Rules on Regional Economic Integration BA-FIN-GROUP-3-FINAL-REPRT PDF

RULES ON THE REGIONAL ECONOMIC INTEGRATION  Introduction Regionalism- can be described as actions by government to liberalize or facilitate trade on a regional basis, sometimes through free trade areas or customs unions. since the 1990's, the number of regional t...

RULES ON THE REGIONAL ECONOMIC INTEGRATION  Introduction Regionalism- can be described as actions by government to liberalize or facilitate trade on a regional basis, sometimes through free trade areas or customs unions. since the 1990's, the number of regional trade agreements has expanded, and the pace of concluding RTAs has quickened. As of August 31, 2020, some 505 RTAs have been notified to the GATT/WTO. Examples of RTAs among the best known are European Unions. EU- European Union EFTA- European free trade association NAFTA- North American free trade agreement MERCOSUR- Southern common Market COMESA- Common Market of eastern and southern Africa AFTA- ASEAN free trade areas  WTO’s Rules on the Regional Economic Integration The key characteristic of RTAs is that the parties to such agreements offer each other more favorable treatment in trade than they offer other trading partners. WTO members are allowed to enter into a RTA under specific conditions, which are set out following rules: 1. Article XXIV of the GATT and Related Rules The original article XXIV of the GATT, complemented by an additional article XXIV, was updated in 1994 with the uruguay Round Understanding on article XXIV of the GATT.  WTO’s Rules on the Regional Economic Integration 2. Article V of the GATS Article V of the GATS plays a role in GATS parallel to that of Article XXIV of the GATT yet differs from this. article V of the GATS provides for economic integration agreements in services. Paragraph 1 of this article set out. The 1979 decision on differential and more favorable treatment, reciprocity and fuller participation of developing countries on decision of 28 November 1979 or so called Enabling Clause allows DCs to enter into regional or global agreements that include the reduction or elimination of tariffs and NTBs on trade among themselves. This allows derogations to the MFN principle in favor of DCs.  Firstly, RTAs can often support the WTOs multilateral trading system. RTAs have allowed groups of countries to negotiate rules and commitments that go beyond the WTOs commitments. Secondly, some of these rules have paved the way for agreement in the WTO. Services, intellectual property, environmental standards, investment, and competition policies are all issues that were raised in RTAs negotiations and later developed into agreements of discussion within the framework of the WTO. Thirdly, the WTO agreements recognize that RTAs and closer economic integration can benefit countries. normally, the settings up a FTA or CU would be inconsistent with the WTOs principle of equal treatment for all trading partners (the MFN principle). Fourthly, RTAs should help trade flow more freely among the countries in the group without barriers, i.e, should complement the global trading system and not threaten it. Some of the political reasons for RTAs are as follows: In the case of European integration, through economic inyegration, the EU’s member state sought to create and were successful in creating an ever-close union among the peoples of europe to avoid the recurrence of war. RTAs can reinforce the participation of their member countries in WTO Through RTAs, a member country can maintain its competition capacity and its influences over trading partners. RTAs often also force change to several areas not fully covered by the WTO’s agreements, such as trade and the environment, labor and investment. The first evidence of regional economic integration dated back to the early sixteenth century. then, a group of cities in the Northern Europe created the Hanseatic league, aimed at the protection of their commercial interests on the basis of the principle of reciprocity. 3.1 EVOLUTION OF REGIONAL ECONOMIC INTEGRATION MODEL 1. Diversified Free Trade Agreements. The coverage and depth of preferential treatment varies from one RTA to another. Modern RTAs and not exclusively those linking the most developed economies tend to go far beyond tariff-cutting exercises. They provide for increasingly complex regulations governing inta-trade (with respect to e,g standards, safeguard provisions, and customs administration). The tendency towards FTAs is not a new phenomenon. However, their formation has been accelerating phenomenon since the 1990s. 2. Trans-Pacific Economic Strategic Partnership Agreement (TPP) Was concluded in 2005 by four pacific countries (Chile, Singapore, Brunei Darussalam and New Zealand, and called the P-4 Agreement. As March 2012, there were nine TPP countries including Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam and the United States and having ambition to conclude a next generation trade agreement. 