'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)