U.S. urges Malaysia, China to back trade plan
U.S. urges Malaysia, China to back trade plan
MANILA (Reuter): A U.S. official yesterday urged countries like China and Malaysia with reservations about a regional free- trade zone to back a liberalization plan at the Asia-Pacific Economic Cooperation (APEC) meeting in Indonesia.
Winston Lord, Assistant Secretary of State for East Asian and Pacific Affairs, told reporters from Washington through a satellite hookup he hoped such countries would drop their objections.
"It will be a political statement to give impetus to freeing trade and investment," he said. "I hope Malaysia and others would see the value in a statement (for a regional free-trade zone)."
Malaysia and China had indicated in the past month they would not accept a binding trade deal. But Lord said discussion on a binding time frame to open regional trade by the year 2020 has been overdone.
The United States is confident acceptable wording will be agreed when leaders of the 17-member APEC countries hold their annual summit in Bogor, Indonesia, on Nov. 15.
"We cannot build a Pacific community unless there is a joint effort" on trade, Lord said. "We hope to see a bolder statement on freeing trade in the region."
Australia and Singapore have been among the most active campaigners for a free-trade deal.
Japan
In Tokyo, Japan's envoy to the forum, Tetsuya Endo, said yesterday that Japan supports APEC's move towards a regional free-trade pact but he avoided discussing timetables for trade liberalization or the content of such a pact.
"This is going to take a few more years," Endo told a news conference before leaving for Indonesia where the APEC forum meetings are to be held next week.
"It would take at least the next year and the following to come up with concrete plans."
Japan's biggest goal at the APEC meetings, Endo said, would be to help host Indonesia achieve a consensus on issues ranging from the trade pact and the development of human resources to creating a uniform APEC code on investment.
"This is our grave responsibility and we are ready," he said.
Trade and foreign ministers of the APEC forum, including Japan, the United States, China and Southeast Asian nations, will meet in Jakarta on Nov. 11 and 12.
The ministerial meeting precede a summit meeting of the member states in Bogor, near Jakarta, on Nov. 15.
Japanese Prime Minister Tomiichi Murayama, Foreign Minister Yohei Kono and Trade Minister Ryutaro Hashimoto will attend the meetings.
At the ministerial meeting, a key issue will be two suggested timetables for establishing an APEC free-trade zone.
An APEC advisory group of economists and academics recently suggested the forum sign a pact to liberalize trade and investment by 2020.
Under the group's plan, drafted last August, advanced countries like the United States, Canada and Japan would take the lead in the year 2000 by lifting all tariffs and other barriers.
Newly industrialized nations like Taiwan and South Korea would follow suit in 2010, with the rest taking part in the full scheme in 2020. A separate group of regional businessmen has instead suggested a "fast-track" approach. Under their plan, full liberalization would come in 2010 with the advanced countries taking the lead in 2003.
"Japan agrees to the overall direction of liberalizing trade and investment to bolster economic growth in the APEC region," Endo said. "That's all I can say now ahead of the Jakarta conference."
"We are the host country next year and it is important that we help Mr. Soeharto this year. The question is how to seek an understanding from all participants for a possible draft (on the free trade pact)," he said.
Australia
In Canberra, Australian Trade Minister Bob McMullan said yesterday Australia is confident that APEC leaders will strike a non-binding agreement to open regional trade before 2020.
"I don't see it as an enforceable agreement," McMullan told journalists.
"It's the leaders of all the countries making a declaration of intent," he said.
"There's a significant amount of moral binding in that, but nobody could go to court to enforce those sorts of agreements."
McMullan said he was confident Malaysia and China could agree to deal to liberalize regional trade before 2020 as they were both already moving to liberalize their own economies and trade with their neighbors.
"I don't think at the end of the day they will have difficulty with any agreement," McMullan said.
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 become the 18th member at the summit.