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)