WORLD TRADE
ORGANIZATIONWT/GC/W/138/Add.1
22 April 1999
(99-1643)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
APEC's "Accelerated Tariff Liberalization" (ATL) Initiative
Communication from New Zealand
Addendum
Accelerated Tariff Liberalization Initiative:  An Outline of the Proposals
Developed in the Eight ATL Product Areas
The following communication, dated 14 April 1999, has been received from the Permanent
Mission of New Zealand.
_______________
I. ACCELERATED TARIFF LIBERALIZATION:  CHEMICALS
Background
1. The ATL initiative on chemicals had its origins in the Uruguay Round.  In 1991, chemical
associations from several countries proposed that chemical tariffs be harmonized at low rates - 0, 5.5
and 6.5 per cent.  The harmonization initiative covered all of HS Chapters 28-39, except for a handful
of items that were considered to be part of the Uruguay Round agricultural negotiations.  The industry
proposal became the basis for the Uruguay Round Chemical Tariff Harmonization Agreement
(CTHA), to which about two dozen countries became signatories as part of the Uruguay Round tariff
commitments.  Since then, a number of other countries have adopted the CTHA as part of their WTO
accession commitments, and others still in the process of acceding have signalled their willingness toundertake the CTHA commitments.  All told, over 30 countries are now in the process of
implementing the CTHA with more to come once their accession negotiations are completed.
2. When APEC Ministers called for the nomination of sectors for Early Voluntary Sectoral
Liberalization in mid-1997, the United States and Singapore each nominated the full range of products
covered by the CTHA and the tariff rates agreed to in the Uruguay Round for those products.Australia and Hong Kong, China joined with the United States and Singapore as co-sponsors for a
broad chemical initiative.  Several other proposals were also received for subsectors of the chemical
sector, and fertilizer was selected by APEC Ministers as a separate sector for liberalization beyond
that provided in the CTHA.
3. Major chemical associations in the APEC region, through the APEC Chemical Industry
Coalition, have given support and encouragement to the APEC initiative.  In addition, other world
industry associations such as the International Coalition of Chemical Associations have also
encouraged broader participation in the CTHA.WT/GC/W/138/Add.1
Page 2
4. While the tariff elements of the chemical init iative have moved to the WTO, the four co-
sponsors remain active in APEC on the non-tariff, facilitation, and ecotech elements of the initiative.
These elements cover a variety of issues, including customs facilitation, investment liberalization, and
alignment of standards and test guidelines.
Trade barriers faced by sector
5. When the Uruguay Round CTHA was concluded, it covered 70 per cent of world trade.  That
percentage has since decreased as production in this sector has become increasingly globalized.  High
tariffs in non-CTHA countries are a particular concern because most chemical products are used as
inputs for other chemical products.  In addition, mo st chemical production takes place in large, world-
class facilities.  The output of these facilities is too large for any one economy to absorb domestically;
hence, much of the output is exported to dow nstream chemical companies in other countries.
Maintaining high tariffs on chemicals therefore functions only as a tax on chemical companies and
reduces the efficiency, productivity and competitiveness of these companies.
Impact
6. The global chemical market is approximately $2 trillion. Global trade is about $500 billion
and has been growing at about 6 per cent annually.  The chemical industry provides high-paying jobs
for millions of highly-skilled production workers around the world.
7. Virtually every manufactured product - from agriculture and automobiles to semiconductors
and medicines - depends upon thousands  of kinds of chemicals.  Our food, clothing, shelter, health
care, transportation - and every other facet of modern life - are all dependent on a modern, high-techchemical industry.  For example, as the standard of living increases, there is greater demand for food
and for a greater variety of food and a better quality of food.  Chemicals are used  at every stage of the
food production process from pesticides and fertilizers during the planting process to products for
processing and preserving food and plastic to wrap it in at the other end of the process.
8. Because chemicals are inputs to so many other products, liberalizing trade in chemicals will
have broad ramifications throughout the world economy.  It will help chemical companies and other
downstream industries to become more productive, co mpetitive, and efficient, and to produce higher
quality goods.  In addition, harmonizing tariffs at low levels will promote investment, because
companies are interested in investing in competitive,  efficient facilities  the kind that will flourish
under low tariffs.
The tariff proposal targets9. The proposal covers all chemicals from HS Chapters 28-39, except for items included in the
agricultural schedules during the Uruguay Round (i.e., HS 2905.43 (mannitol), 2905.44 (D-glucitol—
sorbitol), 3301 (essential oils), 3501-3505 (albuminoidal substances, modified starches, glues),
3809.10 (finishing agents), and 3824.60 (sorbitol other than that of subheading 2905.44)).
The CTHA rates are as follows:
Chapter 28 5.5%
Chapter 29
2901-2902
2903-29152916-29420%
5.5%6.5%
Chapter 30 0%
Chapter 31 6.5%
Chapter 32 6.5%WT/GC/W/138/Add.1
Page 3
Chapter 33 6.5%
Chapter 34 6.5%
Chapter 35 6.5%
Chapter 36 6.5%
Chapter 37 6.5%Chapter 38 6.5%
Chapter 39 6.5%
10. The proposal calls for existing applied tariffs up to and including 10 per cent to be brought to
the CTHA rates by 2001, and applied tariffs above 10 per cent to be brought to the CTHA rates by
2004.
11. The above targets have twice been endorsed by APEC Ministers - at Kuching in June 1998
and at Kuala Lumpur in November 1998.
Conformity with targets
12. As APEC Ministers noted at their meeting in November, progress towards meeting these
targets was made in 1998.  As Annex D of WT/GC/W/138 shows, Australia, Brunei, Canada,Hong Kong China, Japan, Korea, New Zealand, Singapore, Chinese Taipei, and the United States
were able to agree to these targets for virtually all products.  Indonesia, Malaysia, and the Philippines
were able to agree for over 2/3 of tariff lines; the remaining items will generally be brought to CTHA
rates, but over a longer time period.  Thailand also agreed to CTHA rates, but on a slower schedule
than that suggested in this proposal.  China participated actively in the development of this proposal,but its conformity with the agreed targets is lower than average.
13. APEC Ministers accepted at the time of their meeting in Kuala Lumpur that it was necessary
to improve on and build on this progress during 1999.  It was expected that APEC economies would
further improve upon their positions at the same time as non-APEC economies would be invited to
join the initiative.WT/GC/W/138/Add.1
Page 4
Table I.1
Major Traders:  Chemicals
SITC 5, rev 3 - Chemicals and Related Products, N.E.S 1996
Reporter Imports (1,000 US$) Exports (1,000 US$)
GLOBAL $448,942,000 $448,344,000
Australia $7,054,581 $2,138,017
Canada $14,404,937 $11,418,766
Chile $2,016,131 $556,792
China $18,105,822 $8,876,784
Hong Kong, China $13,635,186 $1,123,750
Indonesia $6,033,407 $1,735,822
Japan $22,831,939 $28,771,549
Korea $13,256,595 $9,148,776
Malaysia $10,621,816 $4,994,760
Mexico $8,697,953 $3,893,768
New Zealand $1,855,858 $1,021,444
Philippines $2,916,823 $362,762
Singapore $7,781,397 $7,061,712
United States 46,608,267 $61,787,106
APEC TOTAL $175,820,710 $142,891,808
EU TOTAL $175,837,645 $215,002,221
Switzerland $11,705,412 $21,978,240
Turkey $5,729,581 $884,626
Brazil $5,698,880 $3,159,949
Argentina $4,391,398 $1,348,536
Czech Republic $3,270,319 $1,977,687
South Africa $3,252,010 $2,134,575
Norway $3,112,264 $1,398,501
India $2,585,607 $1,519,592
Venezuela $1,351,765 $705,936
OTHER TOTAL $41,097,236 $35,107,642WT/GC/W/138/Add.1
Page 5
II. ACCELERATED TARIFF LIBERALIZATION: ENERGY
Background
14. When APEC Ministers called for the nomination of sectors for Early Voluntary Sectoral
Liberalization in mid-1997, three nominations were rece ived in the energy sector area.  The proposals
were from Australia, Thailand and the United States.  These three proposals were merged into one in
September 1997 with Australia agreeing to act as coordinator for the proposal.
Scope of the sector
15. The sector has been defined though a long series of consultations in APEC during 1998.  It
includes coal, gas and electricity as primary energy commodities (12 six digit tariff lines from
Chapter 27) and a range of products and equipment which are intrinsic to energy production,transmission and distribution (137 six digit tariff lines, or ex-outs thereof, from Chapters 73, 82, 84,
85 and 87).
16. Approximately 80 per cent of the ATL Energy Sector is also covered by the list of energy
materials and energy related equipment associated with the Energy Charter Treaty.
Trade barriers faced by the sector
17. Tariffs in the sector range from 0 per cent  to 55 per cent  in APEC economies. The simple
average tariff ranges from approximately 0.6 pe r cent  to 12.5 per cent  for APEC economies.
Impact18. The proposal aims for complete elimination of tariffs on all tariff lines in the sector.  The goal
is to promote higher rates of economic growth, improve price competition, enhance infrastructure
development, promote innovation and productivity and in doing this provide greater choices for the
consumer.
19. The Asia-Pacific Energy Research Centre (APERC) forecasts that total energy demand in the
APEC region alone will increase by 41 per cent from 1995 to 2010.  Early liberalization of the
barriers which place constraints on energy flows must occur in order to meet this demand and ensure
the world economy achieves its full economic growth potential.
20. The benefits of liberalizing the energy sector would be significant and would accrue to all
economies.  Energy generates major export earnings for a number of economies, energy trade and
investment flows are significant and the sector provides crucial inputs to industrial and other
production.  Accelerated work towards liberalizing the sector would improve the functioning of worldenergy markets, enhance energy security, reduce fuel co sts, increase investment and facilitate business
activity, and underpin sustainable economic growth.
