Tue, 23 Jul 1996

'No non-trade issues on WTO agenda'

JAKARTA (JP): Developing and industrialized countries remain divided over whether to include non-trade issues at the inaugural World Trade Organization (WTO) ministerial conference in Singapore in December.

The developing countries, led by the Association of Southeast Asian Nations (ASEAN), oppose any link between trade and non- trade issues, while the West is vehemently campaigning for the inclusion of a "social clause" in WTO discussions.

"Non-trade issues" generally refer to the environment, labor rights, corruption and human rights.

ASEAN foreign ministers on Sunday warned the West to stop insisting that non-trade issues should be discussed at the conference.

"ASEAN should oppose any attempt to include issues which are not trade-related, such as corruption and social clauses, at the Singapore ministerial conference," ASEAN foreign ministers said in a joint communique, issued at the end of their 29th ministerial meeting on Sunday.

The communique is in line with President Soeharto's call for ASEAN members to consolidate common opposition against the industrialized countries over non-trade issues.

"We must express concern over the efforts of some developed countries to sidetrack deliberations... so that the focus will not be on matters extraneous to trade," Soeharto said when opening the ASEAN ministerial meeting last Saturday.

The United States and European countries are spearheading a campaign to include non-trade issues in discussions at the inaugural WTO ministerial meeting. They are also seeking ways to promote the draft multilateral investment treaty and a competition policy.

ASEAN countries have vehemently rejected any attempt to include non-trade matters, such as investment codes and the competition policy, at the meeting.

Indonesian Foreign Minister Ali Alatas said the proposed multilateral investment treaty would protect the rights of foreign investors at the expense of recipient countries.

This issue was first broached at the summit of Asian and European leaders in Bangkok and is likely to be discussed again today when ASEAN countries meet 14 other world powers at the ASEAN Regional Forum (ARF).

ASEAN ministers have had problems with the draft multilateral investment treaty because they think it gives too many rights to investors from developed countries to the detriment of recipient developing countries.

Alatas, the chairman of this year's ASEAN ministerial meeting, called on ASEAN members to cooperate closely in the face of moves by some developed nations to push through the draft agreement at the WTO meeting.

The Singapore conference, to be attended by more than 120 WTO member countries, is expected to review progress towards global free trade under the time-table set by the Uruguay Round of multilateral trade talks. The conference will also review future challenges.

While ASEAN foreign ministers were meeting, U.S. civil rights activist Reverend Jesse Jackson was here promoting links between trade and labor rights.

"There must be some compatibility between (wages and working conditions of) workers so that we can have as much of an even playing field as possible, so that we can all grow together," he was quoted by AFP as saying.

Jackson wants Washington to use labor rights as a criterion for granting its "most favored nation" status. He said he regretted that the Indonesian workers making shoes for Olympic athletes could not afford to buy a pair themselves.

Indonesian rights promoter Marzuki Darusman, who is also vice chairman of Indonesia's National Commission on Human Rights, disagreed with Jackson, saying that non-trade issues, such as labor rights, should be dealt with separately.

"By linking the issues they become complicated," Marzuki said after meeting with ASEAN foreign ministers during a recess of the ASEAN ministerial meeting. (rid)