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JAKARTA, Sept. 17 (Xinhuanet) --Indonesian officials and analysts deplored the
collapse of the World Trade Organization (WTO) ministerial meeting in Cancun,
Mexico, blaming an insistence by developed countries on pushing their demand for
the breakdown.
Industry and Trade Minister Rini Soewandi said developed countries showed
no goodwill to create a fair system in global trade needed by developing
countries to reduce poverty rate.
"The attitudes by developed countries during the WTO forum give us a very
clear sign that developing countries will continue suffering poverty because
developed countries keep on imposing tariff and non-tariff barriers on
agriculture products from developing countries," the minister said in a
statement reaching here Wednesday.
"We will continue having trade with developed countries. But at the same
time we need to expand our markets to reduce reliance on developed countries,"
said Rini who led the Indonesian delegation to the WTO meeting.
Ministers of the 146 WTO members have gathered at Cancun to seek progress
toward a new trade liberalization pact but differences emerged and focused on
demands from developing countries for developed countries to cut farm subsidies
and tariffs.
Mari Pangestu, a noted economist at the Center for Strategic and
International Studies (CSIS), wrote in the Jakarta Post newspaper Wednesday that
the recent failure of the WTO talks reflects "the continual lack of regard of
the major WTO members tothe interest and concerns of developing countries."
Mari, who is also co-coordinator of the Task Force on Poverty and
Development for the UN Millennium Projects, urged developed countries to
eliminate all export subsidies and phase out domesticsupport that affects
developing countries' exports and reduces their agriculture tariffs.
"For developing countries, the issue is the speed and depth of tariff
reduction, the removal of tariff peaks and escalation in developed country
markets, and the specter of non-tariff barriers rising as tariffs fall, which
can negate improved market access," she said.
Commenting on the WTO talks failure, Agriculture Minister Bungaran Saragih
said in Surabaya, the second largest city of Indonesia, that the international
grouping must not deal merely with tariffs and subsidies in global trade.
He said WTO must be able to address the crucial issue on development, to
help developing countries reduce poverty rate, escalate food security and
preserve environment.
"Global trade must deal not only with tariffs and subsidies. Global trade
is for development," he said.
But response from businesses is somewhat different as they see the failure
from a perspective that developing countries have gained a victory against the
West, because for the first time in WTO history, they refused to let the United
States and the European Union play a dominating role in the negotiations for
their favor.
"Indonesia is among the countries that will gain from this result. It is a
victory for us," said Aburizal Bakrie, chairman ofthe Indonesian Chamber of
Commerce and Industry.
"Our agriculture sector would have been badly affected if the talks led to
the liberalization of global trade. Our farmers cannot compete with their
overseas counterparts even in the home market, because the latter can sell their
products at cheaper prices," he said.
Thomas Dharmawan, chairman of the Indonesian Food and BeveragesAssociation,
meanwhile said the failure or success of the WTO talks does not mean much to
businesses in Indonesia because "they are not ready for anything."
"There are so many problems at home, like illegal fees and an inefficient
bureaucracy. The government should overcome these problems before stepping
further into trade talks at the WTO," he said.
But Indonesia, where agriculture sector shares some 40 percent in gross
domestic product and employment, badly needs a fair global trade system to
protect farmers, who suffer most from the massive inflows of imported
agriculture products.
Several agriculture commodities at home are threatened by imported products
sold here at very cheap prices. The commodities include sugar, rice, soybean and
corn, regarded here as basic commodities.
Indonesian farmers make up the majority of people living below or at the
poverty line as they unable to raise their incomes due to stiff competition from
imported agriculture products.
For Indonesia, the WTO talks would be successful only if developed
countries had agreed to eliminate subsidies and tariffson their farm products,
which eventually will lead to open their markets more widely to developing
nations. Enditem
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