Ministers' opinions mixed on APEC ground rules

Ministers' opinions mixed on APEC ground rules

By Prapti Widinugraheni

MANILA (JP): Malaysian Minister of International Trade Rafidah
Aziz reiterated yesterday the need for "flexibility" within the
Asia Pacific Economic Cooperation (APEC) forum, given the wide
economic disparity between its members.

Rafidah said that imposing a particular rule or perception has
never been the forum's method of operating.

Unlike the World Trade Organization, she said, APEC should not
be used for negotiations, for imposing sanctions or for making
rules.

"You can't have anything binding in APEC. Period," she told
reporters after speaking at the first-day of the APEC Business
Forum.

The two-day business forum, which is held parallel to a
meeting of APEC ministers, is being attended by more than 500
chief executive officers of major companies based in APEC member
economies.

APEC groups 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.

Rafidah said member economies used APEC as a means to exchange
ideas and views on how each member could reach a common goal set
out by APEC leaders in 1993.

That year, the leaders agreed to achieve free and open trade
and investment in the region by 2010 for developed economies and
2020 for developing economies.

Rafidah said that after three APEC leaders' meetings, she now
sensed a "deeper feeling" of solidarity among APEC member-
economies.

She considered members now had a "greater understanding" about
the economic dissimilarities that the forum must accommodate and
appreciates the fact that different situations require different
approaches.

Earlier yesterday, Japanese Minister of International Trade
and Industry Shinji Sato warned that APEC should follow up on its
"voluntary approach" method to counter the critics who argue that
rigid rules and legalities are the only effective means to deal
with economic issues in the region.

He said APEC's adoption of a voluntary approach to reaching
its goals should now be seen as a challenge to each member-
economy.

"APEC's unique consensus is the principle of concerted
unilateral liberalization... However, it hardly needs saying that
the adoption of voluntarism is also a challenge to ourselves," he
said.

"Should we not produce adequate results on the basis of the
APEC spirit of voluntarism, it will be difficult to counter those
who argue that a more traditional approach based on negotiation
and deals is more effective," Sato said.

He said the formulation of the Manila Action Plan -- which
will be endorsed by APEC leaders next week -- should be followed
by establishing a means to ensure the action plan's steady
evolution.

Sato suggested that APEC economies advance cooperation among
their export credit agencies to promote private sector investment
in infrastructure.

"Export credit agencies are subsidy free; they simply handle
risk," he said, adding that this way "the risks which should be
taken on by governments are borne by governments and the risks
which the private sector should deal with are dealt with by the
private sector".

He also suggested APEC initiate a "full-scale effort" to
improve the investment climate in the region.

"The Japanese government sees the development of the
investment principles into a more exact and transparent form as a
top-priority issue in this year's APEC meetings," Sato said.

Sato also proposed the creation of a mechanism for the "clear
assimilation" of private sector opinions to improve the Manila
Action Plan -- which will be approved by APEC leaders next week
-- and the individual action plans of each member economy.