prepare for future challenges. It found that no APEC economy is on
target to meet its Paris commitments, and hence there was a need to take decisive
actions. More worrisome was that climate change would be significantly more disruptive
than the COVID19 pandemic. To this end, ABAC is working to developed “Climate
Leadership Principles” and a “Framework on Trade and investment in Renewables”.
While ABAC had not yet adopted common standards, it noted that the private sector
would be ahead of government due primarily to market pressure. Some regions and
multilateral organisations were leading the discussions and ABAC hoped that the above
initiatives would be endorsed in APEC this year. ABAC suggested that APEC members
would encourage trade and investment in renewable energy and low emission technology
by removing trade barriers. It called on APEC to remove of tariffs and work on non-tariff
barriers including regulatory harmonisation; encourage technological cooperation and
implementing measures to encourage trade in environmental services. As a forum for
economic cooperation, ABAC saw APEC as an excellent platform to exchange
information and share best practices. High level principles can be adopted, such as
harmonization of standards on carbon intensity, practical steps like reducing tariffs to
EGS, facilitate technology transfers and services, like engineering.
12. The WEF spoke on the importance of low carbon economy, the role of trade policy on
combating climate change and sustainable growth, including emission reductions. To
explore the range of issues, the WEF shared that it is working on a project to identify trade
and regulatory policies that could support economies and companies’ climate action7
pledges. The project will initially involve a series of industry research interviews to unpack
companies’ climate strategies within the context of a global economy and supply chains.
The project team will distil trade insights for a policymaker audience. This report will be
published by September 2021.
13. The CTI Chair welcomed the suggestions made by ABAC and the WEF. The CTI Chair
made the link between the presentations and the Putrajaya Vision where APEC Leaders
agreed to promote economic policies and cooperation to address environmental
challenges and the issue of sustainability.
14. China updated the meeting that the 24 & 25 March 2021, “Symposium on APEC
Supporting the WTO Negotiations on Trade Related Aspects of E-Commerce” had
attracted over 300 participants from 20 economies. China hoped that the Symposium
would help further progress the Joint Statement Initiative (JSI) on E-Commerce at the
WTO.
15. New Zealand updated members on its approach for Environmental Goods. Noting that
APEC was nearing the ten-year anniversary of the creation of the APEC list of 54
environmental goods, and to ensure the APEC list remains pioneering and fit for purpose,
New Zealand proposed that APEC economies work towards updating and expanding the
2012 APEC list of environmental goods, factoring in new environmentally-friendly
innovations. New Zealand emphasized that this work would be done on a consensus
basis. New Zealand proposed that the expanded list would not require any new tariff
reduction commitments or new specific market access commitments on the part of APEC
economies beyond the original 54 products. The purpose of an expanded list would be
“for reference”, representing the interests of all 21 APEC members; to highlight those
items where economies should prioritise addressing non-tariff barriers and facilitating
trade; and to promote transparency in terms of making clear what APEC members regard
as environmental goods. New Zealand suggested a number of practical ways to expand
the list. One, focus on plugging existing gaps in the list, with a focus on supplementing
those environmental products already contained in the APEC List. Two, take advantage
of new product categories under the soon to be updated HS 2022. Three, consider new
emerging environmental products not included in the list. New Zealand proposed hosting
a scoping and framing discussion on 29 June 2021 for members and their technical
experts to collectively determine what the scope of this work should look like. On the
review of the original 2012 EG list, New Zealand noted that the PSU would produce a
policy brief that reviews the impact and trends of the original list. Some economies
suggested updating the 2012 Environmental Goods List into the upcoming HS Code
2022.
16. Japan sought endorsement for the “Proposal on policy discussions on trade-related
policies to promote trade in environmental products and technologies, including
regulatory issues”. China, Russia, and Viet Nam, indicated that they had shared their
comments with Japan and hoped that Japan could address them in order to achieve
consensus. The Chair encouraged Japan to engage with these economies and update
the CTI.
17. Australia updated CTI on its MAG-led proposal “Scoping study on new and emerging
environmental goods”. Australia shared that they were working with one economy to
finalise the proposal. Australia provided further clarifications on the study. First, it would
contribute to the evolving discussion on environmental goods by providing contemporary
research into new and emerging environmental goods and technologies that contribute to
mitigating climate change and lowering emissions. It would assess the trading landscape
in these new and emerging goods, including reviewing growth patterns in trade in these
goods and trade policy settings across APEC economies. It would produce new data on8
trade in these new and emerging goods and technologies. In turn this would offer
suggestions on how APEC might usefully support increased trade in these goods and
address barriers. Second, the scope of the study would focus on those new and emerging
goods and technologies that contribute to mitigating climate change and lowering
emissions. The scope has been limited as Australia wanted to (a) ensure that the goods
and technologies covered in the proposal could be clearly and easily linked to positive
climate outcomes; (b) it would be beyond the scope of this one paper to cover off on all
environmental goods not covered in the original list; and (c) many of the new advances
have occurred in low emissions sector. The Chair asked Australia to continue updating
members on the status of the initiative.
