Wed, 14 Jul 2004

Counterterrorism moves may hurt trade

Zakki P. Hakim, Jakarta

Export control mechanisms applied by developed countries to help counter terrorism may create another trade barrier that is costly to the business sector, a number of trade associations said during a seminar here on Tuesday.

Indonesian Food and Beverage Association (GAPMMI) executive director Thomas Darmawan gave as an example that in the future the food industry might have difficulty in obtaining freeze- drying equipment as it could be also used to preserve dangerous bacteria.

"We might end up with a longer and complicated process, which local bureaucracies might eventually misuse to levy extra charges," he told The Jakarta Post on the sidelines of the seminar.

The two-day seminar on export control of sensitive items related to the development of weapons of mass destruction (WMD) or terrorism was held by the Japanese Ministry of the Economy, Trade and Industry (METI) and cohosted by the Indonesian Ministry of Industry and Trade and the Japan International Cooperation Agency (JICA).

The seminar defined export control as a way of preventing the export of sensitive items to countries of concern or to end users in connection with the development of WMD or terrorism.

Sensitive items include weapons of mass destruction (nuclear weapons, chemical and biological weapons) and conventional arms, as well as dual-use items that can be used in military or WMD- related use, as well as commercial use for peaceful purposes.

Director General of the Trade Control Department and Trade and Economic Cooperation Bureau at the METI Atsuo Shibota said that the proliferation of WMD and their means of delivery posed a serious threat.

"Preventing proliferation is very important and in order to do that we have to cover many areas, but export control is one of the most important," he said.

Shibota said that the export control system required suppliers to be certain of whom buyers were and their intentions.

The process might require extra time, but it was necessary rather than have sensitive items falling into the wrong hands, he said.

The export control system is applied by regimes of international supplier countries under unilateral agreements.

The regimes are the Nuclear Suppliers Group, Australia Group (suppliers of chemical and biological material), Missile Technology Control Regime and Wassenaar Agreement (suppliers of conventional arms).

Japan is a member of all four groups.

Meanwhile, Indonesian Ministry of Foreign Affairs Director of International Security and Disarmament Affairs Hasan Kleib said that Indonesia supported all efforts aimed at the total elimination of nuclear weapons.

"However, there must be some kind of guarantee for countries, particularly developing ones, to obtain these materials, including nuclear, chemical and biological materials, for peaceful purposes," he told the Post.

Export control should not be used as a trade barrier; therefore, there should be a "multinational, negotiated legal instrument" that complemented existing unilateral agreements, he said.

Elsewhere, Shibota said that after the seminar his delegation was due to have to talks with the Indonesian government and agencies on future action regarding the implementation of the export control system in the country.

The results of talks with ASEAN countries will be reported at the next ASEAN-Japan Economic Ministerial Meeting, due to be held in Jakarta in September.