3.2 EU LAW AND EXTERNAL TRADE RELATIONS The EU was created after the end of the World War II. The first steps were to foster economic cooperation with the philosophy according to which countries that trade with one another are economically interdependent and will thus avoid conflict. The founding fathers of this idea were Winston Churchill, Konrad Adenauer, Alcide De Gasperi, Robert Schuman and Jean Monnet. EU enlargement: EU enlarged from six to twenty-seven countries. In 1951, the european coal and steel community (ECSC) was established by six foundation member- France, Gremany, Belgium, Netherlands, Luxemboung and Italy. The first enlargement was in 1973: three new members joined - Denmark,Ireland, and the UK. The second enlargement was in 1981, adding one new member - Greece.  The third enlargement was in 1986, adding two members Spain and Portugal. The fourth enlargement was in 1995, adding three members - Austria, Finland and Sweden. The fifth enlargement was in 2004, adding ten members Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. The sixth enlargement was in 2007, adding two members - Bulgaria and Romania. Besides, candidate countries are now Croatia, Former Yugoslav Republic of Macedonia, Turkey, Iceland, and Montenegro Further, after that, EU set a criteria set for a country to join the EU Democracy and rule of law; Functioning market economy; and Ability to implement EU laws EU Institutions a. The European Council It is the Summit of the heads of state and government of all EU countries. It is the major body of the EU, including the governments of 27 EU countries, yet is not an EU institution. b.The European Parliament The European Parliament is one of the EU's main law-making institutions, and decides EU laws and budget together with the Council of Ministers, and supervises all of the EU's work. c. The Council of Ministers (The Council of the EU) The voice of the member states. It is the supreme decision-making body of the EU. Member states are usually represented by foreign affairs ministers or ministers responsible for the subject under discussion. The Council of Ministers - Number of votes per country (2010) Germany, France, Italy and the UK............................................................29 Spain and Poland...........................................................................................27 Romania..........................................................................................................14 Netherlands.....................................................................................................13 Belgium, Czech Republic, Greece, Hungary and Portugal.........................12 Austria, Bulgaria and Sweden......................................................................10 Denmark, Ireland, Lithuania, Slovakia and Finland....................................7 Estonia, Cyprus, Latvia, Luxembourg and Slovenia...................................4 Malta...................................................................................................................3 Total: 345 d. The European Commission - Promoting the common interest The European Commission comprises 27 independent members who have commissioners, one from each EU country. The European Commission is the EU's executive body and has competence to propose new legislation. Concurrently, it is the 'guardian of the treaties. e. Court of Justice of the European Union The 'Court of Justice of the EU' is the common judicial institution of the EU and of the European Atomic Energy Community (EURATOM), including three courts, namely Before entry into force of the Lisbon Treaty on 1 December 2009, this was known as the 'Court of First Instance' (CFI). EU Law Structure: Three Pillars The EU law structure is based on three pillars: 1. The first pillar is the law concerning economic and social rights. This is found in the Treaty of the European Communities, signed at Rome in 1957 (hereinafter the 'TEC') and subsequently amended by other Treaties concluded between the member states. 2. The second pillar concerning the EU Common Foreign and Security Policy (CFSP') was established under the Treaty of the European Union, signed at Maastricht in 1992 (hereinafter the "TEU"). 3. The third pillar concerning Police and Judicial Cooperation in Criminal Matters (formerly Justice and Home Affairs'), was established under the TEU". All three pillars constitute the 'European Union Law' (the 'EU Law'). Sources of the EU Law Legislation The EU legislation is divided into 'primary' and 'secondary legislation. The treaties (primary legislation) are the basis or ground rules for all EU action. Secondary legislation, which includes regulations, directives, decisions, and others, are derived from the principles and objectives set out in the freaties. Primary legislation (Treaties) The primary legislation, or treaties, are effectively the constitutional law of the EU. Governments from all EU member states acting in consensus. Treaty establishing the European Coal and Steel Community (ECSC), signed at Paris in 1951, entered into force in 1952. The treaties establishing the European Economic Community (EEC) -known as the 'TEC', and the European Atomic Energy Community ('EURATOM'), The Single European Act 1986: The purpose of this Act was to reform the institutions in preparation for Portugal's and Spain's memberships at that moment and speed up decision- making in preparation for the single market. The Treaty on European Union signed at Maastricht on 29 July 1992, called the TEU" or the