Trade liberalization sought

Trade liberalization sought

JAKARTA (JP): A business advisory group of APEC suggested here
Saturday that the forum accelerate trade and investment
liberalization, improve business facilitation, promote human
resource development and improve the government-business sector
partnership.

"The Pacific Business Forum (PBF) recommends that the
implementation of free trade and investment liberalization in the
region be completed by the year 2002 by the developed economies,
and no later than the year 2010 by the developing economies," a
co-chairman of PBF, Les McCraw of the United States, told
reporters after meeting with President Soeharto at Merdeka Palace
on Saturday.

He said the suggestion on the trade and investment
liberalization is part of the recommendations presented to
Soeharto, who is this year's chairman of the Asia Pacific
Economic Cooperation (APEC) forum.

The recommendations were contained in a report, entitled "A
Business Blueprint for APEC," which was formulated by the
business forum during its three meetings after its establishment
in June 1994.

Co-chairman Bustanil Arifin of Indonesia said the
implementation of the trade and investment liberalization program
must be consistent with the principles of the General Agreement
on Tariffs and Trade (GATT) or the World Trade Organization (WTO)
and pursued in parallel with multilateral action.

PBF's recommendation on free trade is more progressive than
that of APEC's Eminent Persons Group (EPG), which recommended in
August that all APEC members achieve free trade within the region
by 2020.

Investment

Recognizing that APEC economies are all competing for a
limited number of foreign investment dollars, PBF is urging APEC
leaders to adopt the Asia Pacific Investment Code at their second
meeting in Bogor, south of here, on Nov. 15, the report said.

"This code will assist in reducing uncertainties and
transaction costs of investment and investment-related trade, as
well as encouraging the development of informal, cooperative
approaches to resolving investment-related disputes," he said

The report acknowledged that investment in some APEC economies
encounters by various impediments, including excessive approval
requirements, limits on the share of ownership, mandatory
partnering and exporting, low standards for the protection of
intellectual property rights and monopolistic practices.

To improve business facilitation, PBF recommended that APEC
economies take measures to accelerate customs processing, such as
simplifying customs documentation, using electronic means of
customs documentation and processing, developing an APEC
electronic tariff database and harmonizing customs
classification.

The forum also suggested relaxing visa requirements,
accelerating visa processing, introducing visa-free entry
facility for the citizens of other APEC members for short stays
and issuing temporary work permits for professional visits.

To promote the protection of intellectual property rights,
APEC economies should begin implementation of the Trade Related
Intellectual Property Issues (TRIPs) agreement as soon as
possible, develop credible enforcement with penalties and conduct
public education, the forum said in the report.

The forum also suggested that APEC leaders agree to establish
separate regional mechanisms to settle commercial disputes
between businesses in APEC members through mediation and
arbitration.

Ethics

PBF also recommended that APEC governments adopt a
transparent, open style of administration to reduce opportunities
for discretionary and discriminatory behavior and institute tough
legal actions against corrupt practices, while businesses should
adopt better accounting and auditing methods to make it difficult
to hide corrupt practices.

The APEC leaders are also expected to institute programs that
will provide capital for small and medium enterprises and create
linkages between large and smaller businesses.

A comprehensive plan for region-wide infrastructure
development in key sectors should also be drawn up to promote
cooperation among member economies, the report said, adding that
a meeting of ministers responsible for telecommunications
policies should be held in 1995 to discuss information
infrastructure development.

McCraw said PBF is also suggesting that a permanent APEC
Business Advisory Forum be established to provide direct input on
business issues to APEC leaders and make annual recommendations
on improving the business environment in the region.

Abdul Rachman Ramly, a member of PBF, said that President
Soeharto, who will preside over the Bogor leadership meeting,
promised to use the forum's report as a reference.

APEC groups Australia, the United States, Canada, Mexico,
Japan, China, Hong Kong, Taiwan, South Korea, Indonesia, Brunei,
the Philippines, Malaysia, Singapore, Thailand, Papua New Guinea
and New Zealand. Chile will join next month. (riz)

Editorial -- Page 4

Trade -- Page 10