APEC forum aims to reduce region's disparity

By Medyatama Suryodiningrat & Prapti Widinugraheni

MANILA (JP): Realizing the importance of equitable regional growth, ministers at the Asia Pacific Economic Cooperation (APEC) forum yesterday issued a declaration aimed at reducing the region's economic disparities.

In an extraordinary move at the end of their two-day joint ministerial meeting, the ministers released the Declaration on Asia-Pacific Cooperation, Framework for Strengthening Economic Cooperation and Development.

The declaration stood separate to the joint ministerial statement.

"We consider it very important in order to help reduce disparities among APEC members," Indonesian Coordinating Minister for Production and Distribution Hartarto said here yesterday.

The four-page declaration also cites sustainable and equitable growth and the improvement of people's economic and social well- being as APEC's goals.

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.

APEC strives for cooperation in economic and technical development.

Ministers laid down six main priorities in the declaration: to develop human capital, strengthen economic infrastructure, develop safe, stable and efficient capital markets, harness technologies for the future, safeguard quality of life through environmentally sound growth and strengthen the dynamism of small and medium enterprises.

Indonesian Foreign Minister Ali Alatas, who also attended the meetings, stressed this cooperation would be done under the principals of mutual respect, mutual benefit, mutual assistance and with respect to each nation's sovereignty.

In yesterday's meeting, Alatas told other APEC ministers that economic and technical cooperation, as stipulated in the declaration, was equally important as the facilitation and liberalization of trade and investment.

He described them as the three wheels of APEC's tricycle. "Liberalization without economic and technical cooperation will not produce results that can be equitably enjoyed by all.

"We believe that without this cooperation the APEC tricycle would move forward with one wheel missing, and thus would not be able to move into the next millennium with the intended speed, or worse, not even reach the gate of the 21st Century," he said.

WTO

In a lengthy 93-point joint statement, the ministers stressed their support for the first World Trade Organization ministerial conference in Singapore next month.

"Ministers agreed that the Singapore Ministerial Conference should take concrete actions to strengthen the multilateral system," the statement read.

APEC ministers also eluded to the fact that two APEC members -- China and Taiwan -- were not members of the WTO and expressed support for their membership.

"Hopefully everyone realizes that all will benefit from an increased (WTO) membership," Alatas said.

Apart from membership issues, Hartarto warned during the meeting that APEC's WTO discussions should stay away from the so called "new-issues".

"I think we are all aware that such issues as labor standards, multilateral investment agreements and government procurement are controversial issues which will only divide rather than unite us.

"Instead of offering opportunity for APEC to contribute to WTO, such contentious and extraneous issues could run the risk of spoiling the APEC process," he said.

On the question of an information technology agreement, ministers only "noted with satisfaction" senior officials' preparatory discussion on the proposed agreement.

The U.S. had been pushing for an information technology agreement to be brought by APEC to the WTO, suggesting a complete reduction of tariffs in the sector by the year 2000.

On the possibility of an accord on the liberalization of information technology, Minister Hartarto said two factors must weigh in the interest of developing countries. These were flexibility for product coverage and a looser time frame.

U.S. Trade Representative Charlene Barshevsky maintained Washington had never made such a proposal.

"What the U.S. has consistently sought from APEC is the political will to conclude an agreement by (the WTO meeting in) Singapore. That is the commitment needed," she said.

APEC ministers endorsed efforts at the WTO meeting to conclude an information technology agreement.

Barshevsky said she was satisfied and called the forum's position significant because "it is the first time APEC has taken a stand on a WTO trade negotiation."

As for zero tariffs by the year 2000 and coverage of information technology products, Barshevsky said it would all be "taken care of in (WTO headquarters) Geneva."

The joint ministerial statement reiterated the decision to announce new APEC members in 1998.

Alatas said Indonesia strongly supported the inclusion of developing countries in the forum.

"It is unrealistic to expect APEC to add many members but at least some developing countries like Vietnam, Peru and Colombia, should be shown solidarity by Indonesia and other developing countries," he said.

Ecuador, Macau, Mongolia, Sri Lanka, Pakistan, Panama and Russia are also interested in joining APEC.

APEC leaders hold their fourth annual meeting in Subic tomorrow.

Indonesia's President Soeharto is scheduled to arrive here tonight. After attending the APEC meeting he will hold talks with Philippine President Fidel V. Ramos and Chinese Premier Li Peng.