ASEAN to accelerate economic integration<\/p>\n
The Jakarta Post, Nusa Dua, Bali<\/p>\n
ASEAN economic ministers agreed on Monday to accelerate the
\nprocess of integrating the region's economies in a bid to lure
\nnew investments, Indonesia's Minister of Industry and Trade Rini
\nSoewandi said.<\/p>\n
She said that trade and investment activities in 11 leading
\nindustries will be fully liberalized by 2010, quicker than
\ninitially planned.<\/p>\n
The agreement was reached at the ASEAN economic ministers
\nmeeting here. Rini said it would be recommended to the 10 ASEAN
\nleaders during their annual summit on Tuesday in the popular
\nresort island of Bali.<\/p>\n
The Association of South East Asian Nations (ASEAN) has
\nplanned to create a single market by 2020 by gradually
\nimplementing various economic liberalization measures.<\/p>\n
This plan is aimed at boosting trade activities in the region
\nand increase the region's attractiveness as investment
\ndestination.<\/p>\n
Rini, however, said that the economic ministers decided to
\naccelerate this process on the key industries so that trade and
\ninvestment activities in the region could be quickly increased.<\/p>\n
The 11 industries are the automotive industry, electronics,
\nwood-based, textile, rubber, airlines, tourism, health,
\nagribusiness, e-business and fisheries.<\/p>\n
Rini said the move should attract investors into the region as
\nthey could gain from economies of scale. Among the measures to
\nbe implemented is streamlining local customs procedures.<\/p>\n
The above decision should send a positive signal to the
\ninvestment community as it would be perceived by investors that
\nASEAN is strongly committed toward creating a single market.<\/p>\n
Since the late 1990s economic crisis, the region has been
\nlosing out against China in terms of investment attractiveness as
\nthe latter had received the bulk of foreign direct investment
\ninto Asia during the past couple of years.<\/p>\n
Government officials have also said that although the ASEAN
\nFree Trade Area (AFTA) has been implemented since the beginning
\nof this year as import tariffs on most products would be slashed
\nto between zero percent and five percent, intra-ASEAN trade
\nactivities remained relatively small at about 21 percent of the
\nregion's total trade value each year.<\/p>\n
This is partly because of lingering non-tariff trade barriers.
\nThe intra-regional trade value could potentially increase to 40
\npercent.<\/p>\n
In comparison, intra-regional trade in the European Union
\ntrade block reached 70 percent.<\/p>\n
Despite the benefits, however, some businessmen warned that
\ninefficient industries could find difficulties in competing with
\ntheir regional peers. They said that the government must work
\nhard to help improve the domestic business climate by curbing
\ncorruption, illegal fees, resolving labor conflict and
\neliminating unfriendly regulations so that businesses can operate
\nefficiently.<\/p>\n
Rini said that Indonesia was ready to deal with the rising
\ncompetition.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asean-to-accelerate-economic-integration-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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