APEC continues delivering tariff and trade barrier reductions

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Media release

Australian Minister for Trade, Mark Vaile

Thursday, 7 June 2001

Trade Minister, Mark Vaile, today welcomed evidence presented at the APEC Trade Ministers' Meeting in Shanghai that APEC members continue to cut trade and investment barriers in the Asia-Pacific region. Mr Vaile said this outcome represented important new commercial opportunities for Australian business

"A significant number of APEC economies, including Korea, Malaysia and Mexico continue to cut tariffs in the agricultural and manufacturing sectors vital to Australia's interests. Many are also implementing a range of administrative reforms to open up important trade and investment opportunities. This progress is particularly welcome," Mr Vaile said.

This year the majority of APEC member economies reported further tariff reductions or significant steps to reduce non-tariff measures. Most have taken steps to liberalise their investment regimes, strengthen their competition regimes and deregulate their economies.

"Overall the progress made by APEC has been very impressive. The Australian report that I launched today, APEC Progress on Tariffs: Implications for a New Agenda, found APEC's average tariff levels declined by one third over the last five years, from 12% in 1995 to 8% in 2000." The report shows that more than two-thirds of the goods imported by APEC economies now enter at very low tariff levels (in 2000, 69% of goods imported by APEC were subject to tariffs of only 5% or less, an increase of 17% from 59% in 1995.)

"There are still tariff reductions to be made, but APEC is also focusing on a broader agenda to ensure we maximise the benefits of openness."

"There has also been extensive work done to introduce paperless trading systems and harmonise standards. These technical changes are not as high profile as tariff cuts, but they mean big savings in time and money for business," Mr Vaile said.

The 21 APEC economies accounted for 74% of Australia's merchandise exports in 2000. APEC comprises: Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russian Federation, Singapore, Chinese Taipei, Thailand, United States and Vietnam.

Highlights of APEC Trade and Investment Liberalisation Actions

Tariffs

Korea reduced tariff rates on 894 items from 1 January 2001
Malaysia abolished duties on 5 items and reduced tariffs on 30 items including flat rolled products and steel bars and rods.
Mexico reduced tariffs on hundreds of items used in manufacturing.
Peru reduced from 12% to 4% its tariff rate on 1390 items covering raw materials and intermediate goods.
Russia reduced duties on 3,500 items and as a result the mean-weighted tariff rate fell from 13.8% in 1999 to 10.7% in 2001.

Agriculture

Peru reduced the ad valoreum surcharge on 56 meat products from 10 to 5 per cent and agreed to harmonise its sanitary measures with international standards.
Russia reduced tariffs on juice concentrates (15% to 5%) and poultry meat (30% to 25%).
Hong Kong has committed to fully liberalising its rice trade and remove import quotas by 2003.
Korea eliminated all quota items, except rice, on 1 January 2001.
Japan abolished its state monopoly on the importation of ethyl alcohol.

Services

Indonesia has relaxed the limit on foreign investment in local banks
Japan has amended its telecommunication regulations to allow other carriers to connect to NTT's network.
Hong Kong has streamlined its telecommunications licensing regime and procedures.
Malaysia has removed the licensing requirement for ISPs.
Mexico strengthened its IP legislation.

Investment

New Zealand raised the threshold on non-land investments without requiring approval to NZ$50 million.
Malaysia abolished the 10 per cent levy on profits from portfolio investments by non-residents.

E-commerce

Chile has implemented an electronic system to facilitate government procurement opportunities
Japan has introduced simplified customs declaration procedures and paperless declarations.
Malaysia is participating in the Advanced Passenger Processing system with Australia.

Customs and Standards

Japan has aligned all its national standards for electrical and electronic appliances, food labelling, plastic products and rubber goods with international standards.
Korea joined the APLAC MRA for testing and calibration
Russia has agreed to join the Kyoto Convention on the Simplification and Harmonisation of Customs Procedures.

Local Date: Friday, 21-Nov-2008 04:22:01 EST