RI drags feet on IT pact<\/p>\n
By Riyadi<\/p>\n
SINGAPORE (JP): Indonesia supports the U.S.-initiated
\nInformation Technology Agreement (ITA) but is not prepared to
\nsign it this week, Minister of Industry and Trade Tunky Ariwibowo
\nsaid here yesterday.<\/p>\n
Tunky said Indonesia also supported proposals that the World
\nTrade Organization (WTO) or any other institution study new
\nissues, particularly on an investment treaty, competition policy,
\ngovernment procurements and antidumping.<\/p>\n
During a press conference at the WTO ministerial conference,
\nTunky predicted the ITA would not be signed here this week, but
\nin Geneva after all countries felt comfortable with it.<\/p>\n
\"The signing of the agreement is something that nobody expects
\nto take place in Singapore. What we are trying to do is get a
\ncommon understanding on the United States' initiative on ITA and
\nthe proper wording of the declaration,\" Tunky said.<\/p>\n
Tunky met acting U.S. Trade Representative Charlene Barshefsky
\nyesterday to discuss mostly bilateral issues. They also talked
\nabout the ITA.<\/p>\n
They exchanged views on Indonesia's car policy, which the
\nU.S., Japan and the European Union have taken to the WTO's
\ndispute settlement body: But no progress has been made.<\/p>\n
Tunky said Indonesia had no problem with the ITA, which had a
\nproduct coverage in line with Indonesia's tariff reduction
\nschedule, except on about 25 percent of the tariff lines for
\ninformation technology products.<\/p>\n
\"So, we just need more time to cut the tariffs on the 25
\npercent of our information technology products down to zero
\npercent,\" Tunky said. The products concerned are mostly
\ndownstream electronics.<\/p>\n
The information technology industry is considered to be the
\nfastest growing industry in the world with exports worth more
\nthan US$595 billion for 1995.<\/p>\n
The leading exporters of information technology products are
\nJapan which exported $106 billion worth in 1995, United States
\n$97.99 billion, European Union $57.07 billion, Singapore $41.27
\nbillion, South Korea $33.22 billion, Malaysia $32.84 billion,
\nTaiwan $28.71 billion and China $14.5 billion.<\/p>\n
Leading importers of information technology include the United
\nStates which imported $139.93 billion worth in 1995, European
\nUnion $104.84 billion, Japan $37.68 billion, Singapore $24.72
\nbillion, Malaysia $22.22 billion, Canada $19.81 billion and
\nTaiwan $16.53 billion.<\/p>\n
The United States, suffering large information-technology
\ntrade deficits, has insisted the WTO must reach an ITA agreement
\nthis week.<\/p>\n
Conference sources said the United States, the European Union,
\nJapan and Canada had been working on a draft framework for ITA
\nwhich would scrap tariffs on information technology products by
\nthe year 2000.<\/p>\n
European Commission spokesman Peter Guildford said there was
\nno agreement on ITA although some common ground had been
\nidentified.<\/p>\n
An Indonesian negotiator said the United States had threatened
\nnot to sign the now-debated declaration if delegations from
\ndeveloping countries did not agree with its proposed core labor
\nstandards.<\/p>\n
Tunky said he and other delegation heads had wanted the
\nSingapore meeting to produce a declaration to guide the direction
\nof the WTO.<\/p>\n
He said all countries had agreed upon most of the draft
\ndeclaration's paragraphs, while other paragraphs needed
\nrephrasing, mostly those on labor standards, investment,
\ncompetition policy and government procurement.<\/p>\n
When asked about labor standards, Tunky said: \"I admit it is
\nnot an easy subject. And as far as Indonesia is concerned, it is
\na politically sensitive issue.\"<\/p>\n
On the new issues wrangled at the Singapore meeting, Tunky
\nsaid Indonesia had joined forces with other countries to support
\nproposals that the WTO or any other institution study them.<\/p>\n
\"We commit ourselves to the proposed studies on government
\nprocurement, investment and competition policy. However, we do
\nnot want those studies to prejudice further negotiations at the
\nWTO... Education is one thing, and negotiation is another,\" Tunky
\nsaid.<\/p>\n
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