APEC Bogor declaration was 'Soeharto's vision'

JAKARTA (JP): The United States refuted suggestions of self interest in pushing for a trade liberalization deadline among the Asia Pacific Economic Cooperation (APEC) members, referring instead to President Soeharto as the author of the deed.

"This was not an initiative of the United States. It was an initiative of President Soeharto," said U.S. Under Secretary of State for Economic, Business and Agricultural Affairs Joan E. Spero yesterday.

Speaking from Washington through a Worldnet Dialogue broadcast, Spero defended her argument saying that despite being a strong proponent of the idea, it was Indonesia, and not the U.S., which put forth the deadline.

APEC's economic leaders on Nov. 15 met at Bogor Presidential Palace in West Java and committed themselves to comprehensive trade liberalization by 2020.

As stipulated in the Bogor Declaration, the more developed member economies will pursue a faster target year of 2010.

APEC, set up in 1989, groups Australia, Brunei, Canada, China, Chile, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan, Thailand and the United States.

A number of observers, including some in yesterday's dialogue, have noted that the United States would benefit the most from the arrangements set out in the Bogor Declaration.

This fact was further highlighted when U.S. President Bill Clinton stated that the United States already has the most open markets and thus by opening other markets, American products can be more competitive.

Even during Clinton's speech here a day after the Bogor meeting, a placard behind him proudly boasted "opening markets in Asia, creating jobs in America."

With technological and capital supremacy, the United States, and other developed countries, would also be at more of an advantage than the developing nations.

Spero, however, rejected any notion that the United States was motivated by such factors and pointed to Indonesia's initiative in including the deadline in the declaration as a defense.

She did, however, acknowledge that APEC's next meeting under the Japan's chairmanship will face a difficult task when it tries to draw a blueprint for implementing the leaders' declaration.

Opportunities

Indonesian ministers yesterday told business people to grab the opportunities offered by APEC's trade and investment liberalization, which enables Indonesia to increase its exports, draw more investment inflow and promote tourist arrivals.

Minister of Trade and Industry Hartarto, in a briefing for local business people on the results of last month's second APEC economic leaders meeting, explained that APEC will greatly enhance Indonesia's market access in the region.

"The government will open the markets even wider. And it's your duty to grab the chances," Hartarto told business people, adding that the region absorbs about 70 percent of Indonesia's total non-oil exports.

Besides Hartarto, Minister of Foreign Affairs Ali Alatas and Minister/State Secretary Moerdiono also spoke at yesterday's briefing.

As tariff and non-tariff barriers in APEC countries will be reduced in accordance with GATT provisions, Hartarto predicted that the country's non-oil exports will increase significantly.

Minister of Trade Satrio B. Joedono has projected that Indonesia's exports will increase by 16 percent annually after next year's implementation of the new GATT.

As a result of the second APEC informal summit, Hartarto said, industrialized members are likely to accelerate their economic restructuring.

"It's expected that the industrialized members, especially Japan, South Korea, Hong Kong, Taiwan, Singapore and Australia, will relocate some of their industries to developing countries. And we have to grab this opportunity as well," Hartarto said, adding that as of last October, 65 percent of Indonesia's total foreign investments came from the region.

The minister also noted that the high per capita incomes of APEC members will help spur tourism in Indonesia, saying that 60 percent of tourists coming to Indonesia are from the region. "It's expected that the number of tourists coming to Indonesia from the region will increases in the future."

He promised that to ensure a favorable business climate here, the government will continue dismantling regulatory and bureaucratic hurdles and building infrastructure facilities, especially those which are not interesting for private sector investment.(mds/rid)

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