Canada calls for acceleration of tariff cuts
JAKARTA (JP): Canada yesterday urged fellow APEC members to accelerate the implementation of tariff cuts based on the Uruguay Round agreement.
Minister for International Trade Roy MacLaren said that harmonization initiatives on a range of products might be a possibility for a start.
"At the same time, we must work actively and cooperatively together to build on the General Agreement on Trade in Services to further liberalize financial services," he said at a breakfast gathering with Canadian businessmen at the Meridien Hotel.
He was elaborating on Canada's position on "when and in what ways" the trade liberalization process of the Asia Pacific Economic Cooperation forum should begin.
Trade liberalization was one of the issues discussed at the APEC ministerial conference which concluded on Saturday.
MacLaren said APEC could consider pursuing the elimination of export subsidies on agricultural trade in the short term.
"We should consider how we in APEC could remain at the forefront of investment liberalization, moving progressively from a set of non-binding principles to possibly an agreed set of rules with appropriate dispute settlement provisions," he said at the gathering attended by Indonesia's Minister of Transportation Haryanto Dhanutirto and Minister of Tourism, Post and Telecommunications Joop Ave and Canada's Ambassador to Indonesia Lawrence T. Dickenson.
On Friday, the APEC meeting endorsed a 12-point non-binding investment code which members have hailed as a major initial step towards greater liberalization.
MacLaren stressed that more effort is needed to facilitate international private investment and to reduce uncertainties and transaction costs of investment and investment-related trade.
The gathering was jointly hosted by the Indonesia-Canada Business Council (ICBC), the Canadian Business Association (CBA) and the Canada-Indonesia Business Council (C-IBC).
Lastly, he said, APEC could advance on standards and conformance.
"We might want to select one or two sectors, such as telecommunications and building standards, with the objective of reducing the negative trade and investment effects of differing standards within the region," he said.
MacLaren cited Indonesia's recent reduction of tariffs on 739 items and its lifting of surcharges on a further 108 products as a shining example of liberalization efforts.
He also praised Indonesia's leadership role in pushing the open trade agenda forward.
"It has been nothing less than the catalyst for freer trade in the region and, possibly, the world," he said.
Momentum
Minister Joop Ave said in his remarks at the gathering that Canada needs to increase and diversify its investment in Indonesia.
Asked by reporters to comment about this after the gathering, Minister MacLaren said that Canada's trade with Indonesia has grown rapidly to almost $1 billion this year.
On the trade liberalization process in APEC, MacLaren said that setting a deadline for regional free trade in the region is not that important compared to the momentum of cooperation.
"What is important is that the countries of APEC have agreed ... When we get started on some negotiations then we will see a momentum build up," he said.
He said it was a typical feature of free trade associations, whether in Europe or North America, that momentum sets in and continues on its own accord. (hbk)