[Federal Register Volume 63, Number 94 (Friday, May 15, 1998)]
[Notices]
[Pages 27113-27116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-12908]
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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Negotiation of Sectoral Market Opening Agreements
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of negotiation of sectoral market opening agreements,
and of goods and services that might be affected by such negotiations.
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SUMMARY: The United States is participating in discussions with member
economies of the Asia Pacific Economic Cooperation (APEC) forum and
negotiations with Members of the World Trade Organization (WTO) to
enhance market opening in fifteen sectors, including possible
elimination, modification or continuance of U.S. tariffs and non-tariff
measures, opening of certain service sectors; and certain other
sectoral and structural issues. Public comment is being sought on
issues associated with these discussions and negotiations.
FOR FURTHER INFORMATION CONTACT:
Jane C. Earley, Director, APEC Affairs, Office of Asia Pacific and
APEC, USTR (202-395-6813).
SUPPLEMENTARY INFORMATION: In their 1996 Subic Bay Declaration, APEC
Leaders directed trade ministers to identify sectors where ``early
voluntary liberalization would have a positive impact on trade,
investment and economic growth in the individual APEC economies as well
as the region.'' In May 1997, APEC trade ministers affirmed that APEC
should continue to act as a catalyst to promote the global opening of
markets, as it had with the Information Technology Agreement. They
therefore directed officials to conduct an intensive process for
selecting such sectors, for review and final action by the time of the
APEC
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ministers and leaders meetings in November 1977. In selecting such
sectors, ministers instructed officials to have regard for three
factors: the possibility of encompassing both tariff and non-tariff
issues, as well as elements of facilitation and economic and technical
cooperation; ensuring the fullest possible private sector input and
support; and consideration of ``critical mass'' by developing
initiatives supported by significant groups of APEC members, and where
appropriate for incorporation in the WTO.
In November 1997, APEC ministers received information on over 40
potential sectors that had been proposed and reviewed by officials.
From this list, ministers recommended 15 sectors to APEC leaders for a
program of early liberalization. The proposals for liberalization in
these sectors are described in detail in the Annex to this notice.
Of the 15 selected sectors, ministers identified nine for early
action in 1998: Environmental goods and services, chemicals, energy,
medical equipment, forest products, fish and fish products, toys, gems
and jewelry, and conclusion of a mutual recognition agreement on
telecommunications. In these nine sectors, it was agreed that detailed
proposals defining parameters, such as scope of product coverage,
phasing of liberalization, and measures covered (i.e., tariffs and/or
other measures) would be completed by the date of the APEC trade
ministerial meeting in June 1998, with a view toward beginning
implementation, in the WTO context where appropriate, in 1999. In
addition, ministers directed that work to develop proposals proceed in
six additional sectors: oilseeds and oilseed products, food,
automotive, civil aircraft, fertilizer, and natural and synthetic
rubber. In these sectors, officials were directed to further develop
proposals for review and assessment by ministers at the June trade
ministers meeting, for possible recommendation to leaders in November
1998.
In accordance with this guidance, APEC officials will work
intensively in 1998 to complete plans for early liberalization in the
identified sectors. APEC officials meetings are currently scheduled for
June, September and November 1998 in Malaysia.
Advice From the U.S. International Trade Commission
On March 18, 1998, the United States Trade Representative (USTR)
requested, pursuant to section 332(g) of the Tariff Act of 1930 (19
U.S.C. 1332(g), that the U.S., International Trade Commission (USITC)
provide advice concerning trade liberalization among APEC countries in
the nine sectors listed above. On March 25, the USITC initiated an
investigation, Inv. No. 332-392, pursuant to section 332(g) of the
Tariff Act of 1930 and published a notice requesting public comment and
providing notice of a public hearing in connection with the
investigation. (63 FR 15861, April 1, 1998). The notice included a list
of harmonized tariff system (HTS) numbers that comprise goods under
consideration in the nine sectors. The USITC's report will include (1)
profiles of the industry sectors (including a description of U.S. and
foreign sectors and their competitive positions); (2) an assessment of
patterns of U.S. sector imports and exports to APEC trading partners
and other trading partners; (3) summaries of U.S. and foreign tariff
rates and reported non-tariff barriers affecting the sectors; and (4)
information about increased market access opportunities resulting from
liberalization. The USITC plans to transmit its report to USTR by June
16, 1998.
Public Comments
In conformity with the regulations of the Trade Policy Staff
Committee (``TPSC'') (15 CFR Part 2003), the Chairman of the TPSC
invites written comments from interested persons on the desirability,
the scope, and the economic effects of these proposals for sectoral
liberalization. Comments in particular are invited on: (a) Economic
costs and benefits to U.S. producers and consumers of the removal of
tariff barriers to trade between and among APEC economies in the above-
listed product and service sectors; (b) economic effects and benefits
to U.S. producers and consumers of removal of non-tariff barriers to
trade between and among APEC economies, and of other aspects of the
above-described proposals, including their provisions for economic and
technical cooperation, (c) existing barriers to trade in services
between and among APEC economies, and economic costs and benefits to
removing such barriers; and (d) any other measures of practice within
these sectors among APEC economies that should be addressed in sectoral
market opening negotiations. In addition, comments are invited on other
aspects of these sectoral market opening initiatives, including the
possible labor and environmental effects.
