INTERNATIONAL COUNCIL OF CHEMICAL ASSOCIATIONS

June 2001

The International Council of Chemical Associations (ICCA) is an organization of leading trade associations representing almost 80% of chemical manufacturers worldwide. World chemical industry production exceeds US$1.7 trillion annually, and nearly one-third of this production is traded internationally.

Introduction

World trade in chemicals has expanded dramatically as trade barriers have been reduced. To ensure free and fair trade worldwide, the ICCA supports the multilateral rules-based system of the World Trade Organization. The ICCA is in favor of a strong and broad-based WTO that encompasses all trading nations.

ICCA believes that expanding the WTO membership is important for all WTO members. First, accession improves market access to and from acceding countries and extends trade liberalization. Second, accession ensures that problematic trading practices in acceding countries will be brought into conformity with WTO rules, thereby setting the stage for further expansion in trade and investment. Third, accessions provide a common framework for resolving trade disputes that benefits both WTO members and acceding countries.

ICCA believes that uniform implementation by all WTO members of all WTO commitments is essential for the integrity of the WTO system. ICCA, however, does not want implementation to be a deterrent to the expansion of WTO membership. Therefore, ICCA urges that acceding nations be given appropriate transition periods to achieve WTO commitments and that longer phasing, rather than exemptions from obligations and responsibilities, be used to ensure full implementation.

There are currently about 30 countries that are seeking accession to the WTO. Of these, China, Russia, and Saudi Arabia are of particular interest to ICCA due to the significant size of their chemical industries and their impact on global trade in chemicals. ICCA members are prepared to work with their respective governments and with the applicants’ authorities address implementation issues that are relevant to the chemical industry.

The ICCA welcomes all efforts to join the WTO and believes that applicants should accept the following accession conditions.

1. All acceding nations should adopt all the Agreements and principles required for entry into the World Trade Organization as negotiated in the Uruguay Round, including most-favored nation, national treatment, and transparency. ICCA is particularly concerned about early implementation of the TRIPs Agreement.
   
2. Accession agreements should contain reasonable transition periods, with specific measurements that will objectively reflect performance towards accession goals and a mechanism to permit and encourage acceleration. With this consideration, all acceding nations with a viable chemical industry, or the potential to create such an industry, should sign the Chemical Tariffs Harmonization Agreement, in its most current form.
   
3. Non-tariff measures (NTMs) can represent a significant barrier to access. ICCA members will undertake to identify specific key NTMs to the national governments of each country seeking accession. Examples of key NTMs in the chemical sector that should be addressed during accession are: (1) trigger price mechanisms (required minimum pricing); (2) import/export licensing; (3) significant differences in customs and other border measures; and (4) lack of certification/testing standardization and harmonization.
   
4. All acceding nations should take steps to adopt and enforce laws that protect foreign direct investment, with special emphasis on the principles of national treatment, transparency, non-discrimination and the right of establishment.
   
5. All acceding nations should take steps to adopt and enforce laws limiting the use of subsidies in accordance with the WTO subsidies code and eliminate the use of instruments that promote unfair trade practices.
   
6. Anti-dumping legislation of acceding nations should be implemented, interpreted and enforced in conformity with WTO rules and should not be used for protectionist purposes.

The ICCA strongly supports sustainable development and is convinced that liberalized trade and effective environmental protection are, or need to be made, mutually supportive. It is our firm belief that the liberalized trade can be a key contributor to sustainable development.

The Responsible Care® initiative, adopted by the chemical industries of 46 countries, is the chemical industry’s commitment to continual improvement in all aspects of health, safety and environmental performance and to openness about its activities, achievements, plans and targets.

ICCA considers Responsible Care® to be compatible with sustainable development and urges all current and future members of the WTO to adopt and practice codes of management practices that are consistent with the Responsible Care®.

For an electronic version of this and other ICCA positions on trade, please visit the ICCA web site at www.icca-chem.org