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APEC leaders to gain consensus on free trade

| Source: JP

APEC leaders to gain consensus on free trade

JAKARTA (JP): APEC leaders will likely reach a consensus on
the adoption of free trade in the region during their upcoming
summit in November despite differences in perceptions on the
region, a visiting U.S. official says.

Deputy United States Trade Representative (USTR) Charlene
Barshefsky expressed such optimism in a press conference here
yesterday, based on the fact that the differences on this issue
concern the modalities of free trade rather than philosophical
principles among the member countries of the Asia Pacific
Economic Cooperation (APEC) forum.

"My assumption is that through further senior officials
meetings, ministerial meetings and leaders meetings, it is going
to be worked out," she said.

She further added that despite the apparent objection of
particular countries, "it ought to be possible to work out a
consensus on modality."

Nevertheless, she acknowledged that her projection might be a
bit "overly optimistic."

Barshefsky was in Indonesia to attend Thursday's one-day
meeting of APEC ministers in charge of trade.

The meeting was attended by representatives from all the 17
members of the forum as well as Chile, which will assume full
membership at the APEC Ministerial Meeting here in November.

APEC groups Canada, China, Japan, the United States, Mexico,
Taiwan, Hong Kong, South Korea, Thailand, Malaysia, Singapore,
Brunei, the Philippines, Australia, New Zealand, Papua New Guinea
and Indonesia, which currently chairs the forum.

Recently the forum's Eminent Persons Group (EPG) called on the
leaders to adopt a date for free trade in the area by no later
than 2020.

On Nov. 15, the forum's leaders are scheduled to gather at the
Bogor Palace to conduct their second meeting, which will follow
the inaugural APEC leaders meeting on Blake Island, Seattle, last
year.

When opening Thursday's meeting, President Soeharto stated his
high hopes that the Bogor meeting will produce fundamental
agreements on the type and rate of trade and investment
liberalization.

Barshefsky said that her country was not averse to the
establishment of a date, and that nevertheless such an assignment
should be the sole prerogative of the leaders.

"We remain flexible and open-minded as to the outcome of that
discussion," she said.

She remarked that achieving a consensus is a difficult process
since everyone has to compromise a little bit to get such
unanimity.

Clash

Meanwhile, a visiting representative of Konrad-Adenauer
Stiftung of Germany, Kai Michael Schellhorn, said in a discussion
at The Jakarta Post that "a big clash" will break out at the
Bogor meeting due to differences of opinion among the forum's
members.

Because the establishment of APEC started with a Westernized
idea, its Western member countries will likely try to
institutionalize the forum but the members grouped in the
Association of Southeast Asian Nations (ASEAN) will not accept
institutionalization on legal bases, he said.

However, the leaders are expected to reach agreement at the
Bogor meeting on plans to achieve certain goals of the forum, he
said.

Schellhorn said the differences will cause APEC to need a long
period of time to "get its members in one boat."

When asked about the European Union (EU)'s perception of APEC,
Schellhorn said that the EU, which is economically self-centered
has no argument against any other regional groupings, like APEC
and the North American Free Trade Area (NAFTA). (mds/icn)

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