Arroyo joins call for freer Asia trade

Arroyo joins call for freer Asia trade

SINGAPORE (Reuters): Philippine President Gloria Macapagal Arroyo, in the middle of a three-day visit to Singapore on Saturday, called for closer southeast Asian integration while signing a number of bilateral deals with the city state.

Arroyo said the Philippines opposed any attempt to chip away at southeast Asia's comparative advantage by the imposition of arbitrary labor and environment standards, protectionist anti- dumping measures and trade-distorting agricultural export subsidies, she said.

"We are in favor of liberalized but orderly trade. Provided it is fair and orderly, we are resigned to liberalized trade as inevitable," Arroyo said in a speech to a business forum.

Arroyo is visiting the region with her economic ministers and business leaders to foster trade links with member countries of the Association of Southeast Asian Countries (ASEAN).

The Philippines president argued that an integrated southeast Asian market would be half the size of China in population but equal to China in gross domestic product.

ASEAN groups Brunei, Cambodia, Malaysia, Myanmar, Indonesia, the Philippines, Singapore, Thailand and Vietnam.

At a formal welcome lunch on Saturday, Singapore's Prime Minister Goh Chok Tong said regional integration and cooperation was the best way to tackle the global economic slowdown and the challenge of a resurgent China.

"While doing so, however, we must also look outward and forge closer links with other economies," Goh said.

"Our past growth and prosperity have been built on the basis of free and open trade with the world. We must maintain this openness for our economies to grow," Goh said.

During her visit to Singapore, which began on Friday, Arroyo signed a series of trade promotion agreements.

Under the agreement Singapore Airlines and Philippines Airlines will raise the number of airline seats on routes between both nations to 8,700 from 6,500 per week and allow more airlines to fly these routes.

"This is one way by which we are showing you that we will help push regional transportation arrangements in ASEAN for the end of exchanging business, exchanging people, visiting one another," Arroyo said.

Arroyo is one of the three Asian heads of state currently traveling through Southeast Asia to promote regional trade links.

As Arroyo leaves Singapore on Sunday, the new Indonesian President Megawati Soekarnoputri will arrive on a 24-hour state visit with a powerful trade delegation to promote business.

Thai Prime Minister Thaksin Shinawatra visited Singapore earlier in the week, calling for regional cooperation in promoting bilateral and multi-lateral trade.