Chemical Dialogue Steering Group Meeting

______2008/SOM1/CDSG/001

Draft Annotated Agenda

Purpose: Information Submitted by: CDSG Chair Chemical Dialogue Steering Group Meeting Lima, Peru 24 February 2008

2 The Chemical Dialogue Steering Group February 23-24, 2008 Swissôtel Lima Lima, Peru

DRAFT Annotated Agenda Rev 1 02/07/08

The Chemical Dialogue Steering Group (CDSG) meeting in Lima will review the outcomes of the 6 th Chemical Dialogue, held in Cairns, Australia in June 2007, assess the implementation of the work program agreed at the 6th Chemical Dialogue, and develop a work program for the 7th Chemical Dialogue.

The CDSG meeting will include a half-day industry pre-meeting on the afternoon of Saturday, February 23 to discuss priority issues for the 7th Chemical Dialogue. In line with agreed action items from the 6th Chemical Dialogue, these include: GHS implementation; progress with the development of regulatory principles/best practices guidelines for the chemicals sector; developments in the implementation of the EU REACH system; and, the prospect of simplified and harmonized rules of origin for chemical products. Please advise if there are other items/issues you would wish to add to the CDSG agenda. Emergency response capacity building also will be discussed, including a review of the Chemical Dialogue’s participation in the Task Force on Emergency Preparedness seminar in August 2007 in Cairns and possible follow on work. The CDSG will be briefed on the outcome of the 1st Chemical Regulators Forum held in Cairns in June 2007 and on the work of the Task Force on Trade Facilitation.

A CDSG dinner will take place in the evening of February 23 at a venue to be determined. The full CDSG will meet on Sunday, February 24. Interested representatives of the Chemical Dialogue Steering Group also are invited to participate in a session of the Sub Committee on Standards and Conformance’s (SCSC) Trade Facilitation Task Force (TFTF) in the morning of February 23. The TFTF also will discuss REACH and RoHS. The CDSG has two virtual groups underway (GHS implementation, regulatory best practices). Could group chairs please advise if they wish to set aside time in the morning of February 23 for group discussions.

The CDSG comes at a time of continued concern for the industry, with energy prices continuing to rise, and several important trade-related regulatory developments coming to a head, including issues with the implementation of the EU REACH system and the need for a coordinated approach to GHS implementation. Complex and different rules of origin are proliferating in the region as economies continue to negotiate bilateral FTAs.

PLEASE NOTE: A NUMBER OF ECONOMIES ARE ASKED TO REPORT ON SPECIFIC AGENDA ITEMS AS HIGHLIGHTED IN RED.

Meeting Schedule

Saturday, February 23, 2008 09:00 – 12:30 Trade Facilitation Task Force: Swissôtel, Room TBC 14:30 – 18:00 CDSG Industry Pre-Meeting: Swissôtel, Room TBC 19:00 CDSG Dinner: Venue TBC

Sunday, February 24, 2008

09:00 – 18:00 CDSG Meeting: Swissôtel, Room TBC

Accreditation and visas: Please note, industry participants in the CDSG 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.

1 The CDSG Meeting

Sunday, February 24, 2008

1. Review of directions from the September 5-6, 2007 19 th APEC Ministerial Meeting, and July 2007 Meeting of Ministers Responsible for Trade. 2. Overview of actions and recommendations from the 6th Chemical Dialogue.

At their July and September meetings, Ministers focused principally on their continuing concern over REACH, encouraged efforts to standardize labeling (through GHS implementation) and work on regulatory best practices, requested that APEC explore the scope for rationalization of rules of origin, and noted their continuing desire to work with business on emergency preparedness and response.

The 6th Chemical Dialogue agreed on a work plan going forward in four main areas: i. GHS Implementation, with a focus on the identification of implementation issues and the development of a work plan to address these. ii. REACH implementation and the need for expert consultation with the European Commission. iii. Best Practice Guidelines for Chemicals Regulation and the development of a framework for these by SOM I 2008. iv. Rules of Origin with a view to compiling information on rules of origin in existing FTAs and RTAs.

 Briefing by CDSG Chair  Discussion led by APCIC Secretariat

3. Review of Chemical Industry Priorities  Summary of main points identified at February 23 industry pre-meeting (led by APCIC Secretariat):

4. Implementation of GHS

In 2006, Ministers encouraged member economies to continue their efforts to implement the GHS with a view to having it fully implemented by the recommended target date of 2008. In 2007 it became clear that there were a number of emerging issues with implementation. The 2007 Chemical Dialogue observed that there was a need to ensure clarity and consistency in approach so that implementation did not result in barriers to trade. A small virtual group was established to identify issues and develop a work plan. Australia agreed to coordinate the group. [An implementation status report was prepared by the Friends of the Chair. This report will need to be updated along with recommendations from the virtual group in preparation for submission to Ministers Responsible for Trade in June 2008.]

 Emerging Implementation Issues and Proposed Work Plan: Report of the Virtual Group (led by Australia)  Activities of the UN Subcommittee of Experts on GHS  Status report to Ministers (led by the APCIC/Chair of the FOC Group)

Special Note: Economies unable to send either a government or private sector delegate to the CDSG are urged to file a written report with the APEC Secretariat ([email protected] and [email protected]) by the 15th of February.

