ASEAN likely to keep some tariffs

ASEAN likely to keep some tariffs

BANGKOK (Dow Jones): Association of South East Asian Nation (ASEAN) senior officials have agreed in principal to allow member countries maintain import tariffs on some key industries, a senior Thai commerce ministry official said Thursday.

The agreement would allow member countries retain tariffs on goods on which protection was supposed to end by the end of 1999, Karun Kittisataporn, the ministry's director-general told a news conference.

Member countries will have to justify their request for protection for particular goods or industries, and provide a timeframe for ending the protection, according to Karun.

The decision was made at a meeting held earlier this week in Bangkok, he added.

Asean needs to change its free trade strategy after Malaysia requested its auto industry be excluded from the required tariff cuts.

The agreement however, still needs to be endorsed by Asean economic ministers when they meet in Chang Mai, Thailand, in October, before it becomes effective.

The initial agreement covers lists of goods entitled to protection from import tariff cuts, and conditions governing applications for such protection, Karun said.

Import tariff cuts on selected goods under the ASEAN Free Trade Area agreement have been effective since the beginning of this year.

Senior ASEAN officials also agreed to prepare an agreement on ASEAN cooperation in the areas of electronic commerce, investment, and information technology, to be ready for presentation at the meeting in October.

ASEAN comprises Indonesia, Malaysia, Philippines, Thailand, Singapore, Vietnam, Laos, Cambodia, Brunei, and Myanmar.