U.S., Asia Partners Back Free-Trade Pact : Commerce: Officials at APEC conference reach outline of deal to reduce barriers. Consensus on details could be difficult, participants acknowledge.

The United States and its trading partners in the Far East indicated Friday that they have reached a broad agreement on removing most trade barriers early in the next century. The anticipated deal is designed to make it as easy to sell a Chrysler in Bangkok as it is to buy a Toyota in Pasadena.

The outlines of a loosely worded commitment to free trade began to emerge as ministers from 18 nations skirting the Pacific Rim sat down to their second annual meeting aimed at improving economic cooperation.

“There is a general consensus that the year 2020 should be a goal and a vision for free trade in the region,” U.S. Trade Representative Mickey Kantor told a news conference.

Kantor, Commerce Secretary Ronald H. Brown and Secretary of State Warren Christopher are attending the two days of negotiations at the Asia-Pacific Economic Cooperation forum. President Clinton, who hosted the group’s inaugural session in Seattle last year, is flying in for a Monday summit of Pacific leaders in the hilltop retreat of Bogor that is expected to formally endorse the trade proposal.

The trade idea, which would require the developing countries of Asia to reduce tariffs and other barriers to imports, has won support from countries on various steps of the development ladder.

“I do hope that our meeting in Bogor will produce a basic agreement on the cooperation among APEC members that will accelerate trade liberalization and investment among us,” said Indonesian President Suharto, who is hosting this year’s meeting.

Suharto, the 73-year-old leader of this impoverished nation of 180 million, is widely credited with providing the momentum necessary to swing skeptics such as Malaysia and China to endorse the plan.

A spokesman for Japanese Foreign Minister Yohei Kono described the proposal as “very ambitious” but added that Japan hopes the leaders will send a “very strong political message for trade and investment liberalization.”

The 18 members of APEC are the United States, Canada, Mexico, Chile, Indonesia, Thailand, Malaysia, Brunei, Papua New Guinea, Hong Kong, Japan, the Philippines, Singapore, Australia, New Zealand, South Korea, China and Taiwan. As was the case last year, Taiwan’s leader was asked not to attend the talks to avoid conflicts with China.

Although there appears to be agreement on the outlines of a trade plan, the details could still scuttle a formal pact.

For one thing, developed countries such as the United States and Japan would be required to move faster than developing countries in removing trade barriers.

Countries such as China maintain that they should be given the maximum time, while the United States argues that China’s huge economy already places it in the ranks of the developed world.

Developing countries tend to add steep taxes to imports as a way of discouraging consumers from buying overseas goods and to protect their own industries. The United States, which has relatively low duties on imports, wants to see these barriers removed.

“We’re really moving forward rapidly,” Kantor said. “I’m impressed how much consensus there is.”

But Kantor added that a detailed agreement would take years to stitch together.

One indication of the spirit of cooperation in Jakarta was the resolution of a deadlock over a non-binding code to govern investments. The United States had blocked the adoption of the code because it believed that the wording was too vague on such points as removing laws that give domestic investors advantages over foreign investors.

All decisions at the APEC meeting are made by consensus, which means that a single country can veto any proposal.

In the end, the United States agreed to a compromise package that removed the impasse.

“We’re going to present a unified recommendation,” said Nancy Adams, the chief U.S. delegate to the investment talks.

Kantor said the real significance of the APEC talks is that, taken together with other trade liberalization moves, such as the North American Free Trade Agreement and next month’s Summit of the Americas in Miami, the new trade environment will boost the U.S. economy.

Kantor said he doubts that the Republicans’ capture of both houses of Congress will slow that momentum, saying the elections “are not going to affect our trade policy.”

On another front, Kantor said he met Thursday with Indonesian Manpower Minister Abdul Latief, and the Indonesian presented a “comprehensive program” aimed at improving workers’ rights.

Kantor’s office is now investigating whether Indonesia should lose trade preferences because of allegations that the country does not allow its workers freedom to join labor unions.

There was an international outcry earlier this week when an Indonesian court sentenced Muchtar Pakpahan, leader of the country’s largest independent union, to three years in prison for allegedly inciting violence during labor unrest last April.

Kantor said the Indonesians are seeking the help of organizations such as the AFL-CIO to improve the country’s labor record.

The Indonesians have promised annual reviews of the minimum wage to bring pay scales above the poverty level. But the proposed reforms showed no easing of the government’s opposition to the formation of new unions in competition with the state-run union.

“Some will say that this comprehensive program is not enough,” Kantor said. “Others might say that this program resolves all our outstanding issues. The truth lies somewhere between.”