ASEAN, Australia, New Zealand work for closer ties
ASEAN, Australia, New Zealand work for closer ties
Agence France-Presse, Bandar Seri Begawan
Southeast Asian economic ministers on Saturday signed a declaration with Australia and New Zealand to forge a sweeping agreement on closer economic ties aimed at removing trade barriers and doubling trade and investments.
The signing of the declaration to work out a Closer Economic Partnership (CEP) came a day after ASEAN took crucial steps to advance its proposed free trade agreements (FTAs) with China and Japan during their annual meeting here.
In a joint statement issued after their annual dialogue in Brunei, the ministers said the declaration "introduced a formal and structured approach to promoting trade, investment and regional economic integration" between the two regions.
Under the CEP, which is not an FTA, the ministers agreed to set a target of doubling trade and investments by 2010.
Total trade between the two regions was valued at US$20.3 billion in 2001 but no figures were released for investment levels.
The target would "ensure that the CEP was ambitious and results oriented, with a practical focus on increasing trade and investment."
An initial work program aims to give priority to eliminating technical barriers to trade as well as non-tariff impediments.
The ministers agreed to set up a group to coordinate and ensure that the work program is implemented.
Australia and New Zealand call their economic alliance Closer Economic Relations, or CER.
Ministers described the future CEP accord as broader than an FTA because it goes beyond market access and tariff cuts to include regulatory frameworks and enhancing links between business communities.
Malaysian Minister of International Trade and Industry Rafidah Aziz said the CEP would even put Australia and New Zealand ahead of China and Japan in terms of negotiating market-opening measures with ASEAN.
"This is a significant milestone in the relationship between the two regions," said Australian Minister of Trade Mark Vaile. "It lays the foundation for very constructive cooperative work in the future."
The ministers had not aimed to negotiate an FTA similar to that with China and Japan because FTAs involve more complicated and detailed issues such as specific tariff cuts as well as end and starting dates.
Still, the declaration to enter into a CEP took three years to negotiate.
"If you talk about FTAs at a very early stage, perhaps you may be bogged down with a lot of negotiations and a lot of stipulations and regulations," said Brunei Minister of Industry and Primary Resources Abdul Rahman Taib.