ASEAN frees up tourism, other service sectors
ASEAN frees up tourism, other service sectors
KUALA LUMPUR (AFP): Trade ministers of the Association of Southeast Asian Nations (ASEAN) signed documents here yesterday implementing an agreement to open up the regional services market, starting with the tourism industry.
They signed a protocol, with effect from March 31, 1998, implementing a 1995 framework agreement which gives fellow members of the group preferential treatment in market access to their services sectors.
ASEAN is already implementing a free-trade pact covering goods.
Under the services protocol, all nine members -- Brunei, Myanmar, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam -- agreed to open up their tourism sectors.
In addition to tourism, Brunei, Indonesia, Malaysia and Thailand vowed to open up their maritime transport sectors.
The air transport industry is to be opened up as well by Brunei, Malaysia and Singapore, while the Philippines is to open up its business services industry and Vietnam is to open up its telecommunications industry.
"This initial package signifies ASEAN's progress, as mandated by the 5th ASEAN summit in December 1995, towards closer economic integration by establishing a free trade area in services that would complement the free trade area in goods, under the ASEAN Free Trade Area (AFTA)," a press statement said.
Under AFTA, tariffs on most goods traded within the region will be slashed to no more than five percent by 2003 in more advanced ASEAN members, 2006 in the case of Vietnam which joined the group in 1995, and 2008 in the case of Burma and Laos which joined last July.
The services pact grants national treatment to fellow ASEAN members in the specified sectors.
"A second phase of negotiations will commence in 1998 for a final package of commitments, to be completed by December 31, 1998," the statement said.
By the deadline, liberalization of the services trade will be "more substantive" and will involve seven sectors -- maritime transport, air transport, construction, financial services, telecommunications, tourism and business services.