APEC blueprint nearly finished

APEC blueprint nearly finished

HONG KONG (AFP): Senior officials from the 18 APEC economies ended three days of meetings here after completing "80 percent" of the work on a blueprint for an Asia-Pacific free trade zone by 2020.

But there was reason to believe that major problems still had to be overcome before a final "action agenda" can be put before foreign and economic ministers of the Asia-Pacific Economic Cooperation (APEC) forum in Osaka in November.

"We're still in a fluid drafting stage," Hiromoto Seki of Japan's foreign ministry told a press briefing after the meeting Wednesday at a luxury hotel concluded and the other delegates dashed off for a evening harbor cruise.

Seki claimed that in the opinion of the delegations, 80 percent of the work on the action agenda -- initially drafted by Japan which is this year's APEC chair -- had been completed.

"We managed to visit the entire universe of liberalization and (trade) facilitation," he said, adding that another round of talks will take place in Tokyo next month, ahead of the Osaka conference.

But he refused to say what the stumbling blocks were, or even in which sectors progress was being made, leaving observers with the impression that consensus was still a long way off.

APEC leaders agreed at their November 1994 summit in Indonesia that their region -- which represents 46 percent of world trade -- should tear down all trade impediments by 2020.

For developed economies, the deadline would be set 10 years earlier.

The action agenda would comprise customs procedures, standards and conformity, investment, dispute mediation, competition policy, government procurement, rules of origin, implementation of the Uruguay Round of world trade practices, and the easing of regional trade impediments.

But the goal of a fully comprehensive agenda for APEC members to abide by is being dashed by demands by some economies -- South Korea reportedly chief among them -- for exceptions to appease their powerful farm lobbies.

The United States meanwhile feels its scope for action is restricted because of a growing protectionist mood in Congress, a year before President Bill Clinton faces a re-election campaign, analysts say.

Seki, however, tried to play down the significance of the agriculture hurdle. "Agriculture itself is not an issue," he said. "What is an issue is the issue of comprehensive."

The ultimate goal, he said, was to come up "with something our leaders will be proud of."

APEC comprises Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan, Thailand and the United States.