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)