Media release

Australian Minister for Trade, Mark Vaile

September 10, 1999

APEC Delivers Trade Benefits for Australia

Trade Minister, Mark Vaile, today welcomed commitments by APEC countries to liberalise their trade regimes.

Speaking at the APEC Ministerial Meeting in Auckland, Mr Vaile said ultimately this would mean better access for Australian exports.

"The commitments are especially timely given recent signs of recovery and renewed demand for imports in Asia," Mr Vaile said.

"It's particularly pleasing that Thailand has removed its 10% tariff surcharge, abolished the 5% tariff on cotton and cut tariffs on lupins (from 35% to 5%), canola meal, lanolin, machinery and mechanical appliances and parts, chemicals and plastics. Thailand has also lifted restrictions on gold imports," Mr Vaile said.

Mr Vaile also welcomed China's commitment to lower its tariff level to 15% by 2000. China has agreed that the in-quota tariff rate for wool would be 1% (220,000 tonnes) and 3% for wool tops (60,000 tonnes) this year, and that the quota would increase annually over the next seven years to 287,000 tonnes for wool and 80,000 tonnes for wool tops. This year China also abolished geographical restrictions on the operations of foreign banks and relaxed limits on foreign banks trading in local currency.

"We hope that APEC economies will continue to liberalise their economies so as to achieve the Bogor goals by 2010/2020. Hong Kong, and Singapore already have zero tariffs and New Zealand has legislated to remove all tariffs by 2006."

Mr Vaile said Australian sugar producers were already benefiting from the Philippines' decision to eliminate a 15 per cent tariff differential on raw sugar imports between ASEAN and other APEC members.

Mr Vaile also welcomed Korea's decision to lower tariffs unilaterally on 182 raw materials (including wool) and intermediate/semi-finished goods to 1.5%.

Mr Vaile said that the ongoing liberalisation measures demonstrated the progress towards freer trade being made by APEC economies.

MEASURES ANNOUNCED BY APEC ECONOMIES OVER THE PAST YEAR

Brunei Tariffs - eliminated tariffs on 30 computer-related items in April 1999. Deregulation - privatisation of significant port services, including management and operation of the new Muara Container Terminal. Business mobility - extension of multiple visa entry for business people to up to one year.

Canada Tariffs - eliminated tariffs on 640 pharmaceutical items in July 1999; continued tariff cuts on IT products. Services - introduced legislation to permit foreign bank branching; eliminated telecoms traffic routing restrictions a year ahead of schedule and removed foreign ownership restrictions for earth stations.

Chile Tariffs - reduced tariffs across the board to 10 percent on 1 January 1999 and plans to reduce tariffs by 1 percent each year until 2003

China Tariffs - reduced tariffs by between 8% and 78% on 1014 items covering textiles, toys and forest products. Reduced overall average tariff rate to 16.7% and committed to lowering its tariff level to 15% by 2000. China's in-quota tariff rate for wool remains at 1% (220,000 tons) and 3% for wool tops (60,000 tons) this year and will increase annually over the next seven years to 287,000 tons for wool and 80,000 tons for wool tops. Services - abolished geographical restrictions on the operations of foreign banks, relaxed geographical limits on foreign banks trading in local currency and allowed 4 foreign insurance companies to establish branches. Business mobility - Extended multiple-entry business visas on a reciprocal basis to APEC business people valid for one to three years.

Hong Kong, China Non tariff measures - removed discretionary import system for frozen meat and frozen poultry. Legal services - introduced legislation to provide for non-discriminatory and standards based admission for barristers;. Telecommunications - further opening up of basic telecommunications services through progressive liberalisation of facilities based external telecommunications; removal of moratorium on subscription television and video-on-demand program service licenses. Financial services - committed to improve access for foreign insurers and to undertake comprehensive reform of its securities and futures markets

Indonesia Tariffs - Indonesia will reduce tariffs on manufactured goods which have import duties 20% or less to 5% by 2000. Tariffs on manufactured goods which currently attract import duties over 20% will be reduced to 10% by 2003. The simple average applied tariff rate on agricultural products has fallen from 16.47% in 1996 to 8.98% in 1999. Non-tariff measures - removed restrictions on the importation of rice and further liberalised marketing arrangements in 1999. Elimination of subsdidies on fertilizer and aviation fuel. Services - will allow 100% ownership by qualified foreign investors in wholesale and retail trade, and of locally incorporated banks and non-bank financial institutions listed on the stock exchange. Competition policy - enacted legislation prohibiting monopolistic practices and unfair business competition.

Japan Non-tariff measures - removed all agricultural products, including rice, from the 'special treatment' provisions of the Agreement on Agriculture (April 1999). Services - lifted restrictions on foreign investment in the cable television industry and partially liberalised retail electricity and urban gas supply arrangements. Acceptance of certification and test results undertaken in other economies for telecommunications equipment.

Korea Tariffs - unilaterally lowered tariffs on 182 raw materials (including wool) and intermediate/semi-finished goods to 1.5%. Tariff free entry for wool and wool tops extended. Tariff-free entry for unprocessed zinc, copper, lead, and manganese extended. Phasing out tariffs on IT products. Non-tariff measures - import diversification program terminated. Services - liberalised foreign investment in casinos, voice telephony and aircraft handling and leasing.

New Zealand Tariffs - continued reductions in line with legislated commitment to remove all tariffs by 2006. Competition policy - legislating to strengthen penalities and deterrance provisions for breaches.

Peru Deregulation - continued deregulation through privatisation and public sector infrastructure concessions creating opportunities for investors.

The Philippines Tariffs - simple average reduced to 10.08%. Eliminated a fifteen per cent tariff differential on raw sugar imports between ASEAN and other APEC members. Investment - since 1998 the Philippines has increased foreign equity participation in local businesses from 40 to 60 per cent and allowed 100% foreign equity in domestic construction projects.

Singapore Services - progressive liberalisation of domestic banking sector announced.

Chinese Taipei Non-tariff measures - temporary tariff reductions on beef renewed; tariff reduction on rock lobsters; further elimination of inport restrictions on over 40 items adding to eliminations since 1996 of restrictions on 619 items, including 298 agricultural products and 321 industrial products. Investment - increased ceiling for foreign investment in publicly listed companies to 50%; continued relaxed restrictions on foreign participation in the securities market and extention of national treatment to foreign enterprises.

Thailand Tariffs - removed the 10% tariff surcharge, abolished the 5% tariff on cotton and significantly reduced tariffs on lupins (from 35% to 5%), canola meal, lanolin, machinery and mechanical appliances, chemicals and plastics. Non-tariff measures - lifted restrictions on gold imports.

Vietnam Tariffs - simplifcation of tariff structure; Services - granted price parity for the cost of utilities used by foreign and domestic enterprises.