DEVELOPING COUNTRIES TO STRENGTHEN MODALITIES IN WTO

Indonesia for Global Justice (IGJ) expects developing countries to strengthen modalities and domestic potential in the application of multilateral trading system. Developing countries, in general, has three modalities. First, each country has a sovereign legal system. Second, developing countries also have human resources. Human resources are that most crucial, and should be accompanied by an increase in capacity. “Increase of human resource capacity cannot be separated from education and knowledge,” Executive Director of IGJ, Riza Damanik, told Business News (November 15).

The third is Natural Resources which should be utilized and sustained. All exiting potential and capital must also be accompanied by a multilateral trade agreement which is fair and equitable. “All agreements should be for our national interests.”

Concerns about siding with developing countries will be the determinant of the WTO (Would Trade Organization) Summit early next month next month in Bali. Indonesia still plays an active role in WTO. Dimensions of development so fair still side with developed countries. Unfair trading systems exist in a variety of agreements for agricultural sector, services, and investment. So that Indonesia should be more actively encourage modification of the contents of the agreements. “At the Summit, there is no other choice, but Mr. Gita (Minister of Trade) has no represent national interest.”

The imbalance is also evident to the Indonesian nation. Importation of some commodities such as rice, salt, fish and so forth are still a terror. “So that the Indonesian government must fight, not back down, with developed countries at the Summit.”

IGJ noted that there seven national interests in the WTO. Most of all, Indonesia has experienced a trade deficit. Trading system which tends to be unfair eventually directed Indonesia as a net importer. Competitiveness of national industry is very weak. National development is not based on innovation and technology. Multilateral trading system also provides greater access to foreign investors. “As a result, Indonesia’s development is highly dependent on foreign investment.”

The siding with foreign investment is also not coupled with technology transfer. As a result, the national industry cannot keep pace, especially with the technologies of developed countries. Drafting of regulations and national policies is not based on national interests and welfare of the people. National economy is increasingly linked with liberalization practice. “Free trade agreement also leads to liberalization.”

As a result of the agreements, small economic actors only act as ‘spectators’. While, foreign players could dominate the domestic market. The Indonesian government did not know to be done in WTO negotiations. “We urge the Indonesian government to reposition strategy so there is fair trading system.”

WTO development agenda in DDA (Doha Development Agenda) and Bali package is also not free from buying time strategy (delaying). Developed countries will not hold a fair trade system. “So, Mr. Gita (Minister of Trade) should not be dictated by the developed countries. They obviously want to exchange Indonesia’s agricultural interests with developed countries’ development agenda with its Trade Facilitation. 

Business News - November 20, 2013