Australia’s APEC TPT-WG New Project Proposal

Project Description
Road Transport Harmonisation Project Phase V Stage 2

1. Objectives (including how the project responds to APEC priorities)

Action is needed to foster trade liberalisation in order to further the Bogor Declaration objectives for the automotive sector, while taking account of safety and environmental requirements. APEC member economies have adopted different vehicle standards and conformity assessment requirements which are costly and hinder trade. RTHP was endorsed by the APEC TPT-WG in Auckland, New Zealand, in 1994. Harmonisation of these standards is also essential to Early Voluntary Sectoral Liberalisation (EVSL) in the automotive sector.

APEC Transportation Working Group (TPT-WG) has encouraged member economies to participate in United Nations/Economic Commission for Europe (UN/ECE) Working Party 29 (WP29) as the world forum for international harmonisation of vehicle standards.

APEC TPT-WG is carrying out Phase V Stage I of RTHP in 1999 to provide guidelines for APEC economies to become involved in the activities of WP29 and working with two volunteer APEC economies to develop action plans to achieve harmonised regulatory arrangements to facilitate trade for automotive product in the region. Previous phases have involved the collection and analysis of vehicle regulations and certification systems to identify their commonalities and differences. Phase V of the RTHP is the final part of the project and seeks to provide harmonised vehicle safety and emissions regulatory systems in APEC.

2. Linkages

The kinds of institutions and businesses intended to benefit and the nature of the benefits

The project will assist APEC member economies to implement efficient certification and harmonised regulatory systems that meet their needs for safety and emission control. Both regulatory agencies and the automotive industry will benefit through the development of harmonised regulatory systems allowing free and open trade in automotive product within the APEC region and beyond.

How the private sector has been involved

At the inaugural International Road Vehicle Standards Harmonisation Seminar held in Mexico City in April 1998, representatives of regional and international automotive manufacturer organisations encouraged TPT-WG to increase its efforts to harmonise vehicle safety and emission standards. All industry organisations supported recognition of the United Nations/Economic Commission for Europe (UN/ECE) WP29 as the forum for international harmonisation of vehicle standards.

Representatives of the international vehicle manufacturer associations, the International Organisation of Motor Vehicle Manufacturers (OICA) and the International Motorcycle Manufacturers Association (IMMA) have been granted formal guest status at meetings of the RTHP Group. Motor vehicle consumers are represented by the International Automobile Federation (FIA).

How this project will add ‘APEC value’ given any other work done elsewhere

No other APEC work has been done in the same area. This work supports efforts underway in WP29. Early Voluntary Sectoral Liberalisation (EVSL) for the automotive sector has now been agreed. One of the major planks of the EVSL program is the harmonisation of vehicle regulatory requirements and the program acknowledges that the vehicle harmonisation work will proceed in accordance with the RTHP work plan and seeks a heightened level of activity.

How the project might contribute to related projects or activities in APEC or elsewhere

The automotive sector is one of the 15 sectors identified for EVSL by Trade Ministers. This project will provide expertise on standards harmonisation which is one of the four elements of the EVSL automotive sector work plan.

Describe the deliverables of the project and demonstrate how it will meet the needs of the targeted beneficiaries

The project will greatly assist APEC member economies to implement efficient certification and harmonised regulatory systems that meet their needs for safety and emission control and ensure that automotive product can be traded internationally free from impediments caused by differences in standards and conformity assessment requirements.

3. Methodology

Description

Phase V of RTHP will provide assistance in developing action programs for APEC member economies which will lead them to the goal of meeting Bogor Declaration objectives. It seeks to achieve the regulatory goals of the Bogor objectives for the automotive sector in five years (1999 to 2003).

Major approaches to realise Bogor Declaration objectives are centred on measures for APEC member economies to become participants in WP29 through joining the 1958 Agreement and/or the Global Agreement. The TPT-WG model Mutual Recognition Arrangement (MRA) for Automotive Product, endorsed by APEC Transport Ministers in 1997, will also be considered if found appropriate.

