TEXT: BARSHEFSKY ON APEC TRADE MINISTERS MEETING
(She cites progress on opening nine sector markets)

Washington -- A group of Asia-Pacific trade ministers has advanced work on reducing barriers on trade in nine sectors, U.S. Trade Representative Charlene Barshefsky says.

In a June 23 press release issued in Kuching, Malaysia, Barshefsky says the ministers meeting in the Asia-Pacific Economic Cooperation (APEC) forum agreed on defining scope of products covered, the tariffs and non-tariff measures covered and the basic timetables for doing the work.

"We recognized that there is work left to be done to conclude agreement in these sectors before the Leaders' Meeting including, most importantly, determining how much flexibility would be allowed in meeting the basic timetables," she said.

She said she is optimistic about concluding the agreement in 1998. The Leaders Meeting is scheduled for November.

Elimination of tariffs is proposed in six of the nine sectors, starting with medical equipment in 2001 and ending with fish and jewelry in 2005. In a seventh sector, toys, the proposal will be either elimination of tariffs or reduction of tariffs to 5 percent. In an eighth sector, chemicals, the proposal is for harmonizing tariff rates. No information was released on the ninth sector, telecommunications, for which a mutual recognition agreement on product standards is proposed.

A copy of the press release was made available in Washington. Following is the text:

(begin text)

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
EXECUTIVE OFFICE OF THE PRESIDENT
WASHINGTON, D. C. 20508

FOR IMMEDIATE RELEASE
June 23, 1998

U.S. TRADE REPRESENTATIVE HAILS APEC PROGRESS ON TRADE

Kuching, Malaysia -- United States Trade Representative Charlene Barshefsky praised progress made at this week's meeting of APEC Trade Ministers in advancing the nine sectoral market opening initiatives launched by APEC Leaders last November in Vancouver. Ambassador Barshefsky issued the following statement at the Minister's meeting:

"This was one of the more remarkable APEC Trade Ministers' meetings of the last ten years. In the midst of the current economic turmoil, APEC economies have demonstrated that they are broadly committed to advancing our goal of open trade across the region. I particularly want to commend the Malaysian Chair in forging agreement on the need to move this important work forward."

"I was especially impressed that the developing economies at this meeting --including those hardest hit by the current economic situation -- strongly reaffirmed their support for APEC's market opening agenda, and endorsed a fully comprehensive package. This $1.5 trillion initiative is clearly focused on the opening of markets in nine important areas of trade. In addition, we have moved decisively to define the product scope, measures that would be covered (including tariff end rates and non-tariff measures) and basic timetables."

"At the same time, we recognized that there is work left to be done to conclude agreements in these sectors before the Leader's Meeting, including most importantly, determining how much flexibility would be allowed in meeting the basic time tables. Ministers recognized the need for such flexibility, while noting that such flexibility could not undermine the mutual benefits of opening markets or upsetting the balance of interests reflected in this package. Given the broad-based expressions of determination to move this package to a successful closure this year, I am optimistic that we will fulfill the mandate of our Leaders."

"In addition to the sectoral package, APEC Ministers stressed the importance they attach to the successful conclusion of the ITA II negotiations at the WTO by June 30. This is an important build-out of the ITA which was largely created through the leadership of APEC."

Background

APEC Trade Minsters, representing the 18 economies of the Asia-Pacific region, meet twice annually to review and advance APEC's broader goal of achieving free and open trade and investment in the region by 2010/2020. In addition to their agreement on sectoral liberalization, Ministers took steps to advance work in other APEC areas aimed at fulfilling these goals, including implementation of "Individual Action Plans" by economies and advancement of "Collective Action Plans."

A cornerstone of APEC's market-opening actions is the "early voluntary sectoral liberalization" initiative, which was launched by APEC Leaders last November in Vancouver. At that time, 15 sectors were selected for market-opening. Nine of these were selected for early action in 1998. They are: chemicals, energy sector goods and services, environmental goods and services, fish, forest products, gems and jewelry, medical equipment and instruments, toys, and a mutual recognition agreement in telecommunications products and systems. In addition to advancing work on the 9 sectors in Kuching, Ministers also directed officials to further develop work in the other six sectors for review in November. These sectors are: oilseeds, food, fertilizer, autos, natural and synthetic rubber, and civil aircraft. Trade in these six sectors represents another $1.5 trillion.

TARIFF END RATES AND DATES FOR NINE "EVSL" SECTORS

Sector	End Rate	End Date
Forest products	Elimination	By 1 January 2002/2004 for wood and furniture By 1 January 2000/2002 for pulp, paper and printed products
Fish and fish products	Elimination	By December 31, 2005
Toys	Elimination	By 2000-2005
Gems and jewelry	Elimination/ reduction to 5%	By 2005
Chemicals	CTHA* harmonized rates	By 2001 for rates below/ equal to 10%; by 2004 for other rates
Medical equipment and instruments	Elimination	By 2001
Environmental goods and services	Elimination	tbd
Energy	Elimination	By 2003/2004
Telecommunications MRA	N/A	N/A

*Chemical Tariff Harmonization Agreement

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