APEC declaration means headache for Japan

APEC declaration means headache for Japan

By Keiji Urakami

JAKARTA (Kyodo): Leaders from the Asia-Pacific Economic Cooperation (APEC) forum have charted an ambitious course toward the goal of transforming their region into a free-trade zone by the year 2020.

"Our goal is an ambitious one. But we are determined to demonstrate APEC's leadership in fostering further global trade and investment liberalization," Asia-Pacific leaders say.

The vision, set out in a declaration read out triumphantly by Indonesian President Soeharto at the closing of an APEC leaders' meeting at the Bogor Palace Tuesday, is more of a political instrument for Soeharto than an actual economic scheme.

"What has come from the Bogor meeting is enhancing Soeharto's image as a man who did it -- and a consensus to impose all the responsibility of devising specifics on the shoulder of Japan, the next year's APEC host," said one Japanese trade ministry official.

Differences over whether to set a target date for trade liberalization, the most contentious point among APEC leaders, continued throughout the session, but the Bogor declaration finally became a paper basically in line with a proposal made by Soeharto, this year's host.

U.S. President Bill Clinton hailed APEC leaders' commitment in the declaration as "historic." Australian Prime Minister Paul Keating termed the decision a "rare achievement" that will "change the world trading system."

Japanese Prime Minister Tomiichi Murayama said, "We set out a grand political goal."

But nobody described how that goal will be achieved.

In a news conference broadcast live all over the world after the Bogor meeting, Soeharto skirted the question, saying formulation of a detailed scheme "should be left in the hands of the ministers to make the preparations and recommendations."

His comment suggests that Japan could be left with the heavy task of devising a framework for giving concrete shape to the declaration before the next year's APEC leaders meeting to be held in Osaka.

But mapping out a practical scheme that would draw unanimous APEC support is not an easy task, with economic development stages different from one APEC member to another.

Tetsuya Endo, Japanese ambassador in charge of APEC affairs, said every country has "weak points."

Japan, for example, is not ready to blindly accept all of the proposed trade liberalization measures, he said in reference to the rice market opening mandated under Uruguay Round accords.

On this point, Prime Minister Murayama also steps back. Asked about Japan's role in coordinating views among APEC members toward the Osaka meeting, he said, "The scope of trade liberalization to concretize the Bogor concept needs to be studied fully with consideration given to positions of parties affected."

Like Soeharto, Murayama appears reluctant to take leadership in the task. "How to materialize it will be left to the ministers concerned."

The Asia-Pacific free trade vision shown in the declaration is a compromise between developed and developing nations.

Countries like the United States and Australia have been pushing for concrete trade-opening steps as a means to exploit free trade benefits in the booming Asian market, but less developed nations like Malaysia have opposed the move.

During Tuesday's meeting, Malaysian Prime Minister Mahathir Mohamad, a reluctant summit member who boycotted last year's Seattle gathering, expressed strong reservations about setting a deadline for trade liberalization.

The divisions left the paper void of specifics, with even the controversial time frame issue written ambiguously.

The two-tier free trade scheme appears clear and straightforward at first glance, setting 2020 as a deadline for developing countries and 2010 for advanced nations.

But the deadlines appear to be conditional because the document also states, "We agree that APEC economies that are ready to initiate and implement a cooperative arrangement may proceed to do so while those that are not yet ready to participate may join a later date."

Some conference sources said they suspect Malaysia accepted the inclusion of the year 2020 in the declaration only after being assured the conditional clause would also be included.

But one Japanese government official denied any such political bargaining was behind the description, saying the clause merely reflects APEC's character as "a loose consultative body" that runs on the basis of consensus, not on binding power.

Asked about what was to come by 2020, Soeharto said, "What is certain is that since this is a vision, we have to see to it that what we are going to do is for the improvement of the present situation."

One official at Japan's trade ministry complained about the remark, saying, "It is people like us who will be in charge of the actual works." "It's a headache."