WTO settles new issues, except labor standards
By Riyadi
SINGAPORE (JP): Delegates at the inaugural World Trade Organization (WTO) ministerial conference here have finished negotiating new issues, except core labor standards.
WTO Director of Information Keith Rockwell said yesterday negotiators had agreed to mandate the WTO and the United Nations Conference on Trade and Development to study trade and investment links, competition policy and government procurement.
"Those issues (investment, competition policy and government procurement) have essentially been concluded... however, the labor issue has not been resolved," Rockwell said.
Sources said negotiators had narrowed their differences on core labor standards. But yesterday evening they still differed on whether to put labor clauses in the declaration or the chairman's statement.
Indonesian Minister of Industry and Trade Tunky Ariwibowo said Indonesia preferred the labor clauses to be included in the chairman's statement and not in the declaration.
He said Indonesia was sticking to its position that core labor standards should be dealt with by the International Labor Organization, not the WTO.
Indonesia believes restrictive trade measures should not be used to enforce labor standards and that the competitive advantage of low-wage countries should not be questioned.
Rockwell said negotiators were "working very, very hard" to resolve labor issues last night so that a declaration could be produced when the conference closes today.
Disapointment
Tunky was disappointed by the way new issues were handled at the conference, saying it was overwhelmed by negotiations on the new issues.
"We have spent too much time on this. We should have spent more time on genuine trade issues rather than these new issues," Tunky said.
Besides the new issues, negotiators have made breakthroughs on basic telecommunications, other unfinished business and other issues.
Peter Carl of the European Commission told a press conference that several countries had indicated they would improve their offers on basic telecommunications services.
Talks in Geneva on liberalizing the world telecommunications market under the auspices of the WTO were extended until Feb. 15 1997 after participants failed to forge an agreement by their April 30 deadline.
The telecommunications sector, still heavily protected in many emerging markets, is estimated to have annual turnovers well over US$500 billion.
Sources said yesterday all member countries had agreed on initiatives to promote further liberalization and help least- developed, developing and transitional economies integrate into the international trading system.
The member countries also affirmed the primacy of the multilateral trading system, which includes a framework for the development of regional trading agreements.
They renewed their commitment to ensure that regional trading agreements were complementary to the multilateral trading system and consistent with its rules.
They were also committed to progressive liberalization of trade in services, and progressive liberalization and elimination of tariff and non-tariff barriers to trade in goods.
Aside from the WTO agenda, the United States, Canada, Japan and European Union yesterday cleared the way for an accord to cut tariffs on information technology products by the year 2000.
Vice President of the European Commission Leon Brittan said up to 30 countries were set to join the United States-initiated Information Technology Agreement (ITA).
Minister Tunky said Indonesia would participate in the ITA, but was not prepared to sign it here because Indonesia did not want to eliminate tariffs on several products covered by the ITA by 2000.
"We are going to join the ITA initiative because we believe that information technology is a very important sector in the life of a modern society," Tunky said.
The information technology industry is considered to be the fastest growing industry in the world with exports worth more than US$595 billion in 1995.
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