Fischer backs China, APEC, in finale

Business Asia, August 2, 1999 by Cameron Cooper

Embracing China as a trading partner and strengthening APEC are critical initiatives that will have a major impact on Australia's export performance in the new millennium, according to retiring Trade Minister Tim Fischer.

Arguing that China was "unfairly outside" the World Trade Organisation (WTO), Fischer said allowing Beijing into the fold would open up export prospects for many nations.

He also defended the role of the Asia Pacific Economic Cooperation (APEC), saying the region's economic crisis would have been significantly worse without the alliance.

Fischer made the comments last month at an APEC Business Forum in Sydney at one of his final appointments as Deputy Prime Minister and Trade Minister. Fischer's portfolio has been taken over by his National Party colleague, Mark Vaile.

China's long-running attempt to join the WTO has stalled largely on the back of resistance from the United States.

At the forum, Fischer defended APEC against its detractors and said its importance in keeping diplomatic ties open was reinforced by China's exclusion from the WTO.

"By bringing together most of our near neighbours and major trading partners, APEC represents a priceless diplomatic asset for Australia: one that forms an integral part of our economic, trade and foreign policy. It has been a strong force for further economic integration and cooperation and for promoting strategic ability in our region," Fischer said.

The claim that APEC was nothing more than a "talkfest" was "fundamentally wrong".

Among its benefits, Fischer cited:

* improved market access via lower trade barriers;

* greater transparency of trade and investment regimes; and

* lower business costs.

He said since 1988 average tariff levels had fallen by 59 per cent in South Korea, 57 per cent in China and the Philippines, and 43 per cent in Malaysia. Next year, average tariffs in China were likely to drop from 1995 levels of 36 per cent to 10 per cent.

APEC's business facilitation record is a "good news story", according to Fischer.

"APEC economies are simplifying and harmonising customs procedures with the objective of achieving 'paperless trading' for trade in goods in the region," he said.

"The potential savings are enormous when you consider that, on average, one international transaction involves around 30 different parties, 40 documents and 200 pieces of data."