APEC meeting in Osaka a success
APEC meeting in Osaka a success
By Jusuf Wanandi
JAKARTA (JP): At the beginning of the year there was much
apprehension about Japan's leadership in moving forward the APEC
process of economic cooperation in the region. The meeting in
Bogor in November 1994 was a great success, especially the
setting of the trade liberalization target dates of 2010 and
2020. Blake Island, U.S., where the leaders had their first
meeting and adopted the APEC vision, was an important beginning
for the regional liberalization process.
APEC is at a crucial moment in laying down a road map on how
to implement the Bogor targets of trade liberalization. It is not
going to be an easy task. In addition, the Japanese government is
weak because the coalition consists of parties that have always
been opposed to each other. The media and many APEC governments
were uncertain if the Japanese government could pull things
together in Osaka.
Not only did the Japanese government produce an action agenda
to be implemented at the 1997 APEC meeting in Manila, but it also
strengthened the basic underpinnings of regionalism in the Asia-
Pacific, including open regionalism, the equality of all members,
and a step by step approach towards cooperation. Open regionalism
refers to nondiscrimination among all APEC members and also
towards non-members. The members see APEC as a part of world
trade and do not want the Asia-Pacific to become a preferential
trade area. APEC is therefore committed to world liberalization
and supports the World Trade Organization.
That is why the APEC meeting in Manila, to be held next year
just a few weeks before the first WTO Ministerial Meeting, will
be important. APEC should push the WTO with an example of deeper
and accelerated liberalization and by cooperating at the WTO
Singapore meeting. Because APEC encompasses almost 50 percent of
world trade, it can make a difference.
It was agreed at the Osaka meeting that the basis for regional
trade liberalization is concerted and comparable unilateral
efforts. This is the only feasible model for a region as
heterogeneous as the Asia-Pacific. This has been the way the
region's trade has been liberalized.
The U.S. has insisted on some criteria, including
comparability and a review mechanism, but Osaka was successful
because it was able to incorporate the interests and concerns of
all APEC members.
The principle of equality refers to the benefit that
cooperation should bring to all the members, as well as their
role in the process of cooperation.
Besides non-discrimination in trade, the recognition that
development and technical cooperation is an important pillar of
APEC is vital for the developing members of APEC. Only through
this pillar will developing economies be able to catch up with
the developed nations and cooperate more fully in other efforts,
including trade liberalization.
This area of cooperation must still be more fully worked out.
Here, the idea of small and specific advisory teams might be
necessary. Some proposals, based on developing common policy
concepts, implementing joint activities and engaging in policy
dialogue, have been agreed on.
A special effort from the Japanese is the proposal called
"Partners for Progress". The proposal focuses on economic and
technical cooperation programs that directly support the
liberalization and facilitation of trade and investment.
The principle of evolution is the step by step approach based
on consensus which is vital for a huge and diverse region like
the Asia-Pacific. The results of Osaka showed the merit of this
principle. It was an achievement due to the leadership of Japan
and the goodwill and support of all members, especially the U.S..
Without the compromise and support of the U.S., that had insisted
on reciprocity and a discriminatory approach as well as trade
liberalization through negotiations, consensus would not have
been possible. The result would have been the failure of the
Osaka meeting. Indonesia's strong support was also important in
achieving the action agenda at Osaka, especially its earlier
achievements in Bogor.
The Osaka meeting achieved two other important matters. The
first was the role of the APEC Business Advisory Council (ABAC),
which is a follow-up of the Pacific Business Forum and will
consist of at least two businesspeople from each APEC member to
represent big and small business. As a government's appointed
body, and given that there are active regional business
organizations who have been around for much longer, namely the
Pacific Basin Economic Council (1967) and the Pacific Economic
Cooperative Council (PECC, 1980), it would be wise if the ABAC
functioned as a clearing house for what the region's business
councils and chambers have to contribute to regional economic
cooperation. Otherwise ABAC will only function as an arm of
government.
The idea that APEC should take up security issues is very
dangerous because it could quickly kill APEC. In view of China-
Taiwan relations, APEC taking up security issues is just not
realistic. APEC has just begun to become a viable organization
and already has a full plate to take care of.
Security issues, which are very sensitive and complex, cannot
be brought into APEC's agenda. The ASEAN Regional Forum, a dialog
institution on political security matters for the Asia-Pacific,
was established by ASEAN two years ago to address these
realities. The forum is intended to deal with these important
issues because it is recognized that economic dynamism and
cooperation will not adequately guarantee peace, stability and
welfare in the region.
Matters concerning the environment, migration, labor
relations, which have economic and security aspects, may be
considered by APEC in the future. A preliminary PECC study would
be wise because of the sensitivity and complexity of the issues.
Cooperation between business, government officials and academics
in PECC has allowed the formulation of successful policies on the
most sensitive issues in the Asia-Pacific.
The writer is chairman of the Supervisory Board of the Centre
for Strategic and International Studies (CSIS).