Maastricht Treaty, entered into force on 1 January 1993. The Treaty of Amsterdam amending the Treaty on European Union, the Treaty establishing the European Community and certain related Acts, signed at Amsterdam on 10 November 1997, entered into force on 1999, The Treaty of Nice amending the Treaty on European Union, the Treaty establishing the European Community and certain related Acts, signed at Nice on 10 March 2001, entered into force on 2003. The Treaty of Lisbon amending the Treaty on European Union and the Treaty establishing the European Community, signed at Lisbon on 13 December 2007, entered into force on 1 December 2009. The Treaty of Lisbon amends the EU's two core treaties the Treaty on European Union (the "TEU") and the Treaty establishing the European Community. Secondary Legistation The Secondary Legistation of the EU sets out how the objective expressed in the treaties (primary legistation) are to be accomplished. REGULATION - issued by the European Commission with the Council’s approval is binding legislative act. It must be applied in its entirety across the EU. Is directly applicable to member states, no needs for national legistation. DECISION - issued by the Court of Justice or European Commission is binding upon those to whom it is addressed. RECOMMENDATION - is not binding. Allows EU institutions to make their views and to suggest a line of action without imposing any legal obligation on those to whom it is addressed. OPINION - is not binding. It may be issued by the main EU institutions such as (European Commission, the European Council or the European Parliament), the Committee of the Regions and the European Economic and Social Committee. Supremacy of the EU law In the event of a divergence between the EU law and the national law of a member state, it is the EU law that prevails. The EU law is superior to national laws in many areas, especially in terms of economic and social policy, and even to member states constitutions. Direct Effect of the EU Law The principle of the "direct effect of the community law' in the member states was started from Van Gend en Loos v. Nederlanse Administratie der Belastingen. which now enables European citizens to rely directly on rules of the EU law before their national courts. There are two categories of "direct effect': 'horizontal" and "vertical" VERTICAL HORIZONTAL The Horizontal" direct effect: Some EU acts, such as treaties and regulations. have 'horizontal' direct effect, i.e., member states do not have to 'transpose' for 'integrate') a treaty or a regulation into national law, and citizens may sue one another on the basis of this act. The 'Vertical direct effect: Different from treaties or regulations, directives have 'vertical' direct effect. Directives allow member states to make some choice of how they 'transpose' a directive into national law. Usually, this is done by passing one or more legislative acts, such as in the UK an 'Act of Parliament' or 'statutory instrument'. OBJECTIVE OF EU EXTERNAL TRADE RELATIONS OR TRADE POLICY a. Two main objectives of the EU Trade Policy Firstly, lower barriers to the EU export and EU investment through negotiations and, where necessary, dispute settlements; Secondly, improve conditions for third country operators importing into the EU (especially DCs). b. Other objectives No longer use merely tariffs, but also other barriers in external trade relations, such as product standards, licensing practices, domestic taxes, government procurement, and IPRs.. Strengthening political dialogues on the IP issues. New issues of the EU trade policy are relationships between trade and environment, trade and labor rights, and trade and human rights. 3.3 DIMENSION OF THE EU TRADE POLICY a. Multilateral dimension Concerning external action, the EU maintains its commitment to multilateralism, which offers the means to eliminate trade barriers. b. Bilateral dimension As well as multilateralism, the EU must also endeavor to promote faster and more comprehensive trade liberalization within the framework of its bilateral trade relations. c. Unilateral dimension The EU continues its policy of granting Generalized System of Preferences (GSP) to DCs, while adding conditionality's of human rights and good governance.The import of the products covered by this Regulation are not subject to any quantitative restricts or but subject to possible safeguard measures.  3.4 REGULTIONS ON THE EU INTERNAL MARKET A. INTERNAL MARKET - GENERAL FRAMEWORK The 'single or 'internal' market, defined by reference to the 'four freedoms', lies at the very heart of the European Community with policies on the free movement of goods, people, services and capital destined to ensure an ever closer economic, monetary and political union. Internal market characterized by the abolition as between member states of obstacles to the free movement of goods, persons, services and capital ('the four freedoms') B. REGULATION ON ‘ FOUR FUNDAMENTAL FREEDOMS’ 1. Single Market for Goods - Free Movement of Goods a. Overview The free movement of goods, with the objective of ensuring trade within the EU, is most important in the internal market. b. Free movement of goods and Common Agricultural Policy The Common Agricultural Policy (hereinafter the 'CAP') is