18. New Zealand tabled its Non-Paper “Standstill on Fossil Fuel Subsidies (FFS)” and sought
members comments. New Zealand proposed working towards a Leaders announcement
in November 2021 that would call on APEC economies to implement a voluntary standstill
on new fossil fuel subsidies. New Zealand also suggested holding a Trade Policy
Dialogue before SOM3 to discuss the issue. While there was recognition that APEC
should not encourage wasteful consumption, Canada and Japan suggested that the
scope should cover “inefficient” FFS. New Zealand also took note of comments from
members that there should be recognition of the differences in the levels of development
between economies as well as different economic circumstances and the need for
capacity building. New Zealand underscored the voluntary nature of this initiative.
b) Deepening regional economic integration
19. Japan updated CTI that the workshop, “Toward Building Resilient Supply Chains - A
Possible Role of Investment Policy” on 13-14 May attracted over 70 participants. In terms
of policy recommendation, Japan suggested the following (a) investment liberalisation
could have a significant impact to enhance GVCs resilience; (b) the investment policy to
offer appropriate market access / dispute settlement system to all and to encourage
international cooperation / dialogue; (c) recently introduced investment policy measures
should be balanced and adopted in a good faith, be transparent; (d) new social demands
on investment treaties needs to be addressed, such as climate change, human rights and
labour issues. A final report would be circulated by July for CTI’s endorsement.
20. The US resubmitted its proposals, (a) FTAAP Work Program on Labour-related Provisions
in FTAs/RTAs, and Work Program related to FTAAP addressing State-owned and
Controlled Enterprises (SOEs) for endorsement. The US highlighted that this work was
meant to contribute to the FTAAP Agenda in the Putrajaya Vision that called for APEC to
work towards a high standard and comprehensive regional undertaking. The US also
recalled the 2020 CTI Report to Ministers where members agreed that more focus and
further work was required to look into these issues, including the effective exchange of
information in the CTI. The US recalled the details of both proposals and questioned the
value of having an FTAAP agenda if members were not willing to discuss all issues.
Acknowledging the US’ efforts, China shared that it had consulted with line agencies but
unfortunately concerns remained. China agreed to stay open minded would be willing to
discuss the proposals with interested members.
(c) Strengthening Trade Facilitation and Connectivity;
21. The CTI conducted the second policy discussion on the topic, “Trade policy responses to
COVID-19”. Two speakers were invited to give their views - Julia Nielson, Deputy Director,
Trade and Agriculture Directorate, OECD and Carlos Kuriyama, Senior Analyst, APEC
PSU.9
22. The OECD spoke on the impact of the pandemic on vaccine/medical supply chains and
agrifood. The OECD was of the view that “No Trade, No Vaccine”. It noted that supply
chains have largely been resilient including on essential goods, but there was always
uncertainty. To this end, the OECD had produced a toolkit on what economies can do to
strengthened GVCs. The OECD suggested a “no regrets investment” to ensure stable
trade and investment regimes, and investments in infrastructure. It noted that the
pandemic had seen a rise in trade facilitation measures that adopted of digital tools, such
as in the area of phytosanitary measures. The pandemic is also forcing a change towards
the digital adoption, and the OECD made a case for building better integration between
different domestic agencies such as customs. One area was to extend the legal status of
electronic documents to be the same as that of a hardcopy. Between economies,
interoperability should be another area of focus. The OECD put forward that APEC could
do three things: (a) promote greater transparency, by having mechanism for dialogue and
trust; (b) encouraging international cooperation, which would help in the diversification of
supply chains; and (c) reduce barriers.
23. The PSU spoke on its recently released Policy Brief “Promoting Trade in Vaccines and
Related Supplies and Equipment”. The presentation noted the importance of the trade in
vaccines and their related supplies and equipment, as well as in identifying issues affecting
COVID-19 vaccine trade. In particular, the PSU highlighted the complexity of the vaccine
supply chain because of the many goods involved in the vaccination of people and the
impossibility for one economy to produce all those goods on their own. The presentation
showed existing tariff levels and non-tariff measures affecting those products in the APEC
region, and provided policy recommendations to facilitate the provision of COVID-19
vaccines and related products.
