Thu, 28 Jul 1994

APEC, WTO not to affect EU's single market

JAKARTA (JP): The Asia-Pacific Economic Cooperation (APEC) forum and the upcoming establishment of the new World Trade Organization (WTO) will not spur negative competition with the European Union's single market, German Ambassador Karl Walter Lewalter predicts.

Germany considers APEC a positive accomplishment because it can encourage competitive partnerships between the EU and Asia- Pacific countries, Lewalter told reporters yesterday.

"Through partnerships, European countries can obtain opinions and input ... on the situation in Asia from Asian eyes."

He was discussing Germany's position on various issues in the context of his country's taking over the European Union's presidency from Greece as of July 1.

As EU president, Germany will put forth efforts to expand the union's external relations through the common foreign and security policy.

Lewalter said this would be done by encouraging and preserving foreign relations, in particular with Eastern and Central European states: Slovenia, the Baltic states, Russia, Ukraine and other former states of the Soviet Union.

Germany also plans to work at expanding trade relations with developing East Asian and Southeast Asian countries.

Commenting on the trade opportunities in Asia, Lewalter said he regarded Indonesia as having more potential than China, "judging from the reality of the circumstances and from practical reasons".

He pointed out that Indonesia "has always basically been, since as early as the 16th century, a free market," whereas China had only recently opened itself. "Protection and monopoly may hamper the free market ... this is your choice, but basically you have always abided by a free economy."

Mechanism

Lewalter said Germany would also strive to develop the EU's internal mechanisms.

"If EU becomes bigger, we have to strengthen its mechanisms," he said.

The membership of the organization is expected to expand from 12 countries at present to at least 20 within the next few years.

Germany has also pledged to deal with major problems faced by almost all European countries, which include underemployment and unemployment.

A stable and growing economy does not always mean a cutback in employment problems, he said. To resolve this under Germany's presidency, the EU will encourage more training and improve mechanisms of mediation so those who are unemployed can have more employment opportunities.

"I think the EU is a success story... Don't always think in terms of the critical voices, but think of the objectives achieved," Lewalter said.

He explained that Germany is eager to "do away with the fear of our neighbors" in the political, economic and security sense.

He admitted that Germany, with Hitler ruling what seemed a malicious and almost unforgivable regime to some people, did indeed have a gloomy history.

"But we have accepted it... It is a part of our past that we will have to live with," he said.

Lewalter said Germany would encourage integration among European countries in every way under the EU.

Currently, most EU countries are in unity when they are exposed to major issues such as human rights, he said.

"You can count on it now ... you won't see Europe split up," he assured.

He added, however, that this unity does not indicate the forming of a new superpower.

"As the EU becomes stronger, each member country will continue to maintain its identity because it is a composite of many countries," Lewalter pointed out.

In this regard, therefore, anything coming from Europe will be "relatively slow", he said. (pwn)