Report of the Third APEC

Sub-Committee on Standards and Conformance (SCSC) Meeting

Phuket, Thailand

15-16 August 2003

The third SCSC meeting for 2003 was held from 15 to16 August 2003 in Phuket, Thailand. The meeting was attended by representatives from: Australia; Brunei Darussalam, Canada; Chile; People’s Republic of China; Hong Kong China; Indonesia; Japan; the Republic of Korea; Malaysia, Mexico, New Zealand; Philippines, Singapore; Chinese Taipei; Thailand; the United States of America; and, Vietnam. The APEC Secretariat, representatives of the Asia Pacific Legal Metrology Forum (APLMF), the Asia Pacific Metrology Program (APMP), and the Pacific Area Standards Congress (PASC) and the IEC-APRC were also in attendance.

Mr. Surachai Thaleongchok, Secretary-General of the Thai Industrial Standards Institute (“TISI”), and SCSC Chairperson for 2003, chaired the meeting.

1.  Opening and Introduction of the Vice-Chairs

The Chair, Mr. Thaleongchok welcomed all the member economies, the APEC Secretariat and Specialist Regional Bodies (“SRB’s”) to the 3rd meeting of the SCSC for 2003.

The Chair noted that the Vice-Chairs for 2003 are Mr. Rodolfo Consvegra Gamou of Mexico and Ms. Ana Maria Vallina from Chile.

The Chair introduced Ms. Vallina and Mr. Ramos.

2.  Adoption of the Agenda

The SCSC adopted the agenda.

3.  Business Arrangements

The Chair provided information on the business arrangements for the meeting and support for the delegates. New Zealand offered to assist with preparation of the report of the meeting.

4.  Report on the Developments since the 2nd SCSC in 2003 and Presentation of Draft SCSC Chair’s Reports to the 3rd CTI

The SCSC noted the Chair’s draft summary report including the SCSC Collective Action Plan (to be incorporated in the CTI Annual Report), with the draft highlight decision points required from CTI.

The SCSC noted that individual items in the drafts would be considered in more detail under the respective agenda items and that SCSC would finalize the reports under agenda item 11 with a view to submitting the final version to the 3rd CTI meeting to be held 17-18 August 2003.

5. Facilitating the future development of open regionalism and market driven economic independence in the Asia Pacific region: Result of the SCSC’s Work for 2003

a) Encouraging greater alignment of member economies’ standards with international standards

Japan reported on the results of the 2003 VAP reporting.

Reports were submitted by 14 member economies in 2003. 8 economies achieved alignment in the original four priority areas and 10 economies in the additional priority areas. Economies, which have not achieved their alignment, are proceeding with their work.

All economies have achieved alignment in the additional priority areas for Standards and Guides on conformity assessment and management systems. Completion of this work was targeted for 2002 for developed economies.

Japan, as the lead economy in this work, invited members to discuss future possible work, including whether categories for alignment were still relevant; maintaining alignment with the latest version of international standards; a proposed policy dialogue with ABAC; and transparency through explanation of reasons for non-applicable or non-alignment with international standards.

Mexico provided an update on preparation of a report on implementation of performance-based regulations. This report was as a result of discussion at SCSC I in 2002.

Information required for the report has only been supplied by 2 economies. Mexico proposed developing a questionnaire that could be used to gather the information and the results would be presented at SCSC I in 2004.

Following discussion the proposal by Mexico was agreed by the Sub-Committee

The SCSC noted that Thailand, as Chair of APEC 2003, had been invited by the ISO to make a presentation on the APEC experience in alignment at ISO General Assembly in Buenos Aires on 18 September, 2003.

b) Making progress on the issue of recognition of conformity assessment in the region

The JAC Chair reported on the outcomes of the seventh JAC meeting held on 14 August 2003, including the possibility of introducing an information management system similar to the TELMRA.

The JAC meeting considered and approved in principle New Zealand’s application for participation in Part 2 and 3 of the EEMRA. JAC members are to consider New Zealand’s application in detail and if no adverse comment is received by 30 September the application would be formally approved.

