News Release Issued by Pacific Economic Cooperation Council
Trade is Critical to Economic Recovery Says Indonesia Trade Minister
May 14, 2009, Washington – Indonesia Trade Minister Mari Pangestu said that ¡°At the end of the day, trade is critical to growth,¡± said Minister Pangestu. ¡°Trade is not the cause of the crisis, but it seems to be the casualty of it. Decline in demand has brought a decline in trade flows.
She spoke yesterday with regional economic experts, businesspeople and policymakers from 23 economies around the Asia-Pacific who were gathered for the Pacific Economic Cooperation Council¡¯s General Meeting. Experts were gathered in Washington DC to identify regional responses for Asia-Pacific economies to the global economic crisis.
¡°We¡¯ve got to keep trade and investment flows open, otherwise the recovery will take longer,¡± stated Pangestu.
Former US Trade Representative said that the United States is US$1 trillion a year better off as a country as a result of trade. ¡°That means that each American family is better off by $9,000 per household,¡± said Hills. She also said that salaries for jobs associated with trade pay between 13-15% more than those that are not trade-related.
Carla Hills served as United States Trade Representative from 1989 to 1993.
Minister Pangestu said that trade policy has taken on different complexities because of the changing economic environment and that new challenges have brought on new dimensions.
Pangestu discussed the negative implications of the crisis and, in particular, how to re-balance growth in the Asia-Pacific region referring to suggestions to look more at domestic consumption as a source of growth.
In a PECC survey released today, opinion leaders indicated that resisting protectionism was the top priority for international cooperation. But Pangestu said that while there have been some discriminatory elements in new trade and fiscal policies that have favored domestic goods, workers and banks over their foreign counterparts, evaluations indicate that these measures are all WTO-consistent.
¡°So far, it¡¯s benign murky protectionism,¡± she said. These include increased dumping, safeguards, increasing tariffs up to bound levels and non-tariff measures that conform with global rules but yet have the potential to restrict trade.
¡°There has also been an increase in green policies. That¡¯s another dimension that we need to deal with when we talk about the future of trade policy.
¡°In Asia, it¡¯s been an important theme to learn from previous crises. This is a good opportunity to continue reforms - not to reverse – but to accelerate reforms, including in the trade and investment area.
Linking trade policy to food security, energy and climate change should be part of a medium-term plan. But, Pangestu said that the paramount objective of trade policy should lead to growth and development.
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For Media Inquiries, Contact:
Michael Chapnick at +1 (202) 327-9767 (office), +1 (202) 270-7624 (mobile) or michael.chapnick@pecc.org.
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