No hurry on formal APEC: Expert

No hurry on formal APEC: Expert

JAKARTA (JP): A foremost American political economist
yesterday called on members of the Asia Pacific Economic
Cooperation (APEC) to refrain from a hasty formalization of the
forum.

Lawrence B. Krause, professor at the Graduate School of
International Relations and Pacific Studies at the University of
California, San Diego, said here yesterday that the forum should
continue utilizing the current structure of APEC as an informal
forum.

"My view is to accept the wisdom of Southeast Asia on this
issue. Why should one want to make a decision on this issue at
this time," Krause said in a lecture at the Center for Strategic
and International Studies.

He argued that rather than creating piercing arguments on the
forum's institutionalization now, it would be better to wait and
see the impact of the liberalization dictated by the Uruguay
Round.

APEC comprises Canada, United States, Mexico, Japan, China,
Hong Kong, Taiwan, South Korea, Australia, New Zealand, Papua New
Guinea and the members of the Association of South East Asian
Nations (ASEAN) are Thailand, Malaysia, Singapore, Philippines,
Brunei and Indonesia.

From the outset, ASEAN members have shown caution towards
APEC. They feared that APEC might undermine ASEAN's cohesiveness
and evolve into a trade block.

They also feared that the United States wanted to create APEC
as a means of countering the European Union.

However, the past few months have seen a slight shift in
attitude with ASEAN members increasingly warming to the concept
of the forum. More specifically, Indonesia, currently presiding
over the forum, has embraced it more and more.

With the APEC leaders about to arrive here in November, and
with the release of the forum's Eminent Person's Group (EPG)
report calling for free trade by the year 2020, the debate of
APEC's formalization has once again erupted.

"Delay may have several virtues," Krause said, arguing that
APEC could use the time to observe the European Union as it
implements trade liberalization.

While waiting and studying the European Union, according to
Krause, "it may be easier to reach a true consensus on whether a
formal agreement is necessary."

Krause noted that despite this deferral, members could still
adopt the timetable for free trade since it will enhance APEC's
political commitment without formalizing the forum.

"It would be sufficient to sign a ringing declaration of
intent to create free trade by a given date even if it does not
contain a detailed plan for reaching it," he said.

In his assessment the incremental approach to trade
liberalization taken up by the forum has insured APEC's progress.

ASEAN

Speaking on the role of ASEAN within APEC, Krause contends
that ASEAN can become stronger as a result of the forum.

"APEC may challenge ASEAN but it will not dilute ASEAN," he
said.

According to Krause, ASEAN plays a strong central role in APEC
and hence the Association plays a decisive role in the forum.

Thus any cajoling by either the United States or Korea to
formalize or accelerate the forum's pace would not succeed if
ASEAN countries were against it.

"If the ASEAN countries want the progress of APEC to be slow
and gradual, then that will be the outcome," he said.

Krause brushed aside arguments that a sluggish pace by the
forum would turn the U.S. away from APEC leading them to look
southwards to the Latin American countries.

"I myself do not think that South America has anywhere near
the potential of Asia Pacific and cannot begin to satisfy the
U.S. need for trading and investing partners," he said. (mds)