21. The early liberalization of energy-related equipment and services would benefit the global
economy collectively and individually.  The dramatic growth in demand for energy in various forms
projected for the foreseeable future throughout the world is well documented. Equally welldocumented is the inadequacy of energy delivery infrastructure in many economies to meet expected
increases in demand.  In addition, all economies are confronting the need to create a more efficient
infrastructure (existing as well as new) for the delivery of energy on a more cost-effective basis.
22. Liberalization will help ameliorate the vulnerability/sensitivity of the sector to fluctuations in
the business cycle, promote economies of scale, allow it to respond better to changing patterns inglobal demand and promote industry investment to improve productivity, respond to new marketWT/GC/W/138/Add.1
Page 6
opportunities and address environmental pressures.  Clearly the level of positive impact will be
directly correlated to the extent to which economies are able to liberalize trade.
The tariff proposal targets
23. The proposal aims to commence linear tariff cuts to achieve elimination of tariffs by
1 July 2004.  This target has been endorsed by APEC Ministers.
Conformity with targets
24. As APEC Ministers noted at their meeting in November 1998, progress towards meeting
these targets was made in 1998.  As Annex D to WT/GC/W/138 shows, Australia, Canada, Hong
Kong China, Japan, Korea, New Zealand, Singapore, and the United States were able to agree to these
targets for virtually all tariff lines.  Other APEC economies were able to conform to varying degrees.
25. APEC Ministers accepted at the time of their meeting in November that it was necessary to
improve on and build on this progress in 1999.  It was expected that APEC economies would further
improve upon their positions at the same time as non-APEC economies would be invited to join the
initiative.
Table II.1
Major Traders:  Energy
Product Chapters:  Ex 27, 73, 82, 84, 85, 87
1996
Imports (1,000 US$) Share of Imports Exports (1,000 US$) Share of Exports
GLOBAL 315,352,012 100.0% 301,706,213 100.0%
Australia 3,192,174 1.0% 8,616,835 2.9%
Brunei unknown unknown unknown unknown
Canada 9,070,244 2.9% 15,079,125 5.0%
Chile 1,495,456 0.5% 50,491 0.0%
China 12,268,749 3.9% 6,184,127 2.0%
Chinese Taipei 10,338,641 3.3% 5,183,260 1.7%
Hong Kong 9,477,989 3.0% 7,204,137 2.4%
Indonesia 4,103,534 1.3% 6,304,097 2.1%
Japan 28,938,008 9.2% 32,977,101 10.9%
Korea 16,435,043 5.2% 4,229,359 1.4%
Malaysia 6,187,051 2.0% 4,353,973 1.4%
Mexico 7,346,235 2.3% 6,866,591 2.3%
New Zealand 663,991 0.2% 313,287 0.1%
Philippines 2,725,232 0.9% 396,549 0.1%
PNG unknown unknown unknown unknown
Singapore 8,951,897 2.8% 5,260,094 1.7%
Thailand 4,387,473 1.4% unknown unknown
USA 40,916,166 13.0% 43,887,712 14.5%WT/GC/W/138/Add.1
Page 7
Imports (1,000 US$) Share of Imports Exports (1,000 US$) Share of Exports
APEC TOTAL 166,497,883 52.8%   146,906,738 48.7%
EU TOTAL 107,831,665 34.2%   126,363,163 41.9%
Switzerland 4,514,294 1.4% 6,943,214 2.3%
Brazil 3,194,387 1.0% 1,009,733 0.3%
Czech Republic 2,969,167 0.9% 2,266,927 0.8%
Russian Federation 2,845,419 0.9% 2,272,636 0.8%
Norway 2,815,054 0.9% 4,900,076 1.6%
Poland 2,743,712 0.9% 2,499,129 0.8%
Turkey 2,084,534 0.7% 899,094 0.3%
III. ACCELERATED TARIFF LIBERALIZATION: ENVIRONMENT
Background
26. In July 1997, in response to instructions from APEC Trade Ministers to identify individual
industry sectors that might be potential candidates for accelerated trade liberalization, four separate
economies - Canada, Japan, Chinese Taipei and the United States - nominated the environmental
goods and services sector.  These four economies subsequently endorsed a single consolidated
nomination.
27. At the APEC Economic Leaders meeting, in November 1997, the environmental goods and
services sector was one of nine sectors selected to be advanced under the accelerated liberalizationinitiative.  Over the course of 1998 a series of technical experts meetings took place to elaborate the
details of this trade liberalization proposal.  The resultant proposal that was presented and endorsed by
APEC Leaders at their annual meeting in Kuala Lumpur, in November 1998, was a comprehensive
initiative that included undertakings on the following four elements:
(1)  tariffs
(2)  services
(3)  non-tariff measures, and
(4)  economic and technical cooperation (Ecotech)
28. The nominating APEC economies recognized the challenges in defining and classifying these
goods and services (including technologies) in a manner that would readily serve as the basis for
reaching agreement on trade liberalization.  For this exercise, APEC economies utilized the OECD
definition that the environment industry is defined as consisting of "activities which produce goods
and services to measure, prevent, limit or correct en vironmental damage to water, air, and soil, as well
as problems related to waste, noise and eco-systems.  Clean technologies, processes, products and
services which reduce environmental risk and minimize pollution and material use are also considered
part of the environment industry."  Proceeding from this definition, APEC economies identified, by
their Harmonized System (HS) codes, a list of goods to be covered under the agreement.  This process
was further guided by the list of categories of environmental goods presented in Annex III.1.
Trade barriers faced by the sector29. Identifying barriers to trade in environmental goods (and services) will be facilitated by the
development of an increasingly precise definition of scope.  In general terms, barriers to trade mayWT/GC/W/138/Add.1
Page 8
arise from specific market access restrictions, e.g., tariffs, non-tariff barriers or restrictions on
commercial presence.
30. Driven by the burgeoning world demand for energy efficiency and renewal, for the
sustainable management of natural resources and biodiversity, and for more global responsiveness to
issues such as climate change and ozone layer depletion, many economies within the APEC regionhave already felt the need to have access to the most advanced and efficient environmental goods,
services and technologies.  Trade liberalization in this vital sector will help all countries to better
respond to the many environmental challenges which have arisen in recent years.  The improved
selection and availability of environmental goods and services at lower cost will help improve the
overall quality of the basic environmental infrastructure, lower costs of environmental protection and
promote further growth in a sustainable manner wh ile minimizing economic, health and social costs.
Product coverage
31. The scope of product coverage developed by participating APEC economies is attached as
Annex III.2.
Proposed actions32. Tariffs would be eliminated in four equal cuts over four years, with cuts taking place in a
linear fashion.  The initial reduction would commence six months after the date on which the
agreement is concluded, subject to the completion of domestic legislative procedures.  Longer
phaseouts could be considered in some cases.
33. All tariff concessions and commitments on services that are made in the final agreement
would be bound in Members' WTO schedules.  Participating economies which are not currently WTO
Members would implement their commitments autonom ously until such time as they accede to the
WTO.
Major traders34. Annex III.3 shows imports by APEC economies fo r a selection of products covered by this
initiative.  Note: the figures provided represent estimates of imports at the HS 6-digit level.  The scope
of coverage for this sector includes products at both the 6 and sub-6 digit level.  Consequently, these
figures should be considered as representative.
35. The OECD has estimated the global market for environmental goods and services to be
approximately US$320 billion, with rapid growth poten tial.  Private sector industry surveys estimate
the environment industry will increase from US$469 billion in 1997 to US$600 billion by 2010,which represents an average annual growth rate of 5 per cent
1.
                                                     
1  Source: Environmental Business International Inc., San Diego, California 1995.  These estimates of
the value of the environment industry are presented for illustrative purposes only.  The methodology by whichEBI defined environmental goods and services to arrive at these estimates in no way dictates the goods andservices coverage of the initiative proposed in this nomination.WT/GC/W/138/Add.1
Page 9
ANNEX III.1
Developing Coverage for an Agreement on Environmental Goods
36. Proceeding from the working definition that environmental goods and services are those
“used to measure, prevent, limit or correct environm ental damage to water, air, and soil, as well as
problems related to waste, noise and eco-systems, and may also include clean technologies, processes,
products and services which reduce environmental risk and minimize pollution and material use”, the
following table, derived in part from the April 1995 work of the OECD/Eurostat informal working
group on the environment industry, provides a useful summary categorization of those goods and
services that are included under this initiative .  An example (with corresponding HS/CPC code) is
presented for each.  It is expected that for each of the categories cited below, a variety of goods andtheir components with corresponding HS codes, as subsequently agreed, would be covered under the
terms of the broader agreement.
Table III.1
Categories of environmental goods Illustrative example(s)
Air pollution control soot removers for boilers 8404.10
scrubbers/precipitators (wet/dry; electrostatic); catalytic
converters8421.39
waste gas incinerators 8417.80
Water pollution control pumps (sewage) 8413.60 and .70
equipment for filtering/purifying water or other liquid
industrial discharge 8421.21 and .29
Solid/hazardous waste management waste incinerators: electric - resistance heated 8514.10,
induction or dielectric 8514.20, and other 8514.30
trash compactors 8479.82
Remediation/clean-up of soil and waterabsorbent material used in booms or socks used for
containing oil spills 2302.10
inflatable spill recovery barges 8907.10pollution protection booms 8907.90
Noise/vibration abatement industrial mufflers 8409.91 8409.99
Monitoring/analysis and assessment pH meters 9027.80
gas or smoke analysis apparatus
9027.10
Potable water treatment water treatment systems 8421.21
Other recycling systems metal recycling equipment 8462.91
machinery for cleaning or drying bottles or other
containers 8422.20
asphalt recycling equipment 8474.32WT/GC/W/138/Add.1
Page 10
Categories of environmental goods Illustrative example(s)
Renewable energy plant wind turbine pumps 8413.81
solar panels 8541.40
Heat/energy management heat exchangers 8419.50
economizers for boilers 8404.10
Other: soil conservation erosion control matter 4601.20
environmental protection cloth 5911.90
Source: OECD/EUROSTAT Informal Working Group on the Environment Industry, OECD/GD(96)1.
