PROGRESS REPORT
OF THE
MARITIME INITIATIVE MEETING

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1. The Maritime Initiative group held a meeting on 16^th and 17^th October to advance the scheduled work and consider next steps of the group, with participation from the following economies: Australia; Canada; China; Hong Kong,China; Republic of Korea; Indonesia; Japan; Malaysia; New Zealand; Philippines; Singapore; Chinese Taipei; Thailand; and the United States of America.

2. As a follow-up to the analysis conducted in the previous meetings, MI discussed the priority of the restrictions listed intersessionally. Some members pointed out that it would be difficult to agree on an agreed priority list because each economy has its own circumstances as a shipping country or a shipper country. Some concerns about the effect on the negotiations on maritime transport services in WTO were also expressed.

3. The members agreed that a draft report of the TEQ project including a restriction list composed from submission from several member economies ( and is not in any order of priority ) would be submitted for discussion at the next MI meeting.

4. Japan explained the progress of the negotiations on trade in services in Geneva which is proceeding according to the ¡§roadmap¡¨ agreed by the Special Session of the Council for Trade in Services (hereinafter ¡§the Special Session¡¨) in May, and introduced the Joint Statement on the negotiations on maritime transport services which was submitted to the Special Session on 6^th October 2000 from EC; Hong Kong, China; Japan; Republic of Korea; Norway and Singapore. Japan also mentioned that several expressions of supports were given to the statement in the Special Session.

5. As called on by the Joint Statement, the chair encouraged MI members to express their views on the negotiations on maritime transport services in the Special Session and to include them in the proposals to be submitted to WTO by the end of this year according to the ¡§roadmap¡¨, for the coming negotiations on maritime transport services.

6. Mr. Steve Meyrick, Director, MEYRICK & ASSOCIATES PTY LTD, the consultant conducting the project made an excellent presentation of a draft report on the impact of maritime policy reforms, as part of the TILF project ¡§Facilitation of International Shipping Project¡¨. MI members were requested to send any comments on the report to Australia, the leading economy of this project, by the end of November.

7. Mr. Meyrick advised that four economies, Japan, New Zealand, Chinese Taipei and the United States have agreed to be case study economies for the second phase of the project. Detailed consultations between the consultant and the case study economies were held in conjunction with the TPT-WG meeting. The case studies will be completed this year.

8. At the last MI meeting at 17^th TPT-WG in Singapore, we agreed to proceed with the proposal on the merger of the MI and the Intermodal Task Force submitted by Australia. Australia, with assistance from New Zealand, submitted the detailed proposal to this meeting.

9. As a result of MI¡¦s discussion on this matter, MI members expressed the following views. As discussion on the intermodal aspects of maritime transport services will be a key factor for the coming negotiations on maritime transport services in WTO, it is desirable for MI members to have a joint forum with ITF members to share their expertise particularly on operational elements related to intermodal. On the other hand, MI members believe that a forum like the MI, where maritime transport policy issues can be discussed to achieve further liberalization in the sector, should be maintained.

10. Following discussion between the chair of the MI and the ITF, it was agreed that the merger with the ITF would not satisfy all MI members¡¦ needs. Therefore we agreed to seek another way for discussion on intermodal issues with the ITF members. It was proposed and agreed that we would have a joint meeting to discuss intermodal issues between the ITF and the MI during the next TPT-WG meeting. The proposed merger of the two groups will not proceed.

11. MI members agreed to prepare intersessionally a draft report to the Ministerial Meeting for instruction on the future direction for the MI for discussion at the next TPT-WG meeting. The work for the first draft will be done by Australia, Japan and the United States. These economies are to prepare draft text on (1)the future direction of the MI, (2)reporting the work of the MI to date, and (3)assessment of the Maritime Mission Statement respectively. It was noted that the intersessional work will be circulated to all TPT-WG members including members absent from this MI meeting.

12. As was the case with previous four MI meetings, we invited a representative of the shipping association to make a presentation on the maritime transport industry. This time, the presentation by Mr.Yuichi Sonoda, General Manager, International Policy Chamber of the Japanese Shipowners¡¦ Association was heard jointly by MI and EGMS members. His excellent presentation covered broad matters including significant issues currently raised in the sector and activities of Asian Shipowners¡¦ Forum.