MercoPress. South Atlantic News Agency

Pacific Rim free trade area “will have to wait”

Chilean president Ricardo Lagos made a strong defence of multilateralism and multilateral organizations, and called for fairer rules in international trade during the opening day this Friday in Santiago of the APEC-CEO summit.

Under the title of "The present and the future of the global trading system and Asia Pacific regionalism", the summit which gathered APEC and World Trade Organization officials plus leaders from the private sector of the 21 countries forum, considered the current world trade situation in an open debate where the effectiveness of WTO was questioned.

Another issue was the feasibility of advancing APEC and turning the Pacific Rim into a free trade area, an idea with a majority support but which "will have to wait".

President Lagos said that with an ever more global world clear rules for different economies are vital and called upon APEC members to search for common solutions in such areas as financial institutions, dumping and environmental affairs.

Mr. Lagos described WTO as a vital institution which has the challenge of contemplating the most diverse interests of different nations.

"The emerging world is most complex, but it will become even more complex if we don't have clear rules", stressed the Chilean president.

However, earlier in the day, Australia's Minister of Trade Mark Vaile was particularly critical of WTO current role.

"WTO can't do everything; it must concentrate in such a way that it becomes more efficient. Liberalization of world trade must be the focus of its attention", said Mr. Vaile adding that WTO should step aside and allow each country to solve its trade controversies in an independent way "so it doesn't interfere with the final goal".

Stuart Harbison from WTO rejected criticisms to the Doha Round which was targeted by several speakers as a "failure".

"It's impossible for a meeting of this kind (Doha Round) to be conclusive and come up with a priori solutions. What are important are the guidelines and that discussion continues".

Further on Mr. Harbison said that the regional trade talks were an important step in that direction since they are the true support for a successful round.

"If regional trade discussions are successful, so will the Doha Round". Fred Bergsten from APEC addressed the issue from another angle.

"If we can achieve trade liberalization we will be giving the rest of the world a very strong signal which is, you must also join the wagon" said Mr. Bergsten who illustrated by stating that if Asia-Pacific countries reach a trade agreement, "trade blocks such as the European Union and countries as Brazil will be in disadvantage compared to us".

"The Doha Round prospects are not clear or certain so reaching an agreement inside APEC becomes decisive".

Similarly Hernan Somerville, president of APEC Business Advisory Council stressed that "the benefits of the current APEC talks far outstrip complications".

Lee Hsien Loong, Singapore's Prime Minister was optimistic about the region's future and underlined that the "economic achievements of Asia-Pacific are not a temporary phenomenon".

He went on to say that in the coming twenty years the "adequate integration" of Asian countries will help build "an economic power superior to that of the European Union", although he warned about possible "unexpected economic and strategic swings such as terrorism or the situation in North Korea, Taiwan and Kashmir".

"The Asian surge will also help break the status quo of a polarized world economy".

However in spite of all the encouraging speeches Mr. Somerville president of the Business Advisory Council said that a feasibility study for an APEC free trade area comprising the 21 country members "will have to wait".

During the Foreign Affairs and Trade ministers meeting, two countries did not support the initiative arguing that they fear "creating too high expectations", and additionally are concerned that an APEC free trade zone project "could weaken negotiations inside WTO".

Mr. Somerville did not name the two dissenting countries but since APEC decisions are based on consensus the issue "will have to wait for the November 2005 summit in Korea".