Free trade to benefit all APEC members

JAKARTA (JP): Trade and investment liberalization will benefit both industrial and developing members of the Asia Pacific Economic Cooperation (APEC) forum, said New Zealand Ambassador Tim Groser.

"I don't think large countries will gain control of the trade liberalization and open investment and small countries will be damaged by others," he said in a recent interview with The Jakarta Post.

Groser, admitting to be speaking as an economist rather than a politician, said APEC members, who are expected to formulate agreements on trade and investment liberalization in their meetings in Indonesia this month, have different levels of economic development.

Two advisory groups set up by APEC have suggested the forum liberalize trade among its members by either 2010 or 2020.

However, developing members of APEC have shown cautious responses to such proposals.

Li Enheng, director of the Department of International Trade and Economic Affairs in China's Trade Ministry, for example, said last week that Beijing would not accept a binding timetable for free trade in the Asia-Pacific region.

"We support the long term goal... of free trade in the APEC region, but as far as timetables go, we cannot agree because timetables mean the actions, decisions or measures will be binding on members," Li was quoted by Reuters as saying. "This is not consistent with the nature of this organization."

Groser said trade and investment liberalization may affect the operation of a number of less efficient companies in a particular country, meaning their workers will be affected. But liberalization will help boost that country's industries, which in turn, will substantially increase employment.

Liberalization will also attract more investment, which will help increase the host country's exports. The increases in investment and exports will, in turn, support the growth of the country's economy, he said.

Groser acknowledged sensitive issues may hamper APEC leaders to reach an agreement on details of trade and investment liberalization in their meetings in Bogor, in the middle of this month.

But the leaders will, at least, reach agreements on political goals, he said.

Framework

The ambassador said in New Zealand's view, APEC will provide a framework to advance even further the region's commitment to openness and free trade.

"New Zealand's commitment to APEC is a not surprising given that it contains the fastest growing economies in the world," he said. "It accounts for over 50 percent of the world's gross domestic product output and 65 percent of APEC members' trade is with other APEC members."

Groser said New Zealand will be ready to support setting ambitious goals for APEC.

"The potential for cooperation is enormous. Aiming high makes sense if that potential is to be fully realized in the interests of greater economic liberalization and efficiency in the APEC region," he said.

APEC groups Australia, the United States, Canada, Mexico, Japan, China, Hong Kong, Taiwan, South Korea, Indonesia, Brunei, the Philippines, Malaysia, Singapore, Thailand, Papua New Guinea and New Zealand. Chile will become a full member this month.(als)