MARKET DEVELOPMENT
RI will Go All Out For New Proposal, WTO Success: Minister
RI will Go All Out For New Proposal, WTO Success: Minister
05/10/2013 (Jakarta Post) - Indonesia plans to employ all its lobbying efforts to gain wide approval from fellow Asia-Pacific Economic Cooperation (APEC) members for its latest proposal to study products for reduced tariffs and to gain sufficient support to make the upcoming World Trade Organization (WTO) meeting a success.
The new proposal, which endorses a study of products that will contribute to poverty alleviation, rural development and sustainable growth, was introduced recently after an earlier proposal to add palm oil and rubber onto an environmental goods list failed to gain a positive response from APEC members.
Trade Minister Gita Wirjawan said that Indonesia would engage in intensive lobbying of fellow members during the APEC Ministerial Meeting (AMM) and leaders’ summit to get the nod for the proposal.
“We’re going all out with the lobbying. In my view, the new framework will be more inclusive than the existing environmental goods list. If it is approved, it will be richer,” he said on the sidelines of the two-day AMM.
Gita said he expected that once the proposal was passed and implemented, a wide array of products fulfilling the criteria would be open for discussion within the group in 2015.
Indonesian Palm Oil Producers Association (Gapki) executive director Fadhil Hasan welcomed the government’s move to bring a new proposal to the table.
“Late and weak lobbying were among the reasons why the earlier proposal failed to garner the much-needed support from other members,” he said, citing Malaysia as one of the countries that did not join forces with Indonesia to promote the issue.
“Now the government has to fight harder to endorse the proposal, which will serve as a basis to include palm oil on the new goods list [for tariff reductions],” Fadhil added.
Gita also said that Indonesia would approach APEC members to further accelerate the negotiation process at WTO headquarters to prepare for draft deals and proposals for discussions in the upcoming ministerial meeting on Dec. 3-6 in Bali.
New WTO director general Roberto Azevedo will be taking part in the two-day meeting, briefing officials on the current global economic situation and urging more political engagement to ensure a successful ninth WTO ministerial conference.
“Azevedo’s presence in Bali is very important because he does not see a window between now and the time of the ministerial meeting to finish whatever is necessary. As APEC represents around 60 percent of global gross domestic product [GDP], its contribution will be a game changer,” Gita said.
According to Gita, higher flexibility from two countries — the United States and India — would determine the success or otherwise of the current preparatory talks.
Indonesia expects to endorse three deliverables — trade facilitation and agricultural and least-developed countries (LDCs) packages — which other fellow members also consider necessary to revive the deadlocked Doha Round trade talks and restore confidence on the negotiating function of the global trade governing body.
The trade talks have been at an impasse since 2008, as neither developed nor developing countries could agree on a reduction of agricultural subsidies and industrial tariffs.
Hendri Saparini, the executive director of the Center of Reform on Economics (CORE) Indonesia, pointed out that APEC’s endorsement was critical to accelerate the pace of talks for the Bali meeting. However, she said progress would significantly depend on how flexible developed nations responded to accommodate the interests of developing nations.
“Some developing countries that now have advanced to higher development stages still have sufficient space to grow. Therefore, developed nations should provide them with sufficient space to channel their interests,” Hendri said.
Indonesia proposed on Tuesday, during APEC’s concluding senior official meeting, a draft of a standalone leaders’ statement that would reaffirm their commitment to a multilateral trading system, including to progress the talks for the Bali meeting and to retreat from protectionist policies.
The new proposal, which endorses a study of products that will contribute to poverty alleviation, rural development and sustainable growth, was introduced recently after an earlier proposal to add palm oil and rubber onto an environmental goods list failed to gain a positive response from APEC members.
Trade Minister Gita Wirjawan said that Indonesia would engage in intensive lobbying of fellow members during the APEC Ministerial Meeting (AMM) and leaders’ summit to get the nod for the proposal.
“We’re going all out with the lobbying. In my view, the new framework will be more inclusive than the existing environmental goods list. If it is approved, it will be richer,” he said on the sidelines of the two-day AMM.
Gita said he expected that once the proposal was passed and implemented, a wide array of products fulfilling the criteria would be open for discussion within the group in 2015.
Indonesian Palm Oil Producers Association (Gapki) executive director Fadhil Hasan welcomed the government’s move to bring a new proposal to the table.
“Late and weak lobbying were among the reasons why the earlier proposal failed to garner the much-needed support from other members,” he said, citing Malaysia as one of the countries that did not join forces with Indonesia to promote the issue.
“Now the government has to fight harder to endorse the proposal, which will serve as a basis to include palm oil on the new goods list [for tariff reductions],” Fadhil added.
Gita also said that Indonesia would approach APEC members to further accelerate the negotiation process at WTO headquarters to prepare for draft deals and proposals for discussions in the upcoming ministerial meeting on Dec. 3-6 in Bali.
New WTO director general Roberto Azevedo will be taking part in the two-day meeting, briefing officials on the current global economic situation and urging more political engagement to ensure a successful ninth WTO ministerial conference.
“Azevedo’s presence in Bali is very important because he does not see a window between now and the time of the ministerial meeting to finish whatever is necessary. As APEC represents around 60 percent of global gross domestic product [GDP], its contribution will be a game changer,” Gita said.
According to Gita, higher flexibility from two countries — the United States and India — would determine the success or otherwise of the current preparatory talks.
Indonesia expects to endorse three deliverables — trade facilitation and agricultural and least-developed countries (LDCs) packages — which other fellow members also consider necessary to revive the deadlocked Doha Round trade talks and restore confidence on the negotiating function of the global trade governing body.
The trade talks have been at an impasse since 2008, as neither developed nor developing countries could agree on a reduction of agricultural subsidies and industrial tariffs.
Hendri Saparini, the executive director of the Center of Reform on Economics (CORE) Indonesia, pointed out that APEC’s endorsement was critical to accelerate the pace of talks for the Bali meeting. However, she said progress would significantly depend on how flexible developed nations responded to accommodate the interests of developing nations.
“Some developing countries that now have advanced to higher development stages still have sufficient space to grow. Therefore, developed nations should provide them with sufficient space to channel their interests,” Hendri said.
Indonesia proposed on Tuesday, during APEC’s concluding senior official meeting, a draft of a standalone leaders’ statement that would reaffirm their commitment to a multilateral trading system, including to progress the talks for the Bali meeting and to retreat from protectionist policies.