Indonesia opposes non-trade issues at WTO talks
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)