2016/SOM2/025 Agenda Item: CTI Chair s Report. Purpose: Consideration Submitted by: CTI Chair

Transcription

1 2016/SOM2/025 Agenda Item: CTI Chair s Report Purpose: Consideration Submitted by: CTI Chair Second Senior Officials Meeting Arequipa, Peru May 2016

2 Executive Summary The Committee on Trade and Investment (CTI) met on May 2016 to advance its Work Program for the year. CTI also conducted the Trade Policy Dialogue on Free Trade and Regional Trade Agreements on 7 May 2016 and the Workshop on Services Trade Restrictiveness Index on 12 May This report highlights the development in key elements of the CTI s 2016 work programs. Annex 1 highlights the activities of the CTI and its sub-fora that support the priorities of Peru s 2016 APEC host year. CTI recommends that SOM welcomes: Recommendations the progress in finalizing Chapters 1-8 of the Collective Strategic Study on Issues Related to the Realization of the FTAAP (Annex 2); the progress in drafting Chapter 9 and the Recommendations of the CSS (Annex 3); updates on economies notifications on the WTO of the Acceptance of TFA (Annex 4); the paper on APECTR Recommendations for Next Steps (Annex 5); the endorsement of the Code of Conduct of the Working Website of APEC Technical Group of Measurement on TiVA under GVC (Annex 6) and Suggested Classification of Measurement on APEC TiVA (Annex 7); the endorsement of the Study Report on APEC Developing Economies Better Participation in Global Value Chains (Phase 1): Current Status, Concerns and Challenges (Annex 8); the proposal on SMEs Integration into GVCs in Services Industries (Annex 9); the proposal on APEC Supporting Industry Initiative (Annex 10); the discussion paper for the Implementation and Review Mechanism of the Manufacturing Services Action Plan (Annex 11); the progress in implementing the tariff reduction commitments in the APEC List of Environmental Goods (Annex 12); the request to transmit to the Meeting of Ministers Responsible for Trade the following documents from the Chemical Dialogue: o Executive Summary of the 7th Progress Report on the Implementation of GHS in APEC Economies (Annex 13); o Best Practices Checklist for Chemical Regulations (Annex 14); 1

3 the endorsement of the APEC Model Wine Certificate (Annex 15); the Compilation on Good Practices on Enhancing Resilience of Global Value Chains to Natural Disasters (Annex 16); and the proposal to Promote Single Window System s International Interoperability (Annex 17). CTI recommends that SOM notes: the intention of APEC economies to work towards appropriate statements at MRT on supporting the multilateral trading system/wto; the preparations underway for the Second-Term Review of the Bogor Goals the draft agenda for the SOM Dialogue on FTAs/RTAs at SOM3; progress in capacity building towards the realization of the FTAAP under the Second REI Capacity Building Needs Initiative ; the progress in implementing initiatives and work plans under the ten work streams of the APEC Strategic Blueprint for Promoting Global Value Chain Development and Cooperation; the progress in advancing initiatives on Promoting SMEs Integration into GVCs in Major Industries; the progress in implementing the 2015 Work Plan for Advancing Facilitating Digital Trade for Inclusive Growth as a Potential Next Generation Trade and Investment Issue; the progress of the initiative to promote e-commerce to globalize MSMEs; the progress under the Environmental Services Action Plan; the preparations underway for the final assessment in 2016 towards the APEC-wide target of a 10 per cent improvement in supply chain performance in terms of reduction of time, cost and uncertainty under the APEC Supply Chain Connectivity Framework Action Plan (SCFAP); the progress in implementing projects under the Capacity Building Plan to Improve Supply Chain Performance; the progress in implementing the pilot projects and the PSU study to assess the costs and benefits of Global Data Standards; the progress in implementing the work plan of the Asia-Pacific Model E-Port Network (APMEN); the progress in implementing the Work Plan on APEC Cooperation Network on Green Supply Chain (GSCNET) and the three new volunteer agencies to join GSCNET; the progress in the implementation of the Peer Review and Capacity Building on APEC 2