Interested persons may submit written comments, in five (5) typed
copies or less, no later than noon, June 15, 1998, to Gloria Blue,
Executive Secretary, TPSC, Office of the U.S. Trade Representative,
Room 503, 600 17th Street, N.W., Washington, D.C. 20508. Comments
should state clearly the position taken and should describe with
particularity the information supporting that position. Any business
confidential material must be clearly marked as such on the cover page
(or letter) and succeeding pages. Such submissions must be accompanied
by a non-confidential summary thereof.
Non-confidential submissions will be available for public
inspection at the USTR Reading Room, Room 101, Office of the United
States Trade Representative, 600 Seventeenth Street, N.W., Washington,
D.C. An appointment to review the file may be made by calling Brenda
Webb at 202-395-6186. The Reading Room is open to the public by
appointment only from 9:30 a.m. to 12:00 noon and from 1:00 p.m. to
4:00 p.m., Monday through Friday.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.
Annex--Description of Sectoral Market Opening Initiatives
Environmental Goods and Services: Elimination of tariffs on
environmental goods and liberalization of trade in environmental
Services based on the General Agreement on Trade in Services, to be
agreed by consensus by June 1998, and to be bound in the WTO.
Implementation of commitments would begin six months after the date on
which the agreement is concluded. A proposal for addressing non-tariff
measures in APEC economies that impede trade will be included. On
economic and technical cooperation, economies are encouraged to develop
proposals for projects such as seminars to achieve the objective of
liberalizing trade.
Medical Equipment. Tariffs would be eliminated in a short period,
e.g., 3 years. Proposed schedule and method of implementation would be
based on the approach of the Information Technology Agreement. Specific
non-tariff measures would be identified and addressed. Economies would
be prepared to explore a program of technical assistance in cooperation
with the private sector.
Forest Products. Includes pulp and paper products (HS Chapters 47
and 48), wood products (HS Chapter 44), printed materials (HS Chapter
49); wood furniture and pre-fabricated housing (parts of HS Chapter
94), certain vegetable and rattan mats and baskets (parts of HS Chapter
46), and certain rosin products (parts of HS Chapter 38). The proposal
has four components: elimination of tariffs on theses products in the
2000-2004 timeframe; a study of
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non-tariff barriers and other trade distorting policies which may
impeded market access in these products; development and adoption of
performance-based building standards; and, development of economic and
technical assistance measures designed to enable members to develop
their industries and to achieve early trade liberation in these
industries.
Fish and Fish Products. The objective of the proposal would be to
eliminate tariffs no later than December 31, 2005. Tariffs currently
applied at 20% or less would be phased out more quickly. There would
also be flexibility for economies to phase out tariffs over a longer
period on a limited number of products. Officials would be directed to
present a plan for eliminating non-tariff measures for approval at the
APEC's November 1998 Trade Ministerial meeting, with the objective of
eliminating non-tariff measures no later than December 31, 2007. APEC
economies would recommit to elimination of WorldTrade Organization
(WTO)-inconsistent subsidies and sanitary and phytosanitary measures,
of which there would also be studies, and commit to some of many
suggested ecotech proposal. An annual report to Ministers would also be
done within APEC on fisheries management cooperation in the Pacific
Ocean, and adjacent regions.
Toys. The proposal is for progressive reduction of tariffs on
targeted, toys, beginning from 1998 and completed by a date to be
determined by participating economies (2000, and no later than 2005).
It would comment to identification of existing technical, regulatory,
and other unnecessary non-tariff measures by the end of 1998 and to
consultation on actions and a scheduled for elimination of NOMS by the
end of 1999. Progressive elimination of all identified non-tariff
measures would be determined, preferably by 2000 and no later than
2005.
Gems and Jewelry. This proposal would reduce tariffs to 0-5% by
2005 on products in HTS Chapter 71m, which includes pearls, diamonds,
precious stones, silver, gold, platinum, ``fine'' jewelry, silverware
made of silver and silver plate, gold articles, imitation jewelry, and
commemorative coins. The proposal would also address non-tariff
measures in the same time period and include economic and technical
cooperation on education and training.
Mutual Recognition Agreement for Telecommunications servicers.
Proposes that interested APEC economies work to implement an Agreement
for Mutual Recognition of Test Results and Certifications, and to
complete work on a Mutual Recognition Agreement and Phase Agreements by
June 1998.
