Meeting #

Meeting - Y2019

GPCA International Trade Committee

17th November 2019

09:30 – 14:10

1

39

3

GPCA Offices,

Business Bay, Dubai, UAE

Attendance Review

2

Total 12

Quorum needed 6

Confirmed 10

Tentative -

Regret 2

# Member Organisation Confirmation

1 Mutlaq Al-Morished Tasnee Confirmed

2 Ahmad Al Saleh EQUATE Confirmed

3 Abdulrahman Essa Al Ateek Borouge Confirmed

4 Khalid S. Alohali Ma’aden Confirmed

5 Georgina Campbell Fyffe Integra Confirmed

6 Hassan Musa Al-Mahmoud Muntajat Regret

7 Faisal Al-Hajri Orpic Confirmed

8 Azhari Mohd Kalok QAFCO Regret

9 Waleed Alghosoon SABIC Confirmed

10 Fahad Al Subai Tasnee Confirmed

11 Yasser Fattah NATPET Confirmed

12 Sulaiman Y. Alabdulsalam PIC Confirmed

Agenda

3

# Agenda Item Objective Time Presented byPre-reading required?

1

Administration• Attendance review • Agenda review• Introduction of new members• Action items review

• Opening • Alignment

09:30 – 09:45Chairman &

Sec. Gen. -

2

Trade Leadership Dialogue• Date & venue• Agenda• Speakers• Expected outcomes

• Updates• Discussion• Alignment

09:45-10:15 All Yes

3Webinar: Antidumping amendments in European Trade Agreements

• Presentation• Q&A

10:15-11:15 Charles Julien Yes

4

B20/G20 Riyadh• Updates• Defining the role of GPCA• Aligning on the next steps

• Discussion • Alignment

11:15-11:45 Sec. Gen -

Agenda

4

# Agenda Item Objective Time Presented byPre-reading required?

5 NTB monitoring report• Presentation• Discussion

11:45-12:20 Udit Arora -

Lunch and Prayer Break 12:20-13:10

6 Business Plan 2020 • Discussion 13:10-14:00 All -

7

Close of meeting• Meeting review• Meetings calendar• Any Other Business (AOB)• Closing remarks

• Closing• Alignment

14:00-14:10 Chairman -

5

Waleed Alghosoon

Sr. Manager, International Trade, SABIC

• Waleed has over 15 years of experience working in the legal sector

• Prior to joining SABIC, he worked as a senior associate in an international

law firm in Riyadh and as a legal advisor at Tawuniya, the leading insurance

company in Saudi Arabia

• Joined SABIC in 2012 and he is in his current role since Nov 2017

• Spent extended periods on secondment to the law firm of Freshfields

Bruckhaus Deringer in London and Washington, DC

• His practice focuses on International Trade, Corporate Governance, M&A

and Compliance and Ethics

Education:

• LLM in international trade, Stirling University, UK

• LLB, King Saud University, KSA

• Currently pursuing an Executive MBA at London Business School

6

Fahad K. Al-Subai

General Manager, BU Chemicals, TASNEE

• Fahad has over 14 years of experience in the Petrochemical Industry

• Started his career at Tasnee, as Sales Executive

• His experience includes in-depth exposure to all Business

Development, Sales & Marketing and Business/Financial Analysis

Professional within Chemicals, Petrochemicals, and other Oil & Gas

sectors

• In current role since Jun 2017

• A member of GCC board Directors institute

Education:

• Management Master-class from Germany

• Competency based management certification from Canada

• Bachelor’s degree in Chemical Engineering, King Saud University,

KSA

Action Items Review

7

# Topic Action Item Responsibility Deadline Status

Meeting #38 - 02 May 2019

1 Governance

Reach out to Chairman to nominate a replacement of Abdullah Al-Thowaini

Udit Arora May'19 Complete

Reach out to Sadara and Aramco to seek nominations for the Committee

Chairman May'19 In progress

2 GCC FTAs

Update the white paper as per the discussions during the meeting: - Enhance the prominence of PTAs over FTAs - Analyse the major products being imported from the key markets and their quantity - Determine the calculation methodology for NTB data - For the top export markets, update for 2018 data and include value also - Include a comparative 'benefit of PTA' case-study between two countries/ regions

