ASEM proposes investment action plan<\/p>\n
BANGKOK (JP): The chairman of the Asia-Europe Meeting (ASEM),
\nThai Prime Minister Barnhan Silpa-archa, proposed that both sides
\ndraw up an investment action plan to promote greater bilateral
\ninvestment.<\/p>\n
Speaking at the opening of the two-day inaugural meeting here
\nyesterday, Barnhan suggested that leaders of the 25 Asian and
\nEuropean governments establish a joint government and private
\nsector working group within six months to draft the action plan.<\/p>\n
Barnhan said an action plan is necessary to encourage the
\nprivate sector on both sides to seek investment opportunities.<\/p>\n
\"Such cooperation would open up valuable opportunities for our
\nprivate sectors. Private sector interaction is a key component in
\nreconnecting Asia and Europe,\" Barnhan said in his opening
\nspeech.<\/p>\n
He suggested the establishment of an Asia-Europe Business
\nForum, similar to the Pacific Business Forum of the Asia-Pacific
\nEconomic Cooperation forum.<\/p>\n
Informed sources here said that ASEM will likely agree to
\ncreate an Asia-Europe Business Forum. Thailand has offered to
\nhost a meeting of the forum early next year.<\/p>\n
\"This forum could also play an important role in helping
\ndraft the Asia-Europe Investment Promotion Action Plan,\" Barnhan
\nsaid.<\/p>\n
A Thai official was quoted by the local press as saying that
\nBarnhan's proposed action plan would involve studies to identify
\nsectors offering investment opportunities, to formulate financial
\nnetworks to support investment, and to discuss post-investment
\nmeasures such as the treatment of labor and environmental
\nstandards.<\/p>\n
Vice President of the European Commission, Leon Brittan, said
\nyesterday that he welcomed the ASEM chairman's investment
\npromotion action plan.<\/p>\n
Barnhan's proposal, however, differs from the European Union's
\n(EU) multilateral treaty on foreign direct investment proposal.
\nThe EU's proposal seeks to establish rules for further opening
\nmarkets to foreign investment, providing guarantees on profit
\nrepatriation, and ensuring national treatment.<\/p>\n
Indonesia's spokesman, State Secretary\/Minister Moerdiono,
\nnoted that Indonesia supports measures that boost investment in
\nboth regions. Indonesia rejects, however, the idea of
\nestablishing multilateral investment codes as proposed by the EU.<\/p>\n
Moerdiono argued that the multilateral agreement would impede
\nthe growth of local small and medium enterprises because foreign
\ncapital would affect all sectors.<\/p>\n
He said it would only protect foreign investment and
\ninvestors, while neglecting the people and the places where the
\ninvestments would be located.<\/p>\n
The EU has been campaigning to get the first ministerial
\nmeeting of the World Trade Organization (WTO) to discuss the
\nestablishment of a multilateral agreement on direct foreign
\ninvestment. The meeting will be held in Singapore in December.<\/p>\n
The union is seeking Asian support, especially from Asian
\nparticipants in ASEM, for the creation of such a treaty.<\/p>\n
In his opening speech, Jacques Santer, president of the
\nEuropean Commission -- the EU's executive body -- asked
\nparticipants to use ASEM to introduce new subjects to the WTO and
\nto identify their main concerns.<\/p>\n
\"Let us work together on investment and intellectual property
\nrights,\" Santer said.<\/p>\n
The European delegates want to boost investment in Asia to
\ncatch up with investment from North America, Japan, Taiwan, South
\nKorea and Singapore.<\/p>\n
Direct foreign investment from the EU represented 10 percent
\nof East Asia's total foreign investment between 1986 and 1992.<\/p>\n
Increased investment between Asia and Europe is expected to
\nhelp raise trade between the two regions.<\/p>\n
According to European Commission figures, the value of trade
\nbetween the EU and Asia totaled some US$312.5 billion in 1994,
\nabout 25 percent larger than the two-way trade between the United
\nStates and the EU, which stood at $235 billion.<\/p>\n
The EU's trade with the Association of Southeast Asian Nation
\n(ASEAN) hit $74 billion in 1994, higher than its trade with all
\nof Latin America.<\/p>\n
The Asia-Europe Meeting is made up of the 15 members of the EU
\n-- Austria, Belgium, Britain, Denmark, Finland, France, Germany,
\nGreece, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
\nSpain and Sweden -- the seven members of ASEAN -- Brunei,
\nIndonesia, Malaysia, the Philippines, Singapore, Thailand and
\nVietnam -- and China, Japan and South Korea. (mds\/rid)<\/p>",
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"sponsor": "Okusi Associates",
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