[asia-apec 1470] Australian Financial Review 8/6/00 on APEC

[APEC Monitoring Group]

APEC presses for world talks

By Brendan Pearson

Trade ministers of the Asia-Pacific Economic Co-operation forum yesterday urged an early launch of global trade talks and papered over continuing deep divisions on whether labour standards, anti-dumping and investment should be included in the mandate for comprehensive trade liberalisation in the World Trade Organisation.

Trade ministers from APEC's 21 economies called for "renewed efforts to build the global consensus necessary" for the launch of a new round "at the earliest opportunity".

But despite its billing as the first major meeting of trade ministers since December, the two-day meeting in Darwin produced no substantive discussions aimed at narrowing the differences that remain on the content of a new trade round.

The Japanese Minister, Mr Takashi Fukaya, said the discussions had primarily focused on the "broad and general direction" of the trade agenda, while his Canadian counterpart, Mr Pierre Pettigrew, said there had been no "bargaining" within the meeting on specific issues.

And at press briefings following the meeting the divisions on labour standards, investment and a review of anti-dumping regimes were clearly apparent.

The Chinese Trade Minister, Mr Shi Guangsheng, made it clear his Government would not support proposals from the United States for work on labour standards under WTO auspices.

"Only issues directly related to trade should be dealt with in the WTO," he said.

This is a view shared by many of APEC's developing economies.

The Australian Trade Minister, Mr Mark Vaile, said last night he doubted a WTO round could be launched if labour standards were a core part of the negotiating agenda.

Pressed on how these differences would be reconciled, the Deputy US Trade Representative, Mr Richard Fisher, joked: "If I knew that, I would be a Nobel Prize winner."

Mr Fisher also conceded there was "no consensus" on including a review of the WTO anti-dumping agreement and the investment and competition policy on the negotiating agenda.

Mr Fisher was dismissive of the need for a review of the anti-dumping agreement, saying that only 0.4 per cent of US imports were subject to anti-dumping and countervailing actions. 

Earlier this week he said that if some WTO members wanted "to muck up the agenda there would be a delay in the launch of a round".

Mr Vaile acknowledged continuing obstacles in "five or six" areas to a new round, but added that he was considering convening a meeting of "middle-sized" WTO members to discuss the issue further.

In other developments, APEC ministers reached agreement on an extension of a moratorium on custom duties on goods and services ordered and delivered over the internet.

A temporary WTO moratorium on these duties lapsed upon the collapse of the Seattle talks in December.

The extension agreed yesterday is valid until the next WTO ministerial meeting.

Meanwhile, Australian and US officials were tight-lipped about the prospects for a settlement of the dispute involving the $22 million in export subsidies paid to Victorian leather producer Howe & Company.

Mr Fisher told his officials not to discuss the issue with the media.

The only comment was that talks were continuing and that Canberra had already missed three deadlines for compliance with the WTO's ruling.

Mr Fisher confirmed he had expressed concerns about limits being placed on foreign media outlets operating within the Olympic Village. 

A number of British and US-owned news agencies, including Reuters and Associated Press, have complained that unfair restrictions on the agencies breach global rules on trade in services.

Government sources said last night Mr Vaile had written to the NSW Minister for the Olympics, Mr Michael Knight, seeking a satisfactory resolution of the issue.