APEC draft action plans finalized

By Meidyatama Suryodiningrat & Prapti Widinugraheni

MANILA (JP): Senior Asia Pacific Economic Cooperation (APEC) officials finalized a compilation of member countries' draft action plans to realize the group's free trade and investment goals.

Dubbed the Manila Action Plan for APEC (MAPA), the document is designed to clearly spell out measures to break down trade barriers among the 18-member forum.

MAPA's draft was completed by senior officials at an informal meeting which preceded the eighth annual APEC Ministerial Meeting which starts today.

After some additional fine-tuning, the ministers are expected to adopt MAPA at their two-day meeting. Indonesia will be represented at the meeting by Coordinating Minister for Production and Distribution Hartarto and Minister of Foreign Affairs Ali Alatas.

But the final MAPA and its details will not be unveiled until the APEC Economic Leaders Meeting in Subic on Monday.

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

In Bogor, West Java, in 1994, APEC leaders set 2010 and 2020 as the deadlines for comprehensive trade liberalization for developed countries and for developing ones.

The actions plans will be compiled in four chapters.

The first chapter will be a 46-page introduction and highlight of the 18 members' action plans.

The second chapter will be a compilation of the individual action plans describing how each member country will carry out liberalization, addressing traditional barriers to trade and investment flows.

The chairman of the senior officials' meeting, Philippine Undersecretary Federico Macaranas, said undertakings to provide an open investment regime included measures to liberalize and facilitate investment through improved transparency, technical assistance and cooperation.

Chapter three will highlight collective action to be taken by APEC to facilitate business and reduce regional business costs.

Among the measures to be taken is a commitment to increase transparency in government procurement policies, procedures and opportunities.

"Costs will also be reduced by simplifying, harmonizing and moving towards a paperless and computerized customs procedure," Macaranas said.

The final chapter highlights economic and technical cooperation activities such as infrastructure development, small and medium enterprises and human resources development.

The head of Indonesia's delegation to the senior officials meeting, Soemadi Brotodinigrat, revealed that cooperation would also focus on developing a stable and efficient capital market, and efforts to safeguard the quality of life through environmentally sound growth.

Indonesia

Soemadi yesterday rejected suggestions that Indonesia's 37- page action plan was too broad and vague on reducing tariff barriers in many sectors.

"What is being presented here is just the beginning... it is a living document," he said, adding that it would be continuously revised by member governments.

Indonesia has basically stipulated a commitment to reduce tariffs to between 5 percent and 10 percent by 2003.

Soemadi, also the director general of foreign economic relations at the foreign ministry, acknowledged that if the individual action plans were compared to the final free trade objective they would be incompatible.

But he said free trade was a long-term process and more concrete steps would be taken.

The contents will not be the same when 2020 comes along, he said, referring to the final free trade deadline.

Soemadi said he was satisfied with the 18 individual action plans: "After it was all compiled, it was evident that there was a commitment from all the member economies."

Senior officials meeting chairman Macaranas said he was satisfied the senior officials had fruitfully completed their task of drafting the MAPA.

"There was consensus that the work was finished on time and the challenge met," he said. (pwn/mds)

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