Indonesia has time to adjust itself to GATT guidelines

Indonesia has time to adjust itself to GATT guidelines

JAKARTA (JP): Minister of Trade Satrio B. Joedono is convinced
that Indonesia will be ready to comply with all the provisions of
GATT when the World Trade Organization (WTO) is activated next
year.

He said after meeting with a group of officials from Morocco
yesterday that the seven years of Uruguay Round negotiations,
gave ministers time to prepare for the market opening steps
required to meet the new GATT rules.

"Our ongoing deregulation process will enable us to face the
world's freer-trade climate," he said, adding that new efforts
will be made soon.

Based on the final declaration of the new global trade accord,
which was signed by trade ministers from 111 countries last week,
the WTO Agreement will go into force on Jan. 1 next year, giving
the countries at least eight months to prepare.

"I am not pessimistic, but we definitely need to use the
remaining time to prepare ourselves," he said.

Advantages

Joedono explained that even though several points of the
Marrakesh Declaration did not meet Indonesian expectations,
Indonesia benefits from many of the new rules.

He said the stipulation allowing a five-year grace period
before the new rules on intellectual property rights and
investment regulation become fully effective is an example.

"Indonesia had initially requested this be a 10-year period,
but five years was what we got," he said.

He said that in the long run this will be an advantage for the
country since intellectual property rights of Indonesian
composers and designers will also be protected.

"This will increase our competitive edge on the world market,"
Joedono said.

In dealing with industrial market access, Indonesia has
committed to gradually reducing import tariffs over the next 10
years and will set tariffs at a maximum of 40 percent.

"So we have 10 years to quickly strengthen our industries
before they enter the world's free-trade market," he said.

In spite of the GATT members final agreement, Joedono said he
was disappointed with the fact that commodities such as rubber,
coffee, tea, chocolate, copper, aluminum and oil, were not
included in the GATT talks.

"Many developing countries still rely on these commodities as
a main source of income, but they were overlooked. The agreement
was strictly limited to handling the products of sophisticated
industries," he said.

Joedono also expressed anxiety that the WTO, the fine points
of which are still being hammered out, will generate new
protectionist measures.

"Several developed countries have demanded the inclusion of
social clauses -- such as labor and environmental issues -- into
trade affairs. If they are fulfilled and reflected in the rules
of the WTO, it will be a disadvantage to developing countries,"
he said.

Responding to questions on the Moroccan group, Joedono
explained that the delegation, led by Minister of Economy Hassan
Belcoura, is observing deregulation policy in countries which are
considered successful by the World Bank.

The group included officials from the ministries of industry,
trade, agriculture and finance and executives of the Chamber of
Commerce. (10)