Media Release

18 October 2003 - MVT81/2003

APEC Benefits for Australian Exporters

Tariff cuts and other trade reforms implemented by APEC economies are good news for Australian business, Trade Minister Mark Vaile said today from Bangkok where he is attending the APEC Ministerial Meeting.

"In 2002-03, APEC accounted for $175 billion or 70 per cent of Australia's total merchandise trade, reflecting its importance to Australia's economy and continued strong employment growth," Mr Vaile said.

"One out of five Australian jobs depends on exports and Australia's top five export markets are all APEC economies."

During the past year, APEC economies have continued to reduce tariffs and are committed to further reductions.

"China has reduced its average tariff to 11 per cent, most of Indonesia's tariffs are now between zero and 10 per cent, Chile has reduced its tariff rate to six per cent, and Chinese Taipei is moving towards a tariff rate of five per cent or less on 5500 items with a further 2799 items to be tariff free," Mr Vaile said.

"Australian rice producers will benefit from Hong Kong's removal of import quotas on rice and its lifting of capital and financial entry requirements for the registration of rice importers.

APEC economies are also improving the business environment by reducing other trade impediments, increasing access for foreign investors and service providers, progressively aligning national product standards with international standards, and simplifying customs procedures to reduce costs to business. Commitments have been made by APEC economies to encourage greater business competition, strengthen intellectual property rights, increase openness and efficiency in government procurement and simplify business travel arrangements.

"APEC economies have gained real economic benefits from trade liberalisation and APEC's achievements should encourage WTO members to pursue these benefits at a multilateral level in the Doha Development Round," Mr Vaile said.

"Trade liberalisation measures introduced by APEC this year will reduce the cost, red tape and time required to pursue trade and investment opportunities in the region. This provides real benefits to the bottom line for Australian companies, their shareholders and investors and will contribute to stronger economic growth and development in the APEC region."

Trade and investment liberalisation and facilitation measures introduced by APEC economies this year are detailed in members' Individual Action Plans for 2003 available on-line at www.apec-iap.org. See Attachment for further information

Attachment

Highlights of APEC Trade and Investment Liberalisation Actions

Tariffs and Non-Tariff Measures

• Canada eliminated nuisance tariffs (those below 2%) for most regional countries
• Chile reduced the applied tariff rate to 6%
• China began to bind and reduce tariffs bringing the average tariff down from 12% to 11%
• Most of Indonesia's applied tariffs are now between 0% and 10%
• Korea has eliminated tariffs on 98 items and lowered the simple average applied tariff to 13.25%
• Hong Kong has removed the import quota on rice and eased the requirements for registration of rice importers.
• Malaysia has reduced import duties on 104 tariff items and abolished duties on 7 items
• Mexico has undertaken to eliminate import duties for most regional countries on raw materials, inputs and components used for manufacturing in the electronics, computer and telecommunications industries
• Chinese Taipei has reduced the average tariff rate of all goods from 7.01% to 6.32% and is moving towards a tariff rate of 5% or less on 5500 items with a further 2799 items to be tariff free
• Thailand has reduced tariff rates for the agriculture sector and IT products, and eliminated tariffs on inputs for TV and fibre optic items. It has expanded tariff quotas on several agricultural products and undertaken to phase out local content requirements for the dairy industry.

Services

• Most economies indicated steps to liberalise their services sectors, including the elimination of restrictions on market access and the extension of national treatment to foreign service providers
• Malaysia removed the 50% limit on the maximum total credit facilities obtainable by non-resident controlled companies from foreign-owned banking institutions in Malaysia
• Russia abolished a quota for participation of foreign capital in the Russian banking system.

Investment

• Canada initiated a review of existing foreign investment restrictions in the telecommunications sector
• Japan took further measures for liberalisation and promotion of international investment
• Malaysia liberalised equity policy in the manufacturing sector to allow foreign investors to hold 100% equity without the imposition of equity and export conditions
• Singapore adopted international accounting standards
• Chinese Taipei eliminated the ceiling on investment by qualified foreign institutional investors and eliminated restrictions on real estate dealing, leasing and development by foreign nationals.

Customs and Standards

• A number of economies have made or will make progress in aligning their domestic standards with international standards
  • China aligned more than 44% of national standards with international standards
  • Korea aligned 93% of industrial standards
  • Malaysia aligned 39% of its standards
  • The Philippines aligned 396 standards
  • Russia aligned 49.5% of standards
  • Singapore aligned 75.3% of standards
  • Thailand aligned 127 standards
• Most economies reported implemented or planned improvements to simplify and expedite cargo handling procedures
• Canada, Malaysia and Russia have implemented or are planning appeals processes in respect of tariff classification rulings.

Intellectual Property Rights

• China is fully in compliance with TRIPS requirements
• Hong Kong gave increased protection to trade mark owners and amended the copyright ordinance to deal with parallel imports of computer programs
• Malaysia announced price controls for VCDs and CDs to address the root cause of piracy
• Peru seized illegally-reproduced merchandise valued at over US$4 million
• Singapore disabled four pirate syndicates and seized more than $9.4 Million worth of products, arresting 142 people in 2002
• Thailand strictly enforced intellectual property rights with 4,092 arrests and more than two million pieces of pirated goods confiscated.

Mobility of Business People

• China expanded non-visa entry for business people holding valid passports
• Japan began to implement the APEC Business Travel Card scheme
• Singapore issued multiple-journey visas effective for 5 years for business people.

Contact:  Matthew Doman 02 6277 7420