APEC forum aims to reduce region's disparity

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.