4 Infrastructure Development and Investment; the intention of CTI to continue to improve the efficiency and effectiveness of CTI in relation to the conduct of FoTCs and to initiate a review of the alignment of the sub-fora in relation to CTI s work; the suite of CTI-level activities in the margins of CTI2/SOM2 in support of the CTI 2016 work program including the outcomes of Trade Policy Dialogue on WTO-plus Aspects of Recently Concluded FTAs/RTAs (Annex 16) and the conduct of Capacity Building Workshop on Services Trade Restrictiveness Index; and the progress in implementing CTI s 2016 work program and the projected list of the deliverables from CTI and its sub-fora and industry dialogues for 2016 in all priority areas (Annex 1). 3

5 12 May 2016 The Chair APEC Senior Officials Meeting (SOM) Arequipa, Peru APEC COMMITTEE ON TRADE AND INVESTMENT (CTI): Chair s Report Introduction The Committee on Trade and Investment (CTI) met on May 2016 in Arequipa, Peru to discuss and advance its 2016 work program. Several CTI-level activities in support of CTI work program were also carried out, namely the Trade Policy Dialogue on WTO-plus Aspects of Recently Concluded FTAs/RTAs and the Capacity Building Workshop on Services Trade Restrictiveness Index. CTI Work Program in CTI discussed developments in all areas of its 2016 work program that contribute to the APEC 2016 Priorities. A list of expected TILF deliverables from CTI and its sub-fora is at Annex 1. Highlights include: (a) Support for the Multilateral Trading System (MTS)/WTO 3. CTI discussed the elements of the stand-alone statement supporting the multilateral trading system which was being drafted by economy representatives to the WTO in Geneva, led by Peru. CTI reiterated its support for the drafting of appropriate APEC statements on the WTO Trade Facilitation Agreement, the Information Technology Agreement (ITA) II expansion, and the Environmental Goods Agreement (EGA). 4. As agreed at CTI 1, CTI exchanged information on the status of economies notification to the WTO of acceptance of the TFA. CTI agreed to recommend to Senior Officials the transmission of the Progress Table 1 for Trade Ministers review. CTI noted that as of 10 May, 14 economies have completed their notification to the WTO. CTI noted that some economies are close to completing the necessary domestic processes. The CTI Chair encouraged the rest of the economies to submit their instruments of ratification of the TFA expeditiously. 5. CTI discussed a proposal for a self-funded workshop 2 by Peru on Addressing Harmful Fisheries Subsidies in APEC. While there were expressions of support, some economies expressed concerns, particularly on the duplication of the on-going work stream in the WTO. CTI encouraged Peru to work further on gathering support for the proposal. CTI also noted PECC s intention to share with economies relevant papers under this topic. CTI agreed that economies would provide comments on the proposal to Peru by 17 June. 6. On a CTI1 proposal by the United States for a reporting mechanism on Fisheries Subsidies, CTI continued to exchange views. Some economies expressed concerns, particularly on the duplication of the on-going work stream in WTO and whether the CTI was the appropriate forum for the proposed actions. CTI took note of the intention of the United States to circulate a survey instrument. 7. CTI exchanged views on the revised proposal 3 by Papua New Guinea to progress the WTO Decision on Export Competition Export Subsidy. While there was support for the new draft, some economies expressed concerns on the duplication of on-going work streams in the WTO. CTI agreed that economies would provide comments on the revised proposal to Papua /SOM2/CTI/ /SOM2/CTI/055rev /SOM2/CTI/003 4

