ASEAN plugs on with free trade as Indonesia roils<\/p>\n
SINGAPORE (Reuters): Southeast Asian economic chiefs meet in
\nSingapore this week to pursue an ambitious free trade plan as the
\nregion strives to overcome its economic woes and Indonesia roils
\nwith internal strife.<\/p>\n
\"The very fact that the Indonesian government is about to
\nchange makes it difficult for any decision by the meeting to be
\nreally believable,\" said Bruce Gale of the Political and Economic
\nRisk Consultancy, a Hong Kong-based think tank.<\/p>\n
Indonesia, which saw days of riots in Jakarta last week
\nsparked by an unpopular new security measure, held parliamentary
\nelections in June and is to choose a new president in November.<\/p>\n
But Singapore officials told reporters ahead of the 31st
\nAssociation of South East Asian Nations (ASEAN) Economic
\nMinisters meeting beginning on Monday the 10-nation group was on
\ntrack with and may even accelerate its regional free trade plan.<\/p>\n
The ASEAN Free Trade Area (AFTA) aims to slash tariff barriers
\nfor a wide range of goods to between five and zero percent for
\nmost of its member countries by 2003.<\/p>\n
\"The idea is to achieve, for the founding six countries of
\nASEAN by 2002, 60 percent of the inclusion list,\" said Tay Thiam
\nPeng, deputy secretary, trade and regionalization, with
\nSingapore's trade and industry ministry.<\/p>\n
\"It is still at the proposal stage...but it is certainly a
\nproposal that we are aiming towards,\" Tay said.<\/p>\n
He said ASEAN wants founders Brunei, Indonesia, Malaysia, the
\nPhilippines, Singapore and Thailand to meet the zero-to-five
\npercent goal by 2003.<\/p>\n
New members would have more time: Vietnam until 2006, Laos and
\nMyanmar until 2008, and Cambodia until 2010. But the members
\napproach to the tariff cuts have been uneven.<\/p>\n
Malaysia recently proposed delaying tariff cuts on automotive
\nparts, while Thailand offered to reduce tariffs on an additional
\n1,190 items to show its commitment to AFTA.<\/p>\n
Cambodia said last month it was reducing its reliance on
\nimport taxes to be able to cut tariffs to meet AFTA requirements.<\/p>\n
But ASEAN was expected to back Singapore Prime Minister Goh
\nChok Tong's proposal for a joint investment roadshow to promote
\nthe region as a common market to investors in North America and
\nEurope.<\/p>\n
\"That is something ASEAN is always good at doing -- presenting
\nan outside face to the world to present their common interest,\"
\nGale said.<\/p>\n
Tay also said the worst appeared to be over for Indonesia, one
\nof the nations hardest hit by the Asian economic crisis.<\/p>\n
\"We have seen the worst as far as Indonesia is concerned... If
\nwe look at the trade figures of Indonesian exports and imports
\nover the last six months, they have been growing at double digit
\nrates, more than 10 percent a month,\" he said.<\/p>\n
Political analysts also said the turmoil in East Timor was
\nunlikely to be discussed at the ASEAN meeting.<\/p>\n
\"I think they don't want to embarrass Indonesia. It is the
\ntradition of not wanting to have other members lose face,\" said
\nChaiwat Khamchoo, head of International Relations at
\nChulalongkorn University.<\/p>",
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