Free trade proposal reviewed

JAKARTA (JP): Senior officials of the Asia Pacific Economic Cooperation (APEC) forum yesterday reviewed a task force proposal calling for trade liberalization in the region by 2020.

The second report of the Eminent Persons Group, created in 1992 with the task of developing a broad vision for trade in the region, ranked high on the agenda when the fourth Senior Officials Meetings (SOM) kicked off yesterday morning.

In their recently concluded second report the EPG recommended the adoption of a deadline for comprehensive trade liberalization by 2010 for developed countries and 2020 for developing ones.

"On the basis of our discussion we are going to formulate a report for the ministers," said Wisber Loeis the chairman of the SOM.

Wisber refused to elaborate on the substance of yesterday's talks saying only that the topic was placed on the agenda of the fourth SOM because delegates have had more time to study the matter further.

The EPG report was originally discussed during the third SOM in Yogyakarta last September, just weeks after the report's initial release on Aug 31.

Though Wisber would not comment, it is expected that the trade liberalization timetable will be a central topic of discussions when APEC ministers gather for their two-day meeting here on Friday.

APEC groups Australia, Brunei, Canada, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan, Thailand, and the United States.

Chile is due to assume full membership in the forum during the upcoming ministerial meeting.

Statement

Many delegates remained tight-lipped at the prospect of the APEC ministers' discussion on the issue of the free trade timetable.

However some officials have indicated that the ministers would "in principle" endorse the idea in their eventual statement.

A member of the Korean delegation, Ro Jae Dong, remarked that the member economies in general supported the idea though there was still contention over the recommended timetables.

Ro thus suggested that the forum's members might agree on the issue but have avoided setting a deadline.

The leaders of the APEC forum are scheduled to convene in Bogor Presidential Palace, West Java, on Nov. 15 where the adoption of a timetable for comprehensive trade liberalization is seen as the main priority.

The head of the Brunei delegation, Awang Haji Ahmad Yusof, during a break from the meeting told reporters yesterday that his country supported the idea of free trade by 2020.

"We can go for 2020," Yusof said while acknowledging that APEC's fast development was probably uncomfortable to some members.

In recent weeks two countries, Malaysia and China, have voiced strong objections to the setting of fixed schedules for free trade.

"Malaysia is free to speak their mind," he said in remark to Malaysia's vocal protests.

More vocal opposition to the free trade idea came from Malaysian Minister of International Trade and Industry Rafidah Aziz, quoted as saying in Kuala Lumpur yesterday that "having a timetable (for free trade) is a sure way of not finding consensus in APEC."

Infrastructure

Putting the contentious issue of a free trade timetable aside, the SOM in their first meeting yesterday briskly concluded 12 of the 17 agenda items tabled.

The meeting agreed that they would recommend to their ministers to transform the ad hoc group on Economic Trends and Issues into a committee, making it the third committee within APEC.

Among the topics to be discussed today are the Budget and Administrative Committee report and the preparations for the ministerial meeting, such as the draft agenda and a draft of the joint ministerial statement.

A significant achievement yesterday was the endorsement of cooperation in improving public and commercial infrastructure.

Ruslan Diwiryo, secretary general of the Indonesian ministry of public works, confirmed the endorsement to reporters yesterday afternoon.

He explained the whole concept of the cooperation emanated from the importance of infrastructure for development, often constrained by limited resources.

The SOM agreed that a dialog between the public and private sector had to be undertaken to encourage the transfer of vital information and support. (fhp/mds)