ASEAN to sign new cooperation accord<\/p>\n
SINGAPORE (AFP): ASEAN economic ministers are to sign a new
\nindustrial cooperation agreement at a special meeting here next
\nweek, Singapore's trade and industry ministry said yesterday.<\/p>\n
A week-long \"retreat\" of trade ministers and senior officials
\nfrom the seven-member Association of Southeast Asian Nations
\n(ASEAN) is to start on Tuesday in Sentosa, a resort island just
\noff Singapore.<\/p>\n
The ASEAN Industrial Cooperation Scheme Agreement (AICO) to be
\nsigned by the ministers next Friday is aimed at boosting intra-
\nASEAN investment as well as investment from outside the region, a
\nstatement from the ministry said.<\/p>\n
ASEAN includes Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore, Thailand and Vietnam.<\/p>\n
AICO would replace ASEAN industrial schemes that have
\ngenerated lackluster participation -- the ASEAN Investment Joint
\nVenture Program and the Brand-to-Brand Complementation scheme,
\nlimited mainly to car assemblers.<\/p>\n
Industries approved for AICO participation would enjoy zero to
\n5 percent tariffs on products sold within the region, provided
\nASEAN companies own 30 percent of the shares and the ventures
\nmeet local-content criteria.<\/p>\n
Details are to be announced next week.<\/p>\n
U.S. auto giants are reportedly interested in taking part in
\nthe AICO program in a bid to strengthen their presence in the
\nregion, currently dominated by Japanese car manufacturers.<\/p>\n
General Motors Corp. is choosing between the Philippines and
\nThailand as the site of a one-billion-dollar automotive
\nmanufacturing and assembly facility.<\/p>\n
The ASEAN economic ministers' meeting is aimed at thrashing
\nout details of the group's plan to create an ASEAN Free Trade
\nArea by 2003, which has been affected by demands from some
\nmembers for tariff protection for sensitive products topped by
\nagricultural items.<\/p>\n
In a related development Reuter quoted Singapore officials
\nyesterday as saying that the ministers would hold a meeting of
\nthe AFTA council on April 26. It would be followed by two days of
\nwhat the ministry called a ministers' retreat.<\/p>\n
There would be no formal agenda for the retreat, but the
\nministers were expected to prepare for the World Trade
\nOrganization (WTO) ministerial meeting in Singapore in December.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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