By Seo Jee-yeon
Staff Reporter

The 21-nation Asia-Pacific Economic Cooperation (APEC) yesterday agreed to adopt the ``Swiss formula’’ as a tariff cut method for industrial goods, which raises hope for a possible breakthrough in the world trade negotiations, or Doha Development Agenda (DDA), to be held in Hong Kong in December.

A DDA statement of APEC Ministers Responsible for Trade (MRT) said APEC trade ministers have come to an agreement on modalities to reduce tariffs for non-agricultural products. The DDA statement was issued separately from the APEC Chair’s statement to sum up the results of the 2005 MRT meeting in Cheju.

``Although the consensus is not binding, it will send a clear political message that could give momentum to DDA talks,’’ Korea’s APEC ambassador Kim Jong-hoon said.

During a press conference held at the Cheju International Convention Center, Korean Trade Minister Kim Hyun-chong also said, ``We will make every effort to achieve substantive progress in controversial issues standing in the way of the WTO negotiations by July 2005.’’

One major advancement was made in the non-agriculture market access (NAMA) as the APEC members agreed on a non-linear method seeking larger cuts for higher tariffs, what it called the ``Swiss formula.’’

WTO members are trying to finalize the tariff cuts for industrial goods in the December ministers’ meeting.

In general, developed countries among the WTO members back the formula, while developing economies are against the method due to the expected bold tariff cuts.

``The formula is a useful one to improve an economy and will be beneficial for the region,’’ Minister Kim said.

He added negotiation for flexibility for the developing economies among the APEC members will come later.

He also predicted Korea will be able to benefit from the adoption of the Swiss formula as the Korean economy heavily depends on exports of industrial goods.

Besides the NAMA issue, the APEC MRT also made substantial progress in the Cheju meeting in such issues as agriculture, services, rules and development, all of which the WTO seeks to discuss in the Hong Kong meeting.

In a separate ministerial statement, APEC trade ministers said they have endorsed a seres of anti-counterfeiting and piracy measures, including guidelines for authorities to seize and destroy pirated goods and support to increase the capacity of economies to deal with fake goods.

They also have called for closer public and private sector coordination in overcoming corruption in the Asia-Pacific region, reiterating the importance of all economies meeting the APEC transparency standards set by APEC leaders.

jyse@koreatimes.co.kr