'WTO best forum to address RI car policy'

'WTO best forum to address RI car policy'

JAKARTA (JP): A senior U.S. official yesterday said Washington
considers the World Trade Organization (WTO) the appropriate
channel through which to address trade disputes, such as the one
on Indonesia's national car policy, despite the involvement of
APEC members.

"I think that our view on settlement and mediation is that
there are established procedures in the WTO and that we should
use those where governments have trade disputes with each other,"
said Ambassador John Wolf, the U.S. coordinator for the Asia
Pacific Economic Cooperation (APEC) forum.

Speaking at a Worldnet dialog beamed directly from the United
States, Wolf was asked by panelists from Jakarta to comment on
Indonesia's national car policy and whether such a dispute should
be settled within APEC.

Jakarta's national car policy has been sharply criticized by
Japan, the European Union and the United States. They claim the
policy goes against the rules of the WTO.

All three have lodged complaints with the WTO.

"In that respect, APEC does not have a government to
government dispute settlement process. We tend to think that it's
fine the way it is," Wolf remarked, adding that the WTO is "a
good place to keep it".

APEC comprises Australia, Brunei, Canada, Chile, China, Hong
Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New
Guinea, the Philippines, Singapore, South Korea, Taiwan, Thailand
and the United States.

It is due to hold its fourth leaders meeting in the
Philippines next month. Members are expected to come up with a
revised action plan for comprehensive trade liberalization.

During the second leaders meeting in Bogor, West Java, in
1994, APEC members agreed to set a deadline for trade and
investment liberalization of 2020 for developing members and 2010
for developed ones.

When asked about APEC's principal of flexibility which allows
less-developed economies to take certain measures to facilitate
their development, Wolf maintained that such a principal must
still conform to WTO rules.

"There's another principle that everything that we do needs to
be WTO consistent," he said adding that "our obligations under
that (WTO) treaty are overriding obligations."

Speaking about next week's APEC senior officials meeting in
the Philippines, Wolf urged member economies to produce credible
measures to address trade barriers.

"We need to take credible first steps this year," Wolf told
the dialog which included panelists from Beijing and Port
Moresby. (mds)