6 New Guinea by 17 June. (b) Achieving the Bogor Goals 8. CTI received an update and overview from the Policy Support Unit (PSU) on the progress of the report for the Second-term Review of Economies Progress towards the Bogor Goals 4. CTI thanked the PSU for its work and welcomed the first draft of the report on the progress by economies 5. CTI agreed to provide comments to the PSU by 17 June. CTI also took note of Peru s intention to organize a SOM Dialogue to be held at the margins of SOM3 and looked forward to participating in the dialogue. 9. CTI welcomed the revised concept note and agenda 6 on New Zealand s self-funded workshop and looked forward to the report of its outcomes and next steps. 10. CTI endorsed the revised version of the proposal 7 from the Philippines on the Next Steps on the APEC Trade Repository. 11. CTI took note of Indonesia s updates on the proposal on exploring trade in products that contribute to sustainable and inclusive growth through rural development and poverty alleviation. It took note of Indonesia s plan to bring the proposal to Senior Officials and develop it accordingly. CTI agreed that economies would provide comments to Indonesia before SOM CTI exchanged views on the proposal 8 for Permanent Customs Duty Moratorium on Electronic Transmissions, Including Content Transmitted Electronically by Australia, Korea, New Zealand, Peru, Singapore, and the United States. While some economies supported the proposal, CTI noted some reservations and a request for more time to study the proposal. CTI agreed that economies would provide comments by 17 June. 13. CTI discussed a proposal 9 by Singapore on a Public-Private Dialogue on Trade Beyond Tariffs in Environmental Goods & Services and Information Technology Products. Noting that the proposal will seek APEC funding, CTI agreed that economies would provide comments to Singapore on the proposal by 10 June. (c) Exploring the FTAAP 14. CTI, through the Task Force on the Collective Strategic Study (CSS) on Issues Related to the Realization of the FTAAP, continued to discuss the draft of Chapters 1 to 8 of the CSS. CTI agreed to submit to SOM the final draft as of 13 May (Annex 2) as presented by lead drafters of each Chapter and where outstanding issues remain in Chapter CTI agreed that the final draft to be agreed by MRT of Chapters 1-8 of the CSS will be further edited by the PSU for the purposes of consistency and conciseness. In addition, the draft remains open to limited revision by member economies. Chapter 1 will be subject to modification so as to best reflect the finalized Study. In case of discrepancy, the Terms of Reference (TOR), Editing Mechanism and Next Steps shall prevail. 16. Task Force members had a robust discussion on the initial draft of Chapter 9 and the Recommendations (Annex 3) presented by co-convenors. CTI noted views from a number of Task Force members that Chapter 9 and the recommendations should be strengthened to better reflect the substantive work done on Chapters 1-8. CTI agreed to finalize any recommendations by SOM CTI thanked the PSU and the members of the core drafting group for their hard work and contributions to the CSS. CTI also had a good discussion with ABAC and PECC on their /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/009 5

7 recommendations 10 and appreciated their inputs as these will further inform the discussions on Chapter 9 and the Recommendations. 18. CTI welcomed the progress achieved in implementing the Action Plan Framework for the 2nd CBNI and took note of intentions by economies to work on additional and new areas on the CBNI. CTI looked forward to forthcoming workshops, including one on FTA Negotiations Skills Phase 2 to be led by Viet Nam and the Workshop 11 on Scheduling of Market Access Commitments in Services Trade and Investment to be led by Korea and scheduled on June 2016 in Seoul. CTI also welcomed Peru s updates on the preparations for the workshop on Negotiations of Services Chapters under FTAs with a negative list approach. CTI looked forward to the report of the outcomes of the workshops at CTI CTI noted the proposal 12 by Peru for a capacity building workshop on methodologies to collect NTMs in APEC Economies. CTI agreed that economies would provide comments to Peru by 10 June. 20. On the APEC RTAs/FTAs Information Sharing Mechanism, CTI welcomed the outcomes 13 of the Trade Policy Dialogue (TPD) on WTO-plus aspects of recently concluded RTAs/FTAs led by Australia. CTI took note of the updates on the preparations for the SOM Dialogue on RTAs/FTAs 14 led by Peru and looked forward to participating, through the Chair, in the dialogue to share on its work on information sharing and capacity building. CTI agreed that economies would provide comments to Peru on the agenda by 3 June. 21. CTI welcomed the progress update from the PSU on the trends and developments in FTA/RTA provisions and outcomes concluded in 2015 by APEC economies. It noted that PSU will present the report at the SOM Dialogue on RTAs/FTAs at SOM3. (d) Global Value Chain Cooperation 22. CTI, through the FOTC lead (China), reviewed the progress of the work streams agreed in CTI welcomed the update from the United States on the progress in implementing work stream 1 to address trade and investment issues that impact GVCs. CTI noted the intention of the United States to circulate a survey. CTI agreed that economies would provide comments on the paper by 17 June. 24. In relation to work stream 2 (TiVA measurement), recalling that CTI endorsed intersessionally the two documents on TiVA, namely the Code of Conduct for the Working Website of APEC Technical Group of Measurement on TiVA under GVCs 15 and the Suggested Classification of Data Measurement of APEC TiVA 16, CTI agreed to submit these for Senior Officials endorsement to Trade Ministers. CTI welcomed the update on the preparations led by the United States for a capacity building workshop on TiVA to be held in Bangkok on October and looked forward to the report of its outcomes. 25. Under work stream 4 (Enable Developing Economies to Better Participate in GVCs), CTI welcomed China and Indonesia s updates. CTI discussed the Study Report on APEC Developing Economies Better Participation in Global Value Chains (Phase 1) : Current Status, Concerns and Challenges (Annex 8). As there was no consensus on the report by the end of the meeting, CTI Chair urged the concerned economies to continue to consult towards its endorsement before the SOM meeting. 26. In relation to work stream 5 (Assist SMEs to benefit from GVCs), CTI welcomed updates from Korea as project coordinator to hold a GVCs workshop in the margins of SOM3 to /SOM2/CTI/014 and /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM1/CTI/064a /SOM1/CTI/064b 6

