APEC Result "Impressive"

APEC ministers have delivered an impressive result, Trade Minister Lockwood Smith said at the conclusion of the two day APEC trade ministers' meeting in Kuching, Malaysia, last night.

"I am very pleased and impressed with the commitment and vision of my colleagues," he said.

APEC trade ministers have endorsed the product coverage, target end dates and rates for liberalisation for the nine priority Early Voluntary Sectoral Liberalisation (EVSL) initiatives. Two sectors of key importance to New Zealand - fish and fish products, and forest products - are included in the package.

"The value of the trade covered by the full package is enormous," Dr Smith said. "In APEC alone, trade in the agreed products is worth US$1.5 trillion."

Dr Smith said the outcome was all the more significant given that it was made against the backdrop of severe financial turmoil. "This has sent the right message to the world. APEC is committed to continuing and substantial liberalisation which has a significant contribution to make towards restoring the economic health of the region."

Consensus on the package was near uniform. All except Chile and Mexico (which have been outside the EVSL process from the beginning, in preference for unilateral cross sectoral liberalisation) will participate in all sectors and in all elements of the sectoral arrangements - tariff liberalisation, non-tariff measures, subsidies and economic and technical facilitation.

Essentially only the detail of flexibility needs to be finalised. This will be completed by officials by September and accepted by ministers in November. Japan has reserved its position on some elements of EVSL until the exact nature of these flexibilities is determined. Flexibilities must be considered in the context of the package delivering mutual benefit and a balance of interests across all APEC economies.

The EVSL plans for fish and forest products endorse zero tariffs as a target. These are to be achieved by 2007 at the latest for fish and 2004 for forest products. The APEC region includes all New Zealand's major markets for fish and forest products.

The nine sector EVSL package also includes gems and jewellery, energy, chemicals, toys, medical and scientific instruments, environmental goods and services and telecommunications.