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 Regulatory and standardization cooperation among APEC member economies

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

2 Part I: Standards alignment work in APEC

3 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

4 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.

5 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

6 The 'Bogor Goals' The 'Bogor Goals' Adopted by Leaders in Free and open trade and investment in the Asia-Pacific By 2010 for industrialized economies By 2020 for developing economies

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

8 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

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

10 Alignment with International Standards - Voluntary Action Plan (VAP) - Original four priority areas – completed in 2005 Additional priority areas – completed in 2005 E/E Equipment (IEC60335s and CISPR) Safety of IT Equipment (IEC60950s) Standards and guides on conformity assessment and management systems Electrical and Electronic Appliances Food Labelling Rubber Products Machinery

VAP Alignment Results All 16 economies IT Equipment Safety (IEC60950s) All 16 economies Standards and guides on conformity assessment and management systems All 16 economiesE/E Equipment EMS (CISPRs) All 16 economiesE/E Equipment Safety (IEC 60335s) 15 economiesMachinery 14 economiesRubber Products All 16 economiesFood Labelling 15 economiesElectrical and Electronic Appliances No. of economies with 100% alignment Area Among the 21 APEC member economies, 16 economies have updated and submitted their alignment reports of Original Priority Areas Additional Priority Areas

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

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

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

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

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

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

18 Japan ’ s Proposal on New VAP Alignment Work 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.

19 The New VAP Alignment Work 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 This would reduce the number of standards to be reported on to At a later date, the SCSC could make a decision regarding remaining 128 standards. After the discussions in SCSC, Japan modified its proposal as follows:

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

21 Part II: Good Regulatory Practice

22 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.

23 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.

24 Features of Good Regulation 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 adaptability to modern needs. Good regulations:

25 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.

26 Part III: Trade Facilitation Task Force

27 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.

28 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 ”

29 Yuki HAYASHI Deputy director International Standards and MRA Policy Office METI (Ministry of Economy, Trade and Industry) Thank you very much!