governed under Title II of the TEC. There are two main objectives of the CAP: Firstly, helping European farmers to be competitive; and secondly, promoting development in rural areas, particularly the least-favored regions. Free Movement of Workers Thanks to the abolition of border controls between EU countries, it is now possible for people to travel freely within most of the EU. Free Movement of Capital The Single Eurropean Act 1986 was dcisive step forward for the free movement of capital. Adoption on june 24 1988 of the Directive. Single Market for Services- Freedom to provide Service and Freedom of Establishment C. Regulations on other field The Social Chapter refers to those parts of the TEC that deal with the equal treatment of men and women under Article 141 of the TEC and the regulation of working time under the Working Time Directive.  EU Competition Law Nat’s court initiative: Court of 1. Reference preliminary Nat’s court initiative: Justice EU ruling 1. Request information CJEU interprets EU competiton 2. Request opinion law with final authority 3. stay proceedings 4. Permissions oral intervention Commission Initiative: National Courts Not is Stt aid litigation 1. Written or Oral Intervention Nat’t court initiative: 1. Permissio oral intevention NCA initiatve National European 1. Written or oral competition interention Commision authorities Four main competition policy areas: Firstly, cartels, of control of collusioner other anti-competitive practices with an effect on the EU. This is covered under Article 81 of the TEC - Article 101 of the TFEU. Secondly, monopolies, or preventing the abuse of firms dominant market positions. This is governed by Article 82 of the TEC - Article of the 102 TFEU. Thirdly, mergers, control of proposed mergers, acquisitions and joint ventures involving companies with the certain, defined amount of turn over in the EU/EEA. This is governed by the Council Regulation 139/2004 EC (the Merge Regulation). Fourthly, state said, control of direct and indirect aid given by EU member states to companies. Monetary Policy Economic and Monetary Union (hereinafter the ‘EMU’) as provide for in Title VII of the TEC, involves the close coordination of economic policies of the member states at the EU level and requires member states to avoid excessive budget deficits (Stability and Growth Pact). D. Strategies of Legal Integration Firstly, the unification of laws in creating a community law that would be uniformly applied to certain economic and trade areas. Secondly, the harmonization of member states laws. This strategy is politically easier for member states to accept, applying to areas such as labor law, and internal taxation (Article 114 (1) of the TFEU - Article 95 (1) of the TEC. Thirdly, the mutual recognition of the standards, such as product standards, training awards etc. This mutual recognition guarantees the free movement of goods and services without the need to harmonize member states national legislation. 3.5 NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA) The North American Free Trade Agreement or NAFTA, is a free trade agreement between Canada, Mexico, and the US. With a combined GDP of 17.6 trillion USD in 2010, the NAFTA is the largest free trade area in the world. The NAFTA is an important model for modern Free Trade Agreements (FTAs) because of the high level of liberalization embodied in the final text. The NAFTA eliminates or imposes strict rules on a range of barriers to trade and investment. Key elements of the Agreement include. 1. Opening of government purchasing regimes to businesses in all three countries; 2. Eliminating restrictions on foreign investment (except in a limited number of restricted sectors listed by each party) and ensures non-discriminatory treatment for local companies owned by investors in other NAFTA countries; 3. Eliminating barriers that prevent services companies from operating across North American borders, including in such key sectors as financial services; 4. Provides comprehensive rules to protect intellectual property rights 5. Provides three distinct dispute settlement mechanisms for state-to-state dispute, investor-state disputes, and disputes on antidumping measures and countervailing duties.  Since the NAFTA was negotiated, the US has negotiated FTAs with 18 countries, including several countries in Central America and Middle East, as well as with Singapore and Korea in Asia. In 2012, the US and the Philippines were in the process of negotiating the TPP FTA seven other Asia Pacific countries. One of the sensitive and complex tariff issues was the elimination of tariffs on sugar and related sweeteners traded between the US and Mexico. After the NAFTA was implemented, Mexico tried to limit imports of a sugar like product from the US. The product is ‘High Fructose Corn Sweetener’ (herein after the HFCS), a sweetener made from refined corn or maize. The elimination of tariffs on automobiles and auto parts in NAFTA increased the regional integration and competitiveness of the automotive industry in North America with annual production of more than 12 million vehicles per year.  