WASHINGTON-Progress toward lowering telecom equipment tariffs and trade barriers was overshadowed at the recent Asia Pacific Economic Cooperation forum by Vice President Al Gore’s controversial remarks in support of Malaysian anti-government protesters and the failure of Pacific Rim nations to take bold steps to dig out of Asia’s financial crisis.
The 21 APEC nations were forced to delay approval of a far-reaching accord to reduce tariffs on $1.5 billion worth of telecom hardware and other goods after Japan refused to lower border taxes on fish and wood products.
U.S. trade representative Charlene Barshefsky tried to put the best face possible on results that were both disappointing and embarrassing for the Clinton administration. “We agreed to strive to conclude an agreement in the [World Trade Organization] by the end of 1999 on this nine-sector package,” said Barshefsky.
At the same time, Barshefsky called it “an unconscionable outcome.” However, the United States and Japan separately announced a $10-million support plan for Asia.
Gore, for his part, was lambasted in the Malaysian press for his speech.
It is unclear whether his remarks were the result of a diplomatic misstep or were orchestrated carefully for domestic consumption in the United States, where the growing trade deficit could become a major political issue for the vice president and other presidential hopefuls in 2000 if the contagion pulls the U.S. economy into a recession.