Note: (1) Categories of goods which the OECD considers to be "core" components of the environmental
industry are shaded.WT/GC/W/138/Add.1
Page 11ANNEX III.2
Proposed Coverage of Environmental Goods for EVSL
4 November 1998
Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
1 R/C 2302.10 ex Bran, sharps and other residues, whether or not in the form of
pellets, derived from the sifting, milling or other working ofcornBooms or socks consisting of ground corn cobs
contained in a textile covering CA
2 WWM 3926.90 ex Other articles of plastics and articles of other materials of
headings 3901 to 3914; otherBio-film medium that consists of woven fabric
sheets that facilitate the growth of bio-organisms.CT
3 WWM 3926.90 ex Other articles of plastics and articles of other materials of
headings 3901 to 3914; otherRotating biological contactor consisting of stacks
of large (HDPE) plates that facilitate the growth of
bio-organisms.CT
4 WWM 4601.20 ex Mats, matting, and screens of vegetable materials Erosion control matting (biodegradable) NZ
5 WWM 4601.20 ex Mats, matting, and screens of vegetable materials Ecologically safe ground covers (biodegradable) NZ
6 WWM 5603.14 ex Non-wovens, whether or not impregnated, coated, covered or
laminated: of manmade filaments; weighing more than 150
g/m2Fabric of polyethylene/polypropylene/nylon for
filtering wastewater.CT
7 WWM 5911.90 ex Textile products and articles, for technical uses, specified in
note 7 to this chapter; otherEnvironmental protection cloth NZ
8 M/A 6902.10 ex Refractory bricks, blocks, tiles and similar refractory ceramic
constructional goods, other than those of siliceous fossilmeals or similar siliceous earths; containing by weight, singlyor together, more than 50% of the elements Mg, Ca or Cr,
expressed as MgO, CaO or Cr
2O3Industrial incineration CA
9 M/A 6902.20 ex Refractory bricks, blocks, tiles and similar refractory ceramic
constructional goods, other than those of siliceous fossil
meals or similar siliceous earths; containing by weight morethan 50% of alumina (Al
2O3), of silica (SiO 2) or of a mixture
or compound of these productsIndustrial incineration CAWT/GC/W/138/Add.1
Page 12Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
10 M/A 6902.90 ex Refractory bricks, blocks, tiles and similar refractory ceramic
constructional goods, other than those of siliceous fossilmeals or similar siliceous earths; otherIndustrial incineration CA
11 M/A 6903.10 ex Other refractory ceramic goods (for example, retorts,
crucibles, muffles, nozzles, plugs, supports, cupels, tubes,
pipes, sheaths and rods), other than those of siliceous fossil
meal or of similar siliceous earths; containing by weight morethan 50% of graphite or other carbon or of a mixture of theseproductsLaboratory refractory equipment CA
12 M/A 6903.20 ex Other refractory ceramic goods (for example, retorts,
crucibles, muffles, nozzles, plugs, supports, cupels, tubes,pipes, sheaths and rods), other than those of siliceous fossil
meal or of similar siliceous earths; containing aby weight
more than 50% of alumina (Al
2O3) or of a mixture or
compound of alumina and silica (SiO 2)Laboratory refractory equipment CA
13 M/A 6903.90 ex Other refractory ceramic goods (for example, retorts,
crucibles, muffles, nozzles, plugs, supports, cupels, tubes,pipes, sheaths and rods), other than those of siliceous fossil
meal or of similar siliceous earths; otherLaboratory refractory equipment CA
14 M/A 6909.19 exCeramic wares for laboratory, chemical or other technical
uses; otherLaboratory equipment CA
15 M/A 7017.10 Laboratory, hygienic or pharmaceutical glassware, whether or
not graduated or calibrated; of fused quartz or other fusedsilicaCA
16 M/A 7017.20 Laboratory, hygienic or pharmaceutical glassware, whether or
not graduated or calibrated; of other glass having a linearcoefficient of expansion not exceeding 5 X 10 
-6 per Kelvin
within a temperature range of 0 C - 300 CCA
17 M/A 7017.90Laboratory, hygienic or pharmaceutical glassware, whether or
not graduated or calibrated; otherCA
18 APC 8404.10 Auxiliary plant for use with boilers of heading No. 8402 or
8403 (for example, economizers, super-heaters, soot
removers, gas recoverers)CA
19 APC 8404.20 Condensers for steam or other vapour power units CAWT/GC/W/138/Add.1
Page 13Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
20 APC 8405.10 ex Producer gas or water gas generators, with or without their
purifier; acetylene gas generators and similar water processgas generator, with or without their purifiersInclude only those with purifiers. JA
21 N/V 8409.91 ex Parts suitable for use solely or principally with the engines of
heading No. 8407 or 8408; suitable for use solely or
principally with spark-ignition internal combustion piston
engines.Industrial mufflers CT
SG
22 APC 8409.99 ex Parts suitable for use solely or principally with the engines of
heading No. 8407 or 8408; otherIndustrial mufflers SG
23 REP 8410.11 Hydraulic turbines and water wheels of a power not
exceeding 1,000 kWUS
24 REP 8410.12 Hydraulic turbines and water wheels of a power exceeding
1,000 kW but not exceeding 10,000 kWUS
25 REP 8410.13 Hydraulic turbines and water wheels of a power exceeding
10,000 kWUS
26 REP 8410.90 Hydraulic turbines and water wheels; parts, including
regulatorsUS
27 WWM 8413.60 ex Pumps for liquids, whether or not fitted with a measuring
device; other rotary positive displacement pumpsSubmersible mixer pump to circulate water in
wastewater treatment process; sewage pumps,
screw typeCT,
HK,
SG
28 WWM 8413.70 ex Pumps for liquids, whether or not fitted with a measuring
device; other centrifugal pumpsCentrifugal pumps lined to prevent corrosion;
centrifugal sewage pumpsCT,
HK,SG
29 PWT 8413.81 ex Pumps for liquids, whether or not fitted with a measuring
device; other pumpsWind turbine pump NZ
30 M/A 8414.10 Vacuum pumps CA
31 APC 8414.59 Fans (and blowers) other than table, floor, window, ceiling or
roof fans with a self contained electric motor of an output notexceeding 125WCAWT/GC/W/138/Add.1
Page 14Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
32 M/A 8414.80 Air or vacuum pumps, air or other gas compressors and fans;
ventilating or recycling hoods incorporating a fan, whether ornot fitted with filters; otherCA,
SG
33 S/H 8417.80 ex Industrial or laboratory furnaces and ovens, including
incinerators, non-electric; other than bakery ovens and
furnaces for treatment of oresWaste Incinerators CA,
CN,
CT,
KO,SG,US
34 S/H 8417.90 ex Parts of Industrial or Laboratory Furnaces and Ovens,
Including Incinerators, Non-electricParts of waste incinerators US
35 REP 8419.19 ex Other instantaneous or storage water heaters, non-electric Solar Water Heaters US
36 M/A 8419.40 Distilling or rectifying plant CA
37 H/E 8419.50 Heat exchange units SG,
US
38 M/A 8419.60 Machinery for liquefying air or other gases CA
39 M/A 8421.19 Centrifuges, including centrifugal dryers, other than cream
separators and clothes-dryersCA,
US
40 WWM 8421.21 Filtering or purifying machinery and apparatus for liquids:
for filtering or purifying waterCA,
CN,
HK,
JA,KO,SG,US
41 WWM 8421.29 Filtering or Purifying Machinery and Apparatus For Liquids;
otherHK,
JA,
US
42 APC 8421.39 Filtering or Purifying Machinery and Apparatus For Gases;
otherHK
JASGUS
43 M/A 8421.91 ex Parts of Centrifuges, Including Centrifugal Dryers Centrifuges, Accessories & Parts; except clothes
dryers and clothes dryer furnitureCA,
USWT/GC/W/138/Add.1
Page 15Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
44 APC 8421.99 Parts of filtering or purifying machinery and apparatus for
liquids or gasesCA,
JA,US
45 ORS 8422.20 Machinery for cleaning or drying bottles or other containers JA
46 WWM 8428.33 ex Other continuous-action elevators and conveyors, for goods
or materials; other, belt typeBelt-type above ground conveyor used to transfer
solids or slurries between plantsSG
47 WWM 8436.80 ex Other agricultural, horticultural, forestry, poultry-keeping or
bee-keeping machineryHot water weed killing system NZ
48 S/H 8462.91 ex Machine tools for working metal, other than punching or
notching and combined punching and shearing; hydraulic
pressesShredders/balers for metals; hydraulic CA
49 S/H 8472.90 ex Other office machines Paper shredders CA
50 S/H 8474.10 ex Sorting, screening, separating or washing machines Machines of a kind for use in screening and
washing coalCA
51 ORS 8474.10 ex Sorting, screening, separating or washing machines Waste foundry sand reclamation equipment CT