Types of Reservation: NT (Article 1202) MFN (Article 1203); and Local Presence (Article 1205) Using the above, only Mexican nationals by birth may serve as: a. Captains, Pilot, Ship masters, Machinists, Mechanics and Crew members manning vessels or Aircraft under the Mexican Flag b. Harbour pilots, Harbor masters and Airport administration; and c. Customs brokers Cross-Border Service Providers and Immigration Laws In the GATS, the negotiators established four modes of supplying services, with Mode 4 being the provision of services by natural persons who are present in the territory of the other Party.  Under Article 1110, a NAFTA government may not expropriate an investment made by an investor from other NAFTA countries other than for a public purpose, one non- discriminatory basis and in accordance with due process of law. In Article 1122 of the NAFTA, the three NAFTA governments provide their consent to arbitration. This consent ensures that the host country of the investment cannot frustrate an attempt at arbitration by withholding its own consent. In Thunderbird v. Mexico, a Canadian investor requested a license to operate gaming facilities using electronic gaming machines. The lawyer for Thunderbird wrote to the Mexican gambling regulator, requesting a legal opinion letter stating it was legal for Thunderbird to provide gaming services to customers using these machines.  During the arbitration proceeding, the Mexico submitted evidence that proved the machines used by Thunderbird were in fact based upon luck or chance because the machines contained computers that used a random number generator system to determine the outcome of the game. The legal obligations under the NAFTA are ‘WTO-plus’ because they contain commitments on liberation that are in addition to the commitments made by NAFTA members in the WTO. Since the NAFTA entered into force in 1994 there have only been three disputes to result in arbitral reports under Article 20: A 1995 case on Canadian tariffs applied to certain US agricultural products; a 1997 case involving US safeguard tariffs on brooms; and a 1998 case involving the US failure to open its market for cross-border trucking services.  The NAFTA has successfully liberalized trade and investment among Canada, Mexico and the US. While the Agreement has increased trade and enhanced the economic integration of the three countries, the implementation process has not always been easy. 3.6 RULES ON ASEAN’s ECONOMIC INTEGRATION Single Market and Competitive Economic Production Base Region Equitable Economic Fully Integrated Region Development in the Global Economy  At the Fourth ASEAN Summit on 28 January 1992, ASEAN member countries adopted the Framework Agreement on Enhancing Economic Cooperation to develop a legal framework for economic integration in trade, industry, minerals, energy, finance, banking, food, agriculture, forestry, transportation, and communication. Single Market and Competitive Production Base Economic Region 4 pillars of the ASEAN ECONOMIC COMMUNITY Equitable Integration in Economic Globalized Development Economy  Firstly, the Inclusions List (hereinafter the ‘IL’) refers to products on which ASEAN countries are ready to commit to eliminate import duties, quantitative restrictions and other NTBs. The scheduled of ASEAN-6 countries. Secondly, ASEAN Protocol regarding the Implementation of the CEPT Scheme Temporary Exclusion List TEL signed on 23 November 2000 allows a member state to temporarily delay the transfer of a product from its TEL into the IL or to temporarily suspend its concession on a product already transferred into the ‘IL’. Thirdly, list is the Sensitive and Highly Sensitive List (hereinafter the ‘SL’). On 30 September 1999, ASEAN countries signed the Protocol on the Special Arrangement for Sensitive and Highly Sensitive Products. Lastly, ASEAN member states may permanently exclude some products by listing them under the General Exception List (hereinafter the ‘GEL’) to protect national security, public morals, human, animal or plant life and health and articles of artistic, historic and archaeological value.  The Four Pillars of AEC Vision 2020 SINGLE MARKET and PRODUCTION COMPETITIVE ECONOMIC REGION free flow of products competition policy free flow of services consumer protection free flow of investments intellectual property rights free flow of skilled labour infrastructure development free flow of capital priority integration in food, taxation agriculture and forestry e-commerce sectors  EQUITABLE ECONOMIC DEVELOPMENT INTEGRATION TO GLOBAL ECONOMY SME development coherent approach regarding external narrow development gap between economic relations members and accelerate integration enhanced participation in global supply of Cambodia, Laos, Myanmar and networks Vietnam One Vision One Identity One Community ASEAN Economic Community The Main objectives of the AFAS are: a. To enhance cooperation in services amongst member states in order to improve their efficiency and competitiveness, diversify production capacity and the supply and distribution of the services of their service suppliers within and outside ASEAN; b. To eliminate substantially restrictions to trade in services amongst member states; and c. To liberalize trade in services by expanding the depth and scope of liberalization beyond those undertaken by member states under the GATS with the aim to realising