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)