Time for APEC to shake its lethargy<\/p>\n
Lee Kim Chew, The Straits Times, Asia News Network, Singapore<\/p>\n
Leaders of the Asia-Pacific Economic Cooperation (APEC) forum
\nmeeting in Shanghai on Sunday will grapple with economic revival
\nand global action against terrorism, and the signs are that they
\nwill deliver.<\/p>\n
In promises, at least.<\/p>\n
But where action is concerned, it can be a different story.
\nThe unique thing about APEC is that the commitments of this 21-
\nmember economic fraternity are voluntary and non-binding, despite
\nendless discussions on critical issues.<\/p>\n
This is why APEC economies tend to tarry and have moved at
\ntheir own pace to remove barriers after agreeing in 1994 to make
\nthe Pacific Rim a free-trade area -- by 2010 for developed
\neconomies and 2020 for developing economies.<\/p>\n
But now, faced with the growing threat of a world recession
\namid America's war in Afghanistan, APEC leaders have some hard
\ndecisions to make.<\/p>\n
The ASEAN countries, in particular, are under strong pressure
\nto rev up the pace of reforms and liberalization to woo back
\ncapital and compete with a fast-growing, fast-learning China.<\/p>\n
Although APEC has set dates for its free-trade goals, it still
\nneeds a collective action plan to move resolutely towards them.
\nChina is working on a Shanghai Accord to achieve this.<\/p>\n
Real resolution at last? Maybe.<\/p>\n
It will not be easy. Take the travails of the ASEAN Free Trade
\nArea (AFTA), for example. Differences among ASEAN members remain
\nunresolved since Malaysia extended protection for its automotive
\nindustry after the 1997 Asian financial crisis.<\/p>\n
Because APEC had moved at snail's pace, its lethargy, plus
\nfears of backsliding in AFTA, drove Singapore to look for
\npartners in bilateral free-trade pacts to speed up the pace of
\nliberalization.<\/p>\n
APEC business leaders want measures to boost trade and
\ninvestments. But liberalization has been patchy and painfully
\nslow, especially in regulated industries such as civil aviation,
\ntelecommunications and banking.<\/p>\n
New Zealand's move to re-nationalize its ailing flag carrier
\ninstead of allowing Singapore Airlines to raise its equity stake
\nshows that national interests, however perceived, take precedence
\nover commercial sense.<\/p>\n
Liberalization? Yes, but up to a point. Thus, some areas, like
\nopen skies for commercial airlines, will take considerable hard
\nbargaining and time to implement.<\/p>\n
But trade facilitation, like harmonizing Customs procedures
\nand setting common industrial standards in APEC economies, may be
\neasier to implement.<\/p>\n
Still, there are problems, such as the lack of Internet access
\nfor small and medium-sized enterprises which want to get online
\nto do e-commerce.<\/p>\n
Vietnam, for example, has to liberalize its regulatory
\nframework and improve its telecommunications infrastructure to do
\nthis.<\/p>\n
But as critics point out, many ideas have failed to get off
\nthe ground for want of funds or political will, if not
\nconflicting national priorities.<\/p>\n
The APEC Business Advisory Council wants APEC leaders to
\n\"instill a sense of urgency and commitment\" to transform the
\nPacific Rim into a free-trade area.<\/p>\n
It said: \"APEC's credibility is at stake, unless it can
\ndemonstrate political will and decisively translate commitments
\ninto concrete actions to achieve the Bogor Goals of trade and
\ninvestment liberalization and facilitation.\"<\/p>\n
Will the Shanghai summit get things moving to make a
\ndifference?<\/p>\n
Much depends on APEC host China. Driven by its desire to open
\nup and integrate with the global economy, China can play a
\ncritical role on the eve of its entry into the World Trade
\nOrganization (WTO) by prodding APEC to move in the right
\ndirection.<\/p>\n
But it is American leadership, above all, which is vital,
\nparticularly in pushing for new trade negotiations in the WTO.
\nAPEC's commitment to free trade by supporting a new WTO round
\nwill keep the liberalization process going.<\/p>\n
In APEC, only the United States has the leverage to get the
\nEuropean Union (EU) to decouple agriculture from the environment,
\na linkage that could torpedo the new WTO round.<\/p>\n
Decoupling them will help to overcome the resistance from
\nMalaysia and Indonesia, which fear that rich countries will use
\nthe new round to create rules on competition, labour and
\nenvironmental standards to block cheap imports from developing
\ncountries.<\/p>\n
The WTO has prepared a blueprint for a new global round to
\nrebuild confidence after the Sept. 11 terrorist attacks.<\/p>\n
It entails the United States, EU and Japan making concessions
\nand opening up their markets for textile, steel and agriculture.<\/p>\n
This is a tough call, but it is in America's interest to keep
\nthe global trading system open.<\/p>\n
Adrift since the conclusion of the Uruguay Round in 1994, the
\nWTO is badly in need of another boost to keep free trade from
\nstalling.<\/p>\n
Notwithstanding the reservations of some APEC members, it is
\nbetter to get a new WTO round started, as this will make it
\nharder for protectionism to creep into the world trading system.<\/p>\n
The danger should not be underestimated at a time when the
\nUnited States has a ballooning annual trade deficit approaching
\nUS$400 billion (S$731.6 billion).<\/p>\n
The delay since 1999 in launching a new WTO round has already
\nslowed regional economic cooperation, like the stalling in AFTA.
\nAll this should snap APEC out of its complacency.<\/p>\n
APEC's emerging economies will be better off riding on the new
\nmood in the U.S. Congress, which is now amenable to giving
\nPresident George W. Bush fast-track authority to negotiate trade
\npacts as he builds an international coalition against terrorism.<\/p>\n
They are highly dependent on exports to the United States for
\ntheir growth. It is not enough just to wait for massive pump
\npriming and the return of consumer confidence to revive the
\nAmerican economy.<\/p>\n
A new global round that liberalizes trade and investment, and
\nAPEC's open regionalism, are safe long-term bets to promote
\neconomic growth.<\/p>\n
Bush's presence in Shanghai will be crucial to the summit's
\nsuccess. To be sure, he will use the summit to garner support for
\nAmerica's war against terrorism.<\/p>\n
He wants cooperation to track and freeze assets linked to the
\nAl-Qaeda network of Osama bin Laden, the Saudi-born dissident
\nbehind the terrorist attacks.<\/p>\n
He needs international support to break up terrorist networks.
\nHis meetings with other APEC leaders, notably China's President
\nJiang Zemin, on the sidelines of the summit will be crucial.<\/p>\n
With the anti-terrorist front, Russia's President Vladimir
\nPutin forged a new relationship with NATO and the United States.
\nSimilarly, the Jiang-Bush meeting could put Sino-U.S. relations
\non a better footing.<\/p>\n
APEC leaders will be taking a common stand against terrorism.
\nThis, plus the Shanghai Accord on economic liberalization, will
\nbe the summit's highlights.<\/p>\n
So will APEC pick up speed again?<\/p>\n
One can only hope.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/time-for-apec-to-shake-its-lethargy-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }