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)