52 ORS 8474.32 ex Machines for mixing mineral substances with bitumen Asphalt recycle equipment CT
53 WWM 8479.82 ex Mixing, kneading, crushing, grinding, screening, sifting,
homogenizing emulsifying or stirring machinesAgitator for wastewater treatment CT
54 ORS 8479.82 ex Mixing, kneading, crushing, grinding, screening, sifting,
homogenizing emulsifying or stirring machinesOther than kneading machinery US
55 S/H 8479.89 ex Machines and mechanical appliances having individual
functions, not elsewhere specified or included in this chapter,otherRadioactive waste press CN
56 WWM 8479.89 ex Machines and mechanical appliances having individual
functions, not elsewhere specified or included in this chapter,otherTrash compactors US
57 PWT 8479.90 ex Parts of Machines and mechanical appliances having
individual functions, not elsewhere specified or included in
this chapter, otherParts of trash compactors US
58 REP 8502.31 Generating sets, electric,  wind-powered USWT/GC/W/138/Add.1
Page 16Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
59 S/H 8505.90 ex Electro-magnets; other, including parts Electromagnet CT
60 S/H 8514.10 ex Industrial or Laborat ory Furnaces and Ovens; electric,
resistance heatedWaste incinerators or other waste treatment
apparatusCA,
SG,US
61 S/H 8514.20 ex Industrial or Laborat ory Furnaces and Ovens; electric,
induction or dielectricWaste incinerators or other waste treatment
apparatusCA,
SG,US
62 S/H 8514.30 ex Industrial or Laboratory Furnaces and Ovens, el ectric, other Waste incinerators or other waste treatment
apparatusCA,
SG,
US
63 S/H 8514.90 ex Parts of industrial or laboratory electric furnaces and ovens or
other laboratory induction or dielectric heating equipmentParts of Waste incinerators US
64 REP 8541.40 ex Photosensitive semiconductor devices, including photovoltaic
cells whether or not assembled in modules or made up intopanels; light emitting diodesSolar cells CA,
US
65 WWM 8543.89 ex Electrical machines and apparatus, having individual
functions, not specified or included elsewhere in this chapter;
otherOzone production system CT
66 R/C 8907.10 ex Inflatable rafts Inflatable oil spill recovery barges NZ
67 R/C 8907.90 ex Other floating structures Pollution protection booms NZ
68 M/A 9015.40 Photogrammeterical surveying instruments and appliances CA
69 M/A 9015.80 Other surveying, hydrog raphic, oceanographic, hydrological,
meteorological or geophysical instruments and appliances,
excluding compassesJA
70 M/A 9015.90 ex Parts and accessories of surveying, hydrological,
meteorological,  or geophysical instruments and appliances,excluding compassesPhotogrammetric instruments; parts and
accessories for articles of subheading 9015.40CA
71 M/A 9022.29 Apparatus based on the use of X-rays or of alpha, beta or
gamma radiations for other than medical, surgical, dental orveterinary usesCAWT/GC/W/138/Add.1
Page 17Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
72 M/A 9022.90 ex Apparatus based on the use of X-rays or of alpha, beta or
gamma radiations  for other than medical, surgical, dental orveterinary usesParts and accessories for goods of
subheading 9022.29CA
73 M/A 9025.11 Thermometers and pyrometers, not combined with other
instruments: liquid-filled, for direct readingCA,
JA,
US
74 M/A 9025.19 Thermometers and pyrometers, not combined with other
instruments: other than liquid-filled, for direct readingCA,
JA,
US
75 M/A 9025.80 Hydrometers and similar floating instruments, thermometers
pyrometers, barometers, hygrometers, and psychrometers,recording or not, and  any co mbination of these instrumentsCA,
JA,US
76 M/A 9025.90 Parts and Accessories for Hydrometers and similar floating
instruments, thermometers pyrometers, barometers,hygrometers, and psychrometers, recording or not, and any
combination of these instrumentsCA,
JA,US
77 M/A 9026.10 Instruments and apparatus for measuring or checking the
flow or level of liquidCA,
SG,
US
78 M/A 9026.20 Instruments and apparatus for measuring or checking
pressureCA,
US
79 M/A 9026.80 Other instruments and apparatus US
80 M/A 9026.90 Parts and accessories for articles of subheading 9026 US
81 M/A 9027.10 Gas or smoke analysis apparatus CA,
CN,CT,KO,
SG,
US
82 M/A 9027.20 Chromatographs and electrophoresis instruments CA,C
T, US
83 M/A 9027.30 Spectrometers,  Spectrophotometers and Spectrographs Using
Optical Radiations (Ultraviolet, Visible, Infrared)CT,
USWT/GC/W/138/Add.1
Page 18Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
84 M/A 9027.40 Exposure Meters US
85 M/A 9027.50 Other instruments and apparatus using optical radiations
(UV, visible, IR)CA,
US
86 M/A 9027.80 Other instruments and apparatus for physical or chemical
analysisCA,
CT,HK,SG,
US
87 M/A 9027.90 Microtomes ; parts and accessories CA,
US
88 M/A 9028.10 Gas Meters JA,
US
89 M/A 9028.20 Liquid Meters JA,
US
90 M/A 9028.30 Electricity Meters JA,
US
91 M/A 9028.90 Parts and accessories for articles of subheading 9028 JA,
US
92 M/A 9030.10 Instruments and apparatus for measuring or detecting ionising
radiationsJA,
US
93 M/A 9030.20 Cathode-ray Oscilloscopes and Cathode-ray Oscillographs US
94 M/A 9030.31 Multimeters US
95 M/A 9030.39 Other instruments and apparatus, for measuring or checking
voltage, current, resistance or power, without a recording
deviceUS
96 M/A 9030.83 Other instruments and apparatus for measuring or checking
electrical quantities, with a recording deviceUS
97 M/A 9030.89 Other Instruments and Apparatus for Measuring or Checking
Electrical QuantitiesUSWT/GC/W/138/Add.1
Page 19Env.
Act.HTS No. HS 6-Digit Description Additional Product Specification Nom
98 M/A 9030.90 ex Parts and accessories (for nominated articles of subheading
9030)US
99 M/A 9031.10 Machines for Balancing Mechanical Parts US
100 M/A 9031.20 Test Benches US
101 M/A 9031.30 Profile Projectors US
102 M/A 9031.80 Other Measuring or Checking Instruments, Appliances and
Machines, not elsewhere specified in this chapterUS
103 M/A 9031.90 ex Parts and accessories (for nominated articles of subheading
9031)US
104 M/A 9032.10 Thermostats US
105 M/A 9032.20 Manostats US
106 M/A 9032.81 Hydraulic and Pneumatic Instruments and Apparatus US
107 M/A 9032.89 Automatic Regulating or Controlling Instruments, other US
108 M/A 9032.90 Parts and accessories US
109 M/A 9033.00 Parts and Accessories (Not  Specified or Included Elsewhere
in this Chapter) for Machines, Appliances, Instruments orApparatus of Ch. 90US
Nominating Economies: Canada  =  CA China = CN Chinese Taipei  = CT Hong Kong, China = HK Japan = JA
Korea = KO New Zealand = NZ Singapore = SG United States = US
APC = Air Pollution Control
ORS = Other Recycling SystemsS/H = Solid/Hazardous WasteH/E = Heat/Energy Management
PWT = Potable Water TreatmentWWM = Waste Water ManagementM/A= Monitoring/Analysis
R/C = Remediation/cleanupN/V = Noise/vibration abatement
REP = Renewable Energy Plant
 WT/GC/W/138/Add.1
Page 20
ANNEX III.3
Imports of Environmental Goods
Value (US$000)
HS Code 690310 690320 690390 690919 701710 701720 701790
Australia 992 15,327 6,063 1,7839 703 1,669 4,497
Brunei 571 0 0 0 0 0 0
Canada 2,566 15,769 10,560 21,907 1,969 7,958 7,592
Chile 568 1,937 1,160 1,501 433 800 1,630
China 959 2,407 9,873 354 300 74 1,740
Chinese Taipei 4,070 2,205 18,328 12,176 2,906 1,527 927
Hong Kong, China 702 699 5,454 1,724 389 0 3,444
Indonesia 406 8,572 5,967 5,801 260 747 1,024
Japan 824 4,441 10,936 37,997 23,251 6,043 10,006
Korea 25,780 12,895 13,767 28,097 445 109 5,709
Malaysia 237 1,975 20,206 3,127 63 224 2,143
Mexico 3,204 21,014 9,692 1,766 3,404 524 1,647
New Zealand 342 1,932 1,083 808 72 323 1,709
Philippines 139 1,205 1,866 2,353 34 798 1,437
Singapore 48 196 10,188 975 830 756 3,290
Thailand 1,156 2,429 12,820 2,586 27 71 5,547
United States 7,868 39,691 44,915 24,699 7,623 2,894 18,529
Total 60,432 132,694 182,878 169,110 42,709 24,517 70,871
Value (US$000)
HS Code 840410 840420 840510 840991 840999 841011
Australia 11,735 724 223 188,386 126,264 63
Brunei 230 0 963 3,350 0 0
Canada 4,402 2,004 3,251 1,340,707 329,335 0
Chile 1,544 31 8,149 15,120 38,445 128
China 63,666 7,763 7,046 177,005 249,550 366
Chinese Taipei 23,930 975 8,212 192,869 22,761 86
Hong Kong, China 2,525 23 11,257 332,162 232,986 0
Indonesia 24,799 29,996 12,817 45,234 89,522 1,312
Japan 11,623 3,518 10,789 224,028 143,973 213
Korea 31,382 5,481 45,535 161,177 436,119 618
Malaysia 11,599 4,164 15,798 37,896 56,860 1,397
Mexico 4,125 203 9,026 492,785 178,185 88
New Zealand 3,590 622 5,116 12,445 19,618 24
Philippines 2,002 1,047 3,308 8,129 48,109 264
