This paper examines the effects on the natural synthetic rubber sector, including the problems that can prevent it from benefiting fully from the proposal. Natural rubber possesses export potential and it is undergoing the process of regeneration and will be vulnerable in the face of greater competition. Hence, this sector should be given temporary protection in the short-run to attract investments and perhaps to help remedy the peace and order problems. Imported synthetic rubber should however be liberalized immediately. The economic and technical cooperation measures to be advanced in APEC are also discussed.
