Council ensures free-market reform on track

By Mark Reynolds

New Zealand businesses this week played a major role in reviving Apec's flagging commitment to free-market reform, according to a leading economic official.

The task now is to ensure that the revitalised commitment is carried through to the agenda of Apec next year and meetings of the World Trade Organisation, said Dr Helmut Sohmen, chairman of the Pacific Basin Economic Council.

The council has helped organise meetings of businesspeople on the sidelines of Apec leaders' meetings in recent years. That includes the chief executives summit that was part of this week's Apec programme in Auckland.

"Clearly we were slipping off the good path last year ... and Apec could have been slipping towards oblivion," Dr Sohmen said.

But the recommitment to further market liberalisation that was picked up by business leaders in Auckland and supported by political leaders who attended the chief executives summit had put the agenda back on track, he said.

"The mood [in Auckland] has been much more constructive, much more positive."

The chief executives summit had put forward some specific recommendations for Apec leaders to take action on further reform. The proposals included:

* A recommendation that Apec countries support open-architecture systems for new technologies, whereby all countries would be able to support a range of technology products and applications.

* A proposal to develop a model code of conduct for business organisations, including Government agencies and non-government organisations.

* A request that Apec accelerate planned trade and investment liberalisation, with a decision on that to be put forward when World Trade Organisation negotiations recommence in Seattle in November.

* A request that Apec take initiatives to keep electronic commerce proposals free of unnecessary restraint.

The business leaders also asked political leaders to strongly support the promotion of international standards for economic governance and the development of greater transparency and accountability in the financial sector, and called for Apec countries to provide the physical infrastructure required to support growth.

Organisers of the chief executives summit said their call for Apec action was more staunch and forward looking than similar calls made by the main private-sector input into Apec, the Apec Business Advisory Council.

One of the summit founders, Lex Henry, said the business executives wanted to set the scene for an ongoing reform programme, and that had been achieved.

The summit would be followed up with a business leaders programme at next year's Apec meeting in Brunei.

In addition, New Zealand business leaders plan to get together in the next couple of weeks to see how the proposals can be taken forward. They plan to work with other businesspeople throughout Asia-Pacific to ensure the impetus is not lost.