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.