APEC TRANSPORTATION WORKING GROUP 16^TH MEETING
Report of the meeting of the Steering Committee
on More Competitive Transportation Industry (including infrastructure)
held on November 10, 1999 in Hong Kong, China

I. BACKGROUND INFORMATION

1. The Steering Committee on More Competitive Transportation Industry (including infrastructure) (MCTI) held its 4^th meeting on November 10, 1999, during the 16^th TPT-WG Meeting in Hong Kong, China.

Participating economies

2. The meeting was chaired by Korea as Coordinator, and was also attended by Australia; Brunei Darussalam; Canada; Chile; The People’s Republic of China; Hong Kong, China; Indonesia; Japan; Malaysia; Mexico; New Zealand; Peru; Philippines; Singapore; Chinese Taipei; Thailand; and the United States. A representative from PECC attended as an observer.

Projects completed since last TPT-WG meeting

3. No projects have been completed since the 15^th Transportation Working Group Meeting.

II. ONGOING PROJECTS – NEXT STEPS

Electronic Commerce (Australia)

4. The Electronic Commerce Group did not hold a meeting. The Group will meet again in Singapore at the 17^th TPT-WG Meeting in Singapore. Australia submitted the following papers:

1. Progress Report on Paperless Trading (TPTWG/16/SC/MCTI/3/1)
2. Progress Report on Pilot Electronic Commerce Training in Maritime Transport (TPTWG/16/SC/MCTI/3/2)
3. Progress Report for phase 1 of the Program to Assist the Implementation of Electronic Commerce for Commercial Messages (TPTWG/16/SC/MCTI/3/3)
4. Management of the APEC TPT-WG web site (TPTWG/16/SC/MCTI/3/4)

5. Australia reported on progress on implementation of the paperless trading initiative, included at the urge of the TPT-WG in the APEC Leaders Blueprint for Action on Electronic Commerce, noting the recommendations from the first meeting of the Electronic Commerce Steering Group (ECSG) in Auckland in June 1999 which had been adopted by the Senior Officials Meeting and the Trade Ministers. Trade Ministers at their meeting in June 1999 asked all working groups to give higher priority to the paperless trading work, and to incorporate the initiative in their Individual Action Plans.

6. At the request of the ECSG, Australia is leading work to develop a matrix, based on the matrix developed in TPT-WG, to record progress of economies in achieving the paperless trading initiative. Australia sought support from economies in progressing this work.

7. Trade Ministers and Leaders have given strong endorsement to the development of collaborative work on electronic commerce between the respective APEC fora engaged in electronic commerce work. Australia is proposing to develop a joint project with the Sub Committee on Customs Procedures to be submitted for consideration for approval and funding at the 17^th meeting of the TPT-WG.

8. Following this presentation, a number of economies stated their support for the continuing work in this area.

9. The Steering Committee:

• note these developments in implementing the paperless trading initiative and supported the continued work by the TPT-WG on electronic commerce;
• agree that all economies consider the proposal to include paperless trading in their individual action plans and their participation in the paperless trading initiative; and
• endorse the submission of a proposal for a joint project with the SCCP on paperless trading at the 17th meeting of the TPT-WG.

10. Australia reported that funding has been obtained for this project which was approved at the 15t^h meeting of the TPT-WG. The project will deliver an internet-based training program of approximately three months duration and will involve the construction of a web site which will serve as a virtual classroom. The course is expected to be a series of interactive lessons combined with tutorial classes and assessment sessions.

11. Australia noted that all economies are invited to participate in the project. Participants will not need to travel to undertake the courses - they will only require a computer and internet access. It is proposed to select the consultant to construct the course in the first half of 2000. Australia sought expressions on interest from economies in participating in the project.

12. The Steering Committee noted the progress on this project and agreed that economies interested in participating in the project should advise Australia.

Progress Report for Phase 1 of the Program to Assist the Implementation of Electronic Commerce for Commercial Messages

13. Australia reported that the one-week electronic commerce training courses being undertaken under this project have now been delivered in 5 economies and the courses will be delivered in the remaining three economies early in 2000. The project should be completed with a final report submitted for consideration at the 17^th meeting of the TPT-WG.