8 integrate findings from the respective projects conducted on the five respective major industries, and to discuss policy recommendations for Phase 2 of the initiative. CTI also welcomed updates from the sector leads of the five major industries on the implementation of their workplans, namely IT/Electronics (Korea); automotive (Malaysia and the Philippines); agribusiness (Thailand); healthcare (United States); and textiles and apparel (Vietnam). 27. CTI agreed to provide comments to Korea on its draft report on Promoting SME Participation in GVCs on IT/Electronics 17 by 17 June. CTI noted Vietnam s final summary report on the APEC-funded project on Promoting the Participation of SMEs into the Textile and Apparel GVCs report 18. CTI noted the intention of Malaysia and the Philippines to re-submit its project proposal to seek APEC funding at Project Session2, 2016 for the automotive sector. CTI agreed to share the reports on the outcomes of the projects under this work stream to the SME Working Group. 28. CTI agreed to endorse the proposal 19 on SMEs Integration into GVCs in Services Industries, which is a living document for economies to provide inputs to. CTI welcomed the intention of economies to lead specific sectors as provided in the agreed terms of reference (TOR) 20, in particular: Korea on software; Peru on tourism; and Vietnam on logistics and distribution. 29. In relation to work stream 6, CTI discussed the Scope of the Study on Improving the Investment Climate and welcomed updates from Japan on the progress of work regarding work stream 6. CTI also welcomed updates from Australia on the outcomes of the public-private dialogue held in April as part of the tripartite public-private dialogues under the initiative of Japan. CTI also noted Australia s intention to submit summary outcomes intersessionally. 30. CTI welcomed the outcomes of the APEC Capacity Building Seminar on Enhancing Resilience of GVCs to Natural Disasters reported by Japan, and the Compilation on Good Practices on Enhancing Resilience of Global Value Chains to Natural Disasters CTI welcomed Japan and Peru s updates on the progress of the Study on Enhancement of Integration of Regional Value Chains in Asia and Latin America and Caribbean 22. CTI noted Japan s plan to convene a PPD at the margins of SOM3, back to back with a workshop on investment climate. CTI noted Japan s intention to circulate a draft agenda before CTI3. (e) MSMEs Internationalization 32. To take forward the initiative to promote e-commerce to globalize MSMEs which CTI endorsed last year, CTI discussed the revised draft work plan 23 by Korea and agreed that economies would provide inputs and further comments to Korea by 17 June. 33. CTI endorsed the proposal by Japan and Vietnam for an APEC Supporting Industry Initiative 24 and agreed to request Senior Officials to welcome the proposal. CTI also took note of their proposal 25 on a policy seminar which seeks APEC funding. CTI agreed that economies would provide comments to Japan and Vietnam by 10 June. 34. CTI took note of the updates from the Philippines on its SOM level proposal for a reporting mechanism 26 for the implementation of the Boracay Action Agenda to Globalize MSMEs. CTI noted the initiatives underway to build global MSMEs being undertaken by CTI /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/016rev /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/022rev /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/025 7

