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2008/SOM2/CD/001
Agenda
Purpose: Information
Submitted by: CD
/ 7th Chemical Dialogue MeetingArequipa, Peru
22 May 2008
3
The 7th APEC Chemical Dialogue
May 21-22, 2008
Instituto Superior Tecnologico Institute (TECSUP), Room E-5
Urb. Monterrey D-8 José Luis Bustamante y Rivero
Arequipa, Peru
DRAFT Annotated Agenda
The 7th Chemical Dialogue (CD7) in Arequipa will consider the work program developed by the Chemical Dialogue Steering Group at its February 23-24 2008 meeting in Lima, Peru. The work program has four main priority areas for consideration (1) GHS implementation (2) REACH implementation (3) Regulatory Best Practices and (4) Rules of Origin.
The Dialogue will include a half-day industry pre-meeting on the morning of Wednesday, May 21, to discuss challenges facing the chemical industry; such as rising energy prices, approaches to the implementation of product-related environmental regulations and initiatives, such as the EU REACH system, and the UN Strategic Approach to International Chemical Management (SAICM), among others; product stewardship initiatives; a proposal for a study of the impact of FTA/RTA rules of origin on the chemical industry and trade; GHS implementation; and, depending on developments in Geneva, relevant developments in the Doha Development Agenda, which affect the chemical industry. PLEASE NOTE THAT CHEMICAL REGULATORS FROM MEMBER ECONOMIES ALONG WITH MEMBERS AND PARTICIPANTS IN THE CHEMICAL DIALOGUE AND INDUSTRY PRE-MEETING ARE INVITED TO PARTICIPATE IN AN INFORMAL CHEMICAL REGULATORS FORUM, WHICH WILL BE HELD ON THE AFTERNOON OF MAY 21. A Chemical Dialogue dinner will take place in the evening of May 21 at La Terraza Restaurant.
The full Chemical Dialogue will meet on Thursday, May 22. Among other things, the Dialogue also will be finalizing two important work products from the 6th Chemical Dialogue: Principles for Best Practice Chemical Regulation and the Report of the GHS Virtual Group. Thanks to all who provided input to these reports. The Dialogue will discuss possible next steps from the work of these reports, including their possible transmission to Ministers and use as input to and/or inform SAICM.
The Dialogue comes at a time of heightened concern for the industry, with energy prices continuing to rise and several important regulatory and trade-related developments coming to a head, including the implementation of the EU REACH system. There continues to be a steady increase in FTAs and RTAs in the region with major trading partners. Complex and different rules of origin are proliferating in the region. CD7 also meets just before APEC Trade Ministers convene in Arequipa May 30-June 1 for their mid-year meeting. As is usual practice, we will seek a briefing from the CTI Chair on plans and priorities for the Trade Ministers meeting.
The Dialogue also presents an opportunity to build from joint discussions and cooperation on issues of mutual interest across trade, industry, standards and regulatory experts. The CD should consider how such discussions, including past action items, might translate into future more focused and outcome-based workshops or activities so that common, harmonized approaches and benefits can be organized for 2009 and realized into the future.
PLEASE NOTE: A NUMBER OF ECONOMIES ARE ASKED TO REPORT ON SPECIFIC AGENDA ITEMS AS HIGHLIGHTED IN RED.
Meeting Schedule
Wednesday, May 21, 2008
09:00 – 12:30 CD7 Industry Pre-Meeting: TECSUP (room E-5)
14:30 – 18:00 Informal Chemical Regulators Forum (room E-5)
19:30 CD7 Dinner: La Terraza Restaurant, San Francisco 317, Arequipa
Thursday, May 22, 2008
9:00 – 18:00 CD7 Meeting: TECSUP (room E-5)
Accreditation and visas:
Please note, industry participants in the CD7 and industry pre-meeting must be officially accredited to their economy’s delegation and will need to check visa requirements for entry into Peru. Passports must be valid through the end of 2008.
The 7th Chemical Dialogue Meeting
Thursday, May 22, 2008
1. Review of directions from the September 5-7, 2007 19th APEC Ministerial Meeting, overview of actions and recommendations from the February 24, 2008 Chemical Dialogue Steering Group Meetings and priorities for the May 30-June 1 meeting of Ministers Responsible for Trade and other upcoming meetings.