Phase V of the RTHP has three Stages.

Stage 1 (in 1999) Pilot Study: Action Programs for Two APEC Member Economies

1. Consultants to provide guidelines for APEC member economies to become active members of WP29 through the 1958 Agreement and/or the Global Agreement with respect to implementation of:

• safety/environmental technical regulations
• certification system
• systems to check the vehicle compliance with the technical regulations (random testing/audit/vehicle inspection system etc).

2. The Pilot Study is examining two voluntary APEC member economies to identify the differences between the desirable state indicated by the guidelines in (1) above and the current status of standards/certification arrangements and propose possible solutions to identified deficiencies.

3. Consultants to provide advice on procedures to develop action plans through the provision of tools such as charts and checklists.

The Pilot Program is an APEC funded activity for 1999 and is scheduled to be completed at the end of the calendar year.

Stage 2 (in 2000): Multilateral Workshop Action Programs (see Attachment A re. further workshop options)

1. Consultants to circulate forms to obtain the information necessary to develop action plans and then collect and analyse them

2. Consultants to make clear the common problems among APEC member economies in developing their own action plans

3. Consultants to hold multilateral workshops:

Part A: One multilateral workshop to be held together with 17^th TPT-WG meeting to discuss the common problems and possible solutions. This Plan will reduce travelling expenses of participants.

Part B: One multilateral workshop to be held in Asia and the other in Latin America to discuss the common problems and their possible solutions. (After each workshop consultants to provide opportunities for individual consultation to APEC member economies who so wish.)

4. Consultants to assist APEC member economies to develop their own action plans.

This project proposal is seeking APEC funding for this Stage 2 activity.

Stage 3 (in 2001-2003): Follow up

Extend the consultation process used for Stage 1 to all APEC member economies requiring further assistance. In other words, the consultants will provide assistance in making action programs for the remaining APEC member economies which have neither become a WP29 member through joining the 1958 Agreement and/or Global Agreement nor have made their own action programs yet. This Stage is to be completed by the end of 2003.

Timetable

Stage 1 of Phase V was commissioned in 1999 with APEC funding of US$50,000. Stage 2 would be implemented from January 2000 to February 2001.

Number of APEC economies to participate

All APEC member economies are encouraged to participate in the project.

4. Budget

See Attachment B.

5. Dissemination of project output

The target audience is the whole APEC community ie governments and also individuals and organisations in the private sector. 25 copies of the final report will be provided in hard copy or electronic form. Reports will be sent out by mail and electronically and the report will be placed on the TPT-WG web site for a wider audience.

There is no plan for briefing the media and sales promotion of the final report. Member economies are expected to promote outcomes to domestic stakeholders.

A budget for publication and dissemination is included in budget item Printing and Communications.

6. Assessment of Project

The project proponent will assess whether he has met the criteria for APEC projects and measure the impact of the project on expected beneficiaries by:

1. Having the consultant report accepted by the RTHP Steering Committee.

2. Progress of member economies in meeting the regulatory goals of the Bogor objectives in assessed by RTHP Steering Committee at the completion of Phase V Stage 3.

 Attachment A

Further Options on Workshops

Following comment from RTHP Group Members, we have developed two further options. The proposals for consideration are now:

1. This proposal envisages three workshops in 2000; the first in conjunction with TPT-WG17, and two others to be held, one in Asia and one in Latin America, for discussion with the public and private/business sectors of all APEC economies, cost $180,950.

2. A reduced cost version which would see the first workshop reduced to consultations to provide the results of Stage 1 and explain the procedures for Stage 2, cost $121,750.

3. A version with the full original program but with the latter two workshops in 2001 to spread the cost, $75,050 in 2000 and $105,900 in 2001.

The proposals will be further discussed at the Road Transport Harmonisation Project meeting at Santiago to allow the provision of further advice to the Steering Committee on Competitive Transport (including infrastructure).