[asia-apec 655] Apec fast-track may face delays

[ALARM (APEC Labour Rights Monitor)]

Apec fast-track may face delays
China Daily, 14 September 1998

Kuantan, Malaysia (Agencies via Xinhua) - Unfinished work could delay a
Pacific Rim early voluntary sectoral liberalisation (EVSL) agreement
between 18 economies until November, just ahead of a meeting of regional
leaders, officials said yesterday.

Delegates to a meeting of the Asia Pacific Economic Co-operation (Apec)
forum said opposition from several members - particularly Japan - to
opening up some of the nine industry sectors was delaying finalisation of
the EVSL package.

Senior trade officials from the member economies meeting at a seaside
resort in Kuantan, Malaysia, said some form of agreement could emerge by
November, though action in many of the nine "fast-track" sectors could be
finalised at their current meeting.

"Clearly there is a lot of work to be done to implement the mandate given
to us by ministers in Kuching," said the US ambassador to Apec John Wolf.

In the June meeting at the Borneo town of Kuching, trade ministers had set
September as the deadline for the finalisation of the accord.

Wolf said the "fast track" EVSL had not yet been discussed by senior
officials, while work had been going on in finalising common products lists
and flexibility in implementation.

The package is to be presented to trade ministers for their approval before
being sent on to the leaders, who meet in Kuala Lumpur in November.

However, Abdul Razak Ramli, the Malaysian chairman of the Apec trade
officials meeting, told reporters that the "breakthrough" was achieved by
allowing for reservations expressed by various economies and making
provisions for greater flexibility in implementation.

"We have got breakthroughs already if you look at where we are now," he
said. "We are now looking at working out flexibilities rather than
remaining static ... or objecting or making reservations as to
participation. I think economies are looking at various flexibilities as to
how they can get on board," he added.

Delegates said fish and forestry products remained stumbling blocks. The
two areas are considered politically sensitive in Japan.

The nine sectors covered by the Apec "fast-track" programmes are
environmental goods and services, fish and fish products, forest products,
medical equipment and instruments, telecommunications mutual recognition
agreement, energy, toys, gems and jewellry and chemicals.

Another six sectors are to be targeted for liberalisation at a later date.

Japan's opposition prevented the Apec forum from reaching an agreement on
EVSL covering US$1.5 trillion in trade.

The Apec coordinator for the fisheries sector, Marshall Moffat, said
opposition from Japan would slow but not stop an agreement on opening up
the sector.

"I am confident that we will have for the fish sector a good agreement for
approval by trade ministers and leaders in November," Moffat said.

"We are getting closer and closer to what trade ministers had asked us to
develop, which is designing a trade agreement,"

Moffat said problems faced by Japan were the same faced by many other
member economies.

"The fisheries sector is naturally a sensitive one ... because governments
worry about their small-scale fishermen and fish farmers," he said.

Many delegates said several economies were facing a problem with many of
the products and sub-sectors being proposed for liberalisation.

"I wouldn't be surprised if the ministers have to roll up their sleeves and
do some work when they get down here in November," one senior official
said. ***