Trade relations hampered by a lack of information<\/p>\n
JAKARTA (JP): ASEAN Secretary-General Ajit Singh, in a joint
\ncommission meeting with India yesterday, cited a lack of
\ninformation as the main impediment to better bilateral trade
\nrelations.<\/p>\n
Speaking at the opening day of the second Joint Sectoral
\nCooperation Committee meeting between the Association of
\nSoutheast Asian Nations (ASEAN) and India in New Delhi, Singh
\nsaid that this communication gap has prevented relations from
\nreaching their true potential.<\/p>\n
"In a nutshell, the problem really boils down to a lack of
\ninformation and a lack of communication," Singh said yesterday in
\nhis speech obtained by The Jakarta Post.<\/p>\n
ASEAN comprises Brunei, Indonesia, Malaysia, the Philippines,
\nSingapore and Thailand.<\/p>\n
The second commission meeting will take place in New Delhi
\nbefore moving to Goa, where the talks will close on Feb. 17.<\/p>\n
"The challenge before us is how to exploit the full
\npotentialities which exist," said Singh, who is leading a
\ndelegation of some 40 senior ASEAN officials to help boost
\ncooperation in trade, investment, tourism, science and
\ntechnology.<\/p>\n
One of the main topics to be discussed by the delegates during
\nthe meetings will be a report produced by an experts group that
\nwas established at the first commission meeting in Bali in
\nJanuary 1994.<\/p>\n
Two-way trade between ASEAN and India increased from US$2.2
\nbillion in 1990 to $2.5 billion in 1993, much of which favored
\nIndia's balance of accounts.<\/p>\n
"What the report clearly points to is the fact that trade
\nbetween ASEAN and India is indeed small compared to the
\npotentialities which exist," Singh remarked.<\/p>\n
The experts group report concludes that "even where ASEAN
\ncountries are major importers and India is an exporter, most
\nASEAN countries import little or none of their requirements from
\nIndia, and vice-versa."<\/p>\n
Singh noted the need to tackle the issues and suggested
\nconcrete steps to remedy them. He later suggested that the ASEAN
\ndelegates not overlook the potential of the Indian market, which
\nincludes a high-income consumer group of over 160 million
\npeople.<\/p>\n
Labor<\/p>\n
Meanwhile, Singh said that ASEAN and India should work with
\nother developing nations to prevent such issues as labor
\nstandards and environmental concerns from being used as new
\nprotectionist barriers in world trade.<\/p>\n
"We have to be vigilant that in striving to improve the lot of
\nour workers, issues such as the so-called social clause are not
\nattached as conditionalities in any new trade relationship," Ajit
\nSingh was quoted by AFP as saying.<\/p>\n
ASEAN and India should work closely with other developing
\ncountries to ensure the newly-formed World Trade Organization
\n(WTO) serves the interests of all its members, the Malaysian
\nofficial said.<\/p>\n
Developing nations have expressed worry at attempts by
\nadvanced countries to introduce a "social clause" that would link
\nsuch issues as labor standards and environmental concerns to
\nworld trade.<\/p>\n
Such a clause could provide for the restriction or prohibition
\nof imports from countries or industries that do not adhere to
\nstipulated standards, hurting the exports of developing nations.<\/p>\n
Singh noted a Thai proposal to set up a growth triangle
\ncomprising India, Sri Lanka and Thailand that could encourage
\ntrade and investment links between ASEAN and India.<\/p>\n
India became a sectoral partner of the regional bloc two years
\nago after putting ASEAN at the center stage of its post-Cold War
\ndiplomatic and economic offensive. (mds)<\/p>",
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