Free trade to benefit all APEC members

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)