Singapore 17,989 1,496 5,624 77,747 308,477 89
Thailand 2,707 3,282 31,517 237,364 193,770 69
United States 2,524 3,765 3,300 2,573,652 905,562 1,241
Total 241,754 70,575 181,931 6,120,056 3,379,536 6,020WT/GC/W/138/Add.1
Page 21
Value (US$000)
HS Code 841012 841013 841090 841360 841370 841381 841410 841459
Australia 0 158 710 29,481 34,404 36,133 10,860 50,951
Brunei 0 0 485 51 739 0 402 748
Canada 187 1,253 15,853 147,913 100,832 83,428 34,756 175,164
Chile 0 9,957 1,127 8,016 31,104 6,203 4,160 13,707
China 1,146 23,634 13,421 7,971 61,569 144,825 30,048 60,885
Chinese Taipei 0 0 2,271 28,469 65,840 30,916 70,078 67,056
Hong Kong, China 0 0 322 8,035 48,383 55,742 8,817 83,905
Indonesia 0 7,191 11,213 12,296 114,551 45,003 12,671 36,660
Japan 0 8 5,698 94,836 57,618 17,349 103,161 132,939
Korea 6,211 9,283 1,298 86,402 131,403 108,226 97,234 75,683
Malaysia 267 12 2,532 12,212 58,592 38,101 15,116 19,221
Mexico 28 2,110 16,208 54,196 37,639 20,526 14,048 28,357
New Zealand 903 7 1,015 1,762 19,574 14,635 2,674 12,388
Philippines 728 0 712 3,293 25,400 19,203 2,503 9,697
Singapore 19 0 1,936 9,801 96,375 117,758 26,681 48,487
Thailand 0 2,575 72 19,259 81,943 95,493 10,099 45,851
United States 299 3,432 37,025 241,580 212,748 151,938 359,916 449,553
Total 9,788 59,620 111,898 765,573 1,178,714 985,479 803,224 1,311,252
Value (US$000)
HS Code 841480 841780 841790 841919 841940 841950 841960 842119
Australia 112,141 2,025 14,587 94 1,944 49,332 114 11,044
Brunei 0 0 28 0 3 66 0 0
Canada 167,636 13,105 34,361 11,801 2,809 98,392 2,473 18,945
Chile 21,602 4,845 6,201 516 9,276 14,852 1,944 8,125
China 252,910 69,391 23,998 1,290 63,632 98,529 23,825 65,181
Chinese Taipei 123,358 151,549 18,520 4,323 43,408 26,020 27,295 12,429
Hong Kong, China 54,272 2,316 12,309 1,196 345 10,453 0 7,097
Indonesia 154,561 72,425 31,702 1,548 18,760 101,595 8,965 23,185
Japan 158,401 7,897 14,845 1,205 7,013 65,018 10,108 31,750
Korea 335,702 62,425 41,405 10,327 22,123 119,148 18,222 66,517
Malaysia 191,329 52,031 10,290 3,478 18,008 57,860 3,624 12,519
Mexico 81,599 9,654 11,098 2,446 9,466 55,174 11,500 19,249
New Zealand 15,137 791 326 575 399 7,285 18 3,062
Philippines 26,138 9,395 8,278 392 4,644 2,021 3,942 2,916
Singapore 240,445 42,130 8,430 1,597 7,382 68,320 4,212 18,263
Thailand 84,410 51,823 50,115 4,523 163,438 51,679 19,192 22,334
United States 464,027 19,637 72,178 81,398 36,737 145,273 36,725 76,796
Total 2,483,668 571,439 358,671 126,709 409,387 971,017 172,160 399,412WT/GC/W/138/Add.1
Page 22
Value (US$000)
HS Code 842121 842129 842139 842191 842199 842220 842833 843680
Australia 26,421 55,986 44,583 4,456 40,783 4,983 5,278 18,515
Brunei 882 0 0 176 0 0 0 0
Canada 53,957 66,353 399,224 16,553 143,546 3,233 21,953 65,672
Chile 15,703 10,669 35,025 1,641 15,631 2,369 63,510 7,261
China 108,121 83,253 55,570 4,401 40,135 29,220 128,808 11,584
Chinese Taipei 36,704 26,730 91,263 6,472 87,782 6,470 12,295 3,359
Hong Kong, China 34,082 9,597 26,345 1,640 61,579 1,184 16,272 0
Indonesia 53,793 46,438 49,170 4,587 34,037 2,100 33,637 5,158
Japan 149,425 59,900 109,332 23,052 147,313 14,137 15,706 16,558
Korea 70,400 123,080 132,437 8,022 118,991 17,849 39,129 14,597
Malaysia 47,720 30,421 44,013 4,942 34,643 2,208 48,052 4,681
Mexico 50,813 41,390 93,173 12,683 95,708 11,098 38,592 8,020
New Zealand 6,824 8,521 10,417 1,640 7,359 790 6,467 8,123
Philippines 19,775 4,885 15,125 1,854 26,955 5,572 9,410 1,357
Singapore 29,187 34,380 55,547 4,131 83,835 795 7,882 386
Thailand 32,032 29,770 76,502 5,828 73,043 5,410 25,600 1,593
United States 154,486 168,079 529,549 40,292 486,502 29,783 65,680 112,372
Total 890,325 799,452 1,767,275 142,370 1,497,842 137,201 538,271 279,236
Value (US$000)
HS Code 847290 847410 847432 847982 847990 850231 850590 851410
Australia 39,292 8,911 1,146 17,555 83,823 114,400 5,265 3,358
Brunei 0 126 210 0 0 N/A 0 73
Canada 72,565 19,606 8,125 32,828 287,455 1,497 8,002 7,365
Chile 10,348 24,314 3,095 8,392 9,816 N/A 762 2,294
China 26,686 24,870 30,112 137,342 400,548 16,379 77,380 41,361
Chinese Taipei 29,546 52,533 4,036 19,680 217,709 N/A 93,081 712
Hong Kong, China 133,845 2,696 602 10,127 81,520 N/A 9,115 18,647
Indonesia 28,883 21,134 2,014 0 40,771 8,864 2,135 10,931
Japan 116,483 9,740 128 60,867 464,050 2,928 127,815 10,805
Korea 54,021 12,839 3,939 151,295 670,446 1,793 14,537 150,197
Malaysia 23,109 13,608 6,781 42,763 303,584 N/A 23,778 8,886
Mexico 26,500 13,599 6,178 26,045 88,751 N/A 24,080 6,731
New Zealand 10,261 3,436 0 4,612 16,469 4,594 1,175 416
Philippines 15,208 4,821 1,521 8,774 391,141 N/A 6,453 277
Singapore 40,123 15,196 988 16,498 596,822 396 19,342 6,648
Thailand 42,671 5,549 16,999 63,844 68,628 N/A 13,768 4,562
United States 944,538 68,765 1,090 113,473 647,004 290 246,828 47,393
Total 1,614,079 301,743 86,964 714,095 4,568,537 151,141 673,536 321,156WT/GC/W/138/Add.1
Page 23
Value (US$000)
HS Code 846291 851420 851430 851490 854140 854389 890710 890790
Australia 3,608 2,405 3,725 7,670 14,743 139,784 3,305 1,113
Brunei 88 0 0 224 0 N/A 1,070 0
Canada 9,055 4,759 14,565 24,197 76,461 222,810 1,765 6,931
Chile 1,093 353 5,250 668 1,838 N/A 446 422
China 64,860 24,857 88,577 23,778 83,601 233,054 1,074 1,837
Chinese Taipei 3,423 336 26,467 2,510 114,926 N/A 914 335
Hong Kong, China 11,225 2,896 1,358 5,300 215,784 N/A 1,235 1,793
Indonesia 24,085 7,917 10,576 4,100 3,756 5,395 617 17,071
Japan 10,040 7,767 10,177 13,565 238,070 1,354,472 1,891 4,076
Korea 25,102 35,076 116,520 63,235 148,731 253,563 620 7,649
Malaysia 59,645 2,807 51,811 25,160 91,275 N/A 1,220 4,538
Mexico 9,103 7,389 20,433 4,071 64,052 N/A 574 788
New Zealand 561 744 1,104 932 4,333 35,481 627 1,069
Philippines 3,407 272 7,465 3,327 8,581 N/A 562 1,169
Singapore 11,352 1,712 38,547 19,869 278,894 252,337 8,494 2,947
Thailand 41,520 6,234 42,007 3,773 33,372 N/A 93 13,944
United States 102,000 16,430 114,894 107,631 749,420 1,056,311 9,474 11,835
Total 380,177 121,954 553,476 310,030 2127837 3,553,207 33,981 77,517
IV. ACCELERATED TARIFF LIBERALIZATION:  TOYS
Background
37. When nominations of sectors for liberalization were called for under the APEC Early
Voluntary Sectoral Liberalization initiative in mid 1997, China and Hong Kong, China proposed the
toys sector, though with slightly different product coverage.  Singapore and the United States
subsequently expressed strong interest in the sector.  After further discussion, the four member
economies agreed to jointly co-sponsor the proposal, with an expanded coverage covering all productsfalling under HS 9501 to 9505.  The consolidated proposal gained wide support among other APEC
member economies and was selected as one of the nine fast-track sectors by APEC Ministers in
Vancouver in November 1997.  It was subsequently agreed that Hong Kong, China should serve as
the coordinator for this sector.
38. The coverage of this ATL initiative on toys is the same as that of the “zero for zero”
arrangement negotiated amongst the United States, European Union, Canada, Japan and Korea during
the Uruguay Round (UR).  However, participants of the UR “zero for zero” arrangement did not adopt
the same product scope and implementation periods.  This ATL initiative builds on the UR “zero for
zero” arrangement with a view to expanding participation and eliminating tariffs on all products
covered.
Coverage
39. The proposal covers all toys and games falling under HS 9501 to 9505.  It includes wheeled
toys designed to be ridden by children  (HS 9501); dolls representing only human beings (HS9502);
other toys, reduced-size models and similar recreational models, puzzles of all kinds (HS 9503);articles for funfair, table or parlour games (HS 9504); and festive, carnival or other entertainment
articles (HS 9505).WT/GC/W/138/Add.1
Page 24
Trade barriers faced
40. High tariffs and tariff peaks are the major barriers in the toys sector.  As for non-tariff
barriers, toy safety standard is an area of concern.
Impact41. Liberalization of this sector will increase trade and business opportunities for producers,
traders and investors, thus contributing to economic growth.  Besides, from a wider perspective, this
would encourage more competitive prices, stimulate product innovation and bring about wider
choices for consumers, thus contributing to the im proved welfare of the global community at large.
42. APEC economies have strong commercial interests in the sector.  Some statistical information
on major traders in the toys sector is at Annex IV.1.
