Session II Session II International and regional approaches to International and regional approaches to

regulatory cooperationregulatory cooperation

June 20, 2006June 20, 2006

Yuki HAYASHIYuki HAYASHI

Deputy directorDeputy directorInternational Standards and MRA Policy OfficeInternational Standards and MRA Policy OfficeMETI (Ministry of Economy, Trade and Industry)METI (Ministry of Economy, Trade and Industry)

JAPANJAPAN

Regulatory and standardization cooperationRegulatory and standardization cooperationamong APEC member economiesamong APEC member economies

2

Part I: Standards alignment work in APEC

Part II: Good Regulatory Practice

Part III: Trade Facilitation Task Force

Contents

3

Part I: Standards alignment work in APEC

4

Experiences in APECExperiences 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

<Part I>

5

APEC membersAPEC 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.

<Part I>

6

Purpose and goals 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

<Part I>

7

The 'Bogor Goals' The 'Bogor Goals' • Adopted by Leaders in 1994.

• Free and open trade and investment in the Asia-Pacific

• By 2010 for industrialized economies

• By 2020 for developing economies

<Part I>

8

APEC Business Advisory Council

(ABAC)

Senior Officials Meeting (SOM)

Working Groups (11)

EconomicCommittee

(EC)

Budget &Management

Committee (BMC)

Organization chart of APEC

Ministerial Meeting

Sectoral MinisterialMeetings

Leaders’ Meeting

Sub-Committee on Standards & Conformance (SCSC)

APEC Secretariat

Committee on Trade & Investment

(CTI)

Committee onECOTECH

(ESC)

<Part I>

9

SCSCSCSC((Sub-Committee on Standards & Conformance)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

<Part I>

10

SCSC’s working areaSCSC’s working area• Alignment with International Standards

• Recognition of Conformity Assessment

• APEC MRA

• Technical Infrastructure Development

• WTO/TBT and SPS

<Part I>

11

Alignment with Alignment with International StandardsInternational Standards

- Voluntary Action Plan (VAP) -- 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 AppliancesFood LabellingRubber ProductsMachinery

<Part I>

12

2005 VAP Alignment Results2005 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 economieswith 100% alignment

Area

Among the 21 APEC member economies, 16 economies have updated and submitted their alignment reports of 2005.

<Part I>

OriginalPriorityAreas

AdditionalPriorityAreas

13

Original Four Priority Areas (1)

2005, 95%

2005, 100%

2005, 100%

2005, 76%

2005, 100%

2005, 100%

2004, 95%

2004, 100%

2004, 100%

2004, 76%

2004, 75%

2004, 100%

2003, 88%

2003, 100%

2003, 100%

2003, 74%

2003, 100%

2002, 79%

2002, 100%

2002, 82%

2002, 100%

2001, 68%

2001, 100%

2001, 100%

2001, 80%

2001, 65%

2001, 100%

0% 20% 40% 60% 80% 100%

Australia

Brunei Darussalam

Canada

Chile

China

Hong Kong China

Eco

nom

y (

'01

-'0

5)

Achievement (%)

2005 2004 2003 2002 2001<Part I>

14

Original Four Priority Areas (2)

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2004, 100%

2004, 100%

2004, 100%

2004, 100%

2003, 86%

2003, 100%

2003, 100%

2003, 100%

2003, 95%

2002, 90%

2002, 100%

2002, 100%

2002, 63%

2002, 36%

2001, 79%

2001, 100%

2001, 100%

2001, 58%

2001, 36%

2001, 53%

0% 20% 40% 60% 80% 100%

Indonesia

Japan

Korea

Malaysia

Mexico

New Zealand

Eco

nom

y (

'01

-'0

5)

Achievement (%)

2005 2004 2003 2002 2001<Part I>

15

Original Four Priority Areas (3)

2005, 100%

2005, 100%

2005, 100%

2005, 80%

2005, 100%

2004, 100%

2004, 88%

2004, 100%

2004, 100%

2004, 84%

2003, 88%

2003, 100%

2003, 100%

2003, 88%

2002, 86%

2002, 100%

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

Eco

nom

y (

'01

-'0

5)

Achievement (%)

2005 2004 2003 2002 2001<Part I>

16

Additional Priority Areas (1)

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2004, 100%

2004, 100%

2004, 100%

2004, 100%

2004, 100%

2004, 100%

2003, 100%

2003, 100%

2003, 100%

2003, 99%

2003, 100%

2002, 100%

2002, 100%

2002, 97%

2002, 100%

2001, 100%

2001, 100%

2001, 100%

2001, 97%

2001, 89%

2001, 100%

0% 20% 40% 60% 80% 100%

Australia

Brunei Darussalam

Canada

Chile

China

Hong Kong China

Eco

nom

y (

'01

-'0

5)

Achievement (%)

2005 2004 2003 2002 2001<Part I>

17

Additional Priority Areas (2)

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2004, 100%

2004, 100%

2004, 100%

2004, 100%

2003, 100%

2003, 99%

2003, 100%

2003, 100%

2003, 100%

2002, 100%

2002, 100%

2002, 100%

2002, 96%

2002, 69%

2001, 100%

2001, 100%

2001, 100%

2001, 96%

2001, 70%

2001, 99%

0% 20% 40% 60% 80% 100%

Indonesia

Japan

Korea

Malaysia

Mexico

New Zealand

Eco

nom

y (

'01

-'0

5)

Achievement (%)

2005 2004 2003 2002 2001<Part I>

18

Additional Priority Areas (3)

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2005, 100%

2004, 100%

2004, 100%

2004, 100%

2004, 71%

2004, 100%

2003, 100%

2003, 100%

2003, 56%

2003, 99%

2002, 100%

2002, 100%

2002, 89%

2001, 97%

2001, 100%

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

Eco

nom

y (

'01

-'0

5)

Achievement (%)

2005 2004 2003 2002 2001<Part I>

19

Japan’s Proposal on Japan’s Proposal on New VAP Alignment WorkNew 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.

<Part II>

20

The New VAP Alignment WorkThe 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 2006.

2. This would reduce the number of standards to be reported on to 168.

3. At a later date, the SCSC could make a decision regarding remaining 128 standards.

<Part II>

After the discussions in SCSC, Japan modified its proposal as follows:

21

The New priority areaThe New priority area<Part II>

start from 2006, target year is 2010

E/E Equipment used in IECEE/CB Scheme

The new VAP alignment work is now on going.

22

Part II: Good Regulatory Practice

23

Principles and FeaturesPrinciples 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.

<Part II>

24

Principles of GRPPrinciples 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.

<Part II>

25

Features of Good RegulationFeatures 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:

<Part II>

26

Information NotesInformation 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.

<Part II>

27

Part III: Trade Facilitation Task Force

28

Trade Facilitation Task Trade Facilitation Task ForceForce

• 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.

<Part III>

29

TFTF’s Action Plan in 2006TFTF’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”

<Part III>

30

Yuki HAYASHIYuki HAYASHI

Deputy directorDeputy directorInternational Standards and MRA Policy OfficeInternational Standards and MRA Policy OfficeMETI (Ministry of Economy, Trade and Industry)METI (Ministry of Economy, Trade and Industry)

E-mail: hayashi-yuki@meti.go.jpE-mail: hayashi-yuki@meti.go.jp

Thank you very much!