9 and the different sub-fora. (f) Next Generation Trade and Investment Issues (NGeTI) 35. CTI, through its FotC lead (United States) on Next Generation Trade and Investment Issues, discussed the progress of work on next generation trade and investment issues, and noted the intention of the United States to circulate intersessionally a draft program of the 2 nd Trade Policy Dialogue on Digital Trade to be held in the margins of SOM3. CTI noted PSU s presentation on the TOR for the PSU study on digital trade 27. CTI also welcomed the report on the presentation by the invited speaker at the NGeTI FOTC on ICT issues. 36. CTI continued to discuss the proposal 28 by the United States for Leaders to adopt digital trade as a next generation trade and investment issue for Although there was support by many economies, one economy expressed concern on the proposal due to reasons including the lack of definition and potential challenges and opportunities, and looked forward to the 2 nd Trade Policy Dialogue on Digital Trade and the outcome of PSU study to gain better understanding of the issue. CTI agreed to provide comments to the United States by 17 June. 37. CTI welcomed the progress underway in implementing the Manufacturing Related Services Action Plan (MSAP) and endorsed the discussion paper 29 for the Implementation and Review Mechanism of the MSAP proposed by Japan. (g) Environmental Goods and Services/Green Growth 38. CTI discussed the progress in implementing the commitment to reduce applied tariff rates to five percent or less on the 54 products in the APEC List of Environmental Goods agreed by Leaders in CTI reiterated the importance of working intensively with the remaining economies to fully implement Leaders commitment. CTI also agreed to submit the progress table 30 to Trade Ministers for information and review. 39. CTI welcomed the progress underway in implementing Phase 1 of the APEC Environmental Services Action Plan (ESAP), particularly the progress of the PSU survey 31 on regulatory measures in environmental services. CTI looked forward to the initial results of the survey by CTI3. (h) Services 40. In response to Senior Officials instructions at SOM1 and noting the strong synergies between CTI and Economic Committee s (EC) work on services, CTI agreed to work closely with EC to organize a joint meeting of the EC and CTI. CTI agreed to the submission of the proposed note for Senior Officials on the arrangements for the meeting CTI had a good discussion on the draft outline 33 of the APEC Services Competitiveness Roadmap and agreed that economies would provide comments to Australia before the SOM FotC on Connectivity. CTI noted economies comments on CTI s role and contribution the Roadmap, collaboration with relevant APEC fora, consolidation of related proposals into the services agenda, as well as further discussion and development of the elements of the Roadmap. 42. CTI also discussed a SOM-level proposal 34 by Korea on Developing a Set of Principles for Domestic Regulation of the Services Sector. CTI agreed that economies would provide comments to the proposal of Korea by 17 June /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/050rev /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/030 8

10 43. CTI welcomed the workshop 35 on Measuring the Regulatory Environment in Services Trade of APEC led by Korea which will be held immediately after CTI2 and looked forward to the report of its outcomes and next steps at CTI3. (i) Other Issues 44. CTI exchanged views on Russia s SOM-level proposal 36 on Improving the Competitive Environment in Government Procurement. CTI agreed that economies would provide comments to Russia before SOM2. (j) Strengthening comprehensive connectivity and infrastructure development 45. CTI, through the FoTC leads, reviewed the implementation of the CTI Work Plan on Trade Facilitation. CTI reiterated that advancing the implementation of the WTO Trade Facilitation Agreement will be an important part of the second phase of the Supply-Chain Connectivity Framework (SCFAP). 46. CTI welcomed the PSU s progress report 37 on the final assessment of the SCFAP and the way forward and agreed to use its findings as the basis for further work on the second phase of SCFAP. CTI noted from the PSU s presentation 38 that significant progress has been achieved in addressing the chokepoints, but more work still needs to be done to achieve supply chain connectivity, particularly on chokepoint 2 (transport infrastructure), chokepoint 3 (logistics capacity), and chokepoint 6 (multimodal connectivity). In terms of the targets, cost - as against time and uncertainty - remains a key issue. CTI also noted that for the second phase of the SCFAP, APEC should further strengthen existing chokepoints, particularly on Single Window, Authorized Economic Operators (AEOs), GDS, APMEN, GSCNET, and logistics efficiency. 47. CTI, through the FotC, also discussed the possibility of addressing more narrow targets and key performance indicators (KPIs) at the chokepoint level, noting that an aggregate, quantitative target may not adequately reflect progress and challenges in future actions. In terms of exploring new areas, CTI noted suggestions of linking with the work streams of SCCP, the Transport Working Group, as well as work outlined in the APEC Connectivity Blueprint. CTI noted that the FotC co-convenors will work closely with the PSU in developing the ideas discussed and circulate to members more detailed plans before SOM On the Capacity Building Plan to Improve Supply Chain Performance (CBPSCP), CTI welcomed the progress report on expedited shipment, release of goods, advance ruling provided by the United States and looked forward to its final report at CTI3. CTI encouraged other economies to volunteer for participation in the CBPSCP as soon as possible. 49. CTI also welcomed the preparations underway for the 5th APEC Alliance for Supply Chain Connectivity (A2C2) at SOM CTI welcomed updates from Hong Kong, China and New Zealand 39 on actions to promote wider use of interoperable Global Data Standards (GDS). CTI noted that GS1 is expected to be contracted to deliver capacity building and technical assistance on the APECfunded pilots. CTI also welcomed the PSU s progress updates on the PSU study 40 on the application of GDS for supply chain connectivity and noted the benefits on cost, time, and uncertainty in applying GDS. CTI noted the pilot on the pharmaceutical supply chain will be completed in Q The lead economies and the PSU agreed to provide a briefing on the benefits of GDS at the next meeting of the Sub-Committee on Customs Procedures /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/059 and /SOM2/CTI/035 9