Targets of the proposal
43. The proposal aims for complete elimination of tariffs on all products falling under HS 9501 to
9505 preferably by 2000 and no later than 2005.  All participating economies should strive to meet the
targets but in special circumstances and on a case by case basis, tariffs could be eliminated over an
extended phase out period.  These targets were endo rsed by APEC Ministers at Kuching in June 1998
and at Kuala Lumpur in November 1998.
Conformity with targets
44. The toys proposal has wide support amongst APEC economies.  As Annex D to
WT/GC/W/138 shows, Australia; Canada; Hong Kong, China; New Zealand; Papua New Guinea;
Singapore; Chinese Taipei and the United States were able to agree to these targets for all products
covered.  Japan and Korea were able to agree to these targets for 90 percent of the tariff lines or over.
Other economies have committed to phase down tariffs to a lower rate and/or at a slower time.
45. APEC Ministers agreed at their meeting in Kuala Lumpur in November 1998 that it was
necessary to improve and build on this progress during 1999.  It was expected that APEC economieswould further improve their offers at the same tim e as non-APEC economies would be invited to join
the initiative.WT/GC/W/138/Add.1
Page 25
ANNEX IV.1
Major Traders in the Toys Sector
Product Coverage : HS 9501 - 9505
Imports Share of
WorldExports Share of
WorldAverage
TariffMFN Average
(US$'000) Imports (US$'000) Exports Bound (%) (in)
World 29,895,830 100.00% 27,220,619 100.00% - - -
Australia 391,279 1.31% 58,776 0.22% 13.27% 4.23% 1998
Brunei N/A N/A N/A N/A 23.33% 2.41% 1998
Canada 964,346 3.23% 300,465 1.10% 0.36% 1.02% 1998
Chile 107,433 0.36% 7,706 0.03% 25.00% 11.00% 1998
China 335,838 1.12% 4,587,980 16.85% N/A 16.30% 1999
HKC 5,129,336 17.16% 9,768,122 35.89% Unbound 0.00% 1998
Indonesia 30,143 0.10% 315,778 1.16% 40.00% 18.18% 1998
Japan 1,368,375 4.58% 1, 695,348 6.23% 1.43% 3.10% 1998
Korea 343,847 1.15% 275,548 1.01% 3.85% 8.87% 1998
Malaysia 87,670 0.29% 333,006 1.22% 16.49% 11.63% 1998
Mexico 231,378 0.77% 618,053 2.27% Unbound 17.30% 1997
New Zealand 92,164 0.31% 12,043 0.04% 25.84% 6.81% 1999
PNG N/A N/A N/A N/A 42.73% 46.36% 1998
Philippines 42,293 0.14% 170,026 0.62% Unbound 16.36% 1998
Singapore 247,136 0.83% 305,948 1.12% Unbound 0.00% 1998
Chinese Taipei 304,550 1.02% 901,281 3.31% N/A 6.64% 1998
Thailand 50,724 0.17% 476,704 1.75% 30.00% 20.00% 1998
USA 10,266,166 34.34% 1,848,580 6.79% 0.00% 0.00% 1998
APEC 18 Total 19,992,678 66.87% 21,675,364 79.63% - - -
EU+APEC 18: 95.04% EU+APEC 18: 97.79%
Peru 57,894 0.19% 694 0.00% 30.00% 12.00% 1997
Russia N/A N/A N/A N/A N/A N/A -
Vietnam N/A N/A N/A N/A N/A N/A -
Top 10 non-APEC economies :
1.   EU 8,421,780 28.17% 4,942,613 18.16% 1.26% 4.60% 1998
2.   Switzerland 383,755 1.28% 264,045 0.97% 1.93% +
SFr
41.48/100kgSFr
46.35/100kg1996
3.   Norway 150,227 0.50% 5,865 0.02% Unbound 5.98% 1996
4.   Argentina 113,046 0.38% 16,270 0.06% Unbound 21.30% 1997
5.   Poland 106,802 0.36% 61,956 0.23% 12.21% 15.50% 1996
6.   Brazil 100,325 0.34% 18,795 0.07% 35.00% 20.00% 1995
7.   Israel 80,353 0.27% 17,687 0.06% 16.00% 16.30% 1993
8.   South Africa 58,165 0.19% 3,340 0.01% 30.00% 3.80% 1997
9.   Colombia 45,118 0.15% 7,780 0.03% Unbound 19.00% 1997
10. Venezuela 44,252 0.15% 3,094 0.01% 40.00% 19.80% 1997WT/GC/W/138/Add.1
Page 26
V. ACCLERATED TARIFF LIBERALIZATION:  FISH AND FISH PRODUCTS
Background
46. In the summer of 1997, in response to instructions from APEC Trade Ministers to identify
individual industry sectors that might be potential candidates for accelerated trade liberalization
within APEC, five separate economies -- Brunei Darussalam, Canada, Indonesia, New Zealand andThailand -- nominated the fish and fish products sector.  These five economies subsequently endorsed
a single consolidated trade liberalization approach for this sector aimed at full liberalization by the
end of 2005.
47. At the APEC Leaders Summit, in November 1997, the ‘fish and fish products’ sector was one
of nine sectors approved for accelerated trade liberalization.  Over the course of 1998, and under the
overall leadership of Malaysia (the APEC host  economy that year) and of the Chair of APEC’s
Committee on Trade and Investment, a series of techni cal experts meetings took place to elaborate the
details of this trade liberalization proposal (among others).  The resultant proposal that was presented
to APEC Leaders at their annual meeting in Kuala Lumpur, in November 1998, was a comprehensive
proposal that included undertakings on the following six elements:
(1) tariffs;
(2) non-tariff measures (NTMs);(3) subsidies;
(4) sanitary and phytosanitary (SPS) measures;
(5) economic and technical cooperation; and
(6) international cooperation in fisheries management in the APEC region.
48. Work is continuing within APEC on the last five elements.  However, APEC Ministers agreed
to refer the tariff element of the proposal to the WTO, with a view to broadening participation in the
initiative by other WTO Members.
Trade barriers faced by the sector49. World trade in fish and fish products is affected by a range of trade measures, including:
tariffs; NTMs, such as import licensing, quantitative restrictions (including tariff rate quotas), and
health (both human and animal) and sanitary regulations; and trade-distorting export subsidies.
Within APEC, there is a wide discrepancy in tari ff levels among individual economies, with applied
rates ranging from Free to as high as 80 per cent.  One study by the Pacific Economic CooperationCouncil (PECC) has found that, w ithin the APEC region, tariffs on fisheries products are (on average)
15 per cent higher than tariffs on agricultural products.
50. Most observers would agree that liberalization of fish tariffs in previous multilateral
negotiations have not kept pace with the degree of liberalization achieved in many other sectors.
The accelerated tariff liberalization (ATL)  proposal for fish and fish products
51. The ATL proposal developed by APEC econom ies amounts to a zero-for-zero approach.
Participation
52. To date, 15 of the APEC member economies have participated actively in the fish trade
liberalization discussions, including all of the ASEAN countries, as well as China, Korea, and
Chinese Taipei.WT/GC/W/138/Add.1
Page 27
Product Coverage
53. The proposal encompasses virtually all fish and fish products, classified under 108 individual
tariff lines at the 6-digit level of the Harmonized System (HS).  This includes:
Chapter 3:
all items under headings 0301 through 0307 (i.e., live, fresh, chilled, frozen, salted, dried and
smoked fish, crustaceans and molluscs);
ex Chapter 5:
some of 0511 (fish, crustaceans and molluscs, unfit for human consumption);
ex Chapter 16:
some of 1603 (fats and oils of fish);
all of 1604 (prepared or preserved fish); and
all of 1605 (prepared crustaceans, molluscs and other aquatic invertebrates).
 ex Chapter 23:
some of 2301 (flours, meals and pellets); and
some of 2309 (animal feeds).
Proposed actions
54. The proposal calls for the elimination of most tariffs over a six-year period, with tariffs of
20 per cent or less eliminated over four years, and longer phase-out permitted for a specifiedpercentage of tariff items.  Tariffs would be phased-out on a linear basis.
Major traders
55. A table is attached, showing the exports, imports and relative shares of fisheries trade by
APEC economies.WT/GC/W/138/Add.1
Page 28
Table V.1
Accelerated Tariff Liberalization - Fish and Fish Products Sector
1996 Trade Figures
Imports (US$1,000) % of Global
ImportsExports (US$1,000) % of Global
Exports
Global 54,8711,452 54,871,452
Australia 464,442 0.85% 899,156 1.64%
Brunei 20,141 0.04% 37 0.00%
Canada 1,137,283 2.07% 2,464,937 4.49%
Chile 45,549 0.08% 1,835,899 3.35%
China 1,080,409 1.97% 2,939,070 5.36%
Chinese Taipei 1,019,801 1.86% 1,446,768 2.64%
Hong Kong, China 1,725,174 3.14% 601,759 1.10%
Indonesia 201,097 0.37% 1,716,015 3.13%
Japan 16,006,132 29.17% 722,036 1.32%
Korea 983,359 1.79% 1,536,763 2.80%
Malaysia 396,287 0.72% 327,399 0.60%
Mexico 103,928 0.19% 705,585 1.29%
New Zealand 48,362 0.09% 837,877 1.53%
Peru 6,371 0.01% 1,204,879 2.20%
Philippines 127,788 0.23% 447,184 0.81%
PNG 9,959 0.02% 25,687 0.05%
Russia 711,301 1.30% 2,562,543 4.67%
Singapore 589,068 1.07% 547,700 1.00%
Thailand 478,915 0.87% 3,853,014 7.02%
USA 6,918,165 12.61% 3,515,036 6.41%
Vietnam 12,716 0.02% 611,923 1.12%
APEC total 32,073,431 58.45% 28,189,344 51.37%
Source:  Statistics Canada - World Trade Analyser.