24. Members had a robust discussion and conversation with the Speakers and took note of
the suggestions as members develop policy responses to tackle COVID19. I expressed
hopes that members could get an ambitious statement for the MRT and in particular the
Annex to the Declaration – on Vaccine Supply Chains.
25. China updated that it would hold the self-funded “APEC Webinar on Stabilizing Supply
Chain to Support Trade and Economic Recovery during/after the COVID-19 Pandemic” in
August. China noted the relevance of the topic as supply chains were coming under
pressure due to the pandemic. China undertook to share more details on the webinar and
welcomed members’ participation.
26. Japan updated members on the capacity building programme for Viet Nam and peer
review for Papua New Guinea APEC Infrastructure Development and Investment. Japan
explained that the capacity building programme for Viet Nam provided the experts’
knowledge on the benefits of Quality Infrastructure and public-private partnerships (PPP).
Japan invited other economies to conduct a similar peer review exercise. The PSU and
Stuart Schaefer, Lead Consultant, Johnstaff International Development, provided a
Progress Report for the Peer Review and Capacity Building on APEC Infrastructure
Development and Investment for PNG. Five areas for capacity building for PNG are
recommended: (a) strengthening of adherence to the project cycle that allows the
development of a suite of bankable projects; (b) adding to the project cycle the
development of a process to deal with unsolicited bids; (c) incorporating the concept of life
cycle costs into projects; (d) strengthening of government procurement processes and (e)
strengthening the funding aspects of infrastructure, including applying a structured funding
framework and systematising the PPP processes. The draft final report for the Peer
Review for PNG will be submitted intersessionally after CTI2 for members’ feedback.
27. Korea and the PSU updated members on the initiative, “Review Measures Facilitating
Essential Movement of People Across Borders” and the study on cross-border mobility in10
the APEC region that was conducted under the initiative, respectively. The draft final report
of the study was submitted to CTI and PSU is seeking comments from members with the
deadline of 18 June. The PSU noted that with border restrictions, there have been direct
losses in services sectors such as travel, tourism, and hospitality sectors, with knock-on
impact on food, manufacturing, other personal services. There have also been disruptions
to GVCs and trade with stranded air crews, seafarers, and truck drivers which lead to
higher logistics costs, time, procedures, and uncertainty. On the impact to people, there
have been losses to cross-border business and employment opportunities. It is estimated
that the lost bilateral trade is in the region of USD 488 billion to USD 786 billion with lost
economic output amounting to USD 1.2 trillion. In terms of policy responses, the report
suggests a need to contain COVID-19 everywhere and for everyone, with quick and
equitable access to vaccines. There is a need to work on reducing uncertainty at the
borders, which could include harmonisation of requirements, mutual recognition of tests
and health certificates, developing transparent criteria for closing or reopening borders, all
of which should be based on scientific evidence. APEC should also consider other
approaches including digital health passes and possibly expanding the functions of the
Virtual APEC Business Travel Card. The report acknowledges that there is a need to
reconcile economies’ different outlooks, risk profiles and appetites. Overall, the report calls
for a deeper regional cooperation and coordination.
28. Russia updated its initiative “Enhancing Trade Policy Transparency in APEC: Tariff
Policies”. In its interim findings that was based on the survey of economies, Russia noted
some issues in relation to the initiative. These included (a) a substantial number of broken
hyperlinks and in some cases, information on tariffs is not up-to-date; (b) a lack of
information in English; and (c) the complexity of using information due to the different and
unfriendly formats of the documents. Russia has highlighted that many APEC economies
noted the high relevance of establishing more unified reporting system or updating the
existing ones. As a next step, Russia undertook to circulate a draft report intersessionally.
It was hoped that with the completion of this project, information on applied tariff rates
would be made more available, through the sharing of best practices and approaches.
29. Singapore and the PSU updated on the next steps on the Final Review on Phase II of the
Supply Chain Connectivity Framework Action Plan (SCFAPII). The draft report was tabled
for members’ information. Singapore thanked the members who contributed the eight case
studies and welcomed views on the next phase of SCFAP. The PSU highlighted some of
the findings of the report and noted that COVID-19 has impacted supply chain connectivity.
The draft final report of the Final Review will be completed by SOM3. A number of
economies noted that APEC has been working on trade facilitation and supply chain issues
and were keen to explore the next phase of this workstream, including in the area of E-
Commerce.