11 51. CTI welcomed China s progress report 41 in implementing the work plan of the Asia- Pacific Model E-Port Network (APMEN), including the work of the APMEN Joint Operator Group which will meet before CTI CTI welcomed preparations by China for its pilot projects including a self-funded training and capacity building to demonstrate the E-Port Network 42 to be held on July 2016 in Shanghai, China to support Asia Pacific Model E-Port Network (APMEN) development. CTI reiterated the call for more economies to volunteer more ports to join the network. 53. CTI took note of China s progress report 43 in implementing the Work Plan on APEC Cooperation Network on Green Supply Chain (GSCNET). CTI welcomed three new members to the network - Australia, Korea, Chile and noted that several organizations have expressed interest in becoming new pilot centers. CTI encouraged more members to nominate experts by 30 th May for the Expert Group of GSCNET as agreed in the Work Plan. CTI noted the intention of China to hold a Workshop on Capacity Building back to back with the Expert Group meeting by August CTI welcomed updates from Japan on the progress of the Study on Infrastructure Investment in the APEC Region. CTI agreed to the implementation outline 44 of the Peer Review and Capacity Building for APEC Infrastructure Development and Investment to be conducted by Japan and the Philippines with the PSU as an ad-hoc review secretariat. CTI noted the endorsement by the PSU Board of the TOR of the PSU on the Peer Review. 55. CTI discussed and agreed to the proposal 45 by Peru to promote single window system s international interoperability. CTI noted Peru s plan to develop the TOR for the study as set out in the proposal. 56. CTI welcomed the update from Peru on the progress of the survey and workshop on best practices to implement the WTO Trade Facilitation Agreement and noted the draft agenda 46 of the workshop. CTI noted the call by Peru to engage ABAC representatives. CTI agreed to provide comments to Peru on the agenda and inputs to the survey respectively by 17 June. 57. CTI welcomed the presentation 47 from the PSU on the APEC Study on Best Practices on AEO Programs and took note of the conclusions to assist in the development by APEC Economies of an AEO Program and APEC s design of capacity building activities to be led by SCCP. CTI noted the emphasis made by an economy to follow the international standards set by the WCO in designing AEO programs. 58. On the APEC Connectivity Blueprint for , CTI noted the SOM-level proposal from China on improving the yearly work on its implementation and reporting. CTI looked forward to the outcomes of the yearly review and shared its commitment to contribute, noting that all of CTI s agenda items support the Connectivity Blueprint. As for the Multi-Year Plan on Infrastructure Development and Investment, the CTI Chair pointed out that Japan s work on quality infrastructure and improving the investment climate are valuable contributions from CTI. (k) Expanding Regulatory Cooperation and Advancing Regulatory Convergence 59. CTI welcomed the report 48 on the preparations underway for the self-funded APEC Seminar on Sharing Good Practices and Experiences on Advertising Self-regulation among APEC economies led by Peru. The seminar will be held at the margins of CTI /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/044 10

