RI, China, Japan announce action plans on free trade
RI, China, Japan announce action plans on free trade
OSAKA, Japan (JP): Indonesia, along with Japan and China, took
significant steps yesterday in their commitment to liberalize
trade and investment within the Asia-Pacific region.
Eighteen leaders of the Asia Pacific Economic Cooperation
(APEC) forum presented their respective "initial actions", which
they will implement in moving towards a free trade zone in the
region by 2020 at the latest.
Most of the initiatives included measures to accelerate their
commitment to the Uruguay Round as well as economic deregulatory
measures.
President Soeharto presented the May 23, 1995, economic
deregulation package, which promised hefty and across the board
tariff reductions between this year and 2003, setting the maximum
rate on most goods to five and 10 percent, compared to current
tariffs that reach 40 percent.
The package also accelerated the plan to eliminate tariff
surcharges in 153 categories, representing 87 percent of the
total Uruguay Round commitments. Indonesia has also eliminated 61
of the 98 non-tariff barriers that it is required to remove under
the Uruguay Round. On both tariff surcharges and non-tariff
barriers, the Uruguay Round sets a 10-year timeframe, though
Indonesia removed many in May.
Japanese Prime Minister Tomiichi Murayama said Japan would
bring forward planned tariff cuts on 697 industrial and mining
products within two years, covering $10 billion worth of imports
a year.
Tariff cuts originally scheduled to take effect in January
1998 will be applied in April 1996 on such items as textiles,
chemicals, steel and non-ferrous metals.
Murayama also promised 50 new deregulation measures to improve
foreign access to Japanese markets. These include simpler car
inspection procedures, easier visas for business visitors from
the APEC region, better facilities for animal quarantine and
simpler customs procedures.
Applications by foreign countries for preferential tariffs
will be simplified.
Measures
Japan's initial actions contained measures already taken, such
as cuts in preferential tariffs on 55 agricultural and fishery
products, and the speeding up by two years of its five-year
deregulation plan covering 1,091 items.
"I hope these cuts will bring widespread benefits to Japan's
Asia-Pacific neighbors," Murayama said.
Eighty percent of items covered by Japan's acceleration of
tariff cuts come from APEC economies.
Australian Prime Minister Paul Keating, in a press conference
after the leaders meeting, described the initial actions
announced by Indonesia and Japan as some of the most significant
of all the 18 packages presented yesterday.
Chinese President Jiang Zemin unveiled the country's biggest
trade opening in years, slashing tariffs on imports to its market
of 1.2 billion people by 30 percent as of next year.
"From 1996, (China will) drastically reduce its overall tariff
level by a margin of no less than 30 percent," Reuters quoted
Jiang as saying at the meeting.
"This certainly will have a positive impact on regional
cooperation and the achievement of trade and investment
liberalization," his speech said.
A Chinese official told Reuters yesterday that China plans to
bring forward the date for full convertibility of its renminbi
currency for trade transactions, something which he
said may happen as early as next year.
The other 15 APEC countries also presented their packages.
Countries already virtually free, like the United States and Hong
Kong, presented no dramatic measures, while others appeared to be
moving more cautiously. (emb)