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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