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.