RI calls for speedy end to U.S.-China rift

RI calls for speedy end to U.S.-China rift

JAKARTA (JP): Minister of Foreign Affairs Ali Alatas called
yesterday for speedy settlement of the trade dispute between the
United States and China.

The two countries, both members of the Asia Pacific Economic
Cooperation (APEC) forum, should resolve their trade dispute in
an amicable way, he told newsmen after attending a ceremony for
the inauguration of new ambassadors by President Soeharto at the
State Palace yesterday.

The minister said, however, that any trade war between the two
countries would have a little impact on Indonesia, the current
chairman of the 18-nation APEC forum.

"I don't think the trade dispute will change the existing
trade pattern," he said.

Washington and Beijing on Saturday ordered tit-for-tat trade
sanctions after failing to resolve their dispute over protection
of copyrights. Both have said the sanctions would not take effect
until Feb. 26.

Given the tendency for brinkmanship in trade negotiations,
analysts said a U.S.-China settlement was possible before the
February deadline for sanctions.

The sanctions would mean 100 percent tariffs on 35 Chinese
products, including picture frames, answering machines and
cellular telephones, sports items and bicycles, with an annual
value of over US$1.08 billion.

The Chinese retaliation includes 100 percent tariffs on U.S.
cigarettes, alcohol, cosmetics, camera films, cassettes and
compact discs.

Impact

Minister of Trade Satrio B. Joedono also played down the
impact of any trade war on the Indonesian economy.

"I think the impact on Indonesian trade will be minimal as the
structure of its exports is different," the minister told
reporters.

If textile products were included in Washington's trade
sanctions, the impact could be positive because Indonesia would
have had a better chance to boost its textile exports to the
United States with the absence of Chinese goods, the minister
said.

Joedono said that the possible impact of the trade dispute
could also include a massive increase in the number of Chinese
goods entering Indonesia.

Dumping

"There could be an increase in dumping practices and the
government is ready to help our business people to fight such
practices," the trade minister said.

Aburizal Bakrie, chairman of the Indonesian Chamber of
Commerce and Industry, said that the trade dispute took place
because both the United States and China feel much stronger than
one another

The chamber chairman gave credit to the Beijing response
towards the U.S. trade sanctions, saying that China had to
retaliate the sanctions to defend its own sovereignty.

"Indonesia should be also able to do the same thing when
receiving pressures from other countries," he said.

In the past, Indonesia could do nothing but receive the
sanctions by the rival countries due to the weakness of its
position, Aburizal said.

He cited that Indonesia's approval towards Washington's
requirement a few years ago to link the entry of its motion
pictures to Indonesia's textile exports to the United States
reflected the weakness of the Indonesian position in the
bilateral trade relations.

About the impact of the China-U.S. trade dispute, Aburizal
said that a failure of the United States and China to achieve a
compromise after the set deadline could increase the number of
Chinese goods entering the country.

"It means that we have to improve our business efficiency in
order to compete on the world market," he said.(hen)