VI. ACCELERATED TARIFF LIBERALIZATION: MEDICAL EQUIPMENT AND
INSTRUMENTS SECTOR
Introduction
56. Health care is an important issue for both developed and developing economies - it is part of
the basic social infrastructure.  Promoting trade in medical equipment and instruments through
lowering/removal of barriers would have social and economic benefits for all economies. Tariffliberalization in the health care sector would provide opportunities for businesses to provide high-
value, cost-efficient technologies to support domes tic cost containment measures.  It would also
facilitate the development of an economy's health care system.
57. APEC economies account for approximately 45 per cent of world exports of medical
equipment and instruments, and 47 per cent of world imports.  Thus, there are significant markets formedical equipment and instruments within APEC as well as outside of APEC.  A number of non-
APEC economies have significant exporting intere sts in these products.  The EU, for example,
accounts for 48 per cent of world exports of these items, and absorbs 40 per cent of world imports.  In
addition, there are other large and fast growing markets outside of APEC for medical equipment and
instruments, including Switzerland, Brazil and Israel.WT/GC/W/138/Add.1
Page 29
58. The broader global interest in liberalization in this sector is reflected by the fact that a number
of major economies participated in a tariff “zero-for zero” initiative for medical equipment in the
Uruguay Round.  The nine signatories to this agreement were Canada, EU, Hong Kong, Iceland,
Japan, Norway, Singapore Switzerland and the US.  There has also been keen interest during the
Uruguay Round in establishing a zero-for-zero initiative in the scientific instruments sector.
Background on medical equipment and instruments sector
59. The events leading to the formulation of the A ccelerated Tariff Liberalization (ATL) initiative
for the Medical Equipment and Instruments sector are outlined in the ensuing paragraphs.
60. In response to the call by APEC Trade Ministers in mid-1997 for nomination of sectors for
Early Voluntary Sectoral Liberalization, four nominations were received from Japan, Singapore,
Thailand and the US involving products in this sector.  These nominations were further consolidated
and refined and presented to Ministers in Vancouver in November 1997 as the Singapore-US jointproposal on “medical equipment and instruments”, Japan’s “scientific equipment” and Thailand’s
“medical equipment & apparatus” proposals.
61. Of the 41 sectors presented to Ministers in Vancouver, 15 sectors were identified by Ministers
as enjoying the most support among APEC member economies.  “Medical Equipment and
Instruments” was one of these 15 sectors.
Product coverage and impact
62. The ATL proposal on Medical Equipment and Instruments covers products ranging from
simple thermometers produced by developing economies to high-technology products such as X-
ray/cat-scan equipment manufactured by developed economies.
The specific products are:
- in vitro and in vivo diagnostics substances: HS 2844.40
- composite reagents: HS 3822
- medical and surgical sterilizers and parts: HS 8419.20, ex HS 8419.90- invalid carriages and parts: HS 8713, HS 8714.20
- surgical and medical instruments: HS 9018
- electromedical and electrotherapeutic apparatus: HS 9019
- orthopaedic, prosthetic and surgical appliances and supplies: HS 9021
- X-ray apparatus, tubes, and related irradiation apparatus: HS 9022- instruments, apparatus & models, designed for demonstration: HS 9023
- machines and appliances for testing: HS 9024
- hydrometers, thermometers, barometers: HS 9025
- instruments and apparatus for measuring or checking: HS 9026
- instruments and apparatus for physical or chemical analysis: HS 9027
- gas, liquid or electricity supply or production meters: HS 9028
- oscilloscopes, spectrum analysers and other instruments: HS 9030- measuring or checking instruments, n.e.s.: HS 9031
- automatic regulating or controlling instruments: HS 9032
- medical and surgical furniture and parts: HS 9402.10, HS 9402.90
63. Under the tariff component of the proposal, the objective is complete elimination of tariffs on
all the above products.  The elimination of tariffs on global trade in these products is estimated to
yield annual tariff savings of up to US$3.3 billi on.  It would promote flow of trade of medical
equipment and instruments across borders which would meet increasing demand for quality health
care and access to state-of-the-art medical devices and diagnostics.  The opening of markets wouldWT/GC/W/138/Add.1
Page 30
also generate more and better paying jobs in the medical equipment and instruments industry in both
developed and developing economies.
Tariff proposal targets
64. The tariff proposal target for the Medical Equi pment and Instruments Sector is to eliminate
tariffs on all products listed above by 1 January 2001.  This target has been endorsed by APECMinisters in Kuching in June 1998 and again in Kuala Lumpur in November 1998.
Conformity with targets
65. Of the 16 participating economies, Australia, Canada, Hong Kong China, Japan,
New Zealand, Singapore, and the US were able to achieve the target of tariff elimination by
January 2001 for all products.  Korea, Malaysia and Papua New Guinea were able to achieve the
target for over 65 per cent of the tariff lines.  Other participating economies requested for flexibilitiesin end year and/or end rate.
66. APEC Minister agreed at their meeting in Kuala Lumpur in November 1998 that member
economies may implement immediately the tariff commitments on a voluntary basis.  Ministers also
accepted the need to improve and build upon this progress in 1999 by broadening the participation
beyond APEC to maximise the benefit of liberalizat ion.  APEC economies were encouraged to further
improve their participation in the tariff proposa l, whilst inviting non-APEC economies to join the
initiative.
Major  traders
67. The major traders of the products under the Medical Equipment and Instruments sector is
attached as Annex VI.1.
Other trade barriers faced
68. Apart from the tariff component, the particip ating APEC economies in the initiative also
agreed on a work plan to deal with non-tariff measures (NTMs) affecting trade flow in the MedicalEquipment and Instruments sector. The agreement is  to complete a transparency study to identify
NTMs by 31 July 1999, and a work plan by 31 December 1999 to address these NTMs.WT/GC/W/138/Add.1
Page 31
ANNEX VI.1
Medical Equipment And Instruments
Product Coverage:  HS 2844.40, 3822, 8419.20, ex 8419.90, 8713, 8714.20, 9018, 9019, 9021, 9022, 9023,
9024, 9025, 9026, 9027, 9028, 9030, 9031, 9032, 9402.10, 9402.90
Imports Exports Share of
(US$'000) (US$'000) Imports
World 99,187,402 94,526,697 100.00%
Australia 1,747,288 414,161 1.76%
Brunei N/A N/A N/A
Canada 3,754,179 1,643,896 3.78%
Chile 240,962 7,791 0.24%
China 2,280,260 606,705 2.30%
HKC 1,755,825 126,458 1.77%
Indonesia 557,884 30,451 0.56%
Japan 7,719,233 10,178,720 7.78%
Korea 4,671,452 462,825 4.71%
Malaysia 1,133,387 407,566 1.14%
Mexico 1,734,310 1,371,028 1.75%
New Zealand 303,713 74,320 0.31%
PNG N/A N/A N/A
Philippines 350,613 40,248 0.35%
Singapore 1,809,525 1,428,520 1.82%
Chinese Taipei 2,638,037 494,660 2.66%
Thailand 1,440,615 N/A 1.45%
USA 13,143,894 24,805,577 13.25%
APEC 45,281,177 42,092,925 45.65%
Peru 123,529 1,366 0.12%
Russia 1,497,312 192,984 1.51%
Vietnam N/A N/A N/A
 1.  EU 39,608,785 45,671,583 39.93%
 2.  Switzerland 1,871,335 4,011,668 1.89%
 3.  Brazil 1,564,080 150,743 1.58%
 4.  Turkey 792,480 33,531 0.80%
 5.  Poland 760,140 135,355 0.77%
 6.  South Africa 739,765 96,505 0.75%
 7.  Czech Republic 722,474 190,897 0.73%
 8.  Norway 686,537 399,927 0.69%
 9.  Israel 632,855 749,880 0.64%
10. Argentina 543,948 49,719 0.55%
Source:
- UN COMTRADE, 1996.
- For Chinese Taipei - Monthly Statistics of Imports/Exports 1996.
Notes:
- UN COMTRADE does not cover data of Brunei, PNG and Chinese Taipei.
- World total trade values based on 95 economies (imports) and 89 (exports), adjusted to include Chinese
Taipei.
*Trade statistics of individual economies have not b een adjusted to include tr ade with Chinese Taipei.
N/A - not applicable/data not available.WT/GC/W/138/Add.1
Page 32
VII. ACCELERATED TARIFF LIBERALIZATION:  GEMS AND JEWELLERY
SECTOR
Background
69. The Gems and Jewellery sector, comprising all items under Chapter 71, was initially proposed
by Thailand and co-sponsored by Chinese Taipei in response to APEC Ministers call for nominationsof sectors for Early Voluntary Sectoral Liberalization (EVSL) in 1997.  Most APEC member
economies have provided positive support and active involvement in developing the proposal, which
is a significant indication that almost all APEC econom ies are in favour of tariff liberalization in this
sector.
Trade barriers faced
70. Tariffs remain the main trade barrier for the Gems and Jewellery sector in most APEC
economies.  However by breaking down this sector into three segments, namely Gems (7101-7105),
Metals (7106-7112) and Jewellery (7113-7118), it is clearly visible that the average tariff rates for the
Gems segment is significantly lower than that for Metals and Jewellery.
Impact71. The proposal, which covers all of Chapter 71, is aimed at expanding trade and investment
through the reduction/elimination of tariffs in the sector.  The proposal is also designed to promote
employment of skilled labour as well as tourism by generating a higher demand for luxury goods
worldwide.
Tariff proposal targets
72. The Gems and Jewellery proposal covers all of Chapter 71 and seeks to reduce tariffs to
between 0-5 per cent by the year 2005.  This target has twice been endorsed by APEC Ministers - at
Kuching in June and in Kuala Lumpur in November 1998.
