ASEAN, India agree to long-term free-trade goal
ASEAN, India agree to long-term free-trade goal
Agence France-Presse, Bandar Seri Begawan
A "landmark meeting" between economic ministers of ASEAN and India on Sunday agreed to the long-term goal of establishing a regional free-trade area.
The ministers also decided to set up a task force to draw up a draft framework agreement to boost trade and economic cooperation.
The first meeting with India was held on the final day of the annual Association of Southeast Asian Nations (ASEAN) meeting here, as the 10-member regional bloc opened the door to the world's second most populous country.
Brunei Minister of Industry and Primary Resources Adbdul Rahman Taib described the session with Indian Minister of Commerce and Industry Murasoli Maran as a "landmark meeting because it has produced some outstanding results."
ASEAN heads of state or governments meeting for a summit in Cambodia this November are scheduled to hold their first discussions with the Indian prime minister as a group.
The economic ministers in Brunei agreed to establish an ASEAN- India Economic Linkages Task Force comprised of senior officials and business leaders from both sides.
The team will follow up the recommendations of a joint study on expanding ASEAN-India economic ties, which proposed forming an India-AFTA Regional Trade and Investment Area. AFTA is the ASEAN Free Trade Area.
Brunei's Taib said the task force would submit its recommendations, including a draft framework agreement to enhance trade and economic cooperation, during the next economic ministers' meeting next year.
Total ASEAN-India trade was at US$9.88 billion in 2001, up 30 percent from $7.6 billion in 2000.
The ministers in a joint communique said they "welcomed" India's desire for a free-trade ties with ASEAN, which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
The ministers said the aim of such a zone should be to remove tariff and non-tariff barriers, harmonize standards and facilitate business travel, as well as to promote trade and investment.
They said that while the long-term objective was a free-trade area, "issues related to trade and investment facilitation and promotion could be addressed immediately in order to enhance trade flows."
ASEAN is in the early stages of talks that could lead to FTAs with its East Asian dialogue partners China and Japan. South Korea has begun a study on the feasibility of an FTA with ASEAN.