30. CTI endorsed the “Interim Review (IR) of the 2020 Declaration on Facilitating the
Movement of Essential Goods”. The IR provides an insight on how APEC has fared with
respect to facilitating trade in essential goods since the signing of the Declaration. The
interim findings include (a) Most trade measures on essential goods were taken before
adoption of the July 2020 Declaration; (b) Since January 2020, there were more facilitating
than restrictive measures across all categories of essential goods except food; (c) Medical
supplies and PPE were the most targeted categories of essential goods; (d) Export
restrictions were the most common type of restrictive measure. A Final Review will be
presented in time for the APEC Ministerial Meeting in November. The CTI recommends
that Senior Officials requests Trade Ministers to note the IR.
31. Economies’ status in implementing the WTO Trade Facilitation Agreement (TFA) has now
been uploaded on the APEC Trade Repository and the APEC CTI website. This means11
that the general public and traders can now see the most up-to-date information on
economies’ implementation of the WTO TFA. To ensure accuracy, the information will be
updated on a regular basis.
(d) Inclusion and other initiatives
32. China updated members on its three initiatives related to inclusion. The first initiative, the
“APEC Seminar on Advancing Economic Inclusion through Trade and Investment in the
Asia Pacific Region” took place on 14 May and a summary report is currently being
prepared. The second initiative, a capacity building workshop on “Promoting Inclusive and
Responsible Business for Sustainable Growth in Digital Society” took place on 19-20 May.
The workshop saw the participation of the World Bank, OECD, Senior Officials and
Women-led enterprises. The third initiative, the “APEC Cross Border E-commerce Training
(CBET) Workshop II “Accelerating Digital Transformation toward Inclusive Growth – the
COVID-19 Impact”” will be held in September.
(e) Other CTI initiatives
33. Chile updated members on the Canada-Chile initiative, “The role of government
procurement in responding to COVID-19” which comprises a survey and a webinar. Based
on preliminary findings of the 19 economies who have responded to the survey, the
challenges in obtaining essential goods and services included increased prices, shortage
of goods and delays in shipments. Respondents also reported obstacles in procuring non-
pandemic-related goods and services due to the impact of quarantines and lockdowns.
Consequently, almost all respondents have indicated that they will be undertaking actions
in government procurement to address these obstacles. A third of the respondents
signalled the adoption of additional measures to support the participation of MSMEs in the
government procurement process in response to the pandemic. In terms of the next steps,
the proponents would prepare a summary of the findings based on the responses to the
survey/questionnaire and submit it to CTI for information. The webinar will be held in
September.
34. Peru updated the CTI on its “Public-Private Dialogue (PPD) on Promoting Consumer
Protection in the Dispute Resolution and Redress Mechanisms in E-Commerce” which
took place on 27 to 29 April. Organised by Indecopi, Peru’s National Institute for the
Defense of Free Competition and the Protection of Intellectual Property, the PPD looked
into (a) Cross-border consumer protection in digital markets; (b) challenges on dispute
resolution and redress mechanisms for consumers in cross-border digital trade; and (c)
Improving consumers’ confidence in cross-border digital trade through best practices, self-
regulation and compliance policies in dispute resolution and redress mechanisms
processes. A summary report containing a set of voluntary recommendations will be
circulated for CTI’s endorsement by CTI3 and will be published on the APEC website.
35. Chinese Taipei updated members on its proposal “Promoting Trade by Utilizing Digital
Technology”. Aimed at contributing to the implementation of the APEC Internet and Digital
Economy Roadmap (AIDER) and strengthening MSME competitiveness, this project will
have a virtual workshop, focusing on the role of digital technology in cross-border trade
promotion. It would be a platform for economies to share practices and policies on
advancing trade promotional tools, especially relating to the MICE industry, and give
opportunities to the private sector to share practical experiences on how digital technology
leads to trade promotion and business opportunities. A report will accompany the
workshop.
36. Russia updated the meeting on its workshop “Protection of Intellectual Property Rights in
Digital Content Trade” which took place on 20 & 21 April. Russia hoped that the event12
helped identify challenges in the area of IPR and could contribution to the WTO
discussions on the JSI on E-Commerce. Russia undertook to prepare a summary report.
Russia also took the opportunity to inform members that its second two-day workshop on
“Effective Domestic Policymaking for Stimulating Economic Upgrading Through Global
Value Chains” would be held in late August.
37. Indonesia informed CTI members that it will hold a Trade Policy Dialogue on
Understanding NTMs on Agriculture, Forestry, and Fisheries Sectors to Enhance Trade to
Improve Rural Development and Poverty Alleviation in the Asia Pacific Region in the
margin of SOM3 2021. Indonesia invited members and colleagues to participate in the
TPD. The details of the update are as captured in the items for noting.