Conformity with targets
73. Of the nine priority sectors endorsed by Ministers in November 1998, it was apparent that the
Gems and Jewellery sector had received the most promising response.  Most economies responded
positively in terms of conformity with the propose d targets.  Australia, Brunei, Canada, Hong Kong
China, Korea, New Zealand, Singapore, Chinese Taipei, Thailand and the United States were able toagree to these targets.  Other participating economies have reserved their positions with respect to
some of the tariff lines.WT/GC/W/138/Add.1
Page 33
ANNEX VII.1
 Gems and Jewellery
Product Coverage:  HS 71
Imports
(US$’000)Exports
(US$’000)Average
Tariff
BoundMFN
(%) (in)Share of
World
Imports
World* 91,346,216 75,295,564 - - - 100.00%
Australia* 866,523 4,429,053 5.23% 1.13% 1998 0.95%
Brunei 601,938 132,575 23.77% 3.00% 1998 0.66%
Canada* 1,321,398 2,944,238 2.53% 2.92% 1998 1.45%
Chile* 10,706 592,715 35.00% 11.00% 1998 0.01%
China* 403,890 1,267,002 N/A 16.60% 1999 0.44%
Hong Kong, China* 7,189,537 3,052,381 0.00% 0.00% 1998 7.87%
Indonesia* 94,184 418,219 38.46% 13.00% 1998 0.10%
Japan* 7,682,876 1,274,883 1.10% 1.11% 1998 8.41%
Korea* 6,037,361 5,805,797 7.25% 4.49% 1998 6.61%
Malaysia* 1,020,328 638,995 10.19% 2.80% 1998 1.12%
Mexico* 201,963 784,158 35.00% 8.67% 1997 0.22%
New Zealand* 59,349 206,185 5.08% 2.60% 1999 0.06%
PNG 897 314,673 N/A 52.00% 1998 0.00%
Philippines* 53,973 295,530 25.96% 5.93% 1998 0.06%
Singapore* 4,489,617 1,341,635 1.51% 0.00% 1998 4.91%
Chinese Taipei 1,478,661 249,916 N/A 1.20% 1998 1.62%
Thailand* 1,891,018 2,214,831 1.75% 20.00% 1998 2.07%
USA* 17,134,700 883,915 2.13% 0.00% 1998 18.76%
APEC 18 Total 50,538,919 34,802,611 - - - 55.33%
EU + APEC 18 95.04%
Peru 5,861 896,221 21.72% N/A 1993 0.01%
Russia N/A N/A N/A N/A - N/A
Vietnam N/A N/A N/A N/A - N/A
1.  EU 38,063,243 32,476,523 0.60% N/A 1995 41.67%
2.  Switzerland 4,456,411 4,427,799 0.08% N/A 1995 4.88%
3.  Norway 133,273 103,817 0.72% N/A 1995 0.15%
4.  Hungary 17,524 18,968 8.05% N/A 1995 0.02%
5.  Poland 22,793 184,844 18.05% N/A 1995 0.02%
6.  Iceland 4,451 9,258 7.36% N/A 1995 0.00%
7.  Czech Republic 64,075 96,056 2.37% N/A 1995 0.07%
8.  Israel 5,424,250 7,240,449 6.18% N/A 1995 5.94%
9.  Turkey 42,271 120,158 3.33% N/A 1995 0.05%WT/GC/W/138/Add.1
Page 34
VIII.  ACCELERATED TARIFF LIBERALIZATION: FOREST PRODUCTS
Background
74. The ATL initiative in the forest products sector has its origins in the Uruguay Round when
Canada and the United States proposed the complete elimination of wood product tariffs.  This
proposal was supported strongly by New Zealand.  Th is target was not achieved but a "zero for zero"
arrangement was negotiated between the United States,  Canada, Japan, EU, Korea and New Zealand
for paper products (chapters 47, 48 and 49 of the tariff).
75. When APEC Ministers called for the nomination of sectors for Early Voluntary Sectoral
Liberalization in mid-1997, four nominations were recei ved in the forest products area.  The proposals
were from the United States, Canada, Indonesia and New Zealand.  These four proposals were merged
into one in September 1997 with New Zealand agreeing to act as coordinator for the proposal.
Indonesia, the United States and Canada have remained active proponents of the proposal in a co-sponsor role and continue to coordinate individual elements of the proposal in the non-tariff, building
standards and economic and technical cooperation areas which continue to be progressed within
APEC.
Trade barriers faced by sector76. The sector faces a range of barriers.  Tariffs and tariff escalation remain particularly
significant barriers.  We recommend a 1998 FAO public ation Trade Restrictions and their impact on
International Trade in Forest Products which we understand is available in hard copy and on the FAO
website www.fao.org/ur for a full explanation of the barriers faced in this sector.
77. This study highlights the fact that while, in general, developed economy tariffs for these
products are relatively low, tariffs for specific products remain high and create significant trade
problems.  This is especially true for panel- products, builders’ woodwork items and furniture.  While
tariffs are generally less than 5 per cent in most developed countries, rates for particular products are
much higher, commonly 10-15 per cent.  Developing country tariff are much higher than this with
rates commonly falling between 10 and 60 per cent.
Impact
78. The proposal covers all forest products - from Rosin (ex 3804), to logs and wood products
(ch 44), ratan products (ex 46), pulp, paper and paper products (ch 47, 48 and 49), wooden furniture
(ex 9401, ex 9403) and prefabricated buildings made of wood (ex 9406).  It aims for the completeelimination of tariffs on all these products thus elimin ating the tariff escalation still very present in the
sector.  The goal is designed to promote higher rates of economic growth, improve price competition,
enhance infrastructure development, promote innovation and productivity, and in doing this, provide
greater choices for the consumer.  Liberalization will help ameliorate the vulnerability/sensitivity of
the sector to fluctuations in the business cycle, promote economies of scale, allow it to respond better
to changing patterns in global demand and promote industry investment to improve productivity,
respond to new market opportunities and address environmental pressures.  Liberalization will alsopromote sustainable management of forestry resources to the benefit of both developed and
developing economies.  Clearly the level of positive impact will be directly correlated to the extent to
which economies are able to liberalize trade.
The tariff proposal targets79. Because of the existence of the Uruguay R ound zero for zero agreement on paper products
separate disciplines were proposed for paper products than for wood and wood products.  The
proposal is:WT/GC/W/138/Add.1
Page 35
ex Ch 38, Ch 44, ex Ch 46, ex Ch 9401, ex Ch 9403 and ex Ch 9406.
80. The conversion of specific tariffs to ad valorem equivalents.
81. The commencement of linear tariff cuts with developed economies eliminating tariffs by
1 January 2002.  The proposal suggests that developing economies should strive to meet the same
targets but accepts that in special circumstances and on a case by case basis elimination could bedelayed to 1 January 2004.
Ch 47, 48 and 49
82. Existing parties to the Uruguay Round zero for zer o agreement to accelerate tariff removal to
1 January 2000.  Others to attempt to remove tariff by same date but developing countries could delay
tariff removal until 1 January 2002 on a case by case basis for a limited number of specific products.
83. The above targets have twice been endorsed by APEC Ministers - at Kuching in June and at
Kuala Lumpur in November.
Conformity with targets
84. As APEC Ministers noted at their meeting in November, progress towards meeting these
targets was made in 1998.  As Annex D to the New Zealand Information Paper shows Australia,Canada, Hong Kong, New Zealand, Singapore and the United States were able to agree to these
targets for virtually all products.  Brunei, Indonesia and Malaysia were able to agree to these targets
for over 70 per cent of tariff lines.  Other economies had a lower proportion of conformance but on
most tariff lines were able to agree to the tariff elimination target - but at a slower timing than that
suggested in the proposal.  Of the 16 participating economies only Japan has yet to indicate a detailedline by line position stating instead that it was not prepared to move beyond its Uruguay Round
position outside the context of a further comprehensive WTO negotiation.
85. APEC Ministers accepted at the time of their meeting in Kuala Lumpur that it was necessary
to improve on and build on this progress during 1999.  It was expected that APEC economies would
further improve upon their positions at the same time as non-APEC economies would be invited tojoin the initiative.WT/GC/W/138/Add.1
Page 36
TABLE VIII.1
Total Trade
Forestry products trade, 1996
Product Chapters:  44, 47, 48, 49, 94 (part)
1996 Imports
(1,000 US$)Tariff %
MFN AverageExports
(1,000 US$)Total
(1,000 US$)
World 152,037,547 World 134,376,600
Australia 2,959,246 2.88    Australia 774,192
Brunei 42 0    Brunei 109
Canada 7,295,175 3.88    Canada 25,488,610
Chile 1,174,273 11    Chile 1,464,128
China 6,218,631 20.86    China 1,482,785
Chinese Taipei 3,911,022 3.22    See note 1
Hong Kong 5,389,995 0    China, Hong Kong
   SAR1,871,125
Indonesia 1,522,545 9.7    Indonesia 5,214,149
Japan 26,511,960 1.14    Japan 1,469,535
Korea 7,812,201 4.98    Korea, Republic of 1,258,793
Malaysia 1,536,532 12.26    Malaysia 4,378,792
Mexico 3,616,275 11.32    Mexico 396,706
New Zealand 755,927 6.06    New Zealand 1,550,671
Philippines 1,052,072    Philippines 67,701
Papua New Guinea 0    Papua New Guinea 526,298
Singapore 2,430,508 0    Singapore 601,912
Thailand 2,599,515 20.04    Thailand 477,539
USA 36,557,806 1.4    United States of
   America16,641,850
   Russian Federation 2,942,016
   Vietnam 59,332
   Peru 24,889
APEC Total 111,343,725 APEC Total 66,691,132
1.  EU 26,275,332 5.26    EU 52,329,519
2.  Switzerland 5,551,559    Switzerland 1,798,792
3.  Norway 2,608,712    Norway 2,059,960
4.  Poland 1,959,223    Poland 605,452
5.  Brazil 1,366,076    Brazil 4,777,217
6.  Czech Rep 1,253,778   Czech Republic 795,851
7. Turkey 1,163,388    Turkey 61,251
8.  Argentina 1,116,665    Argentina 252,756
Source:  FAOSTAT Website, 23 February 1999
Notes : 1. This is included in "China" data.
2. Import data is from the TRAINS database, HS codes as by APEC definition.
Export data from FAO Website, and does not include books and furniture.
__________