Indonesia opposes non-trade issues at WTO talks

JAKARTA (JP): The upcoming first ministerial meeting of the World Trade Organization (WTO) should avoid discussing non-trade issues and focus on ways to establish fairer multilateral trade, Minister of Industry and Trade Tunky Ariwibowo said yesterday.

Tunky said here that Indonesia does not agree with the idea of bringing non-trade issues, such as labor rights, into the meeting because there is already a special organization under the United Nations, which handles labor issues, namely the International Labor Organization.

"Labor problems should go there. And don't mix trade and social issues," Tunky told journalists after installing eight first echelons as expert staff members at the Ministry of Industry and Trade.

The newly-installed first echelons are Anang Lukmana, Tommy Poedjhar, Ilchaidi Elias, Bambang Purnomo, Jabi Anuar, Taufiek Abbas, Abdul Karim Sudibyo and Bakir Hasan.

A number of developed countries, especially in Europe, have been campaigning to get the WTO's first ministerial meeting to discuss non-trade issues, including labor rights and the establishment of a multilateral agreement on direct foreign investment and competition policy. The meeting will be held in Singapore in December.

Tunky noted that Indonesia supports measures that boost investment from developed to developing countries. Indonesia rejects, however, the idea of establishing multilateral investment codes.

"We are a net capital importing country. And as a sovereign country, we have the right to regulate our economy, including foreign direct investment," Tunky argued.

He said a multilateral investment treaty would only protect foreign investment and investors, while neglecting the people and the places where the investments would be located.

The multilateral investment codes, proposed by developed countries, seek further market openings for foreign direct investment, provide guarantees on profit repatriation and ensure equal national treatment.

Tunky said Indonesia, under its Government Regulation No. 20/1994, has opened widely its doors to foreign investments and even offered a number of incentives for them.

"With such a position, we want to establish win-win cooperation principles between developed and developing countries," Tunky said.

Difference

He argued that developed countries should recognize the different levels of economic development between developed and developing countries. And they should give more time for developing countries to prepare themselves for trade and investment liberalization.

"It's okay with trade and investment liberalization, but we must agree first on different levels of economic development," Tunky said.

He called on industrialized countries to help speed up the development of developing countries by opening their markets and pouring more investment into the latter.

He noted that the WTO should also facilitate the process of providing market openings in developed countries and the smooth flows of investment to developing countries.

As the WTO guarantees fair trade, Tunky said, Indonesia will always comply with WTO provisions, including those governing unfair trading practices such as dumping.

He said the anti-dumping committee, introduced last month, had completed its establishment process with the appointment of its members, who are from the industry and trade ministry and the finance ministry. The committee is assigned to counter unfair trade practices by foreign entities.

"This morning I had a meeting with the operational team of the committee... We discussed dumping accusations filed by local businesses on imported polyester and steel products," Tunky said.

He added that the committee will include not only businessmen but also legal experts to deal with legal procedures. "As the Marakesh Agreement (the WTO) is a legal document, which is subject to interpretation, we have to involve international lawyers in handling dumping cases." (rid)