Updates from Observers
38. The PECC informed members that the PECC is scheduled to have it annual general
meeting on 21 – 22 July. The PECC reaffirmed CTI’s work on the Digital Economy and
Services and expressed willingness to work with CTI to further these issues.
Updates from Sub-fora Convenors and Endorsement of CTI Sub-fora Convenors/
Chair’s Reports
39. The Sub-Committee on Customs Procedures (SCCP) Convenor addressed CTI and
thanked CTI members for endorsing the SCCP’s Best Practice Guidelines on APEC
Economies’ Supply Chain to Facilitate the Distribution of COVID-19 Vaccines and Related
Goods.
40. The Automotive Dialogue Convenor updated CTI on work at the Automotive Dialogue
including providing recommendations to members that would support the uptake of electric
vehicles. The AD Convenor recommended APEC develop policies which focus on tackling
the key barriers and also shared the APEC Advanced Vehicles Technologies Technical
Engagement Program that amongst others looked at regulations and standards.
Updates from the APEC Secretariat
(a) Project Update
41. The APEC Secretariat briefed members on APEC project management and other
administrative issues. The deadlines for project session 2 were presented.
(b) CTI sub-fora assessment
42. The Secretariat updated CTI member that the survey with the CTI subfora has been
completed and proposed to carry out the survey with CTI members as the next step, based
on the methodology agreed in 2019 and resurfaced again at CTI1/2021.
(c) Selection of the next CTI Chair (2022-23)
43. The Secretariat reminded the meeting that the deadline for nominations of the CTI Chair
would close on 28 May. The Secretariat proposed that if there were no nominees, the
deadline for nominations would be extended to 18 June.13
(d) Items for noting
44. The Items for Noting document, which contains updates by economies on their initiatives,
was endorsed by CTI.
(e) Document Classification
45. The document classification was circulated for members’ consideration and endorsement.
Summary and conclusion
46. The CTI Chair closed the meeting by thanking CTI members for their active participation.
Krasna Bobenrieth
Chair, APEC Committee on Trade and Investment1
Annex A
BEST PRACTICE GUIDELINES FOR APEC CUSTOMS ADMINISTRATIONS
TO FACILITATE THE DISTRIBUTION OF COVID‐19 VACCINES AND RELATED GOODS
During the APEC Leaders’ Meeting 2020, Leaders highlighted the importance of facilitating equitable
access to safe, quality, effective and affordable COVID‐19 vaccines that are vital to safeguard people’s
health and well‐being.1
The rollout of COVID‐19 vaccines and related goods 2 in a safe, timely and effective manner while
maintaining a high‐level of compliance is an immediate, real‐time global challenge. Economies may
encounter numerous logistical challenges in the supply chain once they begin their vaccination
programmes. Counterfeit and illegal movement of the vaccines are also of concern, as the global
supply chain can be highly vulnerable to potential manipulation by criminal networks. The distribution
of COVID‐19 vaccines globally will rely on a specialised supply chain, at a time when supply chains have
already been severely disrupted due to the COVID‐19 pandemic. Not only will this be a high profile
and potentially controversial trade challenge, it will also be ‘fragile’ trade, requiring economies to
recognise various technical issues with respect to the transport and storage of COVID‐19 vaccines and
related goods. Timeliness of transport, clearance, and delivery of COVID‐19 vaccines and related goods
will therefore be critical.
Customs administrations are only part of the wider players in the vaccine supply chain. However, as
the primary enforcement authority for regulating imports and exports, customs administrations will
be important contributors to the expedited border facilitation of COVID‐19 vaccines and related
goods. APEC customs administrations will therefore play a pivotal role in implementing any standards
and measures necessary for their respective economies.
It is acknowledged that there are currently useful efforts by other economies and international
organisations to tackle this challenge through various avenues, such as publishing reports or drafting
collective resolutions. This particular initiative seeks to set out what are considered best practices for
the successful rollout of COVID‐19 vaccines to benefit the APEC region specifically, with a focus on
supply chain and customs clearance processes. To that effect, the APEC Sub‐Committee on Customs
Procedures (SCCP) has endorsed the Best Practice Guidelines for APEC Customs Administrations to
Facilitate the Distribution of COVID‐19 Vaccines and Related Goods. The guidelines comprises a set of
operational and practicable measures to ensure our supply chains are equipped to facilitate the flow
of COVID‐19 vaccines and related goods. It will complement the wider ongoing vaccine supply chain
work and assist economies to consider all available measures to manage the complex and sensitive
nature of the vaccine supply chain.
