APEC forum seen as model of partnership
JAKARTA (JP): The Asia Pacific Economic Cooperation (APEC) forum is expected to become a laboratory for the envisioned global partnership between North and South as well as provide leadership to rectify the imbalances in the international economic order.
"APEC will be able to demonstrate to the rest of the world how best to solve the problems of imbalance and inequality in international relationships," said Coordinating Minister for Industry and Trade Hartarto at the opening of the two-day Indonesian-U.S. Trade and Investment Conference last night.
Hartarto said that APEC will be able to serve as a model or laboratory since it consists of countries at differing levels of economic development.
Despite gaps in development, close cooperation among APEC members will be maintained, he added.
The economic giants, the United States and Japan, therefore, need to demonstrate leadership in implementing the Uruguay Round Agreement and take the initiative in abolishing non-tariff barrier practices and reducing tariffs on time or even faster than the General Agreement on Tariffs and Trade (GATT) 1994 schedule.
The GATT 1994, which was signed in Marrakesh last April, will be made effective in early 1995, will introduce a four-year time limit for its signatories to adjust their trade regulations to GATT principles.
Extension
The limit will be extended for another four years for developed countries and six years for developing countries, if the countries are proven to have difficulty in fulfilling GATT principles. By then, the export-import tariffs are expected to be below 15 percent.
APEC countries, however, have proposed the Asia-Pacific rim as the model of a free trade region. APEC's Eminent Persons Group, which convened here late last month, called for the establishment of an Asia-Pacific free trade region by the year 2020.
The proposal will be discussed during the APEC Leaders Economic Meeting in Bogor in November.
Hartarto noted that since interdependence among APEC countries will be even greater in the future, cooperation among the APEC economies should focus on further expansion of trade and investment.
"The main driver behind the Asia-Pacific economic success has been the commitment to opening its doors to the market-driven integration of trade and investment," the minister said.
Hartarto noted that Indonesia has opened its doors even wider by recently introducing deregulation measures.
He invited American businessmen to invest more here because Indonesia is determined to improving its economic climate.
"The government will continue taking the deregulatory measures and reducing bureaucracy in order to promote a conducive economic environment," Hartarto promised.
American ambassador to Indonesia Robert L. Barry welcomed Hartarto's invitation, saying that the U.S. plans to increase its trade and investment relations with Indonesia.
Barry noted that last week the U.S. Trade and Development Agency signed memorandums of understanding with the Ministry of Post and Telecommunication, the Ministry of Industry and Ministry of Industry, the National Development Planning Board (Bappenas) for a number of projects. (rid)