Wed, 15 Nov 2000

Division threatens APEC summit

By Ruth Youngblood

BANDAR SERI BEGAWAN (DPA): Differences over ways to kick-start a new round of world trade talks and the impact of globalization are triggering quips that the APEC summit may be most notable for the attire worn by the leaders in the ceremonial photograph.

Hopes for a "communique with some meat" are fading after trade and foreign ministers from the 21 members of the Asia-Pacific Economic Cooperation (APEC) forum remained divided over contentious issues, said Roberto Romulo, delegation head of the Pacific Economic Cooperation Council (PECC), the only non- governmental official observer group.

Without "more cohesion and momentum", Romulo said the summit which begins Wednesday among such luminaries as U.S. President Bill Clinton, Russian President Vladimir Putin, Chinese President Jiang Zemin and their counterparts from other APEC states will end up "a non-event".

The Bruneian organizers of the eighth APEC summit are sticking to tradition and keeping quiet about the attire to be worn for the photograph taken at the conclusion of the two-day summit, fueling all sorts of speculation.

The leaders gamely appeared in polo shirts and yachting jackets in New Zealand last year and bright batik shirts in Malaysia in 1998.

Their communique, tackled initially by senior officials and then the trade and foreign ministers, requires a consensus among the widely diverse APEC economies.

While members have been agreeing on the broad aims of promoting free trade and increasing economic cooperation since APEC was founded in 1989, finding common ground on specifics has been another matter in dealing with countries fearful of Western domination and Asian economies still struggling to recover from the 1997 economic crisis.

Wealthy nations such as the United States, Australia, Canada and Japan have been backing a strong call for restarting the stalled talks under the World Trade Organization in 2001, but including a time frame has emerged as a sticky point they do not appear likely to win.

Malaysian Trade Minister Rafidah Aziz would only go as far as supporting a new round "as soon as possible".

A new round will be hard to start, she said, without setting an agenda dealing with the interests of small countries.

The phrase, "as soon as possible," is the one currently in the draft communique to be released at the end of the summit on Thursday.

Hong Kong Secretary of Commerce and Industry Chau Tak Hay noted developing countries have never had any clout in the WTO, which he described as a "clubhouse" for the wealthy.

In contrast, Australian Trade Minister Mark Vaile stressed the importance of getting "the round going next year because in 2002 you get into some significant elections in Europe, in particular the French elections and that may make progress a little more difficult."

Lashing out at the "anti-globalization lobby", Vaile pointed out Australian government research showed open economic policies pursued by APEC members over the past decade have helped to improve economic and social conditions in the Asia-Pacific region.

Recalling the momentum that accompanied APEC in the early years, Romulo said, "I hoped it would continue moving forward, but reluctance has surfaced."

He also attacked the "conservative" approach to the impact of high oil prices and the threat they present to Asia's economic recovery.

Some APEC officials privately acknowledged a feeling of "lost opportunities".

APEC includes oil producers such as Brunei, Malaysia, Indonesia, Russia and Mexico, all garnering a bonanza from price hikes.

In a balancing act to accommodate the interests of the exporters and larger number of importers, senior APEC officials expect an affirmation of common understanding that spiraling prices hurt developing countries.