AFTA top topic at ASEAN ministers' talks

AFTA top topic at ASEAN ministers' talks

BANGKOK (AFP): ASEAN economic ministers gather on the Thai holiday island of Phuket this week for a round of free-wheeling talks likely to focus on plans to speed up regional free-trade plans, officials said.

Officials described the meeting on Saturday as a "retreat" where ministers would be able to speak their minds without the formal baggage of minders and advisers to guide them.

"There is no set agenda but we expect there to be three or four main topics for discussions," Karun Kittisataporn, the director general of the Thai commerce ministry's business economics department, said.

"It will be very informal ... the ministers will be able to speak their minds because there won't be any officials in the meeting."

Among the topics up for discussion are ASEAN's so-called "bold" trade liberalization measures, the status of economic recovery plans and issues related to the World Trade Organization (WTO) and other trade blocs.

Leaders at the Association of Southeast Asian Nations (ASEAN) summit agreed in Hanoi last year to quicken liberalization under the ASEAN Free Trade Area (AFTA) plan.

The more developed ASEAN economies of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand agreed to bring down tariffs to zero-to-five-percent by 2002 instead of the original deadline of 2003.

The less developed economies -- Vietnam, Laos and Myanmar -- have leeway to catch up.

"As far as possible they should be reduced to zero instead of 0.0-5.0 percent," Karun said.

"This may cause some difficulties among some ASEAN members so we could make it a voluntary commitment."

Opposition to the move has been strongest in the Philippines, where the government is under pressure to raise protectionist barriers to support local industries.

Manila was warned by the WTO last month over its move to adjust tariffs on selected imports to protect local industries. Manila said the increases were only temporary, lasting for one year.

The Hanoi initiative was seen as a move to boost international confidence in Asian economies rocked by the regional crisis which began with the float of the Thai baht in 1997.

Karun said Thailand wanted to clarify which products were exempt from the AFTA tariff reduction scheme.

"We have found out that there are many cases where products should not be on the General Exemptions List so there needs to be discussions on what the criteria is for this list and how to reduce it as much as possible," he said.

In related talks scheduled in Phuket on Friday, ministers and officials will attend the second meeting of the ASEAN Investment Area (AIA) Council.

Thailand's Board of Investment said the AIA meeting would consider the creation of an ASEAN investment database, joint investment promotions and training programs for officials, plus a "liberalization program" to reduce or eliminate all restrictions to investment.

Sources here said the delegates, who will arrive in Thailand on Thursday and Friday, could spend as much time on Phuket's sun- drenched golf courses as they do in the closed-door meetings.

One Malaysian official said: "The ministers will have a free- wheeling exchange of views on all elements of ASEAN economic cooperation."

Both rounds of talks on Friday and Saturday will be chaired by Philippine Trade Secretary Jose Pardo.