The TPT-WG Web Site

14. Australia reported that the web site has seen increasing use by member economies with a significant reduction in the number of reported problems in accessing information on the site. Australia noted the excellent work by the host, Hong Kong, China, in facilitating the use of the web site for this meeting of the TPT-WG.

15. Australia reminded the Steering Committee that it had undertaken to establish the web site and manage it for a period of two years, which will expire with the 18^th meeting of the TPT-WG in 2000. Australia asked all economies to consider whether they would be able to take over administration of the web site.

16. The Steering Committee noted the report and asked economies to give consideration to taking over management of the web site.

1. note the developments reported in implementing the paperless trading initiative and agree to support continuing work by the TPT-WG on electronic commerce;
2. agree that all economies consider the proposal to include paperless trading in their individual action plans and their participation in the paperless trading initiative;
3. endorse the submission of a proposal for a joint project with the SCCP on paperless trading at the 17th meeting of the TPT-WG;
4. note that economies interested in participating in the Pilot Electronic Commerce Training in Maritime Transport in 2000 should advise Australia, the project coordinator of this interest;
5. note that a final report on the Project to Assist the Implementation of Electronic Commerce for Commercial Messages is expected to be presented at the next meeting of the TPT-WG; and
6. ask all economies to consider whether they would be able to take over management of the TPT-WG website from the 18th meeting of the Working Group in 2000.

Port Experts Group (Japan)

18. Japan reported that following BMC’s decision in July to fund the relocation and upgrading of the APEC Port Database it was agreed that the Port Database will be relocated by the end of November 1999. However, Chile will continue to be the Webmaster for the time being, while Japan maintains the Database from its own finances. The Steering Committee commended Japan and Chile for the cooperative working arrangement arrived at between the two economies on the Port Database.

19. Japan also reported that a paper on Suggestions for Earthquake Disaster Countermeasures in APEC Ports as a first step for Natural Disasters and Damage Prevention Measures was discussed. Japan will prepare a draft final report for the 17^th Transportation Working Group Meeting in Singapore based on additional questionnaire to be answered by the end of 1999.

20. Also in relation to the Port Expert Group’s Theme 6, Natural Disasters and Damage Prevention Measures, Japan announced the rescheduling of the APEC Seminar on Disaster Protection Measures for Earthquakes in Ports to just before or after the 18^th TPT WG with a view to guaranteeing maximum participation by the member economies.

21. Lastly, it was reported to the Steering Committee that Russia made a presentation on Russian Ports and the Steering Committee noted appreciation for Russia’s participation

1. record its appreciation to Chile and Japan for their work on the Port Database and note the relocation of the Port Database as reported by Japan.

Intermodal Task Force (USA)

23. The Lead Economy, USA, reported on Japan’s findings of the Intermodal Freight Survey and that the final report will be presented at the next meeting in Singapore.

24. Vice Chair of the Intermodal Task Force (ITF), Kevin Kavanaugh of Canada, distributed and discussed the final draft report assessing the results of the Intermodal Task Force Seamless Passenger Flow Questionnaire at the ITF meeting. It was reported to the Steering Committee that although best practices were identified via the survey they may not apply to all economies. Additional input was invited on both surveys by December 15, 1999. The final reports of both the freight and passenger surveys will be prepared for endorsement at the 17^thTPT WG and will be posted on the APEC website.

25. USA reported that the results of the Transportation Shipping Harmonization and Integration Planning (TSHIPS) project were well accepted by the ITF which then considered how to promote implementation. The Final report and more specific application of TSHIPS methodology will be ready for approval at the 17^th TPW WG in Singapore.

26. The Steering Committee was reminded that the symposium on "The Role of New Technologies and Intermodal Transportation Management in Facilitating Asia Pacific Trade" is scheduled to be held in Seattle, July 26-28, 2000.

27. A meeting of the RTHP Group was held 9 November 1999 with 11 APEC member economies attending. Representatives of the International Vehicle Manufacturers Association (OICA), International Motor Cycle Manufacturers Association (IMMA) and the International Automobile Federation (FIA) also attended as official guests.

