APEC still relevant to pursue freedom after WTO failure

APEC still relevant to pursue freedom after WTO failure

JAKARTA (JP): The Asia Pacific Economic Cooperation (APEC)
remains a relevant forum to pursue trade and investment
liberalization in the region despite its declining prominence as
a result of the Asian financial crisis, experts said on Thursday.

Suhadi Mangkusuwondo, professor of economics at the University
of Indonesia, and Richard Boucher, the United States' senior
official at APEC, agreed that liberalization through APEC would
proceed, particularly following the continuing recovery of the
crisis-hit economies in Asia.

Suhadi, a former member of APEC's panel of independent
experts, said he was confident APEC was on track to achieving its
target of trade and investment liberalization for developed
member countries by 2010 and 2020 for developing member
countries.

"So far, all member countries seem to be keeping their
commitment to liberalize their markets," he said. "I have heard
no official statement from any member country backtracking on the
liberalization."

Even some Southeast Asian countries hardest hit by the crisis
have liberalized their markets ahead of their own initial
deadlines, he said.

The Association of Southeast Asian Nations (ASEAN) decided in
1998 -- at the height of the Asian financial crisis -- to
accelerate the target date for the realization of its ASEAN Free
Trade Area from 2003 to 2001.

"While ASEAN countries were at the worse of the crisis, they
decided to move forward. This is a good indication that they are
committed to continuing the liberalization," he said.

Echoing Suhadi's sentiments, Boucher said liberalization in
APEC would benefit not only the region but also the world.

APEC as a group will continue to play a pivotal role in
achieving the program of trade and investment liberalization
currently being pursued by the World Trade Organization (WTO), he
said.

The role of APEC in trade liberalization is even more vital
following the failure of the WTO ministerial meeting in Seattle
last November to launch a new round of multilateral trade
negotiations, Boucher said.

Because of the WTO failure, he said, APEC should continue with
its own style of sectorial liberalization, or liberalizing the
markets sector by sector.

He said the APEC leaders summit in Bandar Seri Begawan,
Brunei, in November should reaffirm APEC's commitment to
accelerating sectorial tariff liberalization.

He said concerted APEC efforts would have more sway in
international fora than "go-it-alone" efforts. "With APEC, we can
get what we want."

Meanwhile, Suhadi warned that despite the progress made by
APEC member countries in liberalizing their markets, businesses
still viewed the efforts as "too slow".

Suhadi suggested APEC form an independent surveillance group,
consisting of experts from different countries.

The task of the group would be to review and evaluate trade
and investment liberalization efforts pursued by each member
country and report its findings at the APEC leaders meetings.

Such a surveillance group is especially important because
individual, voluntarily action by member countries is the
principal means of achieving APEC's goal of trade and investment
liberalization, he said.

"The idea for this surveillance group is to impose pressure on
member countries to observe their voluntarily liberalization
commitments," Suhadi said.

Another method to maintain the speed of liberalization among
APEC member countries is the establishment of a clear benchmark
for trade and investment liberalization, he said.

With the benchmark, each member country could evaluate how far
they have gone in opening their markets. Again, the benchmark
would serve as a means of pressure as well as a reference point
for member countries to measure their pursuit of liberalization,
he said. (rid)