This work can not only help strengthen the predictability, visibility and reliability of the economies’
vaccine supply chains but will also send a strong signal to the global community that APEC is
committed to expediting the successful rollout of COVID‐19 vaccines. By implementing any of the
measures in the guidelines, APEC member economies can benefit from simplified, modernised and
harmonised export and import processes of COVID‐19 vaccines. It will also strengthen their supply
1
2020 Kuala Lumpur Declaration, the 27th APEC Economic Leaders’ Meeting, 20 November 2020.
2
Adequate numbers of vaccine‐related goods, such as personal protective equipment (PPE) and other medical
equipment, will be required in order to support the large‐scale handling of vaccination programmes globally. A
non‐exhaustive list of COVID‐19 vaccines and related goods could be drawn from the World Customs
Organization HS Classification reference: hs‐classification‐reference‐vaccines‐english.pdf (wcoomd.org).2 chain security and connectivity, making economies more resilient to other potential supply chain disruptions and trade challenges in the future.
3
ASIA PACIFIC ECONOMIC COOPERATION SUB‐COMMITTEE ON CUSTOMS PROCEDURES
BEST PRACTICE GUIDELINES FOR APEC CUSTOMS ADMINISTRATIONS
TO FACILITATE THE DISTRIBUTION OF COVID‐19 VACCINES AND RELATED GOODS
Member economies of the Asia Pacific Economic Cooperation Sub‐Committee on Customs
Procedures have endorsed the following best practice guidelines for APEC customs administrations
to facilitate the distribution of COVID‐19 vaccines and related goods across borders.
Best practices guidelines for APEC customs administrations
Preamble
1. Recognising existing international standards and agreements relevant to the international
supply chain: In implementing any measures in the best practice guidelines, economies will also
have regard to the APEC Framework to Secure Trade, the World Trade Organization Trade
Facilitation Agreement (WTO TFA), the World Customs Organization (WCO) Revised Kyoto
Convention (RKC), the WCO SAFE Framework of Standards, the WCO Resolution on the Role of
Customs in Facilitating the Cross‐Border Movement of Situationally Critical Medicines and
Vaccines, the WCO Trade Recovery Guidelines and other international standards relevant to the
international supply chain.
Border clearance procedures
2. Expedited border clearance for COVID‐19 vaccines and related goods: Customs import
clearance processes should allow pre‐arrival processing of COVID‐19 vaccines and related goods,
while recognising alignment with each economy’s existing regulations, to ensure import
processes are as expedited as possible and goods are not held unnecessarily in economies’
customs clearance processes.
3. Expedited border clearance for hazardous substances: Customs import clearance processes
should also allow pre‐arrival processing of any hazardous substances that are used to transport
COVID‐19 vaccines, i.e. dry ice, while recognising alignment with each economy’s existing
regulations. It is essential that any hazardous materials required to transport, store and maintain
the quality of the vaccines receive the same level of expedited procedures to maintain the
overall flow of the vaccines across borders.
4. Tariff liberalisation measures: Economies should take note of APEC Business Advisory Council
(ABAC)’s recommendations to take tariff liberalisation measures for essential medical supplies.3
If economies undertake any tariff liberalisation measures for COVID‐19 vaccines and related
goods, their customs administrations should also aim to simplify customs procedures with
respect to such measures, in order to reduce or eliminate any burdens and delays for their
traders.
3
The Declaration on Facilitating the Movement of Essential Goods by the APEC Ministers
Responsible Trade takes note of ABAC’s recommendations on tariff liberalisation
measures.4
5. Other unnecessary barriers to trade: Economies should attempt to identify and resolve any
unnecessary barriers to trade in COVID‐19 vaccines and related goods.
6. Regular border testing: Economies should carry out regular border testing, including surface
swab testing and testing of border officials involved in the clearance process, to ensure the safe
transfer of COVID‐19 vaccines and related goods and to protect officials and staff members from
all risks.
7. Digitalised process: Where possible, customs export and import procedures should utilise online
forms and digitalised trade documents. Customs administrations should accept electronic
customs data, digital copies of documents and electronic payment to ensure the timely
movement and clearance of COVID‐19 vaccines and related goods.
8. Goods in transit and transhipment: Economies should ensure that the vaccine supply chain is
uninterrupted while in transit through an economy en‐route to another economy. Economies
should also recognise transhipment as an essential part of the supply chain and be willing to
provide expedited processing, assistance and logistics when required.
9. Use of the Harmonised System: Customs administrations should identify and confirm in advance
the correct classification of any COVID‐19 vaccines and related goods in accordance with the
Harmonised System, especially with the Joint WCO/WHO HS Classification List for COVID‐19
Medical Supplies.
