Cracks emerge in APEC's globalization drive

Cracks emerge in APEC's globalization drive

BANDAR SERI BEGAWAN (AFP): Simmering divisions within APEC burst into the open Saturday as Australia accused Malaysia of being out of step over liberalization, and cracks emerged in the drive for globalization.

Following an attack by Malaysia on the Asia Pacific Economic Cooperation (APEC) forum's ability to set a trade agenda, senior Thai official Kobsak Chutikal said APEC leaders would not back down from their commitment to globalization.

But in light of mass protests that have marred eight summits on globalization in the past year, including the aborted World Trade Organization (WTO) meeting in Seattle, Kobsak said the doubts were now firmly on the agenda.

"We are trade people, trade negotiators, and perhaps we have missed that vital link, we must have a higher purpose," Kobsak, the deputy director of economic affairs in the Thai foreign ministry, told a briefing.

The objectives of trade liberalization should be as much about "making peoples' lives better in all sectors of society" as about profits, he said as APEC officials met in Brunei for a second day.

APEC leaders including U.S. President Bill Clinton, who hold a two-day summit here from next Wednesday, are expected to demand a new round of WTO talks on free trade following the Seattle debacle last December.

Malaysian Trade Minister Rafidah Aziz poured cold water on the proposed consensus declaration, arguing there could be no new WTO agenda while several issues from previous rounds remained unresolved.

Her claim that there was no sign of "a credible agenda of interest to both developed and developing countries" brought a sharp response from Australian Foreign Minister Alexander Downer.

"It doesn't make sense for Malaysia not to want better access to developed markets," Downer said.

"Of the 21 economic members here, most would see that it made common sense to have better (global) market access," he said.

"It's not in the interest of developing economies in APEC to stop the campaign to get better market access."

The oil-rich APEC host Brunei nudged the 21 forum leaders towards addressing concerns about globalization by setting a summit theme of "delivering to the community."

"When the leaders get together they will come out saying there are challenges and risks (with globalization) but the benefits outweigh them. I think that will be the crux of the statement to come out," Kobsak said.

"We are committed to globalization, but if the people have doubts then certainly the leaders must address those doubts and must also reflect those doubts and concerns, and that is what is expected to be discussed."

A failure to agree on WTO would add to doubts about the 11- year-old APEC's credibility as it makes faltering steps towards regional free trade.

Such doubts have been compounded as some members, notably Japan and Singapore, hold talks on enacting their own free trade agreements (FTAs).

But Mitsuru Taniuchi, chairman of APEC's economic committee, insisted the group still had a role to play.

"There's no one or the other, black and white," said Taniuchi, who is a deputy director-general of coordination in Japan's Economic Planning Agency.

"We may have those new FTAs but also at the same time, we can promote APEC," he said.

On the thorny oil price issue, APEC's oil exporting and importing members were set to take a united stand, calling for a supply boost as the price of crude reaches levels not seen since the 1990 Gulf War.

"In the upcoming leaders' summit, they will discuss the oil price issue, and it is possible that leaders and ministers will call for an increase in oil supply," Taniuchi said.

The APEC economies include oil producers such as Brunei, Indonesia Canada and Mexico which stand to gain from rocketing crude prices, but oil-dependent economies such as South Korea could be hurt, Taniuchi's committee said in a report.