TEXT: FISHER JUNE 28 REMARKS IN AUCKLAND AT APEC PANEL
(APEC, WTO decision process must be transparent, responsive)Auckland, New Zealand -- The work performed by the members of the Asia-Pacific Economic Cooperation (APEC) and World Trade Organization (WTO) "must lead to an agenda which offers shared benefits and satisfies the major priorities of participants," Deputy U.S. Trade Representative Richard Fisher said at a June 28 panel on APEC in Auckland, New Zealand.
"As we develop that agenda, each of us must set it before the public in our various countries in a timely, frank and straightforward fashion. And the institutions we use to complete and implement that agenda -- most notably the WTO -- must be transparent, accessible and responsive to the public," Fisher continued.
Fisher stressed the importance of resisting the urge to revert to protectionist policies as a reaction to the global financial crisis.
"In the worst financial crisis of the past half century -- with 40% of the world in recession and six major economics contracting by 6% or more -- we have seen no broad reversion to protectionism. Instead, the regional trade relationships we have built, together with the stronger trading system represented by the WTO, have prevented a cycle of protection and retaliation which would have worsened and spread the crisis," he said.
"This is a strong foundation on which we can build in the years ahead," Fisher added.
Fisher stressed that the United States will continue its efforts to assist countries recovering from the global financial crisis. Among the steps the United States has already taken, according to Fisher, are keeping the steel market open, supporting finance programs, and providing economic support for Thai, Korean, and Indonesian students now in the United States completing university studies.
Following is the text of Fisher's remarks:
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THE PUBLIC CONSENSUS FOR TRADE IN THE PACIFIC
Ambassador Richard Fisher
Deputy U.S. Trade Representative
APEC Panel
Auckland, New ZealandJune 28, 1999
Good afternoon.
I want to thank our hosts, the people of Auckland and Minister Lockwood Smith, for bringing us together at this Asia-Pacific Economic Cooperation Ministerial Conference. As you know, Ambassador Barshefsky was detained at the last minute to attend to a family matter. Thus, I have the pleasure of joining you to discuss perhaps the most important topic we face in trade policy -- that is, ensuring public support for liberalization and for open trade. I am honored to be on this panel with my friends Tim Fischer, and Dr. Supachai. And it is a pleasure to see Urb Lehman, who taught me more about Japan back in the late 80s and early 90s than anybody or any briefing paper.
Let me begin with a brief look at the context in which New Zealanders, and the public in all our APEC members, will judge our work in the years ahead.
EMERGING FROM CRISIS
We are now beginning to emerge, we hope, from a very difficult period.
The year since our APEC Trade Ministerial in Kuching, it is fair to say, has been one of intense suffering. From Indonesia to Russia, our members have seen parents losing jobs and children forced to leave school; social problems from delayed education to rising crime to wrenching displacement, and millions of families forced into poverty. Even in the United States, while our economy as a whole has remained healthy, the loss of export markets has badly hurt farmers and certain manufacturing workers.
It has been a severe test for all of us. The governments of the affected countries have, I believe, shown great courage and patience in response. We applaud reform programs like those President Kim in South Korea and Prime Minister Chuan in Thailand have overseen.
As a result, we now see signs of return to health, from buildups of inventory in Thailand's manufacturing sector, to rising numbers of Asian tourists in Hong Kong, revival of industrial production and consumer demand in South Korea, and resilience in Brazil. Korea has returned to growth; Malaysia appears to have turned the corner, returning to positive growth this year and Thailand seems likely to do the same; Taiwan's growth, of course, appears nearly as healthy as ever. In short, it looks as though the worst of the crisis has passed.
The United States will do our part to ensure that these early signs of return to health continue. As the world's largest economy, purchasing nearly $1 trillion in goods and services, we realize the importance of maintaining our fundamental commitment to an open and healthy market. We, as evidenced by our rebuffing just last week the imposition of quotas on imported steel, will continue our contributions to keep our markets open and foster recovery. Likewise, we will continue providing support for the future, from supporting finance programs and reforms to assist stability to less glamorous but still important programs such as our support for Thai, Korean and Indonesian students now in the United States completing university studies. Looking ahead, we will redouble our work with our Pacific friends to create substantial growth for the future.
THE WORK AHEAD
This brings me to the trade agenda.
We can begin by recognizing the fundamentally important and positive role the trading system has played in the last two years. In the worst financial crisis of the past half century -- with 40% of the world in recession and six major economics contracting by 6% or more -- we have seen no broad reversion to protectionism. Instead, the regional trade relationships we have built, together with the stronger trading system represented by the WTO, have prevented a cycle of protection and retaliation which would have worsened and spread the crisis.