· Briefing by CDSG Chair
· Discussion led by CD Co-Chairs
2. Review of Industry Pre-Meeting
· Summary of main points identified at May 21 industry meeting (led by Industry Co-Chair):
o GHS implementation issues (APCIC)
o REACH implementation (APCIC)
o Best practices on chemical regulations
§ SAICM (APCIC)
§ Regulatory Principles
o Rules of Origin
o Other issues including energy costs: Information-sharing on the chemical industry’s response to escalating energy costs, and environmental concerns (APCIC)
3. Implementation of GHS
Ministers at their meeting in Sydney in 2007 commended the work of the Chemical Dialogue to standardize the labeling of Chemical Products. At CD6 it was agreed that the Dialogue would develop a report on GHS implementation issues and practices and a GHS Virtual Group was formed led by Australia. The Virtual Group has produced a report for review by the Chemical Dialogue, which is designed to identify ways to ensure consistency in GHS implementation regulations and address the issues identified by the Chemical Dialogue, including transition periods. The CDSG recommends that the CD endorse this report for use as a contribution to the SAICM process. At its meeting in February 2008, the CDSG also recommended the CD endorse the establishment of a consumer products sub-group as a complement to the work of the GHS Virtual Group, reporting to the CD through the CDSG. The objective of the group is to develop guidance for a harmonized approach to GHS implementation for consumer products. Ministers will be expecting a status report on GHS implementation. The CD will consider whether the report of the GHS Virtual Group would serve as an interim status report of CD activities.
· Report of the GHS Virtual Group (Australia)
o Next steps, including possible contribution to SAICM: (Discussion led by Australia)
· GHS consumer products sub-group, rationale, product coverage and priorities (discussion led by Japan)
o Consideration of recommendation for the establishment of the virtual sub-group (discussion led by CD Industry Co-Chair))
· Activities of the UN Subcommittee of Experts on GHS
· Update on UNITAR GHS training activities and coordination with APEC
· Status report to Ministers (led by the APCIC)
Special Note: Economies unable to send either a government or private sector delegate to the CD7 are urged to file a written report with the APEC Secretariat ( and ) by the 15th of May. Thanks to those who have already submitted reports.
4. EU REACH Implementation
At their meeting in Cairns in July 2007 Trade Ministers expressed concern over the negative impact of the European Commission's chemicals legislation on the chemical sector. In September 2007 Ministers welcomed the CD’s efforts to reduce adverse trade impacts of EU chemical regulations. On October 25, 2007 the CD held a joint meeting with European Commission officials to discuss REACH implementation issues. Follow up questions from that meeting were developed at the February 24, 2008 CDSG meeting in Lima for use at the March 18 WTO TBT meeting, and for subsequent transmission to EC Commissioners by the CD Chairs. The CD will discuss the draft letter and questions to the Commission with a view to its transmittal at the conclusion of CD 7. A joint session on REACH was held with the APEC SCSC Trade Facilitation Task Force on February 22, 2008. Discussions focused on downstream user issues. Members of the electronics and soap and detergent industries participated in those discussions. Additional recommendations from the CDSG to the CD include:
I. Information sharing mechanisms (see attached extract from the February 24, 2008 CDSG report)
II. Coordination with the TFTF on particular problems faced by downstream users
III. Revisions to Thailand’s proposal for GLP training.
IV. Other outreach activities
· Economy perspectives on REACH implementation (individual member economies)
· Report from the March 18 WTO TBT meeting in Geneva (Government Co-Chair)
· Discussion of the project proposal by Thailand for training in OECD GLP guidelines (Thailand)
· Education, training initiatives and needs, including industry-initiated workshops and possible options (individual member economies)
· Discussion of CDSG recommendations (led by Co-Chairs)
· Discussion of other outreach actitivies (APCIC)
· Discussion of any further recommendations to APEC Ministers Responsible for Trade (led by Co-Chairs)
5. Regulatory Best Practices
Because of the difficulties with interpretation and implementation of the many product-related environmental regulations (such as those in REACH, RoHS and SAICM), the likelihood that more will emerge, and the need for a common approach to these regulations, in 2006 industry proposed the development of a set of best practice guidelines and principles for chemicals regulation and implementation that promote trade, which could be adopted by APEC to ensure greater consistency in approach. Australia coordinated a virtual group to develop Principles for Best Practice Chemical Regulations. The CDSG at it meeting in February 2008 in Lima reviewed the draft, additional comments were received. The CDSG recommended that CD consider submission of the principles as an input to the SAICM process. The CD also could discuss whether the set of principles should be transmitted to Ministers Responsible for Trade as a contribution to the trade facilitation agenda of APEC.
