Mon, 14 Nov 1994

Chile keen on taking part in all processes of APEC

JAKARTA (JP): Chile, it appears, has nothing to lose and everything to gain from its APEC membership. That's at least what Chilean officials attending the APEC meeting in Jakarta are trying to impress on others.

The South American country, which formally held observer status and officially joined the forum last week, is now ready to get down to APEC business.

Chile believes that the APEC forum is a crucial one for their country.

"Almost 50 percent of our total trade is with APEC member countries, so strengthening relations with them is a very useful and practical way to develop our economy," said Minister of Economy Alvaro Garcia, explaining why his country decided to join the forum.

With an annual Gross Domestic Product (GDP) growth rate averaging six to seven percent, Chile, is also hoping to become a member of the North American Free Trade Area (NAFTA) next year. In addition, it is among the most successful Latin American countries in terms of economy, moving rapidly from the status of a "least developed nation" with a protectionist market to a currently more open economy.

"Chile is now a very open country and it has been growing at a steady and fast pace, an experience we share with the Asia Pacific region," Garcia said.

Over the last few years, both Latin American and Asia Pacific markets have increasingly become attracted and complementary to one another.

Minerals, agricultural, forestry and fishery products are among Chile's main exports while manufactured products and technology are its imports from the region.

Chile's major trading partner in the region is Japan though it won't be long before its trade begins to soar with other countries in the area.

Last year, Indonesia's Jusuf Wanandi of the Centre for Strategic and International Studies, visited the country to speak at a seminar on trade relations between Chile and the Asia Pacific region, attracting a large number of Chilean businessmen -- many of whom are presently in town with the rest of the APEC delegations.

"(Jusuf's) insights gave us deep knowledge into the economic situation in the region and shed light on the way Chile should perceive to strengthen economic relations with those countries," he said.

In strong favor

Chile is in strong favor of free trade and is "willing to move as fast as the others", Garcia said.

"If APEC reaches a conclusion (on a free trade agreement), it would be a very important step to mobilize the rest of the world in reaching freer trade as well. Thus we endorse the idea of having a specific time frame to reach free trade," he said.

Setting a deadline, he said, would "greatly help" but was not considered an "absolute requirement".

Garcia said there should be no limit at all for opening the region's economy as all APEC member economies "have learned that by opening their economies they will grow faster".

He acknowledged that "flexibility" was one of the advantages and specific characteristics of the APEC forum.

"I think it is important that the forum's flexibility remains... which is not contradictory with the idea of moving towards free trade in an organized manner," he said, adding that it would be best if the structural form of APEC remains the same as it does right now.(pwn)