a free trade area in services. Since 1996, ASEAN has concluded eight packages of services commitments as follows: Protocol to Implement the Initial Package of Commitments under AFAS signed on 15 December 1997; Protocol to Implement the Second Package of Commitments under AFAS signed on 16 December 1998; Protocol to Implement the Third Package of Commitments under AFAS signed on 31 December 2001; Protocol to Implement the Fourth Package of Commitments under AFAS 2004; signed on 3 September Protocol to Implement the Fifth Package of Commitments under AFAS signed on 8 December 2006; Protocol to Implement the Sixth Package of Commitments under AFAS signed on 19 November 2007; Protocol to Implement the Seventh Package of Commitments under AFAS signed on 26 February 2009; Protocol to Implement the Eighth Package of Commitments under the ASEAN Framework Agreement on Services signed on 28 October 2010. These commitments cover the liberalization of a wide range of service sectors, including business services, professional services, construction, distribution, education, environmental services, healthcare, maritime transport, telecommunications, and tourism.  The AEC Structure Free Flow of Goods Free Flow of Services Competition Policy Free Flow of Investemt Consumer Single Market Competitive Free Flow of Capital Protectiom Free Flow of Skilled and Production Economic Region IPR, Taxation Labour Base e-Commerce PIS and Food, Agri and Infrastructure Forestry Equiptable Linkages with Economic Global Economy SME Development Development FTAs Initiative fo ASEAN Global Supply INtegration Network Trade and economic ties between ASEAN and China have been growing rapidly over the past years. The ASEAN-China Free Trade Area (hereinafter the 'ACFTA') negotiations were formally launched in 2001. The parties undertake to: Progressively liberalize tariffs from the entry into force of the Agreement and eliminate tariffs on at least 90 per cent of all their tariff lines within specific time frames; Progressively liberalize barriers to trade in services and allow for greater market access for the other Parties' service suppliers, Facilitate the movement of natural persons for those engaged in trade and investment activities in the region; Accord protection to covered investments; and Facilitate the movement of goods by implementing specific provisions on rules of origin; customs procedures; sanitary and phyto-sanitary measures, and technical barriers to trade and conformity assessment procedures. 3.6.1 APEC's Operation Objectives and Principles Asia-Pacific Economic Cooperation Forum (hereinafter the 'APEC') was established in November 1989 in Canberra (Australia) with a view to boosting economic growth and prosperity in the region and concurrently tightening relationships within the Asian-Pacific Community as well as meeting the globalization trend in the world economic-trade life. Fundamental Principles of APEC's Operation Comprehensiveness: Liberalization and facilitation in all fields; GATT/WTO consistency: Comparability asisten members in trade and investment liberalization and lacilitation; Non-discrimination: Applicable not only to APEC members but also to nor member economies; Transparency: Making transparent all current policies and regulations applicable to APEC members; Standstill: Reducing only but not increasing the protection level; Simultaneous start, continuous process and differentiated timetables Flexibility, because the APEC members' economic development levels differ; Technical cooperation. Fundamental Characteristics of the APEC The APEC is a dialogue forum, but not a negotiation forum. The commitments within the APEC are generally not as closely binding as within the ASEAN and WTO; APEC closely associates its commitments with realization of the commitments within the WTO framework in the direction of deeper and sooner realization within APEC framework; Always associating the APEC's activities with the world's major political events on the basis of friendship and cooperation. 1. Tariff and Non-Tariff Barriers Issues Philippine's APEC commitments are to reduce tariffs and make transparent tariff policies in the long term, gradually eliminate NTBs that obstruct international trade in compliance with its commitments within ASEAN and the WTO. 2. Customs Issues Philippines, together with other members, has implemented the Action Plan on Trad Trade Facilitation for reducing transaction expenses within APEC region. Philippines has also joined the Initiative on 'One-Stop customs aiming at facilitating trade and investment. 3. Trade in services Philippines committed to continuosly rduce restriction and to open the market of trade in services and apply MFN and NT. 4. Standards and Harmonization Philippines gradually included standards prioritized such that they are harmonized within APEC in its standard formulation plan, many standards of which have been accepted as Philippine national standards. 5. Cooperation in the Future The Philippines continues to cooperate with APEC member states towards reaching the objective described in Bogor's Conference on free and open trade and investment by 2020 and improving the business environment for enterprises through. the following activities. Thankyou for Listening!!!