Udit Arora May'19 Complete

Once updated, share a customised version (KSA) with Abdulrahman Al-Harbi from the Saudi Export Promotion Council. Same for Oman

Secretariat, Mathad Al-Ajmi and Faisal Al-Hajri

May'19Not yet started

Post reaching out to the regulators, media engagement should be initiated post-Ramadan and in the lead up to the Annual Forum and WTO sessions. The social angle should be highlighted

Secretariat/ All members Nov'19Not yet started

Action Items Review (Cont’d)

8

# Topic Action Item Responsibility Deadline Status

Meeting #38 - 02 May 2019

3 Masterclass

Mathad Al-Ajmi to be the emcee to give both views (pro and against) to lay the groundwork for discussions

Mathad Al-Ajmi Dec'19

Masterclass dropped

For the first presentation, speaker preference is Dale Seymour, Commissioner, Australian Anti-Dumping Commission

Anida Dcosta Jun'19

For the second presentation, speaker preference is Professor Joel Trachtman from Fletcher School of Law and Diplomacy

Anida Dcosta Jun'19

Add a fourth topic to get the counter argument. Invite a speaker from India

Anida DcostaJun'19

4Trade Defense Workshop

Rename as Leadership Dialogue to attract CEOs Secretariat May'19 CompleteInvite Abdulrahman Al-Harbi to share SEPC perspective

SecretariatMay'19 In progress

Invite David Podruzny from CIAC to present topic #3 Secretariat

May'19

Replacement suggested as Podruznyresigned

Invite a customer from Asia to share their perspective

Abdulrahman Al-AteekMay'19 Complete

Action Items Review (Cont’d)

9

# Topic Action Item Responsibility Deadline StatusMeeting #38 - 02 May 2019

6CTHA at WTO

GPCA to align with the position of ICCA, to speak with Lisa Schroeter for the inclusion of a section that showcases "Why do we need elimination of tariffs on chemicals?"

Vice-Chairman & Yaser Al-Fattah

May'19In

progress

7B20/G20 Riyadh

- Confirm whether the role GPCA should adopt is that of "Content Partner" or "Knowledge Partner" - Write to the B20 Chairman's office regarding the same, once he is confirmed

Sec. Gen. Jun'19In

progress

Trade Leadership Dialogue 2019Udit Arora

10

Venue and Date

11

• Venue : Burj Al Arab, Dubai

• Date: 5th December 2019 (Thursday)

Agenda & Speakers

12

14:30 – 14:40 Welcome remarks

Mutlaq Al-Morished, CEO, Tasnee & Chairman, GPCA International Trade Committee

14:40 – 15:10 Opening address

Dr. Abdulaziz Al-Uwaisheg, Assistant Secretary General, GCC Secretariat

Juma Al Kait, Assistant Undersecretary – Foreign Trade Affairs, Ministry of Economy, UAE

15:10 – 15:25 Assessing PTAs & FTAs and their potential impact on chemicals trade

Invited: Arnoud R. Willems, Partner, Sidley Austin LLP

15:25 – 15:40 Revisiting the plurilateral Chemicals Tariff Harmonization Agreement (CTHA): a global solution in an

increasingly bilateral agenda?

René van Sloten, Executive Director, Industrial Policy Programme, European Chemical Industry Council -

Cefic

Agenda & Speakers

13

15:40 – 15:55 Amendments to the EU antidumping legislation: towards more protectionism

Charles Julien, Counsel, White & Case LLP

15:55 – 16:10 Customer perspective: Asia

Henky Wibawa, Executive Director, Indonesian Packaging Federation

16:10 – 17:00 Roundtable discussion

17:00 – 17:10 Closing Remarks

Ahmad Al Saleh, Global Business Director, Ethylene Glycol, EQUATE; Vice Chairman, GPCA International

Trade Committee

Expected Outcomes

14

(For Discussion)