Engagement with relevant traders
10. Government to business targeted outreach: Economies should consider proactively
approaching traders involved in the vaccine supply chain, including relevant businesses, industry
stakeholders and logistics operators, to ensure that they have a clear understanding of the
border clearance procedures. This should provide confidence that relevant industries and
stakeholders are committed to working with the government and that the relevant connections
are in place to help address any potential delays.
11. Exporters and importers: Economies should ensure their exporters and importers have a clear
understanding of the supply chain and customs procedures specific to COVID‐19 vaccines and
related goods, for instance cold chain practice and standards, to ensure full preparedness and
effective facilitation in the global supply chain.
12. Border officials: Economies should ensure their border officials have a clear understanding of
the logistical arrangements, such as approval and licensing processes and relevant documents
required, as well as any issues associated with movements of COVID‐19 vaccines and related
goods (such as conditions for storage, handling requirements, temperature control, vaccines
lifespan etc.).
13. Trusted trader arrangements: Customs administrations should utilise existing trusted trader
arrangements and encourage businesses to be accredited as trusted traders in advance, so these
risk‐assessed group of traders can take advantage of simplified arrangements when importing
COVID‐19 vaccines and related goods.5
Coordination and preparedness
14. Domestic government agency coordination: Government agencies, including those responsible
for each economy’s health, transport, foreign affairs, trade and customs, should coordinate any
requirements as necessary in order to implement the best practices and facilitate the flow of
COVID‐19 vaccines and related goods.
15. 24 hour contact point: Each economy’s customs administration should designate a 24 hour
contact point for importers, exporters and logistics operators in order to facilitate any
shipments, respond to any delays, and provide advice on any technical requirements as soon as
practicable to manage cross border movement of COVID‐19 vaccines and related goods. This
would also be relevant for an importing economy when the vaccines and related goods require a
transit in a third economy. Economies should have plans to address any unexpected delays or
diversions of vaccine imports.
16. Physical infrastructure: Economies should put in place adequate facilities and technical
infrastructure at the border to enhance the readiness of the supply chain. This should address
potential challenges associated with the handling of time and temperature‐sensitive COVID‐19
vaccines and related goods.
17. Protocols around counterfeits and illegal movement of COVID‐19 vaccines and related goods:
Counterfeits and illegal movement of vaccines will undermine the reliability and credibility of an
economy’s vaccine programme. Economies should implement appropriate measures to prevent
the entry and import of sub‐standard and/or falsified vaccines, as well as counterfeit and illegally
obtained vaccines. Economies should carry out appropriate verification processes to detect
counterfeits and illegal movements, for example, by referring to manufacture marks of
authenticity and supporting documentation.
18. Securing the supply chain from potential exploitation: Customs administrations should
cooperate with each other and with the WCO to prevent the supply chain from exploitation, for
instance, from the import of prohibited goods or illegal drugs. Active sharing of intelligence with
each other and with the WCO where practicable to safeguard the supply chain will be an integral
part of customs administrations’ roles.
Implementation
19. Prioritisation: Recognising the different mandates of each customs administration as well as the
circumstances of each economy, customs administrations should carry out self‐assessment of
the guidelines against their existing frameworks and prioritise the implementation of any of the
above practices over others as appropriate.
20. Transparency: Economies should be transparent in its cross‐border facilitation process of COVID‐
19 vaccines and related goods. This can include targeted communications to importers and
exporters of COVID‐19 vaccines and related goods. Transparency is essential for effective
cooperation between customs administrations in the region.
21. Review process: Taking into account each economy’s existing obligations, customs
administrations should conduct regular reviews and monitor progress of any implemented
practices, until COVID‐19 is no longer determined to be a global public health emergency.6
22. Sharing of lessons learnt: There should be coordinated efforts to share lessons learnt on any
implemented practices as the vaccines are rolled out in the APEC region. This is to encourage
economies to assist each other with the implementation of these practices and to ensure that
the practices remain fit for purpose.1
Annex B
Interim Review of the APEC Declaration on Facilitating the
Movement of Essential Goods
27 May 2021
Summary
On 25 July 2020, APEC Ministers Responsible for Trade agreed the Declaration on Facilitating the
Movement of Essential Goods.
This report sets out a high‐level overview of some indicators that may shed light on the
Declaration’s implementation and effectiveness.
This report is intended to be descriptive rather than evaluative. It does not seek to reach a
conclusive view on the extent to which the Declaration has had a direct impact on APEC trade
policy or flows during the pandemic. Data before and after the signing of the Declaration is
provided to offer a snapshot into how the trade policy of, and trade flows between, APEC
economies have changed during the pandemic. We of course recognise that these changes may
not have been a direct consequence of the Declaration (they may have been independent
government responses to supply and demand challenges during the pandemic, for example).
