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Next WTO Chief Urges ASEAN to Make the Best of China’s Entry

Supachai Panitchpakdi will become director-general of the WTO next year. AP photo.

By Sean Yoong/AP

The next head of the World Trade Organization advised Southeast Asian countries last week to “compensate” for China’s expected entry into the WTO by making inroads into the Chinese market before the rest of the world.

Supachai Panitchpakdi, director-general designate of the Geneva-based trade body, said the Association of Southeast Asian Nations, or ASEAN, should not complain that it could lose a large chunk of its share in the U.S. market once China joins the WTO.

“Chinese products are very competitive in the United States,” Supachai told participants of the World Economic Development Congress. “We may have to compensate by having an early access into markets in China.”

The three-day congress, a private-sector affair, brought together political, finance and business leaders to share ideas on pushing forward growth in developing countries.

Supachai, formerly the deputy prime minister of Thailand, urged ASEAN to speed up its creation of a free trade area, called AFTA, which aims to eliminate most tariffs within Southeast Asia by 2002.

He said China should be persuaded to get involved as soon as possible in AFTA, so that the Southeast Asian region’s “close economic integration” would be expanded to include China and ensure that the country’s vast market would be available to ASEAN.

“Everyone will be coming to fight for some market niche in China,” he said. “If we cannot get in there ahead of time, ahead of the rest of the world, we would probably not be enjoying the kind of benefits that we should.”

Supachai said earlier during the congress that China should be admitted to the WTO by year-end or early in 2001, helped out by the United States being increasingly flexible on China’s entry.

Supachai is set to become director general of the WTO in 2002.

Rafidah Aziz, Malaysia’s trade minister, said her government was looking forward to China’s entry because it had been trying to promote greater bilateral trade and investment with China.

“China is not solely a competitor,” Rafidah told reporters. “Malaysia has long made its preparations to face any competition from other countries, including China.”

She said China’s entry into the WTO would benefit Malaysia as her government had already sought concessions for Malaysian products including timber, rubber goods and palm oil for entry into the Chinese market.

ASEAN comprises 10 countries — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.