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Saturday, November 14, 1998

Apec meet folds up sans trade pact 

Madhav Reddy  
Kuala Lumpur, Nov 13: Pacific-Rim trade officials ended a three-day meeting on Friday without a full agreement on a fast-track plan to open trade in nine sectors and said it was now up to their ministers and leaders to work out a deal.

Officials from the 18-member Asia Pacific Economic Cooperation (Apec) forum said they had agreed their ministers should try to move forward with the trade liberalisation programme at the weekend, but had failed to gain a consensus on all nine areas.

Delegates from many of the member-economies said there was more work to be done on Early Voluntary Sectoral Liberalisation (EVSL), which would open up trade worth $1.5 trillion in the sectors on a fast-track basis.

"There was broad support but no consensus on EVSL," said Noor Adlan, executive director of the Apec secretariat.

Japan has refused to agree to liberalise trade in two sectors -- fishery and forest products -- because of intense political pressure at home.

The officials also, who had originally planned to meetonly two days, said the deal had become stuck on the period of implementation as well as tariff levels at the end of the period.

The officials said they were forwarding a broad plan to the Apec trade ministers, who meet in the Malaysian capital Kuala Lumpur on Saturday and Sunday, for further negotiations.

"Ministers will have to make a political decision," said Somkiati Ariyapruchaya, Thailand's representative at the Apec senior officials meeting. "A plan is already in place. Agreement is required on flexibility."

Officials said many economies were in disagreement over the time table for implementation of the liberalisation programme, which aims to eliminate tariffs as early as possible as part of a broader Apec plan to become a tariff-free zone.

"There is broad agreement that we think it is important to move it forward, we think it (the plan) is credible (and) significant in output, outcome," said an Indonesian official.

He said there would have to be compromise between economies that want anearly implementation of the programme and those, particularly developing economies, who wanted more time.

"The (trade) ministers will have to negotiate on whether they want to compromise so that both sides -- one can climb down and the other can move up," he said.

Officials declined to name economies obstructing the trade deal and said Japan was not a major issue except with the United States.

Japan has said it faces political pressure at home to avoid opening its fishery and forestry product sectors, but the United States says the liberalisation package will not be credible without full participation from the world's second biggest economy.

Asked if there will not be a package on EVSL, Noor Adlan of the Apec Secretariat said: "We cannot say that. It is up to the ministers. It is possible that ministers (if unable to resolve it) may send it (the issue) up to the leaders for consideration."

Leaders of the Apec member-economies meet for their annual summit in Kuala Lumpur on November 17 and 18.

Manyofficials said a deal was a distance away, but still very possible by the end of the leaders meeting.

"I think everybody is holding (their) last card for the ministers and leaders to play," said the Indonesian official, who was optimistic a deal would be reached.

He said a product list for trade liberalisation had been agreed upon in the nine sectors.

Apec leaders agreed at their summit in Vancouver, Canada last year to set a timetable for cutting tariffs and opening trade in the sectors. They include environmental goods and services, fish and fish products, forest products, medical equipment, energy, telecommunications, toys, gems and jewellery and chemicals.

The opening of the sectors would be a step towards Apec's plans to become tariff-free by 2010 in developed economies and by 2020 for less developed economies.

The Apec member-economies are Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, SouthKorea, Taiwan, Thailand and the United States.

Russia, Peru and Vietnam are to become members at the Kuala Lumpur summit.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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