Ministers adopt APEC action plans

Ministers adopt APEC action plans

By Prapti Widinugraheni & Meidyatama Suryodiningrat

MANILA (JP): Ministers of the Asia Pacific Economic
Cooperation (APEC) forum adopted yesterday a plan of action which
will put the 18 member countries on a path towards free trade.

The Manila Action Plan for APEC (MAPA) was adopted at the
opening day of a two-day joint meeting of APEC foreign and trade
ministers.

Indonesian Coordinating Minister for Production and
Distribution Hartarto described MAPA as the first step in the
implementation of trade liberalization in the Asia-Pacific
region.

The action plans will be effective as of Jan. 1, 1997.

APEC comprises Australia, Brunei, Canada, Chile, China, Hong
Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New
Guinea, the Philippines, Singapore, South Korea, Taiwan,
Thailand, and the United States.

APEC leaders at a meeting in Bogor, West Java, in 1994 agreed
on a free trade deadline of 2010 for developed countries and 2020
for developing ones.

MAPA will reveal detailed plans of how member countries would
cut tariff and non-tariff barriers to trade and investment.

Members are expected to continuously improve their individual
action plans in the coming years.

Indonesia's plan of action reinforces commitment to trade
liberalization by reducing tariffs on almost all commodities to
between zero and 5 percent by the year 2003, Hartarto said.

"I think only a few countries presented a program of tariff
reduction which expands until 2003," he said as he touted
Indonesia's 37-page action plan.

Hartarto admitted that tariffs on agricultural and automotive
commodities will be higher than the 5 percent stipulated. "But it
won't be too high," he said.

Hartarto was accompanied by Foreign Minister Ali Alatas at
yesterday's ministerial meeting.

MAPA consists of four parts: The first is an introduction and
highlight of member countries individual action plans; the second
is a compilation of their respective action plans in full; the
third is a collective action plan in areas which will facilitate
business and cut the cost of doing business in the region; the
final part focuses on economic and technical cooperation.

Full details of MAPA will be unveiled during APEC's informal
leadership meeting in Subic on Monday.

Separately spokesman for Japanese Prime Minister, Hiroshi
Hashimoto, said Tokyo's action plan included major steps to
breaking down national barriers.

"It takes Japan as far as it can go at this moment," he said.

Japan's 92-page action plan specifies a reduction of average
tariffs to 1.5 percent on some 6,700 industrial products.

Some 290 fishery products will have an average tariff of 4.1
percent, 170 forestry products will have an average tariff of one
percent and 1,500 agricultural products will drop to an average
of 9.3 percent.

Furthermore Japan pledges not to apply non-tariff measures
that are not justified under international agreements.

Three of the 18 APEC members -- the Philippines, South Korea
and Australia -- yesterday agreed to implement a visa free card
for accredited businessmen to ease entry into their countries.

Philippine Foreign Affairs Undersecretary R. Severino said he
hoped other APEC members will follow suit.

The card is intended to save businessmen the hassle of
obtaining visas when making short intra-APEC business trips.

Hartarto said that even without such a card, Indonesia already
facilitates business travels into the country by giving "on
arrival" service at major entry points.

Earlier, when opening the ministerial meeting, Philippine
President Fidel Ramos urged the forum to begin developing a
culture of cooperation to sustain the forum's many gains.

"I am convinced that liberalizing trade and facilitating trade
and investment alone cannot do it," he said.

Ramos said it was necessary for APEC to come up with a
mechanism for binding the diverse Asia-Pacific region.

He stressed the use of economic and technical cooperation to
strengthen the culture of cooperation needed to build a community
of APEC economies.

The ministers will end their meeting today with a joint
statement. The series of APEC meetings will continue on Monday
with a leaders summit in Subic.

Soeharto -- Page 2

Business -- Page 8

Ministers -- Page 9

Members -- Page 12