ASEAN encouraged to coordinate trade laws

ASEAN encouraged to coordinate trade laws

SINGAPORE (AP): Southeast Asian countries should harmonize
their trade laws to avoid losing massive amounts of foreign
investment to China, law officials from around the region said at
a conference.

The Association of Southeast Asian Nations, or ASEAN, is
losing "a huge chunk" of foreign investment to China, said
Singapore Attorney-General Chan Sek Keong.

Chan was speaking at the opening of the ASEAN Senior Law
Officials Meeting held Monday and Tuesday in Singapore, where
delegates were discussing ways to harmonize trade laws across the
10-country bloc of 500 million people.

ASEAN countries have vastly different legal systems, ranging
from the British-based framework used in Singapore and Malaysia
to the systems used in communist Laos and military-ruled Myanmar.

Harmonized trade laws in Asean would make foreign investors
more confident in the region and help it compete with China, Chan
said.

"China's continuing attraction of multinational corporations
and foreign direct investment in industry and manufacturing will
exacerbate the economic woes of Asean, unless its members have
the collective resolve to institute reforms," Chan said.

Global investments in China after it joins the World Trade
Organization could grow from 60 percent to 80 percent of the
total, Chan said, citing a study conducted by Thai researchers.

The study showed that global investments in Asean countries
could drop from the current 16 percent to 10 percent, Chan said.

Delegates said Asean countries could harmonize their domestic
trade laws despite the group's core principle that members must
not interfere in other members' internal affairs.

Jeffrey Chan, chairman of the organizing committee for the law
officials' conference said the committee has proposed that
delegates study harmonizing trade laws in areas including the
sale of goods, dispute settlements and Internet commerce.