Australia supports RI's WTO stance

JAKARTA (JP): Australia agreed yesterday to support Indonesia's stance that non-trade issues should not be raised at the upcoming ministerial meeting of the World Trade Organization (WTO).

Several Australian and Indonesian ministers met at the third Australia-Indonesia ministerial forum here yesterday, where they discussed the agenda for the WTO talks and reached a number of bilateral agreements.

The two governments agreed to establish a joint regional airline, cooperate in reducing green-house gas emissions and improve health services in several Indonesian provinces.

Australia agreed to join forces with Indonesia and other developing countries to try to keep labor and other contentious issues off the agenda at the inaugural ministerial conference of the World Trade Organization (WTO) in Singapore in December.

Deputy Prime Minister and Minister for Trade Tim Fischer said Australia shared common ground with Indonesia on the discussion of labor and trade linkages and other contentious issues.

"Australia and Indonesia are one on that matter," Fischer told journalists after meeting his counterpart, Minister of Industry and Trade Tunky Ariwibowo, at the Australia-Indonesia ministerial forum.

The forum was set up by Australia's former prime minister Paul Keating and President Soeharto in 1992. The first ministerial forum was held in Jakarta in 1992 and the second in Canberra in 1994.

Fisher supported Indonesia's argument that the inaugural ministerial WTO conference was not the right place to discuss labor standards. He said any discussion on labor should occur at the International Labor Organization because "it is not a core issue of the WTO."

The run-up to the inaugural WTO ministerial conference, now less than three months away, is being dogged by debate on non- tariff issues dividing developed and developing countries.

Developing countries, led by the Association of Southeast Asian Nations, do not want labor standards, investment treaties, competition policies and other contentious issues discussed at the WTO ministerial meeting.

Developed countries argue the issues directly relate to trade and are therefore worth discussing.

Developing countries contend the issues would distract the main focus of the meeting, which is to review the implementation of the multilateral trade agreement by WTO member countries.

Fischer said he briefly discussed investment treaties and competition policies with Tunky and that they agreed in principle to support China's entry to the WTO.

The agreements reached at the meeting yesterday were signed by ministers of both countries.

The Australian government was represented by Minister for Foreign Affairs Alexander Downer, minister Fischer, Minister for Environment Robert Hill, minister Moore, minister Sharp and Minister for Health and Family Services Michael Woolridge.

Indonesian Minister of Tourism, Post and Telecommunications Joop Ave said after meeting his Australian counterpart that the proposed joint regional airline would serve Indonesia's eastern provinces and the Australian continent.

Indonesian Minister of Health Sujudi said Australia had agreed to help improve health services in Indonesia, train Indonesian health workers and provide health equipment, especially for the eastern provinces of Indonesia.

Fischer and Tunky discussed trade and investment relations between the two countries and other bilateral issues.

Minister Tunky said both countries had agreed to reduce trade barriers, including tariffs and non-tariff barriers, to promote bilateral trade.

"We will try to increase our exports to Australia because we now import more than we export to that country," Tunky said.

Bilateral trade between Indonesia and Australia reached US$2.3 billion last year, with Australia enjoying a surplus of some $500 million.

Indonesia's exports to Australia have grown 7 percent a year since 1991, while its imports from Australia have increased 9 percent a year.

"Our products, like electronic goods, are actually very competitive on the Australian market. However, we face a number of problems there like dumping accusations and quarantine of our fruit," Tunky said. (rid)

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