Update APEC SCSC Meeting of the Wine Regulatory

Update: APEC SCSC Meeting of the Wine Regulatory Forum 10 August 2018

APEC 2018 • Host: Papua New Guinea • Theme: “Harnessing Inclusive Opportunities, Embracing the Digital Future” • The theme seeks to drive APEC’s collective work on growth and connectivity, and brings to the fore discussions on the digital future that APEC beyond 2020 can embrace.

2018 Priorities • Improving Digital Connectivity, deepening Regional Economic Integration – Advance APEC discussions on connectivity and REI • Promoting Inclusive and Sustainable Growth – Promoting economic and social inclusion, and driving sustainable growth • Strengthening Inclusive Economic Growth through Structural reform – Further ongoing work under EC and also stimulate discussions that will advance APEC’s ongoing discussions and initiatives on digital age.

Key Themes • As multilateral and plurilateral trade negotiations have reduced or eliminated tariffs, the relative importance of non-tariff barriers, including standards, technical regulations, and conformity assessment procedures, has increased. • Standards-related measures underpin international trade and facilitate economies’ integration into global value chains (GVC), which can spur development. • Cooperation through APEC can reduce barriers, increase trade, and foster development. • The APEC SCSC is an effective forum for addressing standards-related issues, with demonstrated success.

Growing Importance of Standards-Related Measures WTO TBT Notifications 3000 2500 2000 1500 1000 500 0 1995 1998 2001 2004 Regular 2007 Addenda 2010 2013 2016

APEC Subcommittee on Standards and Conformance • Subcommittee of the Committee on Trade and Investment, formed in 1994 • Reduce the negative effects on trade and investment flows due to differing standards, technical regulations and conformance arrangements • Facilitate enhanced market access through improved standards and conformance • Nine of 19 concept notes approved in 2018.

APEC Subcommittee on Standards and Conformance • Over two decades of successful engagement to address regulatory issues that impact trade with strong leadership and support – – – – Wine Regulatory Forum Good Regulatory Practices/Standards and Conformance Food Safety Toy Safety Green Buildings ICT and Electrical Products Standards Education • Stakeholder-driven engagement • Consistently cited in statements by MRT and Leaders because of a long record of results

APEC SCSC Objectives • Facilitate trade and ensure market access for U. S. goods and increased trade in Asia Pacific region through application of WTO principles and guidance on standards and conformity assessment measures • Build regulatory cooperation and convergence in specific sectors • Ensure a level playing field for trade in goods in the region, including developing economies • Encourage standards cooperation, increase engagement with government counterparts, build public-private cooperation in the region • Hold conferences on Good Regulatory Practices, Standards and Conformance in alternate years. • Benefits: Increased trade, better regulations and stronger institutions

Final Report on GRPs Across 21 APEC Economies, 2011 -2016 • Based on the 2005 APEC-OECD Integrated Checklist on Regulatory Reform, this report reviews performance and changes from 20112016 against selected GRPs across the 21 APEC members: – Internal coordination of rulemaking activity, particularly the ability to manage regulatory reform and coordinate with trade and competition officials – Regulatory impact assessment (RIA), particularly the capacity to ensure that better policy options are chosen by establishing a systematic and consistent framework for assessing the potential impacts of government action, including impacts on trade. – Public consultation mechanisms to improve transparency, such as “publication for comment” and other practices that allow wide access, and the quality of consultation mechanisms • These three areas are at the core of the “better regulation” agenda successfully applied in economies with different economic strategies, legal systems, and administrative cultures.

Final Report on GRPs: Key Findings • APEC economies continue to invest substantial political and financial resources in improving the quality of their domestic regulatory regimes. • There is measurable progress in adopting every key GRP included in the study. • APEC economies are converging in using key GRPs. Each of the 21 economies made visible progress from 2011 to 2016 in applying the key GRPs to domestic regulatory activities. • The rate of change in the use of GRPs did not slow from 2011 to 2016, rather, seems to be accelerating as trade agreements and regional groupings place more emphasis on the need for better regulation as a condition of beneficial economic integration.