East Asian economic ministers on Saturday called for stable world crude prices and pledged to champion a better deal for developing countries under any new round of global trade negotiations.
The ministers from 10 ASEAN countries and China, Japan and South Korea agreed to a proposal by Japanese Minister for International Trade Takeo Hiranuma to urge oil producers to raise output.
"Japan proposed that we should make a request to the oil producers to take action that would contribute to the stabilization of the oil market and we were able to gain the consent of the countries participating in today's meeting," Hiranuma told a news conference.
In a joint statement, the ministers "noted the risks posed by oil price volatility" to world economic growth and the region's recovery from financial crisis.
"In the light of rising world demand, they called for appropriate increase in supplies and other necessary measures to promote long-term price stability in the mutual interest of consumers and producers," the statement said.
Hiranuma, South Korean Trade Minister Duck-soo Han and Chinese Vice Minister for Trade Keren Zhou met with the ministers from the Association of Southeast Asian Nations (ASEAN) at the end of the group's annual meeting in this northern Thai city.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Hiranuma repeated Japan's plans to release six million barrels of heating oil onto the international market.
"We have this inventory in Japan," he said. "Of course, while this would have to be undertaken purely on a private sector basis, Japan also suggests that we could contribute to the stabilization of crude oil prices by supplying to the international market this inventory of gas (heating oil)."
Malaysian Trade Minister Rafidah Aziz said what mattered most was that prices, which have surged to 10-year highs, should stabilize at a level worked out between producers and importers.
Economists have warned that volatile prices could undermine economic growth and backfire on the producers themselves.
On the WTO talks, the ministers said there was a need for a "balanced agenda" that would take into consideration the interests of developing countries.
They "emphasized the need for improved market access in industrial goods in addition to agriculture and services, as well as the improvement and development of rules and disciplines such as anti-dumping agreement."
Thai Commerce Minister Supachai Panitchpakdi said that while individual countries have different agendas, the regular dialogue between ASEAN and its three Northeast Asian neighbors can be used to narrow these down.
"As a group we were thinking that it might be a good idea if we could try to use this forum to narrow down and to reconcile the different stances," said Supachai, who takes over as head of WTO in 2002 under an agreement to split the terms.
Most countries were "seeing eye to eye" on the need to amend anti-dumping laws, he said.
"But in order to help promote a new round and to create enough support and momentum, we think it might be a good idea for the 10 plus 3 group to try to discuss the possibility of having a joint position on this matter."
The ASEAN ministers met with European Union Trade Commissioner Pascal Lamy on Friday to discuss the launching the new WTO talks.
During the four-day meeting, the ASEAN ministers agreed to start the consultation process for the possible merging the ASEAN Free Trade Area with a free trade zone covering Australia and New Zealand.
The consultations, which will be on the level of senior officials, will start next year.
The ministers also endorsed a protocol which would allow ASEAN members to temporarily delay commitments to cut tariffs on certain sectors they feel would need more time to prepare for competition -- CHIANG MAI, Thailand (AFP)
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