Webinar: Antidumping amendments in European Trade AgreementsCharles Julien

15

B20/G20 RiyadhSec. Gen

16

17

Classification: Internal Use

WHAT WE HAVE ACHIEVED SO FAR

B20 TASKFORCES AND ACTION COUNCIL

To be aligned with G20 priorities

6 Taskforces

1

Digitalization

2

Energy,

Sustainability

& Climate

3

Finance &

Infra-structure

4

Future of Work

and Education

5

Integrity and

Compliance

6

Trade &

Investment

2 Cross-

cutting

themes

1 Action Council

Women in

Business

(Saudi B20

Signature

Topic)

SMEs and Entrepreneurship

SDGs

>>Link for details

18

Classification: Internal Use

WHAT HAS BEEN DONE

B20 SAUDI ARABIA STRUCTURE AND LEADERSHIP (2/2)

Executive Committee

Khaled

Musaed

Al-SeifVice-

Chairman

of the

Saudi CIT

Haifa Reda

Jamal Al-Lail

Sami bin

Abdullah

Al-ObaidiChairman of

the Council

of Saudi

Chambers

Lama Al-

Sulaiman

Nouf Al-

Rakan

Abdulrahman

R. Al-Rashed

Usamah Al-

Kurdi

Mohammad

Abunayyan

Khalid bin

Ahmed Al-

Juffali

Khaled Al-

Ghoneim

Yassin bin

Saeed Al-

Suroor

Ali Al-

Othaim

Mazen Al-

Sudairi

Deemah

Al-

Yahya

Sommaya

Jabarti

Khlood

Aldukheil

19

Classification: Internal Use

WHAT HAS BEEN DONE

B20 SAUDI ARABIA STRUCTURE AND LEADERSHIP (2/2)

20

Classification: Internal Use

WHAT WE HAVE ACHIEVED SO FAR

SECRETARIAT, KNOWLEDGE AND NETWORK PARTNERS

ONBOARD

21

Classification: Internal Use

B20 SAUDI ARABIA TASKFORCE PROCESS TO BE STARTED

NTB monitoring reportUdit Arora

22

Definition

23

• Non-Tariff Measures (NTMs):

“comprise all policy measures other than tariffs and tariff-rate quotas that have a more or less direct impact on international trade. They can affect the price of

traded products, the quantity traded, or both.” – OECD

• Non-Tariff Barriers (NTBs): when NTMs take a protectionist or restrictive form

• Types of NTMs (16 chapters, 65 headings and 120 measures – MAST classification):

Technical measures Non-technical measures

Standards Quantitative (quotas, import licensing)

Regulations Price measures

Testing & certifications Forced logistics or distribution channels

Sanitary & phytosanitary (SPS) Trade remedies (safeguards, ADs and CVMs)

Technical Barriers to Trade (TBTs) Pre-shipment inspections & other entry formalities

NTBs (2008-2019)

24

140

179

133

379

61

219

1303

85

76

97

1811

267

216

0 200 400 600 800 1000 1200 1400 1600 1800 2000

Exports / Duties

Exports / Other

Exports / QRs

Imports / Customs procedures

Imports / Other

Imports / QRs

Imports / Tariff

Imports / Tax

Other / Local content

Other / Other

Trade Remedy / Anti-dumping

Trade Remedy / Countervailing

Trade Remedy / Safeguard

Source: WTO database

NTBs exceeded straight tariff barriers

NTBs subjected on GCC countries

25Source: WTO database

Products # of initiations

1,4-butanediol 1

2EH 1

Acetone 2

BOPP 3

Caustic Soda 4

DMF 1

Ethanolamines 1

EVA 1

LAB 1

MEG 1

Methyl Alcohol 1

PET 8

pentaerythritol 1

Polyester (synthetic staple) 2

PP 2

PVC 1

N-Butyl Alcohol 1

Urea 1

Impact on developing countries

26Source: https://unctad.org/

A joint UNCTAD-World Bank Group report (2017) found that:

• NTMs affect 77% of global trade

• In general, developed countries regulate more products and a higher share of imports than least-developed and developing countries

• Agricultural products are more often regulated than manufactured goods and natural resources

• TBT and SPS measures are the most frequently used form of NTMs

• Developed countries drive the high global usage of TBTs and export measures, while the use of SPS measures is more uniformly distributed

