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.