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.