ASEAN Summit to amend CEPT, forge new ties<\/p>\n
JAKARTA (JP): The Association of Southeast Asian Nations
\n(ASEAN) is poised to amend its preferential trade agreement and
\ntake fresh initiatives in several sectors to further expand trade
\nliberalization.<\/p>\n
ASEAN Secretary-General Ajit Singh said yesterday that the
\nassociation's ministerial meeting and summit, which begin in
\nBangkok next week, are likely to see amendments to the
\npreferential trade agreement -- the Common Effective Preferential
\nTariff (CEPT) -- as well as new framework agreements and action
\nplans regarding a number of key sectors.<\/p>\n
He said that some of the amendments and new agreements were
\nnecessary to accommodate the entry of ASEAN's newest member,
\nVietnam, while others flowed the new target of 2003 for the
\nestablishment of the ASEAN Free Trade Area (AFTA). The original
\ntimetable provided for the advent of AFTA in 2008.<\/p>\n
"The amendment of the CEPT agreement is necessitated by the
\nacceleration of AFTA and the inclusion of unprocessed
\nagricultural products (in the agreement)," Singh said.<\/p>\n
ASEAN is a socioeconomic grouping, founded in 1967, which now
\nconsists of Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore, Thailand and Vietnam. The latter became a member in
\nJuly.<\/p>\n
The CEPT agreement provides that ASEAN members will reduce
\nintra-regional tariffs and remove non-tariff barriers with the
\nultimate aim of establishing AFTA.<\/p>\n
ASEAN's leaders will meet in Bangkok for their fifth summit
\nfrom Dec. 14 to Dec. 15. The summit will be preceded by two
\nministerial meetings, which will focus on political and economic
\nissues, and meetings between senior officials.<\/p>\n
To better coordinate customs controls among ASEAN members, the
\nleaders will also endorse harmonization initiatives, including
\nthe creation of a "Green Lane" to facilitate and step up
\nclearance of CEPT products.<\/p>\n
Services<\/p>\n
New areas of economic cooperation to be studied by the ASEAN
\nleaders include services, intellectual property rights,
\ninvestment and the development of small and medium-sized
\nenterprises.<\/p>\n
Going further than mere cooperation, the planned agreement on
\nservices will include the possibility of preferential
\nliberalization to help increase the competitiveness of service
\nsuppliers.<\/p>\n
"The liberalization of the service sector is to be made
\nthrough a process of negotiation which is scheduled to begin on
\nJan. 1, 1996," Singh said.<\/p>\n
He added that the key service sectors which have been proposed
\nare finance, telecommunications, tourism, construction, air and
\nmaritime transport and business services.<\/p>\n
On the issue of intellectual property rights, the association
\nis debating the possibility of having an ASEAN patent and
\ntrademark system.<\/p>\n
Apart from stimulating domestic research and innovation,
\ngreater cooperation would encourage investment, Singh said.<\/p>\n
Action plans have also drawn up for the promotion of foreign
\ndirect investment as well as intra-ASEAN investment.<\/p>\n
According to Singh, an action plan has been approved. It takes
\ninto account each member's industrial policies and possible areas
\nfor liberalization.<\/p>\n
Reviewing the planned initiatives of the summit, Singh
\nexpressed confidence about the meeting.<\/p>\n
"We think the summit is going to take another step forward in
\nstrengthening intra-ASEAN cooperation," he said.<\/p>\n
He noted that within a year of agreement on the AFTA plan in
\n1993, intra-ASEAN trade had risen by 41 percent, while trade in
\ngoods covered by the CEPT had increased from US$63.4 billion to
\n$92.6 billion.<\/p>\n
With stability, peace and continued economic growth averaging
\nmore than 7 percent each year, ASEAN is one of the fastest-
\ngrowing trade regions in the world.<\/p>\n
"At the current rate of expansion, ASEAN may overtake Japan as
\nthe world's third-largest trading entity by the year 2000," Singh
\nsaid. (mds)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-summit-to-amend-cept-forge-new-ties-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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