KL tells ASEAN 'think twice' on trade pacts<\/p>\n
KUALA LUMPUR (Reuters): Malaysia on Tuesday told fellow
\nmembers of ASEAN to think twice before striking bilateral trade
\nagreements which could undermine the grouping.<\/p>\n
Singapore, one of the 10 members of the Association of
\nSoutheast Asian Nations (ASEAN), agreed to open negotiations to
\nform bilateral free trade agreements (FTAs) with Australia and
\nNew Zealand on the sidelines of a Pacific Rim summit in Brunei
\nlast week.<\/p>\n
It said it will hold talks with the United States, India and
\nMexico for similar pacts. Prime Minister Goh Chok Tong said in
\nBrunei talks with Canada, Chile and Northeast Asian countries
\nlike Korea could follow.<\/p>\n
\"Whenever we do something out of the context of ASEAN which
\ncan weaken the grouping, we must think twice,\" Malaysian Foreign
\nMinister Syed Hamid Syed Albar was quoted as saying by the
\nofficial Bernama news agency.<\/p>\n
The minister was responding to questions on bilateral FTAs
\nforged by Singapore at the Asia Pacific Economic Cooperation
\nsummit last week, Bernama said.<\/p>\n
\"As an individual nation, we are weak but as a group we are
\nstrong,\" it quoted Syed Hamid as saying. \"People regard us as
\npart of ASEAN and have ties with us, but if we break this up, it
\nmay bring negative effects.\"<\/p>\n
ASEAN groups Malaysia and Singapore with Cambodia, Brunei,
\nIndonesia, Laos, Myanmar, the Philippines, Thailand and Vietnam.
\nIts proposed free trade area is known as AFTA.<\/p>\n
Thailand, Malaysia and four other founding members of ASEAN
\nhave pledged to cut tariffs on 95 percent of their trade to five
\npercent from January 1, 2003, under AFTA. But Malaysia has been
\ngiven more time to lower tariffs on cars.<\/p>\n
Some Malaysian economists reckon Singapore's bilateral trade
\npacts could weaken AFTA.<\/p>\n
\"ASEAN countries will have to watch Singapore more closely for
\nrules of origin to ensure that the republic is not used as a
\ngateway for products from elsewhere to be marketed and riding on
\nthe AFTA vehicle,\" said Mohd Ariff Kareem, head of the Malaysian
\nInstitute of Economic Research.<\/p>\n
ASEAN leaders are to meet in Singapore on Friday for a summit,
\nattended also by Chinese Premier Zhu Rongji, Japanese Prime
\nMinister Yoshiro Mori and South Korean President Kim Dae Jung.<\/p>",
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