U.S. defends its stance on investment code

U.S. defends its stance on investment code

JAKARTA (JP): The United States has insisted that its
opposition to an investment code discussed on Tuesday is for the
future good of the Asia Pacific Economic Cooperation (APEC)
forum.

"We have stated since the beginning, when we started the
process, that the investment initiatives should be ones of very
high standards," Sandra B. O'Leary, a senior U.S. delegate at the
Senior Officials Meeting (SOM), told The Jakarta Post during a
break of the second day meeting here yesterday.

"I think it's a measure of the seriousness with which we can
consider the whole APEC organization," she said in response to
U.S. disagreement over three items in the Non-Binding Investment
Principles document.

From the start of committee level meetings last week to the
first day of the SOM, the U.S. has been the only member opposed
to the adoption of the investment principles.

She argued that the United States has been working closely
with all the members of APEC to improve the organization.

"And I think we can be so proud of the fact that it is
developing into a more meaningful organization to promote
regional trade and investment liberalization and facilitation,"
she added.

"It means that as we deal with more important issues and more
difficult issues, there will be times when we have some
disagreements. That is a sign of the growing importance of our
agenda," she said.

"I don't think that it is correct to see this as a sign of
weakness in APEC...," she added.

Wisber Louis, the Director General for Foreign Economic
Relations at the Indonesian Ministry of Foreign Affairs,
yesterday declined to comment on the U.S. objection to the three
CTI principles.

"We still have time to overcome the disagreement," he pointed
out.

"But, whatever the results, we will report them to the Sixth
Ministerial Meeting," he said.

The three issues pending include national treatment,
performance requirement, and repatriation and convertibility.

Formulation

Hadi Soesastro, an executive of the Indonesian National
Committee for Pacific Economic Cooperation Council (PECC) told
the Post that what the United States wanted was a strengthening
of the wording formulation.

He said that on the issue of national treatment, for example,
the U.S. did not accept the word "with exceptions" and suggested
that it be rephrased into "with limited exceptions" for the
application of domestic laws on foreign investors.

Hadi added that the U.S. wanted to drop the phrase "Subject to
the laws and regulations applicable in each economy," with regard
to the transfer of funds related to foreign investment.

According to Hadi, the U.S. believes that the current
formulation on the three principles are too weak and too loose.

"But, I personally think it is better for the United States to
accept the current principles proposed by CTI since we are still
at the very early stages of the APEC entity," he said.

"I say let the organization grow gradually, especially
considering that the APEC forum is a matter of conformity in
nature," he said.

"But I am optimistic that the next ministerial meeting will
adopt the principles. Once the issue goes to the ministerial
meeting, it will become a political decision," he said.

Chief delegates apparently were to make a last ditch effort to
reach a consensus during their working dinner last night and
again at the final meeting today.(Team)