Bridges Weekly Trade News Digest • Volume 5 • Number 21 • 1st June 2001

APEC Promotes New Trade Round and Early China WTO Accession

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Trade ministers from the Asia-Pacific Economic Cooperation (APEC) forum are meeting 6-7 June in Shanghai, China, where they are expected to support the launch of a new WTO round, step up efforts towards increased trade and investment liberalisation in the APEC region, and call for the speedy accession of China to the WTO.

APEC set to support new WTO round

At their two-day annual meeting, APEC trade ministers are likely to make a joint call for the launch of a new round of free trade negotiations under the WTO this year while at the same time attempting to revitalise APEC’s objective to create free and open trade and investment between developed economies by 2010 and developing countries by 2020.

According to a draft statement prepared by senior APEC officials, APEC members have expressed their commitment to a new trade round. A final statement will be released at the end of the meeting in China’s financial capital. Sensitive issues such as tariff reductions and agriculture are, however, expected to be left unresolved. In addition, APEC trade ministers are set to pledge support for the so- called “Shanghai Charter” — a US initiative designed to speed up trade and investment liberalisation in the APEC zone — which will also be discussed at the forthcoming APEC leaders’ summit in Shanghai in October 2001.

In order “to give some sort of political input or political push” to a new trade round at the WTO Ministerial in Doha, Japan is expected to announce a programme at the APEC meeting aimed at assisting less- developed APEC members in the implementation of existing WTO rules.

Calls for early China accession

During preparatory talks in Shenzhen, China, last weekend, senior officials from the 21 APEC members expressed their support for China’s early entry to the WTO. “The early accession of China to the WTO benefits not only China but also the WTO itself,” said Wang Guangya, Chairman of the meeting. “My own personal view is that if China can become a member of WTO before the launch of a new round of WTO negotiations, this will play a positive role in facilitating a new round.” According to trade sources, however, it is very unlikely that China will become a WTO member before the end of this year, even if significant progress is made in China’s bilateral trade talks with WTO members (see BRIDGES Weekly, 29 May 2001, http://www.ictsd.org/html/weekly/29-05-01/story5.htm ).

Zoellick to review the US-China accession talks

US Trade Representative Robert Zoellick met on 5 June with Chinese Trade Minister Shi Guang Sheng in the lead-up to the APEC meeting to discuss the status of China’s 14-year bid to accede to the WTO. As BRIDGES Weekly went to press, officials reported that although the meeting ran longer than scheduled, no progress had yet been made. China’s levels of agricultural subsidies remain the main impediment to China’s entry. The US wants Beijing to limit its level of subsidisation to five percent of total production, while China insists that it should be allowed to subsidise at a level equal to ten percent of total production, a provision permitted other developing countries in the WTO. The bilateral meeting follows President Bush’s announcement that he intends to renew China’s Normal Trade Relations (NTR) status this year, a prerequisite for China’s accession to the WTO.

A fresh round of talks on China’s admission to the WTO has been set for 28 June through 4 August, WTO officials said Tuesday.

APEC members are: Australia, Brunei, Canada, China, Chile, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the US and Vietnam. APEC’s members generate 60 percent of world output and half of global trade.

BRIDGES Weekly will report further on the 6-7 June APEC meeting in the next issue.

“APEC To Focus On New WTO Talks, Reviving Liberalization Drive,” KYODO NEWS INTERNATIONAL, 5 June 2001; “APEC Urges New Trade Round, Early China WTO Entry,” REUTERS, 3 June 2001; “APEC To Urge WTO Action As China Starts Trade Talks,” IWON, 5 June 2001; “USTR Zoellick To Push For WTO Round At APEC Meet,” REUTERS, 1 June 2001; “WTO Entry Stalls As China Balks At Tariff Restrictions”, NATIONAL POST, 6 June 2001. ICTSD Internal Files.