Rini to rally int'l alliance ahead of WTO meet
Rini to rally int'l alliance ahead of WTO meet
Sari P. Setiogi, The Jakarta Post, Jakarta
Minister of Trade and Industry Rini MS Soewandi will soon
visit several countries of an agricultural alliance in
anticipation of a possible World Trade Organization (WTO) meeting
later this year.
Included on her itinerary are India, China, South Africa and
several Latin American countries, which are all grouped in the
Special Product (SP) and Special Safeguard Mechanism (SSM)
Alliance initiated by Indonesia in September during the failed
WTO meeting in Cancun, Mexico.
The visit comes amid growing optimism that a WTO meeting might
be possible later this year, following letters from United States
Trade Representative Robert Zoellick calling on all WTO members
to meet over issues left unresolved during the Cancun meeting.
In his letter, Zoellick agreed on the importance of the SP/SSM
issue in the next WTO meeting, Rini said during a hearing with
the House of Representatives Commission V for industry, trade and
cooperatives.
The concept was brought forward by Indonesia during the Cancun
meet and gained support from several countries. The SP/SSM
concept suggests that developing countries should be free to set
high tariffs on certain agricultural products to protect local
products as part of rural development, poverty alleviation and
food security efforts.
International trade director Pos M. Hutabarat at the Ministry
of Trade and Industry declined on Friday to specify those
agricultural products the government wanted to protect, saying
they would be kept confidential for now to strengthen Indonesia's
bargaining position at the WTO meet.
Earlier unconfirmed reports said the products were corn, rice,
soybean and sugar.
The Cancun meeting collapsed after developed and developing
member nations failed to agree on several issues, including farm
subsidies and investment rules.
Developing countries called for sharp cuts in farm subsidies
of developed countries, while developed countries pushed
developing countries to liberate investment rules.
Rini said with more countries now accepting the SP/SSM
concept, she hoped WTO nations would eventually reach an
agreement at the next meeting to exclude special agricultural
products from the tariff reduction program. This, she said, would
enable farmers in developing countries to better compete with
imported products.
The SP/SSM Alliance now comprises 33 countries, from an
initial membership of 19, Rini said.
Separately, Bogor Institute of Agriculture's Center for
Development Studies director Bayu Krisnamurti hailed the
minister's efforts to boost commitment among developing countries
for the SP/SSM concept during the next WTO meeting.
"We have to approach other developing countries to ensure a
solid voice during the WTO meeting. The U.S. and the European
Union are two industrial giants that will be willing to make
bilateral deals with developing countries in case no agreement is
reached in the WTO forum," he told The Jakarta Post.
Agricultural subsidies
provided in 2002 (in US$1b)
-----------------------------
European Union 101
Japan 43.9
United States 40
South Korea 16.1
Switzerland 5.1
Canada 4.6
Australia 1.0
-----------------------------
Source: Organization for
Economic Cooperation and
Development