28. The draft final report of RTHP Phase V Stage 1 (TPT 02/99) prepared by the consultant, the Japan Automobile Standards Internationalisation Center (JASIC) was noted. The report provides guidelines for APEC economies to actively participate in the United Nations ECE Working Party 29 and provides advice and steps to them to achieve effective certification systems and harmonised vehicle regulations to enable free trade for automotive product in the region. To ensure the Final Report is issued by the required date of 17 December 1999, economies are requested to provide comments to the consultant by 30 November 1999 to reflect the views of all economies.

29. A draft Request for Proposal (RFP) for Phase V Stage 2 to commence in 2000 was endorsed by the Steering Committee. Stage 2 extends the Stage 1 work to all APEC economies where a multilateral workshop will be held in conjunction with TPT-WG18 in Japan. APEC Central Funding of US$76,200 has been approved for this Project. The Steering Committee encourages all economies to participate in RTHP Phase V Stage 2 and are requested to indicate to the RTHP Group Chair their willingness to do so by 31 December 1999.

30. The Chair of the RTHP Group advised the Steering Committee that the work being conducted in the TPT-WG on vehicle standards harmonisation was endorsed by the Automotive Dialogue at its first meeting in Indonesia in July 1999. He also reported that consideration was being given by the private sector to provide funding to hold a workshop in Asia in 2000 to support the RTHP Phase V Stage 2 activities.

31. The Steering Committee noted that APEC economies continue to implement the TPT-WG Collective Action Program which encourages active participation in UN/ECE WP.29. Since the last meeting of TPT-WG Australia advised that it expected to sign the 1958 Agreement in the near future, Canada had signed the 1998 Agreement, China advised that approval had been granted for the China State Administration of Machinery Industry to participate in WP.29, Japan had signed the 1998 Agreement and Thailand planned to participate in meetings of WP.29 next year.

32. The Steering Committee noted that Australia and Thailand signed an MRA on automotive product based on the APEC ‘model’ MRA on 22 April 1999. The Australia/Thai MRA covers automotive glass, seat belts, light duty gasoline engine emissions and light duty diesel engine emissions. All member economies are encouraged to consider using the APEC ‘model’ MRA to facilitate trade in automotive product in the short to medium term.

1. note that the Final Report for RTHP Phase V Stage I will be issued in December 1999 taking account of views of all APEC economies;
2. endorse the Request for Proposal for Phase V Stage 2;
3. note that the APEC Automobile Dialogue supports the RTHP work program;
4. note that APEC economies are continuing to implement policies that support TPT WG’s Collective Action Program by actively participating in UN/ECE WP.29; and
5. ask all APEC economies to participate in RTHP Phase V Stage 2 in 2000.

Maritime Initiatives (Japan)

34. The Steering Committee noted the progress that has been made in the scheduled work of Maritime Initiative. As regards the Transparency Exercise Questionnaire, allotment of the self-analysis work was sought during the meeting. Thailand and Japan offered to analyze the General Maritime Policy and the Market Access, respectively. For the remaining areas of analysis work, the economies which the chair of MI contacted will reply to Japan in three weeks to finalize the arrangement of the analysis work. Australia and the United States made presentation of their analysis on the Competition Law and the Market Access, respectively, but discussion was postponed to the next MI meeting in Singapore because of time constraint.

35. It was also noted that participants of the MI meeting would act temporarily as liaison for the TILF account project of the Facilitation of International Shipping Project, and that Australia will provide the information of the preparation and progress for them. MI also exchanged preliminary views on the WTO 2000 issue. As for private sector participation, it was reported that Mr. Arthur Bowring, Director of the Hong Kong Shipowners Association made a presentation on the Hong Kong shipping industry.

36. As was decided at the last TPT WG, the Japanese Minister of Transport has intersessionally reported to Ministers on the work of the Maritime Initiative, seeking comments and suggestions on the future work of MI. The Steering Committee suggested that the comments and suggestions be submitted to Japan in six weeks.

