ASEAN risks 'losing to China and India'<\/p>\n
CHIANG MAI, Thailand (AFP): China and India are fast becoming
\nthe darlings of foreign investors and ASEAN must promote free
\ntrade to avoid being pushed aside, top U.S. businessmen said
\nThursday.<\/p>\n
The executives representing 25 American firms with investments
\nin the region told Southeast Asian economic ministers at a forum
\nhere Malaysia's move to shield its automotive industry was a
\nbackward step in efforts to liberalize the key sector.<\/p>\n
Malaysia's action to delay tariff cuts on its automotive
\nsector from 2003 to 2005 has cast a shadow over the Association
\nof Southeast Asian Nations (ASEAN) meeting in this northern Thai
\ncity.<\/p>\n
\"Implementation of AFTA is central to this region's ability to
\nattract large-scale capital inflows,\" said Gerald Kania,
\npresident of ASEAN operations for Ford.<\/p>\n
\"By itself, no ASEAN country has the market size and economies
\nof scale to justify major manufacturing investments,\" he said.<\/p>\n
\"Only by looking at ASEAN as a region -- with ten countries
\nand 500 million people -- does large-scale, high-value added
\ninvestment make economic sense,\" he said in news conference on
\nthe sidelines of the meeting.<\/p>\n
Ken Richeson, executive director of the U.S.-ASEAN Business
\nCouncil, said foreign direct investment (FDI) to China last year
\ntotaled US$40 billion, or 42 percent of the total capital flowing
\ninto Asia.<\/p>\n
By contrast, FDI to ASEAN was $16 billion, or just 17 percent
\nof the total.<\/p>\n
This is the lowest level of investment in ASEAN since the
\nearly 1990s and the smallest as a percentage of total Asian
\ninvestment inflows since the 1980s, he said.<\/p>\n
In the early 1990s, ASEAN accounted for 61 percent of total
\nAsian investments, with only 18 percent directed at China,
\naccording to Richeson.<\/p>\n
The businessmen said there have been great strides to meet the
\nAFTA objective to liberalize trade in most goods by 2003.<\/p>\n
However, more needed to be done \"as you get down into
\nspecifics like automobiles,\" Richeson said.<\/p>\n
Normalized U.S.-China trade ties and Beijing's future entry
\ninto the World Trade Organization \"will make China even more
\nattractive as an investment target for American companies and
\nEuropean companies as well,\" Richeson added.<\/p>\n
The U.S.-ASEAN Business Council also called in a report on the
\n10 members of ASEAN to further reduce barriers that are
\nobstructing the growth of the air express sector.<\/p>\n
Otherwise, the council said, the group risks stifling a sector
\nthat generated US$50 billion in economic activity for the region
\nand is projected to grow 50 percent this year.<\/p>\n
Restrictive civil aviation agreements, cumbersome customs
\nclearance procedures and restrictions on investment in ground
\ntransportation operations are the key challenges facing the
\nsector in the region, the council said.<\/p>\n
\"Although the potential for growth in integrated express
\nservices in ASEAN is significant, the industry will be unable to
\nreach its full potential -- and generate the maximum benefits for
\nnational economies -- unless governments take action to overcome
\na variety of barriers,\" the council said.<\/p>\n
\"This permits them to develop efficient and far ranging air
\nservice networks,\" the council said.<\/p>\n
\"These networks, in turn, permit integrators to offer
\ncustomers more services to more markets, to improve the
\nutilization of their aircraft, and to minimize the need to
\nacquire the most expensive, large, long range aircraft.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-risks-losing-to-china-and-india-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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