1. TPT-WG35 20–24 February 2012 Bangkok, Thailand Project Proposal : Cargo preference and Restrictions Applying to Specific Trades Speaker: MLTM Economy: Republic of Korea

2. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 2 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

3. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 3 BACKGROUND 2008 (Lima)  Leaders’ Declaration 2009 (Manila)  TMM6 Joint Ministerial Statement 2008 (Manila) 30 th TPT-WG 2008 (Lima)  31 th TPT-WG  Liberalization and facilitation of transport services 2011 (Australia) 34 th 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) 35 th TPT-WG 2012 (Thailand) 35 th TPT-WG

4. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 4 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

5. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 5 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

6. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 6 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

7. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 7 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

8. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 8 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

9. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 9 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 Information gathering

10. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 10 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

11. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 11 NEXT STEPS  Request for support of co-sponsor economy  Consideration of the funding by APEC  Selection of consultancy

12. TPT-WG35 20–24 February 2012 Bangkok, Thailand Page 12 Thank You