1. note the progress in the work of Maritime Initiative; and
2. urge that comments and suggestions on the future work of MI be submitted to Japan in six weeks based on the Japanese Minister’s report to the Ministers on the work of MI.

i) Voluntary Reports

38. In keeping with the decision reached at TPT-WG 13, the Steering Committee received voluntary reports on Implementation of the Air Services Group (ASG) Recommendations from Australia (TPTWG16/SC/MCTI/4/2), Republic of Korea (TPTWG16/SC/MCTI/4/4), New Zealand (TPTWG16/SC/MCTI/4/1), the Philippines (TPTWG16/SC/MCTI/4/5), and the USA (TPTWG16/SC/MCTI/4/3). Singapore made a brief oral presentation on the same topic. All the reports, both written and oral, detailed overall progress towards meeting the ASG recommendations.

39. As follow-up to Shepherds/HODs/SCCs Meeting on November 9 leading from the Leaders’ Declaration, the Steering Committee held discussions on Air Services.

40. The Chair reported that the Shepherds/HODs/SCCs meeting had agreed that two complementary processes would be initiated, the first being to obtain voluntary reports from as many members as possible describing the status of the implementation of the 8 recommendations of the Air Services Group, the second would be for economies to work with each other to scope, through the development of a matrix, further steps requiring consideration by the members.

41. At the Chair’s invitation for economies to lead the analysis, Australia came forward and offered its services. Further, having thought through a general timeframe already, Australia stated that it would circulate a preliminary matrix questionnaire based on the eight options by November 19, 1999 and would request comments on it by November 30, 1999. It would then finalize the matrix questionnaire by December 10 and distribute it to all members who would then be asked to respond by January 21, 2000. This would enable Australia to prepare a factual analysis by February 14, 2000, giving enough time for review by the member economies before the next TPT WG meeting in Singapore.

42. The Steering Committee noted that Brunei Darussalam, Chile, Japan, New Zealand, Singapore, and the USA expressed their appreciation for Australia’s initiative and indicated their interest in supporting Australia on the task. They also expressed interest in participating in the development of "think pieces" on further liberalization.

43. At the suggestion of New Zealand, Canada, in its role as the Lead Shepherd, agreed to act as a facilitator in initiating the process of preparing "think pieces" by economies or groups of economies on voluntary basis for consideration by the Steering Committee at TPT WG 17. Any economies interested in submitting papers, whether individually or in groups, were invited to do so and to advise the Lead Shepherd accordingly.

1. encourage all member economies to participate in the preparation of an evaluation matrix to enable the next TPT WG meeting in Singapore to further examine the eight options for air services;
2. urge all member economies to submit written voluntary reports by January 2000 on how they are implementing the Air Services Group’s eight recommendations so that a factual analysis can be prepared by Australia for consideration at the next TPT WG meeting; and
3. ask any economy or groups of economies interested in participating in the development of "think pieces" for further steps for liberalization of air services to submit their inputs for discussion at the Steering Committee on MCTI for the 17^th TPT WG meeting in Singapore.

IV. APPROVAL OF NEW PROJECTS

45. No new projects were approved.

V. POTENTIAL PROJECTS

Mutual Recognition of Aircraft Certification and Continuing Airworthiness

46. New Zealand presented a concept paper seeking to gather information on the scope of aircraft certification and repair activity in the region, with a view to preparing a formal proposal for developing a model Mutual Recognition Agreement for use bilaterally between economies. The concept was supported by Chile, however the USA considered that the matter would best be handled in the Steering Committee on Safe and Environment-Friendly Transportation Systems to consider the implications of an MRA approach. It was agreed that the concept be passed to the Steering Committee on Safe and Environment-Friendly Transportation Systems for consideration at TPT WG 17. New Zealand and the USA agreed to cooperate on the development of an appropriate survey and a paper on the safety issues for consideration at TPT WG 17.

VI. OUTSTANDING ISSUES

47. There were no outstanding issues to be forwarded for consideration by the Plenary.

VII. MANAGEMENT ISSUES

48. None.

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