ASEAN, India agree to long-term free-trade goal<\/p>\n
Martin Abbugao
\nAgence France-Presse
\nBandar Seri Begawan<\/p>\n
A \"landmark meeting\" between economic ministers of ASEAN and
\nIndia on Sunday agreed to the long-term goal of establishing a
\nregional free-trade area.<\/p>\n
The ministers also decided to set up a task force to draw up a
\ndraft framework agreement to boost trade and economic
\ncooperation.<\/p>\n
The first meeting with India was held on the final day of the
\nannual Association of Southeast Asian Nations (ASEAN) meeting
\nhere, as the 10-member regional bloc opened the door to the
\nworld's second most populous country.<\/p>\n
Brunei Minister of Industry and Primary Resources Adbdul
\nRahman Taib described the session with Indian Minister of
\nCommerce and Industry Murasoli Maran as a \"landmark meeting
\nbecause it has produced some outstanding results.\"<\/p>\n
Maran said the meeting was a \"very good beginning on the
\nfuture economic cooperation and integration between\" ASEAN and
\nIndia, which lags behind East Asian countries in its trade links
\nwith Southeast Asia.<\/p>\n
ASEAN heads of state or governments meeting for a summit in
\nCambodia this November are scheduled to hold their first
\ndiscussions with the Indian prime minister as a group.<\/p>\n
The economic ministers in Brunei agreed to establish an ASEAN-
\nIndia Economic Linkages Task Force comprised of senior officials
\nand business leaders from both sides.<\/p>\n
The team will follow up the recommendations of a joint study
\non expanding ASEAN-India economic ties, which proposed forming an
\nIndia-AFTA Regional Trade and Investment Area. AFTA is the ASEAN
\nFree Trade Area.<\/p>\n
Brunei's Taib said the task force would submit its
\nrecommendations, including a draft framework agreement to enhance
\ntrade and economic cooperation, during the next economic
\nministers' meeting next year.<\/p>\n
\"The long-term objective is closer cooperation with AFTA,\"
\nsaid Maran, whose country is within a seven-hour flying radius
\nfrom Southeast Asian hub Singapore.<\/p>\n
Total ASEAN-India trade was at US$9.88 billion in 2001, up 30
\npercent from $7.6 billion in 2000.<\/p>\n
The ministers in a joint communique said they \"welcomed\"
\nIndia's desire for a free-trade ties with ASEAN, which groups
\nBrunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the
\nPhilippines, Singapore, Thailand and Vietnam.<\/p>\n
The ministers said the aim of such a zone should be to remove
\ntariff and non-tariff barriers, harmonize standards and
\nfacilitate business travel, as well as to promote trade and
\ninvestment.<\/p>\n
They said that while the long-term objective was a free-trade
\narea, \"issues related to trade and investment facilitation and
\npromotion could be addressed immediately in order to enhance
\ntrade flows.\"<\/p>\n
ASEAN is in the early stages of talks that could lead to FTAs
\nwith its East Asian dialogue partners China and Japan. South
\nKorea has begun a study on the feasibility of an FTA with ASEAN.<\/p>\n
This week ASEAN also signed a ministerial declaration with
\nAustralia and New Zealand to negotiate a Closer Economic
\nPartnership.<\/p>\n
India is not part of the ASEAN Plus Three umbrella which
\ncovers the 10 Southeast Asian countries as well as China, Japan
\nand South Korea, effectively forming an East Asian entity.<\/p>\n
However, India is a member of the ASEAN Regional Forum, Asia's
\ntop body on security issues.<\/p>",
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