ASEAN ministers note progress in FTAs<\/p>\n
Jason Gutierrez, Agence France-Presse, Phnom Penh<\/p>\n
Southeast Asian nations reported on Wednesday progress in free
\ntrade talks with key economic partners China and Japan, but
\nenthusiasm was tempered by concerns over agricultural tariffs.<\/p>\n
Economic ministers from the 10-member Association of Southeast
\nAsian Nations (ASEAN) said they "expressed satisfaction" over
\ntalks with China to create the world's biggest free trade area by
\n2010.<\/p>\n
"Negotiations for the ASEAN-China Free Trade Area (FTA) have
\nbeen progressing well, especially on the modalities for trade in
\nservices, goods and investment," the ministers said in a joint
\nstatement after consultations with China and Japan in Phnom Penh.<\/p>\n
There was also positive developments on an "early harvest" of
\nmostly agricultural goods whose tariffs would be dismantled way
\nahead of the planned free trade zone, they said.<\/p>\n
The ASEAN-China FTA is to create a market of 1.7 billion
\nconsumers with a combined gross domestic product of US$2.0
\ntrillion and total trade of $1.23 trillion.<\/p>\n
China had earlier said it was confident ASEAN tariffs would be
\nbrought down ahead of the FTA, with Beijing agreeing to cut
\ntariffs on agricultural imports from the region to zero by 2004.<\/p>\n
A similar FTA with Japan is also being negotiated by ASEAN and
\non Wednesday the ministers said they would endorse a "draft
\nframework" for approval of ASEAN leaders next month in their
\nsummit in Bali, Indonesia.<\/p>\n
They said the draft is comprehensive and calls for the
\nimmediate implementation and facilitation of trade in goods,
\nservices and investments between ASEAN and Japan.<\/p>\n
The ministers said they would recommend leaders of ASEAN and
\nJapan "proceed with the implementation" of the FTA "as soon as
\npossible by 2012."<\/p>\n
But while China said the FTA would boost two-way trade and
\nmake the region its top supplier of goods, the Philippines said
\nit may opt out of the "early harvest" plan.<\/p>\n
"The Philippines expressed its continuing concern over the
\nelements of the early harvest program," Roxas told AFP.<\/p>\n
"We acknowledge China's desire to be helpful to provide the
\nearly harvest as an inducement (for trade) for ASEAN countries.
\nHowever, our current analysis is that it is not very helpful to
\nthe Philippines because of (certain) circumstances or
\nparticulars."<\/p>\n
He noted the plan covered mostly agricultural goods, but the
\nPhilippines "does not have a very large central plain" or a river
\nsystem similar to the Mekong Delta that helps in boosting
\nagricultural production.<\/p>\n
While most Philippine tariffs on Chinese goods have also been
\ntrimmed to between zero and five percent, China has only granted
\nthe same level of tariffs for less than 10 percent of goods from
\nthe Philippines, he said.<\/p>\n
"If that is our starting point for the early years of the
\nreduction program, they would always have a tariff regime higher
\nthan ours,"he said.<\/p>\n
Chinese commerce minister Lu Fuyuan said concerns raised were
\nunderstandable, but noted ASEAN was receptive to "accelerating
\nthe process" of the free-trade zone.<\/p>\n
"If we go quickly, we can reach the agreement as soon
\npossible. I noticed all the members liked this idea," Lu said.<\/p>\n
The ASEAN ministers also met with their counterparts from
\nIndia as well as South Korea to push for stronger economic
\ncooperation.<\/p>\n
Cambodian Secretary of State for Commerce Sok Siphana said his
\ngovernment was optimistic the ASEAN-China FTA could lead to
\nbenefits to smaller agricultural countries around the Mekong
\ndelta.<\/p>\n
China, he said, has agreed to allow Cambodia, Laos, Vietnam
\nand Myanmar to export 297 kinds of agricultural goods there duty
\nfree beginning January next year.<\/p>",
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"sponsor": "Okusi Associates",
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