The JAC also discussed the inclusion of other mandatory requirements such as energy labeling and energy conservation, and adopted a stocktake table of participation. The JAC Chair also proposed a stocktake of MRA’s with a view to coordination between the MRA’s.

SCSC noted that JAC appointed Australia as the new Vice-Chair.

The Sub-Committee discussed how to enhance further participation in these initiatives, including a “stocktake” table. The SCSC endorsed the table and requested member economies to update the table. The SCSC also suggested that the Chairs of the APEC-TEL and EEMRA-JAC should meet with a view to working more closely together, particularly with respect to the application of IT systems to the MRA’s.

The sub-committee also expressed its appreciation to Mr. Peter Morfee, Chair of EEMRA-JAC for the last 3 years, and welcomed Mr. Liu Weijun as incoming Chair of EEMRA-JAC.

Australia reported on the results of activities this year to recognize conformity related issues.

At SOM I the SCSC approved the work program that consisted of the following:

·  The SCSC to assist the Joint Advisory Committee in implementing the APEC Electrical MRA, and encouraging Member Economies to fully participate in the Electrical MRA.

·  Member Economies to actively consider the recommendations of the project led by Vietnam to promote the active participation of the member economies in APEC MRAs.

·  Member Economies to continue to explore the range of options available to recognize conformity assessment.

·  The SCSC to continue to monitor implementation of the Work Program on Trade Facilitation in Information Technology Products.

SCSC noted: -

·  The outcomes of the work program in relation to recognition of conformity assessment in the regulated sector.

·  The status of APEC Member Economies participation in APEC MRAs as at 30June2003.

·  The status of organizations within Member Economies participation in voluntary MRAs as at 30 June 2003.

·  Ideas for further work as presented by member economies in the discussion

Thailand reported on the progress of the development of member economies participation in a new pathfinder initiative with respect to the APEC Food MRA (Sectoral MRA) endorsed at the Meeting of Ministers Responsible for Trade.

Discussion on a paper to be prepared by the United States on progress in the implementation of the work program with a view to encouraging business involvement in standards and conformance activities was deferred until SCSC1 in 2004.

c) Encouraging Cooperation Infrastructure Development

Australia reported SCSC’s activities this year by way of a table which outlined activities in the area of cooperation on technical infrastructure development during 2003. The table covers priority areas and TILF projects undertaken or endorsed during 2003.

SCSC examined the table outlining the outcomes of activities in the area of cooperation on technical infrastructure development during 2003 and suggested changes as appropriate, including review of projects by the Small Working Group.

Australia also reported on the current status of the Food Experts Network. The Food Standards Experts Network was endorsed by SCSC II in May 2002 in order to facilitate APEC work on improving the consistency and transparency of food standards within APEC Member Economies.

Nine Member Economies have agreed to participate in the Food Standards Experts Network via electronic media. They include Australia, Malaysia, Thailand, China, Japan, New Zealand, Singapore, Chinese Taipei and Hong Kong, China. Other Member Economies who would like to participate were encouraged to send contact details of the appropriate experts.

Australia reported that there had been difficulties associated with the implementation of some proposed initiatives, such as, the proposal for a newsletter. Australia advised that it would be approaching members in the future to discuss the newsletter proposal and priorities for the workplan.

The Sub-Committee discussed the areas the SCSC should prioritize Cooperation Infrastructure Development in the future and agreed that work on facilitating international exchange through the network should continue. The SCSC noted that Australia will be investigating new initiatives for the Network.

d) Increasing the Transparency of standards and conformance arrangement in the region

United States provided a Draft SCSC Work Program on Transparency.

The SCSC agreed that member economies would review the document and provide comments to the United States before 19 September. The United States will circulate a revised paper by 26 September, with any further comments from member economies by 1 October so as to meet the deadline for reporting to Leaders. The United States also agreed to circulate comments from other economies to all economies during this process.

Singapore presented their experience of the transparency provisions in the RTAs/FTAs that Singapore has acceded to.

6. Reducing compliance costs for Small and Medium Enterprises

The SCSC Chair reported on the APEC SMEWG and APEC SME Enterprise Ministerial Meetings held on 5-8 August in Chiang Mai. The SCSC representation at the SME WG meeting was as a result of an invitation from the SMEWG Chair.

