5TH LD: APEC OKs Japan's plan to help developing states on WTO

Asian Economic News, June 12, 2000

DARWIN, Australia, June 6 Kyodo

(ADDING REMARKS BY JAPANESE OFFICIALS ON CONTENTS OF APEC STATEMENT TO BE ISSUED WEDNESDAY)

Asia-Pacific Economic Cooperation (APEC) trade ministers Wednesday will formally endorse Japan's proposals for APEC's contribution to the World Trade Organization (WTO), including an initiative to help developing countries implement their WTO commitments, Japanese officials said Tuesday.

The officials said three Japanese proposals -- on capacity-building for developing countries, seminars on investment and competition, and market access for the least developed countries (LDCs) will be included in the APEC chairman's statement to be issued Wednesday after the close of the two-day meeting.

Speaking on condition of anonymity, they said it remained unclear whether the statement would also mention adoption of a fourth Japanese proposal for a new APEC database on regional trade agreements and bilateral investment treaties.

Australian Trade Minister Mark Vaile, who is chairing the meeting, told reporters there was "broad acceptance" of ideas put forward by Japan.

Japanese International Trade and Industry Minister Takashi Fukaya called APEC's endorsement of the proposals the "biggest achievement" of this year's annual meeting.

"I am very happy that the people here have been giving credit to the Japanese proposals in this big meeting, as well as in my bilateral meetings with my colleagues," he said.

The proposals are partly aimed at securing developing countries' support for the launch of a new round of multilateral trade negotiations in the WTO.

Last December's failure in Seattle to launch a new round was partly attributed to developing countries' concerns that global trade liberalization will accelerate the widening gap between rich and poor nations.

Under the capacity-building proposals, APEC will by November identify the needs of its developing economy members through conducting questionnaires and field studies, and draft "tailor-made" strategies for each country.

From next year, those strategies would be implemented with around 40-50 million dollars in funds pooled from member governments, the World Bank, the Asian Development Bank and a fund set up within APEC.

The assistance will include the transfer of knowledge and skills needed by developing countries to implement WTO agreements, as well as to revamp their domestic legal frameworks.

Seminars will be held to enhance the skills of developing countries to participate more effectively in international trade negotiations and in the WTO's international dispute mechanism.

Funds will also go toward providing some developing economies with the necessary physical infrastructure, including computers and buildings.

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

Under Japan's proposal on investment and competition, one of the new areas expected to be tackled by the WTO, Japanese officials said seminars will be held in Peru on Aug. 23 and in the Philippines in October or December.

The officials cited progress on Japan's proposal to have more APEC countries participate in a WTO-backed initiative on market access for exports from LDCs, with indications that Australia and Singapore would join.

The initiative on LDCs began earlier this year when Japan, the U.S., the European Union and Canada committed themselves to extending both tariff-free and quota-free treatment for "essentially all" products originating in LDCs.

So far, in addition to Japan, the U.S. and Canada, APEC members Chile, Hong Kong, South Korea and New Zealand have also signed on, as have non-APEC and non-EU members Hungary, the Czech Republic, Slovenia, Iceland, Norway and Switzerland.

Outside the context of the WTO, Fukaya also proposed an economic legal infrastructure project to encourage structural reforms among APEC's member economies.

Japanese officials said the ministers agreed a symposium on the subject will be jointly organized by Japan, Australia and Indonesia and held on July 20-21 in Jakarta.