APEC grapples with environment sectors<\/p>\n
KUANTAN, Malaysia (AFP): With only a couple of months to go
\nbefore its next summit, APEC is finding the energy and
\nenvironment sectors the hardest nuts to crack in the group's
\nquest for early liberalization in nine targeted areas.<\/p>\n
"Some more work on energy and environment needs to be carried
\nout before we have a complete package," said Abdul Razak Ramli,
\nthe Malaysian chairman of a three-day meeting of senior APEC
\nofficials ending here Tuesday.<\/p>\n
While the meeting is the third and final gathering ahead of
\nthis year's summit in Kuala Lumpur in November, delegates said
\nthe task of determining which products and services are covered
\nin the two sectors remained a contentious issue.<\/p>\n
According to the latest proposal, tariffs would be eliminated
\nby the beginning of 2003 in the environmental sector and by mid-
\n2004 in the energy sector.<\/p>\n
"What has yet to be settled is product coverage. That is the
\nonly burning issue," a senior official from a developing APEC
\nmember-economy told AFP.<\/p>\n
"I have mixed feelings if APEC can resolve the issue by
\nNovember. It will be difficult but the chairman is optimistic,"
\nhe added.<\/p>\n
Another delegate said some developed members were trying to
\ninclude too many products into the two sectors, which developing
\neconomies are reluctant to accept.<\/p>\n
"At the technical experts level, it will be difficult to
\nsolve," the delegate said, adding that officials had yet to
\nreceive any "clear instructions" on how to resolve the issue of
\nproduct coverage.<\/p>\n
China and Japan are said to have the most reservations,
\nputting them up against countries such as Australia, Canada and
\nthe United States, all big energy exporters.<\/p>\n
Against this sort of background, some energy exporters are
\narguing that tariffs on anything from bulldozers to shovels and
\nbuckets should be eliminated as they are all used in the mining
\nindustry, a frustrated official from one country said.<\/p>\n
APEC economies account for nearly half the world's consumption
\nof energy and regional demand is expected to grow 40 percent
\nbetween 1993 and 2010, compared with 34 percent growth in overall
\nworld demand in the same period.<\/p>\n
Abdul Razak said that when energy and the environment sectors
\nwere adopted as priorities, APEC decided to adopt "accepted
\nclassification of tariffs in an unconventional way" in devising
\nthe liberalization plan.<\/p>\n
"We have taken an approach which cuts across the conventional
\nclassification of goods under the harmonized system," he added.<\/p>\n
The harmonized system falls under an international treaty for
\nclassifying goods where each item is assigned a tariff rate.<\/p>\n
APEC therefore has to decide which products fall in what
\ncategory.<\/p>\n
"The energy and environment sectors have a problem since there
\nis no clear classification of goods in the two sectors under the
\nharmonized system," one delegate said.<\/p>\n
For example, he said, filters used for lighting are an energy-
\nrelated product whereas water filters fall under the area of
\nenvironmental products.<\/p>\n
Under a proposed compromise, energy products can include
\ngenerators, diesel units, wires, pumps and bulbs while
\nenvironmental products can cover filters and monitoring
\nequipment.<\/p>\n
Abdul Razak is meanwhile assuring that a package will be ready
\nfor leaders to endorse in November.<\/p>\n
"There is enthusiasm and a lot of people willing to do a lot
\nof work to come up with a substantial package," he said. "As
\nclose as you can get to the norm on the flexibilities, then the
\nmore credible the package will be."<\/p>\n
The other priority sectors include chemicals, fish, forest
\nproduct, gems, medical equipment and toys. The ninth sector,
\ntelecommunications, is already settled.<\/p>\n
APEC groups Australia, Brunei, Canada, Chile, China, Hong
\nKong, Indonesia, Japan, South Korea, Malaysia, Mexico, New
\nZealand, Papua New Guinea, the Philippines, Singapore, Taiwan,
\nThailand and the United States.<\/p>\n
Russia, Vietnam and Peru are set to formally join the group in
\nNovember.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/apec-grapples-with-environment-sectors-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}