APEC determined to lead sectoral liberalization

APEC determined to lead sectoral liberalization

By Riyadi

MONTREAL (JP): Asia Pacific Economic Cooperation (APEC) trade
ministers reaffirmed their commitment here over the weekend to
leading trade and investment liberalization globally and to
working toward free trade in financial services.

The ministers agreed at the end of their two-day meeting
Saturday to maintain APEC leadership in trade and investment
liberalization by improving their individual action plans,
pursuing earlier sectoral liberalization and encouraging further
negotiations on unfinished business under the World Trade
Organization (WTO).

"The major significance of this meeting is the broad support,
expressed by ministers to develop sectoral liberalization
initiatives in APEC," host Canadian Minister of Trade Arthur
Aggleton told a joint press conference at Le Centre Sheraton
hotel.

Outside the hotel, a group of around 30 people staged a one-
hour demonstration, unfurling banners which read: "Placer Dome
Icn, don't leave the Philippines without cleaning up", "China,
respect human rights", "Canada, help Tibet and Free Pakpahan."

The meeting was the first of a series of ministerial meetings
Canada will host to provide impetus for APEC's work in the run-up
to the APEC Ministerial and Economic Leaders' Meeting in
Vancouver from Nov. 22 to Nov. 25.

Eggleton said 18 APEC trade ministers reaffirmed their
determination to continue APEC's leadership and credibility in
trade liberalization and discussed a number of sectors that might
be candidates for early voluntary liberalization.

"This meeting has created the momentum to move forward with
recommendation on specific sectors to be leaders in November,"
Eggleton said.

He said delegations came up with specific ideas, ranging from
environmental goods and services to automotive products to
chemicals.

Indonesia proposed textile, apparel and footwear as sectors
for early liberalization with the view that it would benefit most
developing economies.

As each country proposed different sectors for early
liberalization, the ministers agreed to assign senior officials
to examine the merits of pursuing sectoral comprehensive
liberalization.

The ministers instructed officials to complete their study by
the end of August and to report to them before the next APEC
leaders meeting in November.

The ministers instructed officials, in undertaking this work,
to consider encompassing tariff and non-tariff dimensions,
elements of trade facilitation as well as economic and technical
cooperation.

They should also encompass critical mass, by developing
initiatives supported by significant groups of APEC members,
taking into account their different levels of economic
development and providing a foundation for participation beyond
the APEC region, and where appropriate, for incorporation into
the WTO.

"Five months ago, APEC provided the impetus in the critical
mass required to complete WTO negotiations on information
technology agreement and agreement on basic telecommunications,"
Eggleton said.

The ministers also encouraged WTO members to work toward a
full financial services agreement in the WTO with improved market
access and national treatment commitments by December.

They also agreed to further improve individual action plans
and provide reports on actions taken to implement their
commitment for 1997 by Aug. 15.

Philippine Secretary of Trade and Industry Cesar Bautista
said improvement in individual action plans should cover not only
tariff reductions but also trade facilitations as well as
economic and technical cooperation.

The ministers also confirmed their desire to work closely with
the APEC Business Advisory Council, representing the private
sector, respecting in particular its recommendations on
facilitating the movement of business people; enhancing
investment flows; strengthening investment protection through
transparency, predictability, arbitration and enforcement of
contracts.

The recommendations also included those on aligning
professional standards in the region, involving the private
sector in infrastructure planning; the development of policies
supportive of small and medium enterprises; and encouraging
greater business sector participation in economic and technical
cooperation.

Indonesian Minister of Industry and Trade Tunky Ariwibowo
said APEC encouraged the private sector to actively take part in
APEC processes because "the private sector is the engine of
growth of economic development and liberalization and the one
that makes things happen".

The ministers also supported the recommendations from the APEC
Customs-Industry Symposium for the simplification and
harmonization of customs procedures in a bid to facilitate trade
and lower the cost of doing business.