12 60. In line with the agreement at CTI1 to undertake work on the theme of sustainable materials management (SMM), and to complement the work by sub-fora on sustainable waste management to prevent marine debris, CTI received updates from the United States on the preparations for the 2016 ARCAM Dialogue. The United States will lead a survey on economylevel definitions of key SMM terms and CTI agreed that economies would provide inputs by 17 June. 61. CTI had a discussion on the APEC Model Wine Certificate 49 and noted it is a positive step towards eliminating unnecessary export certification for wine by CTI agreed that the use of the certificate is voluntary and the scope of the certificate is at the discretion of the importing APEC economy. While many members agreed to its endorsement to Senior Officials, one economy requested more time to consult on it. The CTI Chair encouraged the concerned economies to continue to work further to gather support for its endorsement by SOM2. (l) Promoting Innovative Development, Economic Reform and Growth, Contributions to other Cross-Cutting issues 62. CTI discussed a proposal 50 by Chinese Taipei on sharing best practices on big trade data application in trade areas, and looked forward to its outcomes. CTI requested Chinese Taipei to share the proposal with the E-Commerce Steering Group and also to provide comments to Chinese Taipei by 17 June. 63. CTI received updates from the United States on the discussions at the Intellectual Property Group on trade secrets protection and noted that one economy continues to have concerns on the proposal. CTI Chair urged the concerned economies to continue consultations on the issue. 64. In terms of the priority on Strengthening Quality Growth, while there was no substantive discussion at the meeting, CTI noted that much of its work contributes to strengthening quality growth, in particular the work on EGS, MSME internationalization, and next-generation trade and investment issues. (m) Industry Dialogues 65. CTI noted that the first meeting for the year of the Automotive Dialogue will be held on the May 2016 in Manila. The Dialogue will set the agenda for the first workshop under the Electric Vehicle Roadmap. 66. CTI agreed to the request of the Chemical Dialogue to transmit to the MRT the following documents, namely (i) the Executive Summary of the 7 th Progress Report to Ministers on the Implementation of Globally Harmonized System of Classification and Labelling of Chemicals (GHS) in APEC Economies 51 which was endorsed by CTI intersessionally and (ii) the Best Practices Checklist on Chemical Regulations. It was noted that the latter was already endorsed at SOM1. CD updated CTI on progress with implementation of joint projects with the OFWG on barriers to sustainable waste management investment and deployment of technology. CTI noted that a financing work shop is planned for the end of September. 67. The Life Sciences and Innovation Forum (LSIF) updated CTI on its various initiatives on mental health, cervical cancer policy, blood supply chain and therapeutics. These include activities on financial and other barriers to mental wellness and the launch of the LSIF s and Health Working Group s mental health digital hub; progress on a cross-fora dialogue with the SFOM on the fiscal and economic implications of ill-health; development of a framework for the secondary use of clinical data for medical research; progress on a cervical cancer policy forum planned for SOM3; plans for a Blood Supply Chain Partnership Training Network workshop in Lima, Peru on June; as well as progress on the LSIF Regulatory Harmonization Steering Committee s Centers of Excellence pilots on multi-regional clinical trials and bio-therapeutics /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/047 11

13 (n) Private Sector Engagement 68. CTI received updates from ABAC on the outcomes of their meeting held in Port Moresby on April as well as the summary of their feedback 52 on the draft FTAAP Study. ABAC expressed its interest to be provided a copy of Chapter 9 and the recommendations in due course. (o) Other Issues 69. CTI had an initial discussion on practical ways to improve the efficiency and effectiveness of CTI in relation to the conduct of FoTCs and the alignment of the sub-fora to CTI s work. The CTI Chair agreed to consult with economies on how to undertake the review of the sub-fora, noting that a streamlining exercise was done in CTI also agreed to request the eight CTI sub-fora and three industry dialogues to adopt the less paper system. 70. CTI received a presentation 53 from the PSU on the APEC Economic Trends Analysis report on Boosting Growth amid External Weakness. The report highlighted, among other things, that global trade has slowed down and that the APEC region continued to grow amid persistent challenges in the external and domestic fronts. However, the APEC region may observe slower growth in terms of GDP, trade, and investments if domestic growth drivers such as trade competitiveness and structural reforms are not improved. 71. The APEC Secretariat drew the Committee s attention relating to an update 54 on project management issues as well as the dates and deadlines for the BMC Session 2 project approval process. CTI noted the deadline of the proposals by 22 June. (p) Other Business and Future Meetings 72. Noting the long list of activities projected for CTI3, CTI Chair encouraged economies with confirmed activities to coordinate closely with the CTI Chair and the APEC Secretariat to finalize the schedule of CTI3/SOM3 as well as to ensure proper coordination and optimal use of time. Decision Points for SOM and Requests from SOM 73. CTI recommends that SOM welcomes the: the progress in finalizing Chapters 1-8 of the Collective Strategic Study on Issues Related to the Realization of the FTAAP (Annex 2); the progress in drafting Chapter 9 and the Recommendations of the CSS (Annex 3); updates on economies notifications on the WTO of the Acceptance of TFA (Annex 4); the paper on APECTR Recommendations for Next Steps (Annex 5); the endorsement of the Code of Conduct of the Working Website of APEC Technical Group of Measurement on TiVA under GVC (Annex 6) and Suggested Classification of Measurement on APEC TiVA (Annex 7); the endorsement of the Study Report on APEC Developing Economies Better Participation in Global Value Chains (Phase 1): Current Status, Concerns and Challenges (Annex 8); the proposal on SMEs Integration into GVCs in Services Industries (Annex 9); /SOM2/CTI/ /SOM2/CTI/ /SOM2/CTI/049 12

