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72007/TPT-WG29/MEG/003_v2

Policy Item 4: Cargo Preference

APEC member economies undertake:

To endeavour to refrain from the introduction of any new cargo preference measures in the commercial market.

To develop a timetable for the removal of any general existing cargo preference measures in the commercial market.

Most of the member economies have no cargo preference measures.  

Chile has a cargo reservation between Chile and Brazil for vessels flying the Chilean and Brazilian flags.  

China also has cargo preference arrangement bilaterally with Algeria, Bangladesh, Brazil and Zaire. However China is planning to have bilateral consultations to remove these cargo preferences because the arrangement has never been implemented.  

Indonesia has a cargo preference measures but only for cargo purchased with state funds and not to be resold commercially.

The U.S has cargo preference measures for the movement of government-generated cargo and Alaska North Slope oil for U.S flag vessels.

Policy Item 5: Restrictions Applying to Specific Trades

APEC member economies undertake:

To refrain from introducing any new laws or regulations that would have the effect of limiting competition in the carriage of goods between two economies to the shipping lines of those two economies.

To develop a timetable for the elimination of any laws or regulations that have such an effect.

To strive actively to reduce and ultimately eliminate restrictions of the carriage of goods between two economies that arise from agreements, limitations, or bans implemented by private sector participants, including both companies and unions.

Most of the member economies have no restrictions limiting competition in international shipping services except for transportation between Chile and Brazil mentioned earlier, export of Alaska North Slope (ANS) oil from the U.S, and government procurement of the Philippines.  

In Mexico, the Secretary of Communications and Transports may reserve, totally or partially, a certain international high seas freight transportation, so that it may exclusively be provided by Mexican shipping companies using with Mexican vessels, when the principles of free competition are not respected and the nation’s economy is affected.

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