Regulatory and standardization cooperation among APEC member economies

Regulatory and standardization cooperation among APEC member economies Session II International and regional approaches to regulatory cooperation June 20, 2006 Yuki HAYASHI Deputy director International Standards and MRA Policy Office METI (Ministry of Economy, Trade and Industry) JAPAN

Contents Part I: Standards alignment work in APEC Part II: Good Regulatory Practice Part III: Trade Facilitation Task Force 1

Part I: Standards alignment work in APEC 2

<Part I> Experiences in APEC • Asia-Pacific Economic Cooperation (APEC) is the forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region. • Established in 1989 • Non-binding • No treaty obligations • Decisions are reached by consensus 3

<Part I> APEC members • 21 “Member Economies“ • Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam. 4

<Part I> Purpose and goals • To enhance economic growth • Prosperity for the region • To strengthen the Asia-Pacific community • To reduce trade barriers across the Asia. Pacific region 5

<Part I> The 'Bogor Goals' • Adopted by Leaders in 1994. • Free and open trade and investment in the Asia-Pacific • By 2010 for industrialized economies • By 2020 for developing economies 6

<Part I> Organization chart of APEC Leaders’ Meeting APEC Business Advisory Council (ABAC) Ministerial Meeting Senior Officials Meeting (SOM) Budget & Management Committee (BMC) Committee on Trade & Investment (CTI) Sectoral Ministerial Meetings APEC Secretariat Committee on ECOTECH (ESC) Economic Committee (EC) Working Groups (11) Sub-Committee on Standards & Conformance (SCSC) 7

<Part I> SCSC (Sub-Committee on Standards & Conformance) • Established in 1994 • To assist the CTI (Committee on Trade and Investment) • To promote cooperation on standards and conformance • To reduce negative effects on trade • To encourage greater alignment with International Standards 8

<Part I> SCSC’s working area • Alignment with International Standards • Recognition of Conformity Assessment • APEC MRA • Technical Infrastructure Development • WTO/TBT and SPS 9

Alignment with International Standards <Part I> - Voluntary Action Plan (VAP) - Original four priority areas – completed in 2005 Electrical and Electronic Appliances Food Labelling Rubber Products Machinery Additional priority areas – completed in 2005 E/E Equipment (IEC 60335 s and CISPR) Safety of IT Equipment (IEC 60950 s) Standards and guides on conformity assessment and management systems 10

<Part I> 2005 VAP Alignment Results Original Priority Areas Additional Priority Areas Area No. of economies with 100% alignment Electrical and Electronic Appliances 15 economies Food Labelling All 16 economies Rubber Products 14 economies Machinery 15 economies E/E Equipment Safety (IEC 60335 s) All 16 economies E/E Equipment EMS (CISPRs) All 16 economies IT Equipment Safety (IEC 60950 s) All 16 economies Standards and guides on conformity assessment and management systems All 16 economies Among the 21 APEC member economies, 16 economies have updated and submitted their alignment reports of 2005. 11

Original Four Priority Areas (1) 2005 2004 2003 <Part I> 2002 2001, 100% 2002, 100% Hong Kong China 2003, 100% 2004, 100% 2005, 100% 2001, 65% China 2003, 74% 2004, 75% 2005, 100% 2001, 80% Economy ('01 -'05) 2002, 82% Chile 2004, 76% 2005, 76% 2001, 100% 2002, 100% Canada 2003, 100% 2004, 100% 2005, 100% 2001, 100% Brunei Darussalam 2003, 100% 2004, 100% 2005, 100% 2001, 68% 2002, 79% Australia 2003, 88% 2004, 95% 2005, 95% 0% 20% 40% Achievement (%) 60% 80% 100% 12

Original Four Priority Areas (2) 2005 2004 2003 <Part I> 2002 2001, 53% New Zealand 2003, 95% 2004, 100% 2005, 100% 2001, 36% 2002, 36% Mexico 2001, 58% Economy ('01 -'05) 2002, 63% Malaysia 2003, 100% 2004, 100% 2005, 100% 2001, 100% 2002, 100% Korea 2003, 100% 2005, 100% 2001, 100% 2002, 100% Japan 2003, 100% 2004, 100% 2005, 100% 2001, 79% 2002, 90% Indonesia 2003, 86% 2004, 100% 2005, 100% 0% 20% 40% Achievement (%) 60% 80% 100% 13

Original Four Priority Areas (3) 2005 2004 2003 2002 <Part I> 2001, 100% Viet Nam 2005, 100% 2001, 83% Economy ('01 -'05) U. S. A 2001, 95% 2002, 100% Thailand 2003, 88% 2004, 84% 2005, 80% 2001, 97% Chinese Taipei 2003, 100% 2004, 100% 2005, 100% 2001, 100% 2002, 100% Singapore 2003, 100% 2004, 100% 2005, 100% 2001, 86% 2002, 86% Philippines 2003, 88% 2004, 88% 2005, 100% Peru 2004, 100% 14 0% 20% 40% Achievement (%) 60% 80% 100%