This is a strong foundation on which we can build in the years ahead. To review the U.S. agenda briefly:
-- We hope to see China enter the WTO this year, on the basis of commitments we have already reached and mutually acceptable resolution on the remaining issues. The decision to proceed is now squarely in China's hands; we in the U.S. will re-engage with Beijing when they are ready to do so.
-- We will work with Japan to open and deregulate its economy, building on our achievements under the Enhanced Initiative on Deregulation and Competition Policy during Prime Minister Obuchi's visit last May.
-- We will continue to support President Kim's reform policies in Korea, as restructuring continues, as we also address the bilateral and sectoral trade issues.
-- We applaud ASEAN's progress toward the ASEAN Free Trade Area, and will continue to work with ASEAN as a group and as bilateral trade partners. In particular, we are working toward conclusion of a Trade Agreement with Vietnam, to be followed by our endorsement of Normal Trade Relations with Vietnam and for Laos as well.
-- On the regional level, at this APEC Ministerial and in the months ahead, we will continue working toward the goal we have set of "free and open trade" in the Pacific, beginning with progress toward agreement at the WTO on the Accelerated Tariff Liberalization initiative we began last year at Kuching.
-- And we will develop areas of common interest as we look to a new Round at the WTO, set to begin when we host the WTO Ministerial Conference in Seattle this fall. For example, we can create new opportunities for the region's farmers, by reducing trade barriers and eliminating agricultural export subsidies. Through the services negotiations, we can contribute to the work of our colleagues in finance on the global financial architecture by helping to promote transparency and pro-competitive regulation in financial services, construction, the professions and other fields. And we think we need to seize the tremendous opportunities that would be afforded by further tariff reduction in the non-agricultural sector both through ATL and through the launching of broader tariff negotiations at Seattle.
PUBLIC SUPPORT
This is an ambitious agenda which brings me back to our topic for this morning: to succeed in the new Round, in the APEC agenda, or in any of these areas, we must have a strong base of public support and consensus for an open trading economy in the Pacific and worldwide.
And today -- because of the financial crisis, and because of the longer-term challenges posed by international economic integration and technological advance -- we must work harder than ever to ensure that base of support. At home, Americans have questions about the implications of the world economy for jobs, for sustainable growth, for social equity, and for our ability to control our own destiny. I am sure many people in Asia ask the same questions of their governments.
Part of the answer lies in the domestic policies that will allow us to succeed in a more open world and to face the inevitable downturns with more confidence. Each of us, for example, must address the need for social safety nets. All of us must develop the education systems necessary to prepare young people for a more challenging economy -- which we will face given the inescapable effect of new technologies on life and work.
Another part lies in reaching timely results that make a difference. That can begin this year -- with the Individual Action Plans in APEC, progress toward consensus on the Accelerated Tariff Liberalization initiative we began at Kuching, as well as the other work near completion at the WTO on an extended Information Technology Agreement, extension of the standstill on tariffs applied to electronic commerce, and transparency in government procurement.
But the most fundamental requirement for public support of the trade agenda is that we make sure the public is informed about our work. The civil society groups feel they have a chance to contribute. That as we develop the agenda for APEC, the WTO and all our related initiatives, the public feels it has a voice. This is what President Estrada said very eloquently at Singapore last fall -- in the aftermath of the crisis:
"There is a compelling need for democratic means, for more transparent economic and banking practices, for more educational opportunities, for a chance to compete fair and square in a level playing field....These are the demands for market and political openness and transparency that we hear from simple people, from people frightened by economic forces beyond their control."
CONFIDENCE IN THE PUBLIC
If these demands are ignored -- if trade negotiations proceed in secrecy, if the WTO is as opaque and inaccessible to the public -- we can expect concerns to grow and support for open trade to erode. On the other hand, we almost invariably find that when the demands are met -- when people feel they have a voice and a chance to contribute to policy -- the public response is one of good sense, generosity and support.
So the main lesson I draw for trade policy is fairly simple. That is, leaders and policymakers have good reason to trust the public and its judgments. They must engage civil society up front, and keep them informed.
CONCLUSION
Our work at APEC and the WTO must lead to an agenda which offers shared benefits and satisfies the major priorities of participants -- as, for example, the EVSL initiative does, consisting of a balanced package of sectors encompassing trade liberalization, facilitation, and ecotech. As we develop that agenda, each of us must set it before the public in our various countries in a timely, frank and straightforward fashion.
And the institutions we use to complete and implement that agenda -- most notably the WTO -- must be transparent, accessible and responsive to the public.
That is the challenge. Simple to state; not always easy to meet. But if we succeed, I believe the public consensus for an open, liberal Pacific economy will grow stronger every year.
Thank you.
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