WTO likely to develop despite obstacles<\/p>\n
JAKARTA (JP): The World Trade Organization (WTO) will likely
\nmaterialize as an international agency despite various obstacles,
\nmost notedly the special interest groups responsible for
\nmaintaining protectionist policies, says visiting Italian
\nMinister of Foreign Trade Giorgio Bernini.<\/p>\n
\"It is true that in Europe recently many politicians have been
\ncalling for more protectionism due to the perceived economic
\nthreats from the fast-growth developing economies,\" Bernini said
\nin a seminar at the Center for Strategic and International
\nStudies (CSIS) here yesterday.<\/p>\n
\"But I do not see their ideas being adopted by the
\ngovernments,\" he said. \"Nobody wants to be left out from the
\nworld economy.\"<\/p>\n
Bernini, who arrived here Tuesday for a two-day visit, is also
\nan authority on international trade laws and comparative law. The
\nWTO is the international agency proposed to supervise the
\nimplementation of the recently completed Uruguay Round of
\nnegotiations on the General Agreement on Tariffs and Trade
\n(GATT).<\/p>\n
Bernini said that although they are still currently in legal
\nlimbo, the social and environmental clauses of the WTO will not
\nnecessarily harm the interests of developing economies.<\/p>\n
\"What is needed is concrete participation in the WTO
\nnegotiations by developing nations to ensure that these clauses
\nwill not be utilized as a form of trade harassment,\" the minister
\nadded.<\/p>\n
Bernini acknowledged that the social clauses, which include
\nprovisions on labor standards, might prove \"sensitive\" for
\nseveral developing nations, including Indonesia, which has a
\nvibrant but labor intensive economy.<\/p>\n
The official, however, said that environmental and labor
\nissues will not be able to be dismissed.<\/p>\n
He also warned that when the social and environmental clauses
\nare passed, it is the small and medium firms which will find them
\n\"most challenging.\"<\/p>\n
\"This is why tight policy coordination is required by the
\ngovernments of developing nations as well as participation in WTO
\nnegotiations,\" he said.<\/p>\n
Many developing as well as industrialized nations will have to
\nreview and re-adjust their laws once the WTO is implemented, he
\nadded.<\/p>\n
Suspect<\/p>\n
In the meantime, economist Mari Pangestu questioned whether
\nWTO will be the appropriate forum to facilitate labor and
\nenvironmental issues.<\/p>\n
\"There are reasons to suspect that the social and
\nenvironmental clauses, supposed expressions of altruism, could
\nevolve into protectionism,\" she said.<\/p>\n
\"Maybe such issues could be better addressed in other forums
\nlike the International Labor Organization (ILO) or other
\nmultilateral forums,\" she said.<\/p>\n
At the same occasion, economist Djisman Simandjuntak told The
\nJakarta Post that the most serious challenge that Indonesia will
\nsoon face, in connection with the WTO, is in the business service
\nsector.<\/p>\n
According to the Marrakesh treaty, the final resolution of the
\nGATT Uruguay Round talks, Indonesia will welcome foreign law
\nfirms, insurers and accountants to operate in the country in five
\nyears time.<\/p>\n
\"Are our lawyers, accountants and insurance companies ready to
\ncompete with their foreign counterparts who will soon be allowed
\nto operate here?,\" he said.<\/p>\n
This must be addressed not only by the government but also by
\nthe professionals' associations, he added. (hdj)<\/p>",
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"sponsor_url": "https:\/\/okusiassociates.com"
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