Local industries concerned about WTO talks progress

Zakki P. Hakim, The Jakarta Post, Jakarta

Local industry players were concerned that the discouraging prospects in the current negotiation round in the World Trade Organization (WTO) would result in uncertainty for the country's business climate, Indonesian Chamber of Commerce and Industry (Kadin) said on Monday.

"The lack of progress in the WTO talks is already pushing many countries in the region to pursue free trade agreements (FTAs)," said Kadin chairman Mohamad S. Hidayat in his speech during a workshop Formulating Strategic Development Position ahead of WTO 6th Ministerial Meeting.

A successful WTO 6th Ministerial Meeting in Hong Kong next December would be a significant achievement in order that the world had a fairer and more transparent global trading system.

However, the ongoing negotiation round under the so-called Doha Development Agenda (DDA) has fallen behind schedule, casting doubts over the prospects for the Hong Kong meeting and prompting further uncertainty in the global trading system, as countries would likely turn to regional and bilateral agreements.

In his speech read out by Kadin's committee for international trade chair Shinta W. Kamdani, Hidayat said that FTAs might boost bilateral trade and cooperation efforts, but they could also pose a problem for businesses, especially those operating across many countries.

"I am talking about the effects arising from the different rules of origin that underpin these many different bilateral agreements. They are complicated for business," he said.

In the upcoming talks, he added, "I would appeal to our government officials not to lose sight on where we are going (in terms of the) details of the negotiations. WTO process is vital because it provides us with a greater chance to put the world on equal terms," he said.

Meanwhile, Malaysia-based Third World Network (TWN) director Martin Khor said countries involved in the trade negotiations should have a strong trade and development strategy.

"Indonesia as a big country should be able to put development issues in the forefront of negotiations ahead of the Hong Kong meeting and afterwards," he said.

According to Indonesian Ambassador to the WTO Gusmardi Bustami, development issues were already at the forefront but admitted the progress was slow.

"It's difficult to push special and differential treatments. The trick is in making them easier for implementation," he said.

The workshop, held by the ministry of foreign affairs, ministry of trade, Kadin and the Third World Network, aimed to produce recommendations for the country's negotiating team at the end of the two-day event, ahead of the Hong Kong meeting.