14 the proposal on APEC Supporting Industry Initiative (Annex 10); the discussion paper for the Implementation and Review Mechanism of the Manufacturing Services Action Plan (Annex 11); the progress in implementing the tariff reduction commitments in the APEC List of Environmental Goods (Annex 12); the request to transmit to the Meeting of Ministers Responsible for Trade the following documents from the Chemical Dialogue: o Executive Summary of the 7th Progress Report on the Implementation of GHS in APEC Economies (Annex 13); o Best Practices Checklist for Chemical Regulations (Annex 14); the endorsement of the APEC Model Wine Certificate (Annex 15); the Compilation on Good Practices on Enhancing Resilience of Global Value Chains to Natural Disasters (Annex 16); and the proposal to Promote Single Window System s International Interoperability (Annex 17). 74. CTI recommends that SOM notes: the intention of APEC economies to work towards appropriate statements at MRT on supporting the multilateral trading system/wto; the preparations underway for the Second-Term Review of the Bogor Goals the draft agenda for the SOM Dialogue on FTAs/RTAs at SOM3; progress in capacity building towards the realization of the FTAAP under the Second REI Capacity Building Needs Initiative ; the progress in implementing initiatives and work plans under the ten work streams of the APEC Strategic Blueprint for Promoting Global Value Chain Development and Cooperation; the progress in advancing initiatives on Promoting SMEs Integration into GVCs in Major Industries; the progress in implementing the 2015 Work Plan for Advancing Facilitating Digital Trade for Inclusive Growth as a Potential Next Generation Trade and Investment Issue; the progress of the initiative to promote e-commerce to globalize MSMEs; the progress under the Environmental Services Action Plan; the preparations underway for the final assessment in 2016 towards the APEC-wide target of a 10 per cent improvement in supply chain performance in terms of reduction of time, cost and uncertainty under the APEC Supply Chain Connectivity Framework Action Plan (SCFAP); the progress in implementing projects under the Capacity Building Plan to Improve Supply Chain Performance; the progress in implementing the pilot projects and the PSU study to assess the costs 13

15 and benefits of Global Data Standards; the progress in implementing the work plan of the Asia-Pacific Model E-Port Network (APMEN); the progress in implementing the Work Plan on APEC Cooperation Network on Green Supply Chain (GSCNET) and the three new volunteer agencies to join GSCNET; the progress in the implementation of the Peer Review and Capacity Building on APEC Infrastructure Development and Investment; the intention of CTI to continue to improve the efficiency and effectiveness of CTI in relation to the conduct of FoTCs and to initiate a review of the alignment of the sub-fora in relation to CTI s work; the suite of CTI-level activities in the margins of CTI2/SOM2 in support of the CTI 2016 work program including the outcomes of Trade Policy Dialogue on WTO-plus Aspects of Recently Concluded FTAs/RTAs (Annex 16) and the conduct of Capacity Building Workshop on Services Trade Restrictiveness Index; and the progress in implementing CTI s 2016 work program and the projected list of the deliverables from CTI and its sub-fora and industry dialogues for 2016 in all priority areas (Annex 1). Marie Sherylyn Deleña Aquia Chair, APEC Committee on Trade and Investment 14