ASEAN signs integration plan for priority sectors<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
Trade ministers of 10 ASEAN member countries signed on Friday a
\nframework agreement to accelerate the integration of 10 economic
\nsectors in the region in a bid to boost trade and investment.<\/p>\n
The trade and investment liberalization plan was agreed to
\nduring the first day of the 36th ASEAN Economic Ministers (AEM)
\nmeeting here.<\/p>\n
The 10 sectors are expected to be integrated by 2007 within
\nthe six founding members of ASEAN -- Brunei, Indonesia, Malaysia,
\nthe Philippines, Singapore and Thailand. The four new members of
\nASEAN, Vietnam, Cambodia, Laos, and Myanmar, have until 2012 to
\nfully integrate.<\/p>\n
Officials declined to unveil the roadmap for the integration
\nprocess. ASEAN leaders are expected to approve the roadmap at
\ntheir November summit in Vientiane, Laos.<\/p>\n
The 10 sectors are agriculture, the automotive industry, \"e-
\nASEAN\" or information technology, electronics, fisheries,
\nhealthcare, textiles and apparel, tourism, rubber and wood-based
\nproducts.<\/p>\n
During the previous summit in Bali last year, ASEAN leaders
\nagreed to integrate the region's economies to form an ASEAN
\neconomic community by 2020, when the region of some 520 million
\npeople would become a single market and production base similar
\nto the European Union, characterized with a freer flow of goods,
\nservices, investment and skilled labor.<\/p>\n
The community is being created to make the region more
\nattractive to global foreign direct investment at a time when it
\nis facing tough competition from China and India.<\/p>\n
In a bid to accelerate the integration process, ASEAN leaders
\nhad initially agreed to speed up the liberalization process for
\n11 priority sectors, including air travel, in which ASEAN members
\nwere considered to hold a competitive advantage.<\/p>\n
Air travel, however, had been temporarily excluded from the
\nliberalization drive and would be considered separately by the
\nregion's transportation ministers, Indonesia's Minister of
\nIndustry and Trade Rini MS Soewandi said following the Friday
\nmeeting.<\/p>\n
Should the ministers fail to agree on conditions for the
\nsector before the November summit, the region's leaders would
\nlikely have the final say on whether to include it in the
\nintegration process, ASEAN secretary-general Ong Keng Yong said.<\/p>\n
The decision on Friday, Ong said, was positive as some senior
\nofficials had previously indicated four of the 11 sectors --
\nagriculture, fisheries, wood and air travel -- would be excluded
\nfrom integration because of \"complicated problems\" which include
\nthe vast number of products within the sectors and high workers
\ninvolved.<\/p>\n
Ong said the integration roadmap covered harmonizing rules on
\ntrade and investment and cutting down red tape.<\/p>\n
It aimed to establish a single common product test procedure
\nmaking it easier and faster for producers to move their goods
\nfrom country to country, he said.<\/p>\n
Director general for international cooperation at the
\nIndonesian Ministry of Industry and Trade Pos M. Hutabarat said
\nASEAN ministers also agreed to exclude certain \"sensitive\"
\nproducts from the liberalization process.<\/p>\n
Each country could put an average of 15 percent of the total
\nproducts in each sector on this sensitive list, Pos said.<\/p>\n
The 11 sectors cover 1,400 products; about 13 percent of the
\nestimated 11,000 products traded within the region.<\/p>\n
The government would invite businesses and associations to
\nsubmit their lists of sensitive products for consideration before
\nthe November summit, Pos said.<\/p>\n
Trade within the ASEAN region is projected to increase from 23
\npercent of the region's total trade last year to 27 percent next
\nyear (not 2007 as previously reported). ASEAN exports to world
\nwere valued at US$403.39 billion last year.<\/p>\n
Meanwhile, FDI to ASEAN countries last year reached $20.3
\nbillion, compared to $53 billion received by China.<\/p>",
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"sponsor_url": "https:\/\/okusiassociates.com"
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