APEC forum seen as model of partnership

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)