Asia split over approach to next round

Date: 16/09/1999

By Shada Islam

ASIAN countries remain divided on the wisdom of holding another round of global trade talks.

Japan, South Korea and Singapore are in favour of launching a broad set of negotiations, but other Asian nations including Malaysia, India and Pakistan remain opposed to further liberalisation, while countries like Indonesia and the Philippines are undecided.

Supporters of the initiative say Asia needs new market-opening moves to boost its nascent economic revival. But opponents argue that the Asian financial crisis has made it even more imperative that WTO signatories focus on reinforcing the gains of the Uruguay Round trade package, not on initiating new and potentially damaging market-opening measures.

The crisis has certainly left its mark on Asia's once-vibrant trade performance. But countries in the region have not taken shelter behind new protectionist trade barriers, although EU trade experts say some tariffs have gone up and many countries in the region have imposed discriminatory taxes on imports.

They have, however, stressed that further trade liberalisation moves are not a priority for now. "There is a different atmosphere prevailing in Asia," says a veteran Asian trade diplomat. "Officials and opinion leaders who are favourable to open trading are not in a comfortable position right now."

There is a growing demand for liberalisation to be "better managed and adjusted", he says.

Asian governments argue that the implementation of the market-opening pledges of the Uruguay Round into domestic legislation is still not complete.

They insist the meeting in Seattle should therefore focus on liberalising trade in services and agriculture, the two issues included in the WTO's so-called 'built-in' agenda left over from the Uruguay Round.

Asian countries remain divided on the wisdom of holding another round of global trade talks. Article forms part of a survey on world trade, p13-20.