WTO wrangles with several contentious issues<\/p>\n
By Riyadi<\/p>\n
SINGAPORE (JP): Talks on competition policy, investment treaty
\nand textiles grew heated on the second day of the inaugural World
\nTrade Organization (WTO) ministerial conference yesterday.<\/p>\n
But talks on the Information Technology Agreement (ITA)
\nproceeded smoothly, with four major trading countries -- the
\nUnited States, Japan, Canada and European Union -- resolving
\ntheir differences.<\/p>\n
Indonesian Minister of Industry and Trade Tunky Ariwibowo
\nsaid here yesterday that trade ministers from 125 WTO member
\ncountries had made strides on competition policy.<\/p>\n
\"There are more and more countries supporting the idea of
\ngoverning level playing fields at an international level rather
\nthan at a national level,\" Tunky told reporters.<\/p>\n
Indonesia has resisted efforts by developed countries to link
\ntrade with domestic competition policy. Instead, it has urged the
\nWTO to focus on international aspects of competition.<\/p>\n
On an investment treaty, Tunky said member countries'
\npositions still varied: \"We just need to talk more about it.\"<\/p>\n
WTO information director Keith Rockwell told a press
\nconference last night that several countries were no longer
\nopposing a multilateral investment treaty.<\/p>\n
But those who could accept an investment treaty demanded it be
\nthoroughly studied by United Nations' bodies before being
\nnegotiated at the WTO.<\/p>\n
\"I make it clear here that there was not yet any consensus on
\nissues related to investment and competition policy,\" Rockwell
\nsaid.<\/p>\n
WTO trade ministers started their formal talks here yesterday
\non the contentious issues which could not be resolved by
\nofficials in Geneva. They focused on seven unresolved paragraphs
\nin the 20-paragraph draft WTO declaration.<\/p>\n
Tunky said the disputed paragraphs mostly covered new
\ncontentious issues, including the investment treaty, competition
\npolicy, government procurement, and old issues including textiles
\nand agriculture.<\/p>\n
\"We all hope we can mend our differences and finally issue a
\ndeclaration at the end of the conference on Friday,\" Tunky said.<\/p>\n
Developed and developing countries are virtually polarized
\nwhen talking about new issues. Sources indicated the United
\nStates and Canada were holding out on a clause on textiles and
\nclothing as leverage for labor, competition and investment
\nissues.<\/p>\n
Indonesian Director General of Foreign Economic Relations
\nSoemadi Brotodiningrat confirmed this, saying the two countries
\npromised to clean up their reservations on textiles and clothing
\nprovided textile exporting countries agreed on their proposed
\ncontentious issues.<\/p>\n
Developed countries, especially Japan, South Korea and those
\nof the European Union, have opposed developing countries'
\ncampaign to make the declaration more explicit on agriculture.<\/p>\n
Rockwell said countries sensitive about agriculture insisted
\nthat negotiations on it should not start before the end of 1999,
\nas mandated by the WTO agreement.<\/p>\n
Rockwell said about 40 countries had participated in the U.S.-
\ninitiated talks on ITA and had committed to an accord.<\/p>\n
He said once the ITA was agreed, it would subscribe to most
\nfavored nation principles, meaning that even those not
\nparticipating in the agreement could benefit from lower tariff
\nrates on information technology imposed by participating
\ncountries.<\/p>\n
Signals from negotiators have left little doubt that major
\ntraders are aiming for an ITA agreement this week, as indicated
\nby acting U.S. Trade Representative Charlene Barshefsky.<\/p>\n
Japan's Foreign Minister Yukihiko Ikeda told the second day
\nof the conference that he hoped \"ardently ... that we will have
\nan agreement as the most significant achievement of this
\nministerial conference in the area of trade liberalization.\"<\/p>\n
The accord would incorporate the Asian developing economies,
\nmost likely including Indonesia, which have a growing role in the
\ntrade of computers and microchips. The accord would remove all
\ntariffs in the information technology sector, which is predicted
\nto be worth US$600 billion a year by the year 2000.<\/p>\n
Secretary-General of the Indonesian Ministry of Tourism, Post
\nand Telecommunications Jonathan L. Parapak said Indonesia would
\nsurely benefit from freer trade of information technology.<\/p>\n
Related stories -- Page 4, 6, 12<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/wto-wrangles-with-several-contentious-issues-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }