Ministers pressed for quicker trade reform

By Brian Fallow

Business representatives from throughout Apec had a blunt message for their trade ministers yesterday: tariffs are too high, World Trade Organisation processes are too slow and the delay in trade liberalisation is costing consumers throughout the region.

They conveyed the message, accompanied by a more specific wish list about making trade easier, markets more competitive and government more transparent, in a face-to-face meeting with the trade ministers.

After the meeting, from which the media were excluded, business delegates applauded the process and said they thought they had received an attentive hearing, but would have to wait and see if anything came of it.

Among the more specific proposals was that customs systems across the region be modernised and harmonised by, among other things, establishing electronic data interchange (EDI) systems.

"There is real concern about the complexity and lack of consistency in trade documentation," said meeting chairman Kerry McDonald.

Compliance costs in getting goods across borders varied a lot and governments could raise them at short notice and in what seemed an arbitrary way, he said.

It was recognised that Apec was doing good work in the area of harmonising customs documents and handling them electronically.

But exporters and importers were impatient for that work to be completed sooner than the 2003 or 2005 time horizon officially envisaged.

Some participants had also complained about having to compete in key markets with subsidised agricultural exports from other Apec economies.

Phytosanitary regulations (aimed at preventing the importation of plant diseases) were also seen as a trade barrier, with Australian measures against Philippines bananas and pineapples cited as an example.

"There's also a real concern about transparency," Mr McDonald said.

If policy processes, for example in government procurement, were transparent and the regulatory environment stable and reliable, it removed a lot of uncertainty and diminished risk.

Apec's own processes, it was thought, needed to be more open and transparent, in order to broaden support for trade liberalisation among the business community, the wider public and the media.

Overall, Mr McDonald said, there had been a frank exchange of views with the ministers and a large measure of agreement on future priorities.

"Business was impatient for further progress, while some ministers added a note of caution on too-rapid change."

There was a large measure of support among the ministers for the sentiment that tariff reduction should be faster.

"No doubt the ministers see the practical difficulties in specific cases, but the general response was supportive."