Select Committee on Trade and Industry Written Evidence


Annex

Summary paper by the International Council of Chemical Associations

MAKING HONG KONG A SUCCESS: THE VIEW OF THE CHEMICAL INDUSTRY

  The International Council of Chemical Associations (ICCA) is an organisation of leading trade associations representing almost 75% of chemical manufacturers worldwide. World chemical industry production exceeds US$1.9 trillion annually, and 40% of this production is traded internationally. Chemicals trade accounts for 10% of world trade in goods.

INTRODUCTION

  ICCA is committed to the multilateral liberalisation of trade underpinned by a framework of rules implemented through the WTO. ICCA supports the conclusion of the Doha Development Agenda with broad and ambitious results so that the balance of concessions across the DDA's single undertaking will produce meaningful results for industry and commerce in all WTO members.

  A strong and effective WTO is essential for managing globalisation and achieving the goal of increased living standards and sustainable development around the world. ICCA recognises the increased importance of developing countries within the WTO and therefore welcomes the Doha Development Agenda's focus on development issues.

  Development plays a key role in the ongoing negotiations on the various topics. However, the WTO is not and should not become a development organisation. ICCA would like to recall that the WTO's contribution to development lies first and foremost in ensuring a legal framework and in providing for opportunities. For example, the WTO legal framework provides the best guarantee against the use of environmental and social standards for protectionist purposes—a concern mainly for developing countries. Furthermore, the importance of Special and Differential Treatment is now widely recognised: ICCA incorporated this concept in its market access paper.

TOWARDS THE 6TH MINISTERIAL CONFERENCE IN HONG KONG

  The 6th Ministerial Conference taking place on 13-18 December in Hong Kong will be crucial for the success of the DDA. The conclusion of the DDA by the end of 2006 will only be possible if the WTO membership overcomes the pending difficulties and produces agreements that move the Doha Development Agenda forward. Thereby WTO members would also help reinforcing the primacy of the multilateral approach at a time when numerous bilateral and regional agreements are being considered.

  ICCA urges WTO members to reaffirm their commitment to the Doha Development Agenda by making the compromises necessary to advance the agenda prior to, and at, Hong Kong. In order to achieve sufficient ambition in the DDA, industrialised countries must be prepared to make real concessions on trade in products of export relevance to developing countries, especially in agriculture.

ICCA PRIORITIES FOR THE DOHA ROUND

  Chemicals are a basic input to manufacturing and agriculture sectors in both developed and developing countries worldwide. Trade liberalisation in chemicals can contribute to economic growth and development by lowering production costs for all manufacturers and increasing export competitiveness and investment potential. ICCA is, therefore, interested in many aspects of the DDA. Detailed position statements are available on the ICCA website at www.icca-chem.org

Tariffs and market access[18]

  ICCA shares the view of the developing countries that the Doha Round's approach to market access should be comprehensive and include sectors that are important to them, including agriculture and textiles. Negotiations covering such sectors should lead to balanced concessions from all parties involved. ICCA is concerned about the discussion regarding erosion of preferences as it goes against the basic concept of GATT, namely to liberalise trade and hopes this debate will be resolved before the Hong Kong Ministerial.

  The Hong Kong Ministerial must deliver decisions to allow a conclusion of the DDA by the end of 2006. In the non-agricultural market access (NAMA) negotiations, the Hong Kong Ministerial must finalise negotiating modalities, including a strong, non-linear formula for tariff liberalisation and an agreement to proceed with sectoral tariff harmonisation and elimination on a critical mass basis. ICCA would also like to see chemicals identified as a sector for tariff elimination at the Hong Kong Ministerial.

  ICCA's key goal in the Doha Round is the elimination of chemical tariffs in the WTO. We advocate a process whereby all countries with a viable chemical industry (or the potential to create such an industry) agree to eliminate all chemical tariffs, dismantle all identified non-tariff barriers (NTBs) and prevent the formation of new NTBs in the future. ICCA recognises that developing countries may need longer transition periods to implement the tariff reduction objectives. With regard to NTBs ICCA shares the increasing concerns of developing countries in respect of the many regulatory measures adopted for sound environmental reasons which can develop into NTBs. Diverging chemical control legislations, whilst legally possible, are an example of this.

  Increased international trade in chemicals will further Sustainable Development around the world by promoting economic, social and technological development in every WTO member country. Chemistry underpins numerous innovations in information technology, aerospace, medicine, hygiene, nutrition, mobility, housing, energy saving, clothing and many other areas. The chemical industry not only provides sustainable solutions, but it also has its own forward looking Sustainable Development programme. Under the Responsible Care Programme, ICCA members are committed to continued improvement in all aspects of health, safety and environmental performance and to open communication. ICCA also supports international regimes to control trade in dangerous chemicals such as the Rotterdam Convention on Prior Informed Consent and the Stockholm Convention on Persistent Organic Pollutants.

  Regarding tariff elimination for environmental goods, ICCA believes that it would be best to eliminate chemical tariffs altogether instead of trying to define what are environmental goods and by consequence arrive at discriminatory and arbitrary conclusions.

Trade facilitation

  ICCA very much welcomes the launch of the trade facilitation negotiations. ICCA supports the simplification and harmonisation of customs procedures and believes that the negotiations should take into account the needs of developing countries and provide for a differentiated approach. To help developing countries implement new trade facilitation rules, technical and financial assistance should be provided by the WTO, along with the World Customs Organisation (WCO).

  In addition, tariff elimination, such as that proposed by ICCA for chemicals, can reduce the administrative burden of diverging and complex worldwide rules of origin for exporters, importers, and customs authorities.

Anti-dumping

  ICCA supports negotiations on anti-dumping and encourages the negotiators to follow a proactive approach. At issue is not the anti-dumping agreement as such but a harmonised application of the agreement by the WTO membership. ICCA believes that it is essential to have an effective WTO ant-dumping instrument that is implemented in a consistent manner on a global basis.

  Negotiations should focus on pursuing uniform and non-discriminatory implementation of the transposition and enforcement of the WTO Anti-dumping Agreement by WTO members and on ensuring a transparent, predictable, harmonised and non-discriminatory application of the anti-dumping instrument.

May 2005

  The International Council of Chemical Associations (ICCA) is a council of leading trade organisations and their member companies representing chemical manufacturers in Australia and New Zealand, Europe, North and South America, Japan and South Africa. ICCA represents approximately 75% of worldwide chemical production. ICCA's focus is on developing global chemical industry positions and evolving programmes on issues of international significance to the industry in areas such as health, safety, and the environment; international transport safety; intellectual property; trade policy; and industry efforts to eliminate chemical weapons and diversion of illegal drugs. ICCA also promotes and coordinates Responsible Care® and other voluntary chemical industry initiatives. The chemical associations in 52 countries implement ICCA's Responsible Care® initiative.

  For an electronic version of this and other ICCA positions on trade, please visit the ICCA website at www.icca.chem.org



18   CIQUIM reserves its position with regard to sectoral agreements at this time. ANIQ can support this position only when private investment in the Mexican energy sector is allowed and implemented, at which time Mexico would commence chemical tariff elimination based on the staging agreed in this document of 10 years for bound rates of 25% or less and 15 years for bound rates of more than 25%. Back


 
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