Southeast Asia moves closer to trade liberalisation
AFP, Jakarta
Southeast Asian countries on Friday completed talks on a "road map" for economic integration, bringing the region a step closer to creating a European-style single market covering 530 million people. The plan calls for the abolition of tariffs in 11 industry sectors by 2007 for six more developed members of the Association of Southeast Asian Nations -- Brunei, Malaysia, Indonesia, the Philippines, Singapore and Thailand. Asean's four other members -- Cambodia, Myanmar, Laos and Vietnam -- have been given until 2012 to abolish tariffs in the 11 priority sectors. The road map will be submitted to Asean leaders for endorsement during their summit in Laos in November. It is aimed at facilitating businesses within Asean to work together in an efficient manner so they can better compete internationally, said Asean secretary general Ong Keng Yong. "In the automotive sector different companies produce motorcars. How can we (governments) as the facilitator of integration provide an easier environment for parts to move around, parts to be produced in certain countries and sent to other countries to be put into bigger products," Ong said. "To do that requires not just tariff reduction but also ease of administration," he told a press conference after the annual meeting of Asean trade ministers. At a summit in Bali last October, Asean leaders endorsed a plan to achieve a single production base and market by 2020, with a free flow of goods, services and investments in the region. Malaysian Trade Minister Rafidah Aziz said the road map represented various views from the private sector. The role of the governments was to "facilitate and provide the framework so that they can move forward and try to improve our domestic laws and regulation to make Asean businesses flourish," she said. Meanwhile, the association has decided to start free-trade negotiations with Japan and South Korea next year with the expectation to wrap up talks within two years, ministers said Saturday. "Asean and Japan agreed to start negotiating in April 2005 and negotiations should be completed by 2007," Indonesian Trade Minister Rini Suwandi said after meeting counterparts from regional powerhouses China, Japan and South Korea. Suwandi said talks with South Korea would start in January next year.
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