Pacific Rim Economic Policy Objectives and Priorities for the U.S.
Statement by the PBEC US Board of Directors
Winter Board Meeting - January 30, 2001
With the inauguration of a new U.S. Administration and the convening of the 107th Congress, the Board of Directors of the PBEC US takes this opportunity to set out its recommendations on the priority objectives that we believe should guide the U.S. in its economic relations with the Asia Pacific region.
REGIONAL AND GLOBAL OBJECTIVES
- APEC: APEC is a valuable mechanism for strengthening the foundations for prosperity in the region through economic reforms, technical cooperation, and trade and investment liberalization. Most importantly it is a mechanism for building a sense of community, stability and shared interests between economies on both sides of the Pacific. We urge the Administration to be actively involved in APEC as the best means for uniting the Pacific Rim in common pursuit of economic development, growth and shared prosperity.
- Trade liberalization: The emergence of bilateral and plurilateral Free Trade Agreements can be a valuable complement to the goal of global liberalization through the WTO and toward achievement of APEC's Bogor Goals. The U.S. should move forward aggressively to seek to finalize pending FTA negotiations with Singapore and Chile, even as efforts continue in Geneva to reach a consensus for the launch of a new WTO round. The U.S. should be prepared to consider additional bilateral agreements that result in significant expansion of market opportunities for American firms and workers.
- Fast track: Fast track is a critical step for the US pursuing a credible stance in regional and global trade negotiations. We therefore encourage the Congress and Administration to reach an early agreement on fast track negotiating authority for a new WTO round and for the FTAA. We urge the Administration and Congress to find common ground to advance the interest of labor and the environment without jeopardizing the prospect of further trade liberalization and increased access to foreign markets important for American workers and businesses.
- Macroeconomic climate, systemic vulnerabilities: Despite the recent economic upturn in Pacific Rim region, there are continuing concerns regarding underlying economic structures. The United States should be actively engaged in efforts to address these structural deficiencies by national governments and intergovernmental institutions in the region. Constructive, sympathetic U.S. leadership in strengthening the region's financial and economic foundations is in the U.S. national interest.
- ASEAN: In addition to dealing with the challenges posed by the situation in individual ASEAN member countries, the Administration should engage ASEAN as a group in order to foster economic integration and stability in Southeast Asia.
SECTORAL OBJECTIVES
- Services: A strong services sector, particularly services that contribute to investment and economic integration like financial services, transportation and communications, is a cornerstone for sustainable economic growth. The U.S. should encourage through APEC the strengthening of the service sectors by pressing for an early and ambitious outcome in the WTO services negotiations, including pro-competitive regulatory reform.
- E-Commerce: The Administration should support the continued moratorium on internet taxation and the development of compatible legal and regulatory environments to facilitate the continued growth of e-commerce in the region.
- APEC Food System: The Administration should support the goal of the APEC Food System to ensure the long term availability of food at affordable prices to all consumers, and recognize the potential of biotechnology as a means for expanding the food and fiber production
BILATERAL OBJECTIVES
- China: The Administration should encourage China to make a maximum effort to complete its accession to the WTO, and should extend PNTR to China on the terms mandated by HR 4444. PBEC US will work with the Administration to promote implementation of the agreement, including promoting U.S. efforts to aid China's capacity to meet its WTO obligations.
- Vietnam: There is strong bipartisan support for trade with Vietnam as evidenced by the increasingly strong annual votes on the Jackson-Vanik waiver. We urge the Administration to immediately transmit to Congress and seek early approval of the bilateral trade agreement concluded last July. The bilateral trade agreement will enable American companies and products to compete effectively with European and Asian companies and products in the Vietnamese market, thereby benefiting American entrepreneurs, workers, farmers and consumers.
- Japan: A more vigorous Japanese economy would stimulate the region's less industrialized economies. The new Administration should encourage Japan to adopt pro-market domestic policies, especially policies which allow foreign firms to compete effectively in Japan, and to effectively restructure its financial system in order to boost business and consumer confidence. In addition, the Administration should work to ensure Japanese support for multilateral trade liberalization.
- Korea: The Administration should continue to pursue opportunities to decrease tension on the Peninsula, with a view to normalizing relations with North Korea. The Administration should conclude the Bilateral Investment Treaty (BIT) currently under negotiation, and seek other means to assist in the restructuring of the Korean domestic economy and supporting ongoing needed reforms.
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