The CDSG also recommended that to enhance transparency, APEC members share information via the APEC process of economy specific reviews of chemical regulations and control laws; continued information sharing on best practices and consultations on possible additional project areas. In that regard the CD will be briefed on outcome of the informal regulators forum held in Arequipa on May 21.
· Discussion on Principles for Best Practice Chemical Regulation (led by Australia)
· Voluntary Industry Programs e.g. Global Product Strategy (led by APCIC)
· Discussion of common issues, including transparent regulatory processes, stakeholder participation, etc. (led by Industry Co-Chair)
· Report on and discussion of the informal chemical regulators forum (US)
· Recommendations to APEC Trade Ministers (led by Industry and Government Co-Chairs)
6. International Conference on Chemicals Management
The second session of the U.N. International Conference on Chemicals Management is scheduled for May, 2009. This Conference will review efforts by governments and other stakeholders to implement elements of the Strategic Approach to International Chemicals Management (SAICM). While regional groups and individual governments are preparing input for the ICCM/SAICM process, it may be useful to consider what role APEC might have beyond the previously discussed APEC reports on regulatory best practices and GHS implementation. For example, APEC economies may wish to consider how it might further promote product stewardship as a contribution from the chemical dialogue to SAICM.
· Overview of developments in SAICM (individual economies)
· Consideration of possible next steps by the Chemical Dialogue, including the contributions of the GHS and Regulatory Principles report to the SAICM process (discussion led by Government Co-Chair)
7. Rules of Origin
As a contribution to APEC’s regional economic integration agenda, Mexico has proposed that the CD support a project, funded by APEC, to study the impact on the chemical industry of rules of origin in regional and bilateral FTAs in the region. Simplified and harmonized rules of origin for chemicals products also could be a significant contribution to trade facilitation and transaction cost reduction.
· Briefing on APEC’s work on rules of origin (led by CTI Chair)
· Chemicals rules of origin: discussion of project concept and proposal (led by Mexico)
· Discussion of options for a way forward (led by Government co-Chair)
8. Other Issues - Contribution to the WTO
Ministers have consistently called for progress on the Doha Development Agenda (DDA) and “noted the Chemical Dialogue's concern that failure of the DDA negotiations would be a major setback for global trade expansion and its call for the urgent resumption of the DDA negotiations”. The WTO Doha Round continues to be a top priority for the APEC Committee on Trade and Investment, but until there are concrete signs of a break through in Geneva, it is unclear what sort of contribution APEC could make to the process at this time. It was agreed that information about developments in the negotiations should be shared and reviewed in the lead up to and during the Chemical Dialogue meeting.
· Overview of WTO DDA Developments (CD Government Co- Chair)
· Discussion of industry perspectives (led by CD Industry Co-Chair)
8. 2007-2008 Workplan of the 7th Chemical Dialogue
Recalling Ministers view that the Industry Dialogues can make an important contribution to the APEC Trade Agenda, it is recommended that the Chemical Dialogue continue its work on GHS implementation, bring its work on REACH, and other product-related environmental regulations under the broad umbrella of regulatory best practice for the chemicals sector, and address multilateral, regional and bilateral trade developments that have implications for the chemical industry, including SAICM and regional economic integration (rules of origin).
· Priorities and Assignments for the 2008-2009 CD Workplan. CD7 to agree on priorities and assignments (discussion led by Co-Chairs)
9. Other Business
· Date and venue for the 8th Chemical Dialogue (Singapore)
Extract from the 19th AMM, September 5-6, 2007, Sydney, Australia
We commended the APEC industry dialogues' efforts to improve the business environment in our region……We commended the work on standardised labelling of chemical products and efforts to reduce adverse trade impacts of EU chemical regulations. We also encouraged the development of best practice guidelines for chemicalregulations.
Emergency Preparedness
Strengthening emergency preparedness is an abiding priority for APEC and promoting the economic benefits of investing in risk reduction is an important means to achieve this.
We agreed on the importance of strengthening our capacity to build community resilience and preparedness for emergencies and natural disasters. In this regard, we welcomed new initiatives to further cooperation between our senior emergency and disaster management officials, business and international partners to ensure we are able to respond in a timely and effective manner. We agreed on the importance of further building public-private partnerships in this area.