Prime Minister Keating believes trade liberalization is essential if Asia-Pacific countries are to sustain their economic growth

Australia lias intensified Its.efforts to convince leaders of the Asia-Pacific Economic Cooperation (APEX-.) to make a commitment to regional free trade. Efforts have been stepped up especially in recent weeks because of the November meeting of the APEC in Bogor. Indonesia.

Although the Australian proposal lacks details and a time frame so far. Australian Prime Minister Paul Keating, in his quest for wheat has been described as an "historic political commitment". has actively lobbied leaders who will be attending the Indonesian summit meeting.

These include United States President Bill • Clinton. Indonesian President Suharto and Japanese Prime Minister Tomilchi Murayama- .

Special emphasis has been given to Japan. The Keating government believes a free trade agenda will gain little support from other countries in the region without a show of enthusiasm from Japan.

There is strong feeling within government circles here that the Bogor meeting must produce some sort of positive commitment to free trade (or. at least, trade liberalization) if APEC is to retain its relevance as an important force in the region. Only a commitment to a major issue ■such as free trade is likely to

ensure the future participation of heads of government at annual meetings.

The 17 member countries of APEC are Australia. Brunei Darussalam. Canada. China. Hong Kong. Indonesia, Japan. South Korea, Malaysia. Mexico. New Zealand. Papua New Guinea, the Philippines. Singapore. Taiwan. Thailand and the United States.

A commitment to free trade at Bogor will ensure APEC's dominance in the region in opposition to the East Asian Economic Caucus being pushed by Malaysian Prime Minister Dr Mahathir Mohamad.

Australia has a vital interest in the continued success of APEC since It was through its initiative that the group was formed.

But while Australia has ■tended to denigrate EAEC. Singapore supports both organizations. On a recent visit here. Singapore Prime Minister Goh Chok Tong made it clear he saw nothing abnormal about the two associations existing within the region. He emphasized his commitment to trade liberalization.

The Australian" newspaper commented that 'Singapore is the purest free trader in South-East Asia" and as such it has everything to gain and nothing to lose by promoting trade liberalization everywhere".

The newspaper stated that Singapore's interests almost al ways coincide with Australia's in the key areas of trade and security, and added that "both countries always stand to benefit from trade-liberalization."

Australia has a strong ally in Singapore. According to the Singapore Prime Minister, both countries share a commitment fc freer'global trade and open markets.

Mr Goh stated : "We both want Asia to be integrated into the world economy and APEC to grow in strength. As Australia reaches out for a greater role In south-East Asia, it will have a friend and partner in Singapore."

He added that Australia was "the most Asianized country of Western origin''.

.As far as Australia is concerned. it only wants APEC commitment for free trade to be Implemented some 25 years in the future. It believes that even such a long-term commitment is much better than nothing at all.

It is generally agreed by ob- . servers here that any Bogor

commitment to free trade is likely to be far from definitive : it will probably lack detail, fail to specify . how it can be achieved, be vague about the essentials and have a somewhat blurred time frame.

A great deal more negotiating may have to be pursued before Japan. China and the US can agree ori a workable Asia-Pacific free trade scheme — but a commitment (like- an agreement for a clean environment or cultural exchanges) can generally gain lots Of support.

As one commentator noted, the Bogor discussions will not be "about specific goals of trade reform, but simply about the date by which extremely loosely defined goals would be achieved."

He added : The prospect is that even if the APEC meeting can agree on a deadline, whether it is 2010 or 2020, it will not agree on what should actually be achieved by that date.'

Specifics will be part of an ongoing debate well into the 21st century.

Prime Minister Keating be-lieves trade liberalization in the

Asia-Pacific is essential tf APEC members are to sustain their economic growth rates.

We have the opportunity In APEC to create a mutually reinforcing process of regional and global liberalization that would enhance the multilateral trading system." he said.

Not all Australians are happy with APEC. Some them are convinced it will be bad for the country.

Professor Helen Hughes of Melbourne University stated recently that APEC had become an arrangement to give local politicians an opportunity to dance on the world stage when they had pressing problems like high unemployment and an uncompetitive economy back home.

She said APEC had not added one grain of rice to anybody in Asia and it had not added onie dollar's worth of trade to Australia.

Professor Hughes added : "If

APEC were to become another trading bloc and we were to be integrated into Asia in that sense, the cost to Australia would be enormous."

Some 55 per cent of Australia's exports go to Asia, but they constitute less than four per of Asia's total imports.

A recent report prepared by an APEC committee recommended maximum possible unilateral trade liberalization by individual APEC member countries. It also recommended a commitment to reduce trade barriers towards non-APEC members.

The report called for developed APEC countries to alm at achieving full trade liberaliza-. tion by 2010. Developing APEC countries were asked to aim for trade liberalization by 2020.

The timing is in keeping with the widespread opinion that the 21st century will be the Pacific Century.

— Depthnews Asia.