5. REACH IMPLEMENTATION

Concerns over testing requirements for REACH and other issues were discussed at the 6 th Chemical Dialogue. The Dialogue agreed that (a) the Co-Chairs seek a meeting with EC REACH implementation experts in Brussels to discuss concerns and (b) continue APEC caucus activity in the WTO TBT. A meeting, hosted and Co-Chaired by Malaysia was held on October 25, 2007 in Brussels between representatives of the Chemical Dialogue and EC REACH experts. The report of that meeting was circulated to the CDSG on December 4, 2007. This report included additional activity on

2 REACH by APEC member economies at the November 9, 2007 TBT ,meeting. CDSG will discuss issues related to the implementation of REACH, the response of the EC and possible next steps.

Economies and industries also are currently working to understand the potential impacts of the legislation, including from the guidance being developed under the various REACH Implementation Projects (RIPs). Thailand is to submit a revised GLP training proposal for review. The Trade Facilitation Task Force (TFTF) of the Sub Committee on Standards and Conformance also has REACH on its agenda for its February 23, 2008 meeting in Lima. A briefing will be sought from the TFTF Chair.

Chemical associations also have an important role to play in disseminating information about REACH to manufacturers and, where relevant, downstream industries. Consistency and comprehensiveness of such informational materials will assist companies in preparing REACH pre-registrations and registrations. Participants are invited to circulate in advance of the February meeting available informational materials on REACH. The CDSG will discuss issues of common interest that such materials could cover and share information about the most frequently asked questions being encountered.

 Report of the October 25, 2007 meeting between EC REACH experts and representatives of the Chemical Dialogue (APCIC Secretariat)  Discussion of outcome (led by Malaysia)  Report of the November 9 TBT meeting (CDSG Chair)  Update on REACH implementation projects: Government and Industry Perspectives: (CDSG Chair, APCIC Secretariat)  Economy perspectives on REACH implementation (individual member economies, discussion led by Japan)  Briefing on TFTF discussions on REACH and other product related environmental regulations such as RoHS (TFTF Chair)  Discussion of other REACH-related issues of concern to APEC economies including the prospect of training in OECD GLP guidelines (Thailand)  Discussion of possible mechanisms for sharing of informational materials on REACH. (led by APCIC Secretariat)  Discussion next steps and further recommendations to APEC Ministers Responsible for Trade (led by CDSG Chair and APCIC Secretariat)

6. Best practice Guidelines for Chemicals Regulation

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, 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 provided a first draft of best practice guidelines and principles for chemical regulation at SOM III 2007 to inform thinking. The 6th Chemical Dialogue agreed that this was an important area of work. It was agreed that Australia would coordinate a small group to develop a proposed framework for consideration by CDSG at this meeting of the CDSG.

A chemical regulators forum also was held in Cairns following the 6 th Chemical Dialogue. CDSG will be briefed on the outcome of that forum and possible next steps.

 Report of the regulatory best practices group (led by Australia)  Briefing on the informal chemical regulators forum from Cairns – June 2007 Chemical Dialogue (led by United States)  Economy perspectives (individual economies)  Discussion of next steps and possible project ideas or proposals (led by APCIC)

7. Rules of Origin and Regional Economic Integration

3 APEC has a growing agenda on regional economic integration. The Chemical Dialogue has been asked to discuss how its work could contribute to that agenda, for example on simplified rules of origin for chemical products. Simplified and harmonized rules of origin for chemicals products also could be a significant contribution to trade facilitation and transaction cost reduction. A draft concept paper was prepared for the 6th Chemical Dialogue. The Dialogue agreed to form a small group to continue this work and, as a first step, compile information on rules of origin in existing FTAs and RTAs to identify areas of convergence and divergence, perhaps beginning with less complex chapters.

 Briefing on developments with regional economic integration initiatives (led by CTI Chair)  Simplified and harmonized rules of origin: discussion of work going forward (led by Mexico)

8. Other Issues a. Emergency Response

Gaps in the region’s capacity to respond to chemical incidents have been identified. A concept paper was shared with the Task Force on Emergency Preparedness in 2007. A representative of the CD presented on this issue at the August 22-23, 2007 Senior Disaster Management Coordinators seminar in Cairns.

 Briefing on participation in the Senior Disaster Management Coordinators seminar in Cairns. (discussion led by APCIC)

9. 2008-2009 Workplan for the 7 th Chemical Dialogue

Recalling Ministers view that the Industry Dialogues can make an important contribution to the APEC Trade Agenda, the 6th Chemical Dialogue recommended that the Chemical Dialogue continue its work on GHS implementation, REACH, regulatory best practice for the chemicals sector, and address developments that have implications for the chemical industry, including regional economic integration and rules of origin.

 Economies are invited to raise for consideration other issues that could be discussed by the 7th Chemical Dialogue and included in its work plan. (led by APCIC Secretariat)  Priorities and Recommendations for the 2008-2009 CD Workplan. CDSG to agree on priorities and assignments (discussion led by CDSG-Chair)

10. Other Business  Date and venue for the 7th Chemical Dialogue (Peru)  Classification of Documents (APEC Secretariat)  APEC Secretariat Communications Team Presentation on Outreach Activities (APEC Secretariat)

4 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 chemical regulations. 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.

Extract from the MRT, July 5-6, 2007, Cairns, Australia

We also commended public-private cooperation in the industry dialogues, and in this regard….expressed concern over the negative impact of the European Commission's chemicals legislation on the chemical sector….

We took note of the concerns of the business community over possible complexities caused by the spread of RTAs/FTAs and the possibility of trade diversion. To this end we have instructed officials to examine, in close cooperation with the business sector, the scope for a rationalisation of preferential rules of origin and other relevant provisions of such agreements and to report to us when next we meet.