International Trade Centre analysis of global trade measures taken since the beginning of the
pandemic indicates that, while some APEC economies have taken restrictive trade measures with
respect to essential goods during the pandemic:
the majority of these measures were taken in the early stages of the pandemic, prior to
the Declaration being agreed. 71 measures were taken prior to the Declaration (40
facilitating, 31 restrictive), while 11 were taken following the Declaration (4 facilitating, 7
restrictive);
since January 2020, there have been more trade facilitating measures introduced for
essential goods than trade restrictive measures. This was the case across all categories of
essential goods, except food; and
nearly 40% of the restrictive measures introduced by APEC economies during the
pandemic expired within 6 months of their introduction. At the time of this report, 55%
remain in place.
APEC economies have not imposed any new tariffs on WCO COVID‐19 medical supplies during the
pandemic to date. Only 6 tariff changes were observed since 25 July 2020, all of which were
reductions.
UN bilateral trade flow data indicates that intra‐APEC trade of some WCO COVID‐19 medical
supplies grew significantly in 2020. While APEC‐RoW trade of those goods also increased, it did so
to a lesser extent. This analysis is a possible indicator of the resilience of trade channels between
APEC economies during the pandemic, particularly in relation to medical supplies2
Report
This note provides baseline data for reviewing the implementation and effectiveness of the
Declaration on Facilitating the Movement of Essential Goods (Declaration), 4 agreed by the APEC
Ministers Responsible for Trade in July 2020. The Declaration canvassed four key commitments:
a. APEC economies’ export restrictions should be consistent with WTO rules, and be notified in
accordance with relevant WTO obligations.
b. APEC economies are encouraged to work together to resolve unnecessary non‐tariff barriers
(NTBs) in essential goods.
c. APEC economies should undertake specific trade facilitation measures for essential goods.
d. APEC economies should take note of ABAC’s recommendation for tariff liberalisation
measures in relation to essential medical supplies.
The following assessment is non‐exhaustive – it does not purport to be a conclusive statement
regarding the extent to which each of the above four commitments has been implemented. Rather,
it sets out a high‐level overview of some indicators that may shed light on the Declaration’s
implementation and effectiveness overall – namely an analysis of (i) the International Trade Centre
(ITC) database of COVID‐19 trade interventions by APEC economies, (ii) APEC economies’
implementation of the World Trade Organization (WTO) Trade Facilitation Agreement (TFA) and (iii)
overall trade flows of some WCO COVID‐19 medical supplies between APEC economies.
While to the extent possible this analysis is focused on the time period since the Declaration was
signed (since 25 July 2020), it also includes 1 January – 24 July 2020 data in circumstances where (i)
data limitations have meant that it is not possible to distinguish between pre‐ and post‐Declaration
impacts and/or (ii) the pre‐25 July 2020 data is useful to better contextualise the impact of the
Declaration. For completeness, we do not suggest that all post‐25 July 2020 changes to trade policy
and flows were a direct consequence of the Declaration. They may have been independent
government responses to supply and demand challenges during the pandemic, for example.
For the avoidance of doubt, this assessment does not take any position on whether the individual
trade measures introduced by APEC economies were justified in the circumstances and/or consistent
with those economy’s obligations under the WTO and/or other trade‐agreements or the Declaration.
Temporary trade measures implemented during the COVID‐19 pandemic
The ITC’s Market Access Map tool has collated temporary trade measures enacted by governments in
response to the pandemic, 5 and categorised them as “facilitating” or “restrictive”.6
The Declaration did not define what constitutes an essential good. The 2020 Statement on COVID‐19
by APEC Ministers Responsible for Trade7 did, however, refer more generally to essential goods as
“medicines, medical supplies and equipment, agriculture and food products and other supplies.” For
4
https://www.apec.org/Meeting‐Papers/Sectoral‐Ministerial‐Meetings/Trade/2020_MRT/Annex‐A
5
https://macmap.org/en/covid19. Consistent with the high‐level nature of this assessment and the fact that
several other bodies – including the WTO – have not taken a public position on whether reported trade
measures taken by economies in response to the COVID‐19 pandemic were facilitating or restrictive, the ITC
Market Access Map was the sole data source for this analysis.
6
ITC definition of trade facilitating includes both “trade facilitating measures” and “tariff liberalisation
measures”. For example, the ITC’s analysis regards tariff reductions, suspensions of certification requirements
and relaxation of import licensing requirements as “trade facilitating” measures.
4
Statement on COVID‐19 by APEC Ministers Responsible for TradeYou can also read
