RI nudges APEC to move on free trade

RI nudges APEC to move on free trade

By Endy M. Bayuni

OSAKA, Japan (JP): Indonesia urged fellow APEC members yesterday to patch up their remaining differences over an Asia- Pacific free trade plan, saying that the group's credibility and the welfare of their people are at stake.

Coordinating Minister for Industry and Trade Hartarto said in the opening ceremony of a two-day Asia-Pacific Economic Cooperation (APEC) conference that the meeting should come up with an Action Agenda on the implementation of a free trade plan as laid out by APEC's leaders in Bogor last year.

"May I appeal to all my colleagues to exert their utmost so that these issues are resolved and thus ensure the success of our deliberations," Hartarto said. "At stake here is not only our credibility to the world at large, but also the sustained prosperity of our peoples."

Hartarto delivered his speech in his capacity as the immediate past chairman of the APEC's ministerial conference. The new chairman is Japanese Deputy Prime Minister and Minister of International Trade and Industry Ryutaro Hashimoto.

Japan as the host country presented their draft on the Action Agenda to the two-day conference, attended both by the trade and foreign ministers of the 18 member countries.

The draft has undergone many versions after deliberations by their senior officials.

Three issues over trade liberalization measures were still in contention at the start of the conference yesterday. One on "comprehensiveness" that requires member countries to liberalize all sectors of their economy without any exception. Another requiring that trade liberalizations pursued by each member country, although voluntary, must be comparable with others. The other contentious point is that all trade privileges granted to fellow APEC members should be non-discriminatory.

Hashimoto in his speech pointed out that a lot had gone into the preparations and drafting of the Action Agenda, with over 150 meetings of APEC's various groups, committees and other fora. "I suspect this is the first time in APEC's history that so many people have worked together so closely for a common goal."

Hartarto in his speech praised host Japan for the draft document.

"We are pleased to note that in its latest form, the draft 'Action Agenda' clearly reflects the three major pillars of the APEC process, namely liberalization, facilitation and development cooperation," he said. "We have always held the view that these three pillars are of equal importance and are equally interlinked."

Indonesia, as the architect of the Bogor Declaration, has always insisted that these three pillars be pursued with equal vigor, saying that this would allow the developing economies of APEC to catch up with the developed members.

Hartarto also praised Japan for coming up with the Partnership for Progress proposal to contribute towards the development cooperation program. "Indonesia welcomes this proposal because it represents an important step in narrowing economic disparities between APEC economies while supporting trade and investment liberalization and facilitation."

The proposal, which is expected to be endorsed by the APEC ministers, calls for the provision of various training schemes for the promotion of human resources development, particularly in developing member countries. They include training schemes in standards and conformity assessment schemes, industrial property rights, and competition policy.

Hashimoto underlined the importance of a successful conference here in Osaka to the international trade now that the World Trade Organization, the world's trade watchdog, has started to operate.

"All the more imperative is that those of us in APEC demonstrate a new mode of cooperation and further consolidate the momentum for trade and investment expansion achieved in the WTO.

"Accounting for 48 percent of the world's GNP and 46 percent of world trade, we obviously have a very important role to play.

"Thus, I would like to emphasize our common determination -- the determination for self improvement," Hashimoto said.

The APEC ministers yesterday also heard a presentation by the Eminent Persons Group, an advisory body whose two proposals earlier were influential in APEC's decision to move towards free trade.

There was also a presentation by the leaders of the APEC Business Forum.