APEC Agrees to de Minimis Duty Exemption, Green Duty Cuts, Etc.

The measures are part of their 2011 effort to build a “seamless regional economy” by focusing on three priority areas: strengthening regional economic integration and expanding trade, promoting green growth, and advancing regulatory convergence and cooperation.

Increase Supply Chain Performance by 10% by 2015

As part of a goal to achieve a 10% APEC-wide improvement in supply chain performance by 2015, the leaders agreed to:

• De minimis duty exemptions - establish commercially useful de minimis values in APEC economies that will exempt low-value shipments, including express and postal shipments, from customs duties and streamline entry documentation requirements.
• AEO development, mutual recognition - endorse the APEC Authorized Economic Operator (AEO) Capacity Building Plan to assist interested APEC economies in developing and implementing AEO programs, in cooperation with others such as the World Customs Organization. They also endorsed the Pathfinder on the Mutual Recognition of AEO Programs, which will encourage participating economies to pursue mutual recognition arrangements with fellow economies in the APEC region, as well as share experiences and practices.
• Piracy, counterfeiting enforcement -- endorsed the APEC Guidelines for Customs Border Enforcement of Counterfeiting and Piracy to assist customs authorities in APEC economies in identifying effective practices for intellectual property enforcement at the border.

Pursue Liberalization of Air Cargo Services

The APEC leaders agreed to facilitate commerce and promote economic growth by pursuing liberalization of air cargo services.

Reduce Duties on Green Products to 5% by 2015, Etc.

To promote APEC’s green growth goals, the 21 members agreed to:

• Pick green goods for duty cut - work in 2012 to develop a list of environmental goods targeted for a reduction by the end of 2015 of applied duty rates to 5% or less.
• Eliminate local content, other barriers - eliminate non-tariff barriers, including local content requirements that distort environmental goods and services trade.
• Phase out fuel subsidies - rationalize and phase out inefficient fossil-fuel subsidies and set up a voluntary reporting mechanism on progress, which they will review annually.
• Work to prohibit trade in illegally harvested lumber, etc. - work to implement appropriate measures to prohibit trade in illegally harvested forest products and undertake additional activities in APEC to combat illegal logging and associated trade.

Implement Regulatory Best Practices by 2013

The leaders committed to take specific steps by 2013 to implement good regulatory practices in their economies, including by ensuring internal coordination of regulatory work; assessing regulatory impacts; and conducting public consultation.

Advance Innovation & SME Policies as Part of Possible Asia-Pacific FTA

Regarding its continued work toward a possible Free Trade Area of the Asia-Pacific, the leaders agreed to advance a set of policies to promote non-discriminatory and market-driven innovation policy to set a model for innovation in the region. They also decided on areas of cooperation that could be included in their trade agreements to enhance the participation of small and medium-sized enterprises in global production chains.

(Note that the nine APEC countries which are negotiating the Trans-Pacific Partnership Agreement are far closer to achieving a FTA, but trade sources point out that the involved countries only represent 6% of U.S. trade and an expanded TPP or a broader Asia-Pacific FTA would make much more of an impact.)

Expand Membership & Scope of WTO Information Technology Agreement

The APEC leaders agreed to play a leadership role in launching negotiations to expand the product coverage and membership of the WTO Information Technology Agreement, as it has promoted trade and investment and driving innovation in APEC economies.

Strengthen Food Safety & Trade, Support New Global Food Safety Fund

They also agreed to strengthen food safety systems and facilitate trade in food, including by supporting the Global Food Safety Fund, whose creation was announced during the meeting. The fund is a public-private partnership with $1 million in seed money provided by the private sector, including Mars Incorporated and Waters Corporation, as well as the U.S. Agency for International Development. It will be managed by the World Bank and will leverage the approach pioneered in APEC that enlists a wide range of stakeholders in training programs designed to enhance food safety and to facilitate trade. USTR press release available here.

Launch APEC Travel Facilitation Initiative

The agreed to launch the APEC Travel Facilitation Initiative to explore ways to make travel in the region faster, easier, and more secure. (See ITT’s Online Archives 11111461 for summary of President Obama signing into law a bill authorizing APEC business cards.)

Meet 2011 and 2015 “Ease of Doing Business” Goals

Noting the progress economies are making toward APEC’s interim target of a 5% improvement in the ease of doing business (EoDB) by the end of 2011, the leaders reaffirmed their commitment to achieving a 25% improvement in EoDB by 2015.

Pledge Against Protectionism, Work on New Approaches in WTO Doha Round

The members extended their earlier pledge against protectionism through the end of 2015. They also expressed deep concern about the current impasse of the WTO Doha Round talks and instructed officials to approach the December WTO Ministerial Conference and negotiations beyond it with fresh and credible approaches.

¹APEC’s member economies include: The U.S., Australia, Brunei Darussalam, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei (Taiwan), Thailand, and Vietnam.

(See ITT’s Online Archives 11111430 for summary of separate APEC statements released on regulatory reform, green trade, supply chains, etc.)

APEC press release, dated 11/13/11, available here

APEC Ministers statement, dated 11/11/11, available here