TEXT: APEC MINISTERS ON EARLY SECTORAL LIBERALIZATION
(Annex to APEC Ministers Joint Statement)

Vancouver, British Columbia -- The ministers of the 18 economies that make up the Asia-Pacific Economic Cooperation (APEC) forum endorsed, among other initiatives, a program of early voluntary trade liberalization in 15 sectors.

In an annex to their joint statement, issued November 22, the ministers affirmed that APEC should continue to act as a catalyst for promoting trade and investment liberalization globally and endorsed work in the following sectors: environmental goods and services, energy, fish and fish products, food, toys, natural and synthetic rubber, forest products, fertilizers, gems and jewelry, automotive, oilseeds and oilseed products, medical equipment and instruments, chemicals, civil aircraft, and a telecommunications mutual recognition agreement.

Following is the text of the annex statement on early voluntary sectoral liberalization:

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Early Voluntary Sectoral Liberalization
Annex to the Ministers' Joint Statement

In Montreal, the APEC Ministers Responsible for Trade affirmed that APEC should continue to act as a catalyst for promoting trade and investment liberalization globally. Recalling the leadership role that APEC played in ensuring the successful conclusion of the Information Technology Agreement, they also reaffirmed their determination to continue APEC's leadership and credibility in trade liberalization in accordance with the general principles set out in the Osaka Action Agenda.

They therefore agreed to identify in 1997 potential sectors for early voluntary liberalization, responding to the challenge presented by APEC Economic Leaders in Subic "to identify sectors where early voluntary liberalization would have a positive impact on trade, investment, and economic growth in the individual APEC economies as well as in the region, and submit recommendations to us on how this can be achieved".

They directed officials to examine the merits of pursuing liberalization in sectors, including those that support enhanced infrastructure and sustainable development, having regard to:

This initiative complements the Individual Action Plan (IAP) process, which they agreed in Montreal is key to the implementation of APEC's trade and investment agenda. The launch of this process signals APEC members' clear commitment to promote economic growth based on a substantial programme of trade liberalization in the region. Ministers agreed that other actions should be taken so that the process remains consistent with, and promotes, further broad-based multilateral liberalization.

In response to the instructions of Ministers Responsible for Trade, 41 sectors were proposed for our review and consideration. The breadth of participation by APEC members and the diverse range of sectors nominated is indicative of the high level of support in the region for further trade liberalization. We have closely examined the merits of these proposals and have given full consideration to the levels of support for, the economic significance of, and the internal balance that has been developed within, specific proposals. Fifteen proposals have been identified as enjoying the most support among member economies.

These are:

We agree to pursue an ongoing programme of voluntary liberalization with respect to these sectors. We affirm our commitment to continue developing liberalization initiatives among APEC members, and to build on APEC's early voluntary liberalization in these sectors as a basis for extending participation beyond our region and, where appropriate, for incorporation into the WTO.

Recognizing the need for a balanced and mutually beneficial package, and recalling that the process of early liberalization is conducted on the basis of the APEC principle of voluntarism, whereby each economy remains free to determine the sectoral initiatives in which it will participate, we therefore call for the development of appropriate agreements or arrangements for market-opening and facilitation and economic and technical cooperation measures, based on existing proposals in the following sectors:

We recommend that Leaders endorse members beginning immediately to complete the work on these proposals through finalizing the scope of coverage, flexible phasing, measures covered and implementation schedule, including choice of measures and instruments for implementation based on the existing proposals, for each of these sectors. We would like this work to be concluded in the first half of 1998 with a view to commencing implementation wherever possible in 1999. We will maintain under review our progress, and will use all appropriate opportunities to do so throughout the first half of 1998, including at the meeting of Ministers Responsible for Trade in Kuching, Malaysia, in June, 1998.

We note that there is broad interest among APEC members in the remaining 6 sectors. Liberalization initiatives in these sectors would also produce economic benefits for member economies, and contribute to a balanced and mutually beneficial outcome, but they require further preparatory work. We therefore direct Senior Officials to further develop proposals from these remaining candidates for our assessment and review next June, and possible recommendation to Leaders next November. We also remain open to considering other sectors for early voluntary liberalization as opportunities arise.

We welcome the initiatives of some members to substantially reduce all tariffs or to eliminate "nuisance tariffs" (of less than two per cent). We recommend to Leaders that members be encouraged to commit in their IAP to review options for undertaking such initiatives.

We also note the significant support and interest of a number of member economies in advancing work relating to a number of horizontal or cross-cutting issues, such as competition policy, government procurement, intellectual property rights and investment. We therefore direct Senior Officials to entrust the appropriate existing APEC fora to discuss these proposals for possible inclusion in their work programmes.

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