June 22, 1999

World chemical industry production exceeds US$1.6 trillion annually, and almost 30% of this production is traded internationally. Within global trade in manufacturing, world trade in chemicals is second only to automobiles, far outpacing computers and related technology in third place.

The International Council of Chemical Associations (ICCA) is an organization of leading trade associations representing almost 80% of chemical manufacturers worldwide. ICCA members include: Conselho das Associações da Indústria Quimica do Mercosul (CIQUIM) [representing Argentina and Brazil], the European Chemical Industry Council (CEFIC), the Japan Chemical Industry Association (JCIA), Asociácion Nacional de la Industria Quimica (ANIQ) [representing Mexico], Canadian Chemical Producers' Association (CCPA), and Chemical Manufacturers Association (CMA) [representing the USA], the New Zealand Chemical Industry Council (NZCIC), and the Plastics and Chemical Industry Association (PACIA) [representing Australia].

Introduction

The ICCA is committed to the multilateral liberalisation of trade and investment underpinned by a framework of rules implemented through the WTO. This paper provides a summary of the ICCA's views with regard to issues that are likely to be addressed following the Third Ministerial Conference to be held November 30 December 3 in Seattle.

The ICCA is in favor of a new round of multilateral trade negotiations that:

is broad based, thus offering possibilities for balanced concessions between sectors, and mutual advantage and increased benefits for all WTO members;
builds on sectoral and regional enhancements undertaken since the conclusion of the Uruguay Round; and
requires final results of all negotiations to be adopted in their entirety by each WTO member.

The proposed new Millennium trade round may also address linkages between trade and environmental and social standards. In this connection ICCA refers to its initiatives such as Responsible Care® which serve to maintain and improve environmental standards. ICCA is committed to trade liberalisation and all its benefits, which we believe will best achieve significant and sustained environmental improvement on a global basis.

ICCA priority topics in the new Round

WTO membership

ICCA is in favour of a strong WTO with a broad-based membership. Although there are 133 members of the WTO, another 30 remain in the queue to join, including the significant economies of China, Russia and Saudi Arabia. ICCA is supportive of these countries joining the WTO, provided acceding members adopt all the Agreements required for entry into the organisation. For further details we refer to the ICCA position paper on accession to the WTO.

Market access and chemical tariffs

Regional trade agreements are proliferating around the globe so that many countries are working toward free trade through the elimination of tariffs and non-tariff measures with their individual trading partners. The end result by 2010, is that the majority of chemical trade throughout the world will experience greatly reduced tariff rates compared to those which existed in the mid-1990's.

ICCA is committed to liberal trade as demonstrated in the Uruguay Round by the Chemical Tariff Harmonization Agreement (CTHA), fixing tariffs at 5.5 and/or 6.5% by 2004. We remain concerned about the limited participation of countries in the CTHA and continued problems caused by non-tariff measures.

A goal of totally eliminating chemical tariffs world-wide by the year 2010 together with key, identified non-tariff measures has been set by ICCA. Our goal is that countries acceding to the WTO during or after the next Round of negotiations should agree to the elimination of chemical tariffs.

For further details we refer to the ICCA position papers on Market Access and Tariffs and Non-tariff Measures Objectives for a New Round of WTO Negotiations.

Trade facilitation

ICCA strongly favors developing a framework of WTO trade facilitation rules as part of the Millennium round. This need stems from the fact that international trade has fundamentally changed since the trading system for managing movement of goods was established. Both the volume and character of transactions have changed and this needs to be recognized in the procedures adopted for managing the international flow of goods crossing national borders. Adoption of streamlined procedures and a simpler harmonized approach to border control would enable more cost effective revenue collection and interception of the transactions of risk.

For further details we refer to the ICCA position paper on Trade Facilitation.

Trade instruments
ICCA is fully supportive of the current WTO disciplines for anti-dumping. Each WTO member should apply a transparent, predictable and uniform enforcement of their respective anti-dumping legislation.

Intellectual property

ICCA welcomed the inclusion of TRIPs in the GATT Uruguay Round, since it was overt recognition that intellectual property rights are an important aspect of trading conditions for innovative business. While the Uruguay Round achievements in the area of basic intellectual property rights protection on a global basis were promising, their implementation is still far from complete. Full implementation of the existing TRIPs Agreement should remain an overriding priority.

If TRIPs were to be included in the Millennium round, it should be with a view to implementation of the existing agreement, strengthening the existing agreement for the protection of intellectual property rights and prohibition of international exhaustion of those rights.

New trade issues

Trade and Environment: ICCA considers that the establishment of the WTO Committee on Trade and Environment has enabled key issues to be addressed, such as Multilateral Environmental Agreements (MEAs) and trade provisions related to eco-labelling. In line with its Responsible Care program ICCA is committed to high environmental standards world-wide.

ICCA endorses the useful work conducted in the framework of the WTO Committee on Trade and Environment over the past few years and urges continued progress on those issues which could potentially undermine the multilateral trading system.

For further details on issues related to trade and environment we refer to the ICCA position papers on: Trade and Environment, Green Dumping, Production and Process Methods, Product Requirements, Use of Trade Measures For Environmental Purposes, Multilateral Environmental Agreements, Domestically Prohibited Goods, and Trade Implications of Eco-labelling Programs. In particular, the position statement on MEAs could form a basis for further progress on this topic.

TRIPs and the Environment: As mentioned above, protection of intellectual property rights is a cornerstone for international trade and investment. The WTO should ensure that the TRIPs Agreement is not undermined by issues unrelated to intellectual property concerns. For further details we refer to the ICCA position paper on TRIPs and the Environment.

Trade and Investment: The experience gained during the OECD negotiations towards a multilateral agreement on investment should provide a useful basis for progress towards the eventual establishment of a global, balanced and beneficial investment regime for all members of the WTO, regardless of their level of economic development. For further details we refer to the ICCA position paper on Trade and Investment.

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