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Council wants US to drop trade-human rights links

| Source: REUTERS

Council wants US to drop trade-human rights links

KUALA LUMPUR (Reuter): U.S. business groups in Asia want the United States to abandon its controversial trade for human rights stance, a regional business grouping said on Saturday.

A communique issued by Asia Pacific Council of American Chambers of Commerce (APCAC) said the U.S. government should de- link trade and investment from foreign policy objectives.

"Linkage results in direct retaliation, mistrust of U.S. reliability and an overall souring of a supportive business relationship," the APCAC communique, issued after a two-day session, said on Saturday.

APCAC is a coordinating body of U.S. business guilds in 16 countries in the region, including Australia, Hong Kong, Indonesia, Korea, Malaysia, Singapore and the Philippines.

The closed-door meeting, which focused on U.S. business competitiveness in Asia, was opened by Malaysian Prime Minister Mahathir Mohamad on Friday.

"American businesses have and will continue to promote human and workers' rights in the countries which they do businesses," the council said.

APCAC also strongly recommended the U.S. government retain China's Most Favored Nation status unconditionally.

The council's recommendations will be discussed with U.S. lawmakers during an annual APCAC Washington gathering in June.

APCAC president Douglas Henck told reporters after the meeting that human rights issues should be separated from trade and discussed through bilateral commissions or via the United Nations, the national Bernama news agency reported.

"We support the U.S. government's call to improve the human rights conditions, but we feel that linking it with trade is a lose situation," Henck said.

Henck said the same applied to renewals of the Generalized System of Preferences (GSP) program.

The American Federation of Labor-Congress of Industrial Organizations (AFL-CIO) has petitioned for a withdrawal of Malaysia's GSP status for alleged violations of workers' rights.

APCAC asked governments in the Asia-Pacific to promote fair market access in the services sector. The key sectors which should be opened are telecommunications, transportation, insurance, banking and professional consulting services, the statement said.

The council also wants the U.S. government to revise U.S. tax and export policies which burdened U.S. employers with excessive costs such as the taxation of income earned abroad.

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