TPT-WG35 20–24 February 2012 Bangkok, Thailand Project Proposal : Cargo preference and...

TPT-WG35

20–24 February 2012 Bangkok, Thailand

Project Proposal : Cargo preference and Restrictions Applying to Specific Trades

Speaker: MLTMEconomy: Republic of Korea

TPT-WG35 20–24 February 2012 Bangkok, Thailand

BACKGROUND (1/2) 1994 (Bogor) Leaders’

Declaration – Bogor Goal

2007 (Adelaide) TMM5 Joint

Ministerial Statement

2005 (Washington)

Maritime Initiative(Facilitation of International Shipping Project(2000-2004))

1995 (Osaka) Leaders’

Declaration – Osaka Action Agenda

Free and open trade and investment in the Asia-Pacific region

Trade and investment liberalization

Trade and Investment Facilitation

To consider timetable for progressive removal of regulatory constraints;

To identify the remaining areas requiring attention by member economies to meet the Bogor Goals;

To proceed the roadmap work by developing a specific action plan

Policy Item 4: Cargo Preference

Policy Item 5: Restrictions Applying to Specific Trades


BACKGROUND

2008 (Lima) Leaders’

Declaration

2009 (Manila) TMM6 Joint

Ministerial Statement

2008 (Manila)• 30th TPT-WG

2008 (Lima) 31th TPT-WG

Liberalization and facilitation of transport services

2011 (Australia)• 34th TPT-WG

Cargo Preference and Restrictions Applying to Specific Trades

To modify and resubmit proposal in initial stage

Korea took on the role of champion for the Policy Item 5, “Restrictions Applying to Specific Trades”

Korea additionally took on the role of champion for the Policy Item 4, “Cargo Preference” and indicated that it will include both policy items in a single project proposal to be submitted for consideration by the MEG at TPT-WG32

Welcome progress made by member economies towards the Bogor Goals of free and open trade and investment in the Asia-Pacific region

2012 (Thailand)• 35th TPT-WG

2012 (Thailand)• 35th TPT-WG


OBJECTIVES

To help undertake the two APEC Policy Items,

Cargo Preference (Policy Item 4) and Restrictions Applying to Specific Trades (Policy Item 5) with a view to achieve the Bogor Goals


CURRENT STATUS With liberalization and privatization, cargo preference measures have been significantly reduced in recent times

Restrictions applying to the specific trades have also been greatly reduced over the last two decades

This mitigation may find its reason in the emphasis of the necessity to increase national shipping competitiveness and to ensure transport security of strategic cargoes, notwithstanding the fact that the core of shipping liberalization lies in a shipper’s right to choose a carrier


EXPECTED END-OF-PROJECT TARGET

The consultant study will include findings of existing cargo preference measures and restrictions applying to the specific trades

Arguments for and against retaining restrictive practices(benefit, disadvantage, adequacy, fairness, etc)

Characteristics and contributory effect of commercial barriers on trades

The MEG would consider, from this proposal, a need to carry out a further study to develop a comprehensive policy approach that would best reflect the concerns of the APEC member economies


BENEFICIARIES The understanding of current regulatory and market conditions would benefit for each APEC member economy Governments and maritime policy

administrator Shipping companies Port agencies and enterprises Shippers (e.g. importers and exporters) APEC Economies


EXPECTED PROJECT PROGRESS

The successful consultant will undertake the project in two phases: Phase 1 Information Gathering (10 months) Phase 2 Analysis and Evaluation (8 months)

The project is expected to be completed by December 2013


Phase 2• Analysis &

Evaluation

METHODOLOGIES (1/2)

Phase 1: Information gathering (10 months) During this phase the consultant will

(a) gather relevant information that exist within the APEC region through literature review, survey, and (if necessary) direct interviews with governments, shipping and freight industries,

(b) develop a meaningful classification of the type of restrictions that exist, and

(c) make an indicative assessment of the prevalence of those restrictions including cargo preference

The consultant would also assemble information on why those restrictions have been applied (if at all) in the specific trades and why a certain APEC economy cannot choose but to keep laws or regulations of cargo preference and restrictions so far

Phase 1• Informatio

n gathering


METHODOLOGIES (2/2)

Phase 2: Analysis & Evaluation ( 8 Months) During the second phase, the consultant will

conduct an analysis on advantages and disadvantages of the existing restrictions and cargo preference for the expected stakeholders

The consultant would then evaluate the justifications of the existing restrictions kept in certain APEC economies

This analysis will also include references to the international maritime regulations such as found in WTO and case studies of EU’s maritime integration and ASEAN’s single shipping market

Phase 2• Analysis &

Evaluation

Phase 1• Information

gathering


NEXT STEPS

Request for support of co-sponsor economy

Consideration of the funding by APEC

Selection of consultancy


Thank You

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