Impact on trade through Ad Valorem Equiv. (AVE)

27Source: https://unctad.org/

• NTMs are more important than tariffs in almost all sectors. Plastics/ rubbers an exception

• NTMs are associated with a 3 percentage-point higher cost for low income countries

Overcoming the challenges raised by NTMs

28Source: https://unctad.org/

2019 report by UNCTAD, “Asia-Pacific Trade and Investment Report 2019: Navigating Non-tariff Measures towards Sustainable Development”, reveals that:

• The trade costs of NTMs is now more than double of tariffs

• The economic cost of SPS and TBT measures is estimated to be up to 1.6% of global gross domestic product, amounting to $1.4 trillion

• On average, each imported product in Asia and the Pacific faces 2.5 NTMs, and 57% of imports are affected by at least one NTM

• Digitalization of NTM-related procedures, such as issuing and exchanging certificates of origin electronically, could significantly reduce compliance costs

• Trade facilitation measures should ensure that SMEs can benefit from AEO schemes

• Coordinated policymaking provided by a deep level of integration offers clear advantages

Business Plan 2020Udit Arora

29

Purpose statement of the Committee

30

1. Advocate for removal of tariff and non-tariff barriers that affects GCC Petrochemical Industry negatively

2. To facilitate the sustainable growth of the GCC regional petrochemical and chemicals industries through adoption of cost effective and efficient trade system, policies measures at best practices

3. To promote co-operation on policies that improves the trade flow of GCC petrochemical and chemical products

Business Plan 2020

31

# Initiative Tasks Responsibility Due date Status

1 Governance Reach out to Saudi Aramco to seek nominations for the Committee

Chairman Dec 2019 In progress

2Benefits of Trade Agreements white paper

Share a customised version (KSA) with Abdulrahman Al-Harbi from the Saudi Export Promotion Council. Same for Oman

Secretariat, and Faisal Al-Hajri

Jan 2020 Yet to start

Post reaching out to the regulators, media engagement should be initiated. The social angle should be highlighted

Secretariat/ All members

Feb 2020 Yet to start

3

Advocate for Removal of TBs & NTBs that affect the GCCpetrochemical industry negatively

CEOs to represent GPCA by engagingrespective authorities to promote keymarket FTAs and its positive impact on GCCpetrochemical Industry

All Dec 2019Trade

Leadership Dialogue

Business Plan 2020

32

# Initiative Tasks Responsibility Due date Status

4

Increase awareness across the GCC industries and Government bodies of synergies and opportunities with the industry to optimize and enhance trade flow

Reach out to ICCA to cooperate on trade improvement topics with local Government

GPCA Secretariat Jan 2018 Complete

Assess the competitiveness of the trade value chain(i.e. cross border trade cost in GCC)

Gina, GPCA Secretariat TBD N/A

5

Facilitate sustainable growth of the GCC petrochemical and chemicals industry through adoption of cost effective and efficient trade systems, policy measures and best practice

Asses risks of market access from trade perspective during project feasibility phase (Reach out to supply chain committee for common trade/supply related topics toimprove the value chain andreduce cost)

All TBD Complete

Business Plan 2020

33

# Initiative Tasks Responsibility Due date Status

5 B20 Riyadh Define the role of GPCA for the summit GPCA Secretariat TBD In progress

6

Engagement with GCC

Regulators (GCC

Secretariat)

1. Coordinate with Abdulrazzaq to

create a working channel in lead up to

FTAs negotiations

2. Develop a MoU to be signed between

GPCA and GCC Secretariat

GPCA SecretariatTBD

In progress

Close of meetingChairman

34

Committee Members’ Online Portal

35

Link: https://www.gpca.org.ae/gpca-international-trade-committee-members-portal/

Password: Gpcaitcp

2020 Calendar

36

# Event Date

1 International Trade Committee Meeting 1/Y2020 Sunday, 2nd February 2020

3 International Trade Committee Meeting 2/Y2020 Thursday, 4th June 2020

4 International Trade Committee Meeting 3/Y2020 Thursday, 3rd September 2020

5 International Trade Committee Meeting 4/Y2020 Sunday, 29th November 2020

6 GPCA Annual Forum TBD