Wed, 09 Nov 1994

Optimism on investment code still strong among officials

JAKARTA (JP): Senior officials of the Asia-Pacific Economic Cooperation (APEC) forum remained upbeat yesterday that they can still hammer out an agreement on investment guidelines in spite of opposition from the United States.

The opening day of the APEC Senior Officials Meeting (SOM) yesterday picked up the question of non-binding investment principles, which stumbled when it was discussed by the Committee on Trade and Investment here on Monday.

"Nothing is completed on that issue. But, we have still two days for discussion on the possibility of its adoption," Wisber Loeis, the Director General for Foreign Economic Relations at the Indonesian Ministry of Foreign Affairs, said at the conclusion of the first day of SOM.

"I cannot give my view on the possibility of the adoption, because the issue is still under process. But I am strongly optimistic on that," Wisber, who chaired the SOM, told reporters.

Wisber stressed that the United States should not be blamed for the prolonged discussion. "The time-consuming discussion is not caused by the United States. It is mainly because SOM is also a forum in which all parties can express their policy."

The committee on trade and investment agreed on nine of the 12 points stipulated in the Non-Binding Investment Principles document. The U.S. delegation objected to three items, respectively on national treatment, performance requirement, and repatriation and convertibility.

Committee Chairman Sun Joun Yung of South Korea said Nancy Adams, who headed the U.S. delegation, "has no authority to accept the package as a whole".

Tonny Miller, director general of Hong Kong's trade, is also optimistic on an eventual agreement on the principles. "I'm reasonably confident that we can reach agreement by the end of this SOM. We are now very close to an agreement," he told The Jakarta Post.

Krirk Kirkjlan, Thailand's director general for economic, business and trade, said he does not think that the United States will change its mind on the objection to the three items in CTI's principles. "But, I hope that the issue will be adopted at the ministerial meeting. It is because the APEC meeting is a consensus forum," he said. "The U.S. can't go alone," he added.

Report

The investment committee yesterday reported to the SOM on five administrative measures to be considered by APEC members.

These measures are customs formalities and charges; existing national and international disciplines and practices or administrative measures adversely affecting trade; sanitary and phytosanitary regulations; technical standards and certification; and anti-dumping policies.

The committee also reported that it has agreed to proceed with a pilot project to distribute CD-ROMs containing current tariff and tariff-related data, free of charge to businesses and governments in all APEC member economies.

The pilot project will be used to determine whether there is sufficient demand to justify regular distribution of CD ROMs containing such data, according to the report.

The committee is also recommending that APEC ministers endorse the proposed declaration on APEC Standards and Conformance Framework and direct the committee to pursue a work program aimed at developing arrangements for mutual recognition of conformity assessment. (fhp/mds)