WASHINGTON-President Clinton, with help from Japan, Canada, Australia and the European Union, snatched victory from defeat in winning support from Asia-Pacific leaders to end tariffs on telecommunications and information technology products by 2000.
The accord, culminating the Asia-Pacific Economic Cooperation forum last week in Manila, the Philippines, gives the free trade initiative momentum heading into the first World Trade Organization ministerial meeting Dec. 9-13 in Singapore.
But it took concessions from the United States and others to avoid an embarrassing defeat for Clinton and U.S. industrialized trading partners that stand to gain the most from the International Technology Agreement.
Malaysia led a contingent that opposed a strict deadline for eliminating equipment tariffs on grounds that high-tech firms in poorer nations might be run out of business by wholesale removal of trade barriers too soon.
As such, the APEC communique said the ITA “would substantially eliminate tariffs by the year 2000, recognizing the need for flexibility as negotiations in Geneva proceed.” WTO is based in Geneva.
Clinton is said to have personally lobbied APEC leaders for a date certain to zero out tariffs after Malaysia and others balked at the 2000 deadline.
The president was quoted as saying high-tech products “are at the core of America’s competitiveness” and are “to the 21st century what railroads were to the 19th century.”
The 18 members of APEC have vowed to broaden free trade in the region by 2010 for developed countries and by 2020 for developing countries.
The United States, separately, is pushing for a WTO telecommunications free trade pact by Feb. 15 that would open markets among the organization’s 125 members by 1998.
“This is clearly an important area for APEC and the unanimity reached today with respect to APEC’s desire that these negotiations come to successful conclusion by Singapore, attest to the importance of this sector to each of our economies and to global growth in general,” said Charlene Barshefsky, acting U.S. trade representative.
Pacific Rim nations, according to Barshefsky, accounted for 80 percent of the trillion dollar global trade in telecom and information technology in 1995.
The ITA triumph at APEC is a boost for Barshefsky, reportedly Clinton’s choice for a permanent USTR post despite past representation of a Canadian logging concern. Under a new law, such lobbying could disqualify her from a USTR appointment.
Before a WTO deal is reached, there must be a resolution of precisely what telecom and computer equipment is covered by the ITA.
In addition, the United States could run into problems in Singapore this month if it tries to link trade to labor standards and human rights.
“We are concerned with the demands made by major potential ITA members to exclude key [information technology] products,” said Sir Leon Brittan of the European Union.
“We call on all participants to adopt a bold, comprehensive approach. We should seize this unique opportunity to improve global market access at Singapore.”
APEC members are Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, the Philippines, Singapore, Taiwan, Thailand and the United States.
