Indonesian Political, Business & Finance News

Australia supports RI's WTO stance

| Source: JP

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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Security Pact -- Page 4

Airline -- Page 10

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