Additional Priority Areas (1) 2005 2004 2003 <Part I> 2002 2001, 100% 2002, 100% Hong Kong China 2003, 100% 2004, 100% 2005, 100% 2001, 89% China 2003, 99% 2004, 100% 2005, 100% 2001, 97% Economy ('01 -'05) 2002, 97% Chile 2004, 100% 2005, 100% 2001, 100% 2002, 100% Canada 2003, 100% 2004, 100% 2005, 100% 2001, 100% Brunei Darussalam 2003, 100% 2004, 100% 2005, 100% 2001, 100% 2002, 100% Australia 2003, 100% 2004, 100% 2005, 100% 0% 20% 40% Achievement (%) 60% 80% 100% 15

Additional Priority Areas (2) 2005 2004 2003 <Part I> 2002 2001, 99% New Zealand 2003, 100% 2004, 100% 2005, 100% 2001, 70% 2002, 69% Mexico 2001, 96% Economy ('01 -'05) 2002, 96% Malaysia 2003, 100% 2004, 100% 2005, 100% 2001, 100% 2002, 100% Korea 2003, 100% 2005, 100% 2001, 100% 2002, 100% Japan 2003, 99% 2004, 100% 2005, 100% 2001, 100% 2002, 100% Indonesia 2003, 100% 2004, 100% 2005, 100% 0% 20% 40% Achievement (%) 60% 80% 100% 16

Additional Priority Areas (3) 2005 2004 2003 <Part I> 2002 2001, 89% Viet Nam 2005, 100% 2001, 13% U. S. A 2001, 95% 2002, 89% Thailand 2003, 99% 2004, 100% 2005, 100% 2001, 100% Chinese Taipei 2003, 56% Economy ('01 -'05) 2004, 71% 2005, 100% 2001, 100% 2002, 100% Singapore 2003, 100% 2004, 100% 2005, 100% 2001, 97% 2002, 100% Philippines 2003, 100% 2004, 100% 2005, 100% Peru 2004, 100% 0% 20% 40% Achievement (%) 60% 80% 100% 17

Japan’s Proposal on New VAP Alignment Work <Part II> • The results of the VAP survey showed a very high level of completion of alignment. • Japan made a proposal for a new project for voluntary alignment based on 296 electrical standards used under the IECEE CB scheme with a target date of 2010 for alignment. • The new target standards selected for the VAP are the standards which at least one economy adopted or referred to as technical regulations in its mandatory regime. 18

<Part II> The New VAP Alignment Work After the discussions in SCSC, Japan modified its proposal as follows: 1. As a first priority, only those standards that had been referenced under regulations in 2 or more economies would be included in the VAP survey from 2006. 2. This would reduce the number of standards to be reported on to 168. 3. At a later date, the SCSC could make a decision regarding remaining 128 standards. 19

<Part II> The New priority area E/E Equipment used in IECEE/CB Scheme start from 2006, target year is 2010 The new VAP alignment work is now on going. 20

Part II: Good Regulatory Practice 21

<Part II> Principles and Features • Since 1998, seminars and experts’ meetings have been held to discuss GRP. • In September 2000, two basic principles of GRP and a description of the features of good regulation were agreed. • They are non-binding and should be regarded as a reference document for regulatory policy makers. 22

<Part II> Principles of GRP • Before implementing mandatory requirements alternative mechanisms should be considered. • Those alternative mechanisms include: reliance on systems of legal recourse; liability laws and liability insurance schemes; economic instruments such as taxes, fees and charges; education programs; co-regulation; voluntary standards; self-regulation; and codes of practice. 23

<Part II> Features of Good Regulation Good regulations: • are transparent and non-discriminatory; • are performance based; • reference international standards or internationally aligned standards where applicable, taking into account health, safety, technological, climate, developmental and other factors; • reference only those standards, or parts there of, necessary to achieve the legitimate regulatory objective; and • are subject to review to maintain flexibility and 24 adaptability to modern needs.

<Part II> Information Notes • In 2000, SCSC also made “Information Notes on GRP for Technical Regulations. ” • Since then, relevant seminars were held 5 times and accumulated case studies. • Such studies are added to the information notes. • APEC member economies feedback those information to their own policy makers. 25

Part III: Trade Facilitation Task Force 26

<Part III> Trade Facilitation Task Force • In 2005, SCSC decided to formalize the information exchange forum by creating a “Trade Facilitation Task Force (TFTF)” under the SCSC. • TFTF promotes information exchange among the APEC member economies about their specific trade concerns. • TFTF consists of two major pillars: One is the trade aspect and the other is the technical aspect. 27

<Part III> TFTF’s Action Plan in 2006 • TFTF seminar on product related environmental regulations • A joint workshop between TFTF and CDSG (Chemical Dialogue Steering Group) will be planned in 2006 • Continue information exchange • Complete the capacity building project entitled “E-learning on the practical use of the environmental product standards” 28

Thank you very much! Yuki HAYASHI Deputy director International Standards and MRA Policy Office METI (Ministry of Economy, Trade and Industry) E-mail: hayashi-yuki@meti. go. jp 29