Mega says AFTA needs 'escape clause'<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
President Megawati Soekarnoputri called for on Thursday the
\ncreation of an \"escape clause\" in the implementation of the AFTA
\nregional trade pact to help member countries facing special
\ndifficulties in the early stages of the trade liberalization to
\niron out any possible kinks.<\/p>\n
\"It may not be surprising, that at a certain point in our
\nendeavors there will be one of us encountering difficulties. In
\nmy point of view, we will need a clear and practical mechanism to
\niron out these problems,\" Megawati said in her speech at the
\nopening ceremony of a one-day conference on the Association of
\nSouth East Asian Nations (ASEAN) Free Trade Area (AFTA), which
\nwas mostly attended by ASEAN representatives.<\/p>\n
\"I think it will bring us some benefits to provide such an
\nescape clause,\" she said.<\/p>\n
Megawati, who was accompanied by Trade and Industry Minister
\nRini Soewandi, did not provide details about the proposed escape
\nclause idea.<\/p>\n
But the statement could be a sign of backtracking from the
\ntrade liberalization move amid economic hardships at home.<\/p>\n
Some influential businesspeople as well as a business lobbying
\ngroup, the Indonesian Chamber of Commerce and Industry (KADIN)
\nhad previously expressed opposition against the early
\nimplementation of AFTA, citing that the 1997 economic crisis had
\nmade them weak and they were in no position to compete head-on
\nwith overseas players.<\/p>\n
Under the AFTA agreement, which became effective on Jan. 1,
\nthe import tariffs for almost all products traded within the six
\nfounding members of ASEAN -- Indonesia, Malaysia, Singapore,
\nThailand, Brunei and the Philippines - was set between zero to
\nfive percent.<\/p>\n
The average tariff on intra-ASEAN trade is now down to 3.2
\npercent.<\/p>\n
But the four newer ASEAN members -- Vietnam, Laos, Cambodia
\nand Myanmar -- would be allowed to delay their tariff reductions
\nuntil between 2006 and 2010.<\/p>\n
Elsewhere, Megawati said that the move by ASEAN countries in
\nthe implementation of AFTA would not always go smoothly.<\/p>\n
She said that AFTA required the ASEAN members to act together
\nin the interests of all.<\/p>\n
\"During this trying period, we need -- more than ever before
\n-- a mutually beneficial spirit of cooperation, rather than a
\nsense of competitiveness in which a given country regards others
\nas a threat and merely indulges in its drive to manipulate
\nother's weaknesses to take benefits at all times,\" she said.<\/p>\n
Megawati also urged local business players to improve
\nefficiency in a bid to boost their competitiveness so as to
\ncompete in the ASEAN market.<\/p>\n
\"Local business players must be courageous to compete in both
\nthe ASEAN and global markets and not to confine themselves only
\nto the domestic market,\" she said.<\/p>\n
Meanwhile, ASEAN secretary general Rodolfo Severino urged all
\nASEAN member countries to minimize the use of non-tariff barriers
\nto smooth the implementation of AFTA.<\/p>\n
\"I am against imposing non-tariff barriers, I hope ASEAN
\nmembers will not resort to non-tariff barriers unless it is
\nabsolutely necessary,\" Severino told reporters.<\/p>\n
Separately, Singapore Trade Minister George Yeo urged the
\nASEAN member countries to expedite economic integration in a bid
\nto compete with China.<\/p>\n
\"China presents a huge challenge to Southeast Asia. If we do
\nnot move quickly to integrate ASEAN, we may be completely
\novershadowed by Northeast Asia,\" Yeo said.<\/p>\n
ASEAN and China earlier agreed to set up the world's largest
\nfree trade agreement within ten years, covering two billion
\nconsumers.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mega-says-afta-needs-escape-clause-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}