More Asian offers on WTO liberalization sought

More Asian offers on WTO liberalization sought

BANGKOK (DPA): Despite a region-wide financial crisis the United States anticipates more offers from Asian countries on liberalization of their financial services at World Trade Organization (WTO) negotiations next September, a top U.S. trade negotiator said yesterday.

"I do think we will see some increased offers as we resume negotiations in Geneva next September," Deputy U.S. Trade Representative Jeffrey Lang told a press conference following his talks with Thai economic ministers.

Lang expressed optimism that Asian countries would not "reverse" their decision to open their financial markets despite the crisis that has swept through the region in recent months.

Thailand, arguably at the center of the crisis, was the sixth Asian country Lang and his team have visited in the past week to assess regional plans for WTO's financial services liberalization negotiations, which are to be concluded on Dec. 12.

Lang's delegation had already visited Japan, South Korea, the Philippines, Malaysia and Indonesia and on Monday was scheduled to fly on to New Delhi, his final stop.

"The purpose of this mission was to listen how we could move forward, especially in light of current circumstances," said Lang.

To date no Asian government has submitted formal offers to the WTO for the gradual liberalization of their financial services, he said.

The U.S. has been one of the main advocates of concluding a WTO financial services agreement that would commit all members to gradual liberalization.

Lang vowed that the U.S. would not force through liberalization at the expense of financial stability, especially in Thailand which had to appeal to the International Monetary Fund (IMF) this month for a financial bailout.

"We will do nothing in the negotiations that makes it more difficult to cope with the financial situation that is affecting these countries," pledged Lang.

U.S. officials have stressed that Asian participation in any WTO financial liberalization deal is crucial for success.

"Here in Thailand, and elsewhere in the region, financial officials realized long ago that market opening in financial services is a good strategy to produce stable and growing economies," said Lang in a statement that Thailand's current economic circumstances appear to contradict.

Some Thai politicians have blamed Thailand's crisis on past governments' decisions to liberalize the financial system via dropping constraints on the flow of funds into the country, specifically to the private sector which now has amassed some US$70 billion in overseas debt.