Chemicals. This is a proposal for tariff liberalization, starting
with a commitment to bring tariffs into conformity with rates
established in the Uruguay Round Chemical Tariff Harmonization
Agreement (CTHA) in two tranches: starting from applied rates, by 2001
for tariffs up to and including 10%, and by 2004 for tariffs over 10%,
and to bring these rates in the WTO. Requests for longer staging would
be considered for sensitive products. Once a critical mass has
committed to the CTHA, further tariff liberalization would be
undertaken starting with subsectors (e.g., fertilizer, cosmetics) where
there is interest in moving ahead on an expedited basis. This process
would lead to the eventual elimination of all chemical tariffs.
Participants would initiate a work program on non-tariff measures. They
would also compile a list of customs and regulatory barriers faced by
chemical exporters to give to APEC's Committee on Customs Procedures
for simplifying and harmonizing customs procedures and facilitating
trade. The proposal would also task APEC's Investment Experts Group to
undertake a review of investment policy and practices with respect to
the chemical industry, which would be used to derive a list of
liberalization options that could be selected either for individual
action plans, or for collective action. It would additionally encourage
economies to participate in international work already ongoing on
chemical standards and testing. In cooperation with the private sector,
it would develop a program of economic and technical assistance,
including but not limited to workshops, seminars, and training
activities.
Energy. This proposal includes certain primary energy commodities,
electricity, energy products, technologies, services, and equipment. It
would progressively remove tariffs on coal and gas and energy-related
equipment by 2005, and identify and address existing technical,
regulatory, and other non-tariff barriers, including standards and
certification. It would establish a work program to identify and remove
barriers to trade in services, to commence March 1998. Additionally it
would review work of the APEC's Group of Experts on Government
Procurement (GPEG) on principles of transparency in government
procurement and work with GPEG in any areas where the generic elements
and principles of transparency need to be developed to ensure full
transparency in this sector. Finally, it would extend the investment
facilitation work of APEC's Energy Working Group and develop a linked
database on mining and energy-related investment opportunities, and
reduce costs through cooperation on energy standards between 1998 and
2000.
Autos. This proposal calls for a four part work program aimed at
establishing a more integrated and competitive auto industry in the
region: (1) Standards harmonization, including obtaining APEC
endorsement of the ``global agreement'' on automotive standards; (2)
identification of customs issues and barriers, and development of steps
to address them; (3) development of an economic and technical
cooperation program; and (4) establishment of a regional dialogue of
automotive issues, which would discuss trade and investment policy
issues, and develop means of addressing them. Industry would
participate in parts of the dialogue.
Food. The proposal calls for tariff reductions on a number of 4-
digit H.T.S. categories in three food subsectors (fresh fruits and
vegetables, processed foods and beverages) and other trade facilitation
and ecotech activities, as well as market research studies. The
proposal calls for tariff reductions on more than 50 H.T.S. 4-digit
categories in three food subsectors: (1) fresh fruits and vegetables;
(2) processed foods; and (3) beverages. The initiative proposes a
reduction in tariff and other non-tariff measures from 1999 to 2004 to
bring applied tariffs to 5% or less by 2004 with the aim of eliminating
all tariffs in these subsectors by 1010/2020. An annex contains some
additional H.T.S. categories of food products for possible future
consideration.
Oilseeds and Oilseed Products. During the Uruguay Round, the United
States proposed a ``level playing field'' initiative on oilseeds and
oilseed products. The APEC proposal, which is jointly sponsored by the
United States, Canada and Malaysia, exactly tracks this Uruguay Round
initiative. The proposal covers basic oilseeds in H.S. 1201, 1203-1207
(e.g., soybeans, rapeseed, sunflowerseed, cottonseed), meals and
vegetable oils derived from those rapeseed oil, safflower oil) and soy
protein concentrates and isolates. There would be no exceptions on
product coverage. The proposal calls for elimination of tariffs, non-
tariff measures, export subsidies and other trade-distorting policies
on all products by 2002, allowing for limited flexibility for extended
staging on a product-by-product, economy-by-economy basis that would be
agreed to by consensus of participants.
Rubber. The proposal would establish details for gradual reductions
and/or
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elimination of tariff and non-tariff measures. It would also call for
economic and technical cooperation to cooperate in the development of
domestic industries in rubber-producing economies through the transfer
of production and manufacturing technology in order to reduce the risk
of price fluctuations.
Civil Aircraft. All tariffs would be eliminated in two equal cuts
on January 1, 1999 and January 1, 2000 and bound in WTO Schedules at
zero. Commitments by non-WTO members could be made on an autonomous
basis until WTO accession is complete. There would also be commitments
by APEC economies to eliminate all customs duties and other charges of
any kind levied on civil aircraft and related products and services
(e.g., manufacture, repair, maintenance, etc.).
Fertilizer. This is a proposal to eliminate tariffs by 2002 and
bind them in the WTO. It would also call for, by January 1, 2000,
collective implementation of national transportation regulations
governing the shipment of sulfur and fertilizers in accordance with the
International Maritime Dangerous Goods Code, and encourage the
development of technical assistance projects that would facilitate
trade liberalization in this sector.
[FR Doc. 98-12908 Filed 5-14-98; 8:45 am]
BILLING CODE 3190-01-M
