cargo preference and restrictions applying to specific trades name : jae-sun lee

Cargo Preference and Restrictions

Applying to Specific Trades

Name: Jae-sun Lee

Organisation: Ministry of Oceans and Fisheries

Economy: Republic of Korea

Thirty Eight APEC Transportation Working

Group Meeting, Bali, Indonesia1 – 5 July 2013



BACKGROUND (1/3)



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1994 (Bogor) Leaders’ Declaration

– Bogor Goal

2007 (Adelaide) TMM5 Joint

Ministerial Statement

1995 (Osaka) Leaders’ Declaration –

Osaka Action Agenda

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

Trade and investment liberalization Trade and Investment Facilitation

To consider timetable for progressive removal of regulatory constraints;

To identify the remaining areas requiring attention by member economies to meet the Bogor Goals;

To proceed the roadmap work by developing a specific action plan

Policy Item 4: Cargo Preference

Policy Item 5: Restrictions Applying to Specific Trades

2005 (Washington) Maritime Initiative

(Facilitation of International Shipping Project(2000-2004))

BACKGROUND (2/3)



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2008 (Lima) Leaders’ Declaration

2009 (Manila) TMM6 Joint Ministerial

Statement

2008 (Manila)• 30th TPT-WG

2008 (Lima) 31th TPT-WG

Liberalization and facilitation of transport services

2011 (Australia)• 34th TPT-WG

Cargo Preference and Restrictions Applying to Specific Trades

To modify and resubmit proposal in initial stage

Korea took on the role of champion for the Policy Item 5, “Restrictions Applying to Specific Trades”

Korea additionally took on the role of champion for the Policy Item 4, “Cargo Preference” and indicated that it will include both policy items in a single project proposal to be submitted for consideration by the MEG at TPT-WG32

Welcome progress made by member economies towards the Bogor Goals of free and open trade and investment in the Asia-Pacific region



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2012 (Thailand)• 35th TPT-WG

2013 (Vietnam) 37th TPT-WG

The modified proposal has been approved

BACKGROUND (3/3)

To help undertake the two APEC Policy Items,

Cargo Preference (Policy Item 4) and Restrictions Applying to Specific Trades (Policy Item 5) with a view to achieve the Bogor Goals

OBJECTIVES

19 June 2013 Contract was made

Presented full proposal Service Provider : KMI Project Overseer : MOF

• With liberalization and privatization, cargo preference measures have been significantly reduced in recent times

• Restrictions applying to the specific trades have also been greatly reduced over the last two decades

• This mitigation may find its reason in the emphasis of the necessity to increase national shipping competitiveness and to ensure transport security of strategic cargoes, notwithstanding the fact that the core of shipping liberalization lies in a shipper’s right to choose a carrier



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CURRENT STATUS

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Cargo Preference? Some Cases of Cargo PreferenceYES • Indonesia – Reservation of Government and State owned enterprise im-

port cargoes, which must be carried by Indonesian-flag vessels

• Philippines – Cargo owned by Government or purchased with public funds or under Government guarantee requires a waiver to move on non-Philip-pine vessels

• Thailand – Residual restrictions are limited to Government controlled cargo but there is provision for a waiver where no Thai vessel is available

• Vietnam – Implements 40/40/20 cargo sharing formula of the UNCTAD Code of Conduct for Liner Conferences, although Vietnamese vessels (as of 2004) account for only around 20% of Vietnam’s foreign trade

NO • Brunei Darussalam, Malaysia, Myanmar, Singapore, etc

Cases : Cargo Preference



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Examples : Specific Trades• OEM Trade

• Plant Trade• Consignment Export Trade• Trades related to food safety, animal health, planet

health - Mad cow disease - Mexican restrictions on Thai milled rice (to avoid the introduction of pests)

• The consultant study will include findings of existing cargo preference measures and restrictions applying to the specific trades- Arguments for and against retaining restrictive

practices(benefit, disadvantage, adequacy, fairness, etc)- Characteristics and contributory effect of commercial

barriers on trades - The MEG would consider, from these findings, a need to

carry out a further study to analyze and develop a comprehensive policy approach that would best reflect the concerns of the APEC member economies



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EXPECTED END-OF-PROJECT TRAGET

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BENEFICIARIES• The understanding of current regulatory and market

conditions would benefit for each APEC member economy

- Governments and maritime policy administrator- Shipping companies - Port agencies and enterprises - Shippers (e.g. importers and exporters) - APEC Economies

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Phase Deliverable Due Date

Phase 1Information gathering

Completion of the first economy site visit to Manila and Beijing

August 2013

Completion of the second economy site visit to and Singapore and Jakarta

September 2013

Phase 2Fact finding/Verification,

ReportingCompletion of the interim report October

2013

Phase 3Finalize/Submit

Completion of the final report plus publication and mass distribution of the approved final report as

instructed by the Project OverseerDecember

2013

EXPECTED PROJECT PROGRESS• Propose the extension of the project to June 2014

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METHODOLOGIES (1/2)

Phase 2• Fact finding &

Verification• Reporting

Phase 1: Information gathering During this phase the consultant will

(a) collect information on restrictions applied to the specific trades and cargo preference that existed previously and still exist within the APEC region by literature review, survey, and (if necessary) direct interviews with governments, shipping and freight industries, and etc.

(b) conduct field surveys to investigate current status associated with cargo preference and specific trades.

- China(Beijing), Philippine(Manila) as co-sponsoring economies - Singapore, Indonesia(Jakarta) as activity cargo trading economies

Phase 1• Information

gathering

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METHODOLOGIES (2/2)

Phase 2• Fact finding &

Verification• Reporting

Phase 1• Information

gathering

Phase 2: Fact finding and Verification, Report During the second phase, the consultant will liaise with

shipping lines or operators during their research and analysis to cross-check the current status

Also the government agencies of APEC economies responsible for maritime transport and competition policy would provide their views and feedback to be incorporated into the finding and evaluation

Meetings, questionnaires, interviews and etc would be widely made in order to best reflect the existing restrictions and cargo preference for the expected stakeholders

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FURTHER STUDY• The MEG would consider, from these findings, a need to carry

out a further study to analyze and develop a comprehensive policy approach for the APEC member economies

• During the further study, the consultant will conduct an analysis on advantages and disadvantages of the existing restrictions and cargo preference

• The analysis will also include references to the international maritime regulations such as found in WTO and case studies of EU’s maritime integration policy and ASEAN’s single shipping market efforts

THANK YOU FOR YOUR ATTENTION



cargo preference and restrictions applying to specific trades name : jae-sun lee

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