ASEAN rejects free trade plan with Australia, NZ<\/p>\n
CHIANG MAI, Thailand (Agencies): The Association of Southeast
\nAsian Nations on Friday rejected a proposal for establishing a
\nUS$ 1 trillion free trade zone with Australia and New Zealand.<\/p>\n
The economic ministers of the 10-member ASEAN, holding an
\nannual meeting, instead agreed on a weaker proposal for a \"closer
\neconomic partnership,\" a joint press statement said.<\/p>\n
\"We can't be over-ambitious. It's not an easy thing to merge
\nthe two regions together,\" Thai Deputy Prime Minister Supachai
\nPanitchpakdi told a news conference.<\/p>\n
The press statement said the economic partnership between the
\ntwo regions would be defined further by senior officials who
\nwould make recommendations in 2001.<\/p>\n
It marks a second setback for ASEAN's ambitions to expand free
\ntrade after Malaysia backtracked on a commitment to cut tariffs
\non its auto industry under the ASEAN Free Trade Area, or AFTA.<\/p>\n
The ministers also appeared to backtrack on previous
\ncommitments to reduce tariffs by acknowledging that certain
\nmember states may not be ready to open up their markets.<\/p>\n
Formalizing an ongoing dispute between Thailand and Malaysia
\nover the latter's decision to delay tariff cuts on automobiles,
\nAsean members agreed to set up a mechanism under which nations
\nthat don't comply with tariff cuts will provide compensation to
\nthe members that suffer.<\/p>\n
ASEAN economic ministers met on Friday with their counterparts
\nfrom the Closer Economic Relations pact, or Australia and New
\nZealand, to discuss a report by a joint task force that
\nrecommended setting up a tariff-free zone \"at the earliest
\npossible time.\"<\/p>\n
The report said such a free trade area was \"not only feasible
\nbut advisable\" as it would create a market of about 560 million
\npeople and bring a benefit of US$48 billion in additional gross
\ndomestic product by 2020.<\/p>\n
Hiding his disappointment, Australian Trade Minister Mark
\nVaile described the agreement to develop closer economic
\nrelations as a \"significant step forward.\"<\/p>\n
New Zealand and Australia had been pushing for the move, but
\nMalaysia, Indonesia and Philippines had voiced reservations. The
\nother members of ASEAN are Thailand, Singapore, Brunei, Cambodia,
\nVietnam, Laos and Myanmar.<\/p>\n
\"At this point in time, the environment is just not right as
\nfar as Malaysia is concerned. Even within AFTA we are still
\nevolving,\" Malaysia's International Trade and Industry Minister
\nRafidah Aziz said.<\/p>\n
\"We are so preoccupied. We want to make sure the AFTA works,\"
\nshe said. \"We are not about being political heroes. We are
\ntalking about something that benefits the people.\"<\/p>\n
On Thursday, Rafidah had said that there is already an AFTA-
\nCER linkage and to expand it to a formal organization needs
\npolitical decisions.<\/p>\n
Indonesian Minister of Industry and Trade Luhut Pandjaitan
\nsaid on Friday that ASEAN has to be pragmatic and realistic.<\/p>\n
\"We are not ready yet from the Indonesian side to set up a
\nfree trade area between AFTA and CER,\" he said.<\/p>\n
It had been originally hoped to begin negotiations between
\nASEAN and CER early next year and complete them within the year
\nwith a view to full integration by 2010.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-rejects-free-trade-plan-with-australia-nz-1447893297",
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