TEXT: 11/15 USTR FACT SHEET ON APEC IMMEDIATE ACTION PACKAGE
(APEC agreement will lower tariffs in nine sectors)Washington -- The member economies of the Asia-Pacific Economic Cooperation (APEC) forum have reached an agreement to lower tariffs and other trade barriers in nine economic sectors, according to a November 15 fact sheet from the Office of the U.S. Trade Representative.
The agreement reached at the conclusion of the APEC Ministers Meeting in Kuala Lumpur, Malaysia November 15 will cover environmental goods and services, medical equipment and instruments, chemicals, energy sector goods and services, forest products, fish, toys, gems and jewelry, and telecommunications equipment.
Following is the text of the fact sheet:
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APEC FACT SHEET: THE IMMEDIATE ACTION PACKAGE Environmental Goods and Services
APEC commitments to open up trade in this rapidly growing sector will deliver substantial opportunities for U.S. companies as well as improve environmental protection. The global market for environmental technology and services was $453 billion in 1996, estimated to grow to $530 billion by 2001. Removing tariffs allows governments and businesses to buy more and better environmental protection.
The U.S. environmental technology industry employs an estimated 1.3 million Americans, about half of which are employed in small and medium sized enterprises. In 1997, global U.S. exports in this sector were $29.5 billion. with an overall trade surplus of nearly $14 billion.
Medical Equipment and Instruments
The lowering of tariff barriers on medical devices end scientific instruments has the potential to increase trade and reduce health care costs on a global basis. This agreement will facilitate the free flow of medical technology products and contribute to cost-effective health care around the world.
The United States has a broadly diversified industry that is the world leader in the production of all major product areas, including surgical and medical instruments; orthopedic and prosthetic appliances; and measuring and testing instruments. Industry estimates that in 1997, the U.S. industry accounted for over 40 percent of global production of medical and scientific devices. Thirteen of the 20 largest medical technology companies in the world are U.S.-owned. In 1998, the world market in industrial and analytical instruments should reach $117 billion and grow to $150 billion by 2003. In 1997, the United States exported about 530.5 billion in medical devices and scientific equipment.
Chemicals
Virtually every manufactured product -- from automobiles to zippers -- uses a variety of chemical inputs. Food, clothing, shelter, health care, transportation -- and every other facet of modern life -- are all dependent on modem, high-tech chemical compounds. The United States is a highly competitive producer of chemicals. Accounting for one-quarter of the value of global chemical production. The United States, along with over 30 other counties, is a signatory to the Uruguay Round Chemical Tariff Harmonization Agreement (CTHA) which will bring tariffs down to 0-6.5%. This initiative will lower other countries' tariffs, some of which range as high as 40%, to the CTHA rates.
For years, chemicals have been among the largest areas of U.S. exports, supplying over $1 of every $10 of U.S. goods exports and earning large trade surpluses ($163 billion over the past ten years). U.S. chemical exports were $74.6 billion in 1997, with a trade surplus of about $18 billion. Employment in the chemicals sector in 1996 was 1.03 million. These workers are highly skilled and take home one-third more per week than the average for U.S. manufacturing workers as a whole.
Energy Sector Goods and Services
Opening up trade in energy-related equipment and services will materially contribute to expanded installation of energy supply systems around the world. Shipments of energy equipment totaled $51.6 billion in 1995 and the industry employs about 350,000 workers. U.S. exports of energy-related equipment are conservatively estimated at over $15 billion per year (1996) with a trade surplus of $6.5 billion. Exports account for an estimated 34 percent of total energy equipment shipments by U.S. producers. By 2005, U.S. exports are expected to exceed U.S. production for domestic consumption.
Forest Products
Free trade in forest products is good for consumers and good for business. Reducing barriers to trade in wood products will provide more abundant and less expensive housing. On the paper side, improved access to more affordable packaging and printing materials will lower manufacturing costs and prices. More open trade in forest products supports improved forest management practices that are under discussion in various international fora; conversely, current tariff levels on forest products contribute to the inefficient uses of valuable forest resources.
In 1997, the United States exported $31 billion of products covered by this initiative. With annual shipments of $464 billion, the U.S. forest products industry accounts for nine percent of total U.S. manufacturing output and ranks sixth in size among manufacturing industries. On the global front, the United States produces approximately 25 percent of the world's total output in products in this sector. Products covered by this initiative support 3.2 million U.S. jobs, with 1.4 million in wood and paper, 1.6 million in printing and publishing and 200,000 in furniture.
Fish
The United States ranks among the top fish producing nations and has the second largest market in the world with 1997 imports in excess of $9 billion. The U.S. is also one of the exporting nations with exports of $4.2 billion during the same period.
U.S. fisheries tariffs average less than 2% making this one of the most accessible markets in the world while other major economies' tariff averages range as high as 26%. The liberalization of trade in foreign markets through this initiative will increase opportunities for U.S. industry in the production and sale of products abroad, better utilize fishers harvest, and increase investment opportunities. The initiative will also address the elimination of subsidies and non-tariff measures, and encourage cooperative international fisheries management.
The U.S. fish sector employs over 300,000 in the harvesting, processing, marketing, and associated industries. The sector is highly supportive of efforts to liberalize trade and improved conservation and management of fisheries resources.
Toys
U.S. tariffs on toys are already at zero, as a result of the Uruguay Round zero-for-zero agreement in toys. The removal of toy tariffs as high as 30% by others as a result of this agreement, however, will increase business opportunities for producers, distributors, and investors, and increase choice and tower prices for consumers.
Global trade in the toy sector was $31 billion in 1996. U.S. toy manufacturers, who are among the most competitive in the world, exported $2.1 billion in 1991. The U.S. toy industry employed 62,000 workers in 1997.
Gems and Jewelry
Gems and jewelry are widely traded globally because they are easily transported. However, since they are generally considered luxuries, many countries maintain high tariffs. This sector represents about 84,000 jobs, many of which are in small and medium-sized enterprises. In 1997, U.S. shipments by the gems and jewelry sector were estimated at $16.1 billion, of which $11.9 billion were exported.
MRA on Telecommunications Equipment
APEC Ministers reached mutual recognition agreement on telecommunications equipment in June. The agreement will reduce the costs and speed up the process of product approvals, thus facilitating trade and enhancing the benefits expected from the tariff elimination on this equipment under the Information Technology Agreement. The agreement reduces the number and overlap of steps necessary to satisfy importing countries' approval processes. It allows exporters to pre-test and certify equipment to an importing country's mandatory technical requirements.
The U.S. telecommunications industry employed 216,000 workers in 1995. U.S. exports of telecommunications equipment amounted to $13 billion in 1997.
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