Local industries concerned about WTO talks progress

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.