ASEAN, India agree to long-term free-trade goal

ASEAN, India agree to long-term free-trade goal

Martin Abbugao
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."

Maran said the meeting was a "very good beginning on the
future economic cooperation and integration between" ASEAN and
India, which lags behind East Asian countries in its trade links
with Southeast Asia.

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.

"The long-term objective is closer cooperation with AFTA,"
said Maran, whose country is within a seven-hour flying radius
from Southeast Asian hub Singapore.

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.

This week ASEAN also signed a ministerial declaration with
Australia and New Zealand to negotiate a Closer Economic
Partnership.

India is not part of the ASEAN Plus Three umbrella which
covers the 10 Southeast Asian countries as well as China, Japan
and South Korea, effectively forming an East Asian entity.

However, India is a member of the ASEAN Regional Forum, Asia's
top body on security issues.