Thailand and New Zealand presented an update and proposals for future work that could be considered by SCSC to reduce compliance costs for SMEs. The Sub-Committee discussed the proposals and approved these for action by SCSC 1 in 2004. In summary the proposals are: -

1.  use of the US initiated and maintained database giving access details to standards and conformance bodies within APEC to be made explicitly available to SME branches of government, together with the findings of the Policy Dialogue.

2.  Awareness of SME issues with respect to standards and conformance could be raised at international level. PASC was asked to seek an update from appropriate international standards bodies on what they are doing with respect to the particular issues identified at the Policy Dialogue and provide this information to the next SCSC meeting

3.  Recommendation that the SCSC and SMEWG exchange information, including the work plans and agendas for future meetings, so that both groups can be better informed of issues and initiatives being taken that are of common interest

7. Other Activities

a) WTO Agreement

Japan provided a summary report on the result of the July WTO/TBT Committee meeting.

China and Mexico reported developments within the WTO Committee on the SPS since the last SCSC meeting.

b) Trade Facilitation

The APEC Secretariat reminded member economies of issues raised by CTI with respect to reporting on actions taken by APEC fora in trade facilitation, such as agreement in principle of New Zealand’s application for Parts II and III of the EEMRA. Member economies discussed and identified where there are already collective actions in progress or where new collective actions could be developed. China and Canada proposed a change to the table, which was subsequently made. The result of this discussion is to be reported to CTI III

Member economies also discussed whether there would be any updates on the APEC Trade Facilitation Principle adopted last year

c) CAP Reviews

Japan and Australia reported on the review of implementation of CAP alignment work in 2003. Members discussed the reports and a matrix.

In 2002 the SCSC Chair provided a matrix in relation to recognition of conformity assessment in the regulated sector to the CTI at SOM III 2002 and at SCSC II in 2003 the SCSC Chair asked that Member Economies examine the matrix in order to identify which collective actions have been implemented, which items remain unimplemented, uncompleted or not actively implemented by Members.

SCSC agreed that:-

·  the current “Objectives”, “Activities” and “Actions taken” headings in the matrix remain relevant for the collective action plan in relation to recognition of conformity assessment in the regulated sector

·  Member Economies should examine the updated matrix and provide comments in relation to activities undertaken in 2003

·  Member economies to participate in updating their reviews, and participation in adopting international standards wherever possible

d) SCSC Projects

The APEC Secretariat reported on the outcomes of the 22-24 July meeting of the BMC, and also presented a summary table on the implementation of the SCSC projects. The outcomes are subject to final approval at the Ministers meeting.

The APEC Secretariat also outlined the budgetary position of the TILF fund, and consequent reduced funding and new approval criteria and information required that BMC would be likely to apply in future.

Members discussed the comments made by BMC, especially the approval process that is likely to apply in future, and the timetable for submission of projects for 2005. Indications are SCSC I in 2004 will be when projects will need to be submitted for discussion by SCSC.

Canada and Chile proposed the preparation of a guide of criteria for ranking project proposals by SCSC for submission to CTI, and a further guide outlining the rules that BMC would apply in assessing proposals. China supported this proposal and suggested this subject be further discussed at SCSC I, 2004. Canada agreed to lead this work with China and Japan.

China suggested that project overseers prepare an explanatory note to help BMC better understand SCSC projects.

New Zealand agreed to coordinate with other project overseers so that proposals prepared in future were clearly differentiated as to the purpose of the project, and explained to BMC in non-technical terms. Project overseers also need to brief their BMC representatives so that they understand the basis for the project.

A copy of the summary table of outcomes and implementation of projects is included as an appendix to this report.

e) SRBs

The representatives of SRBs reported on the result of their activities related to the Sub Committee’s work program and issues for further improvement of joint work with SCSC and SRBs

f) TGs

All lead shepherds of TG’s reported on their activities and results through the year. The Sub-Committee noted the TGs reports and plans for future work.

8. Endorsement of CAP

The Sub-Committee discussed and finalized the report on the review of implementation of Collective Action Plan 2003.

9. Revision of the Terms of Reference of SCSC