Roadmap to Bogor GoalsIndustry Report

Roadmap Taskforce –

Australia, Brunei Darussalam and Singapore

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• Text 16pt Arial Narrow 16ptAt TPT-WG24 in Washington DC, the group

agreed to a study on progress towards achieving the Bogor Goals, in three phases:

• Phase 1 – Industry Report• Phase 2 – Economy Report• Phase 3 – Recommendations

Model for the Roadmap

Phase 1 – the Industry Report

Surveys were sent to ABAC Secretariats in July 2005• After several follow-up requests• 7 responses were received –

from Australia; Canada; Hong Kong, China; Japan; Malaysia; New Zealand and Peru

• A detailed business report has been provided on the TPT-WG web site (http://www.apec-tptwg.org.tw). This presentation provides an executive summary

Industry Report

Survey questions - through ABAC, industries were asked to:

• Identify progress towards Bogor Goals• Identify barriers to free and open trade and

investment• Comment on emerging trends• Suggest initiatives that might assist in advancing

trade liberalisation and cooperation in transport services in the APEC region

In summary, industry responses identified similar areas of progress across the contributing economies

• Microeconomic reforms Progress on deregulation – open skies agreements:

multilateral and bilateral, Low Cost Carriers Competition regimes Privatisation/corporatisation of transport infrastructure

Industry comments on progress (1)

• Technological advances in the areas of Intelligent Transport Systems (ITS) Intermodalism Information and Communication Technologies (ICT) E-commerce

Industry comments on progress (2)

Identified Barriers (1)

• A common barrier identified in industry comments was the need for suitable investment in infrastructure Many ports in the region are overstretched There is a challenge for some economies to keep up with

increase in trade Advancements in technology impact on the need for

infrastructure updates of sea- and airports

Identified barriers (2)

• Restrictions to free competition were identified In maritime – including cargo reservation regimes and

liner shipping conferences

• Comments that regulation is being used as Non-Tariff Barrier for example in: Increased security requirements Lack of transparency in the application of regulations ‘facilitation payments’ while not common, are seen as a

problem in some sectors

Emerging trends (1)

• ‘Up-sizing’ in all sectors was identified as both a positive and (in some instances) a negative trend Larger vessels – provide more cargo capacity, but have physical

implications for ports Larger aircraft – provide more freight and passenger capacity, but

have physical and customs implications for airports Making the necessary investments in infrastructure may pose

challenges for some developing economies “Hubs and spokes” system in shipping liner services – more

efficient east/west services, but could constrain north/south trade routes

Emerging trends (2)

• Skills shortage was identified as a problem across economies In particular maritime fleet personnel

• Mergers of service providers is an increasing trend, leading to: Greater efficiency but also greater dominance in some

cargo markets Possible impact on competition

Emerging trends (3)

• Increased reliance on information and Communication Technology (ICT)

• Integrated transport and logistics services – higher efficiency, but pressure on intemodal facilities

• Increased regulation Increased security requirements across the modes and

inconsistent approaches to cost-recovery of security checks

Increased environmental requirements, particularly around ports

New initiatives

New initiatives proposed by industry can be summarised under two headings:

• Harmonisation – industry would like to see: Uniformity of standards regulations (especially security) Uniform expectations in preferential trade agreements

concerning transport issues

• Microeconomic measures suggested included full competition regime for all areas full market access for foreign investment

Phase 2 – the Report from APEC economies

In order to compile the APEC Economy Report for the Roadmap, surveys were sent to economies in mid-October 2005

with an initial deadline of 10 December 2005, subsequently extended to 31 March 2006

• 7 responses received so far: Australia, Brunei Darussalam; Japan; Mexico, New Zealand, Singapore and Chinese Taipei

• The Roadmap Taskforce encourages all economies to participate• Final deadline now extended to 30 June 2006• We can re-send the survey questions if necessary. Please provide

contact details to the Australian delegation

The Phase 2 Report will be presented at next TPT-WG meeting in Vancouver

Phase 3 - Recommendations

• A set of draft recommendations based on input to industry and economy surveys will be presented at the next TPT-WG meeting in Vancouver for discussion

• Recommendations could be put to Ministers for Transport at the 5th APEC Transportation Ministerial Meeting scheduled to be held in Adelaide, South Australia in March 2007

• The Roadmap will be a key document in consideration of the future work of the TPT-WG

• All TPT-WG sub-groups might start looking at the Industry Report and consider how their work can contribute to addressing the trends and issues identified

• It is important that economies who have not yet completed the Phase 2 survey do so by 30 June