ASEAN ministers open their economic meeting

ASEAN ministers open their economic meeting

MANILA (AFP): Southeast Asian economic ministers began a two-
day meeting here Wednesday with commitments to drastic tariff
cuts as a pill to revive economies knocked down by the Asian
financial flu.

Philippines President Joseph Estrada set the tone in a keynote
address, urging the Association of Southeast Asian Nations
(ASEAN) to maintain open markets and cautioning members against
"backsliding" on commitments to trade liberalization.

He also called on the Group of Seven most industrialized
nations to provide the leadership needed to bail the region out
of crisis.

"It is imperative that we maintain this course of continued
integration of our economies within ASEAN and the continued
integration of ASEAN with the rest of the world," Estrada said.

"Whatever adjustments and policy options we have to take from
hereon must be fashioned in the larger context of global
integration and interdependence, " he said.

He said ASEAN's thrust is to promote a "freer flow of goods
and services, investments and capital" and warned against
reneging on international commitments to free trade.

"Given the interdependence of trading nations, backsliding on
our commitments would give out the wrong signals to our trading
partners -- weakening the links we have forged among ourselves
and disrupting harmonious alliance," he said.

But the Philippine leader stressed that "a fast ASEAN
turnaround cannot be accomplished without the concerted
commitments of the G7."

The group of the world's seven richest nations "can help
contain the current financial turmoil" by generating economic
activities, maintaining open markets and sustaining credit to the
most seriously affected economies.

He urged the United States and other countries "which are in a
position to do so" to "make available their share in the
recapitalization of the International Monetary Fund" and lend
support to other multilateral agencies involved in efforts to
restore global financial stability.

The meeting involved the economic ministers of Brunei,
Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,
Thailand and Vietnam.

During a meeting of the ASEAN Free Trade Area (AFTA) council
involving the same ministers Tuesday, the group pledged to speed
up import tariff cuts on sensitive products including unprocessed
agricultural commodities traded within the region.

The ministers said the crisis has only strengthened their
commitments to the region's goal of a tariff-free area for most
products by 2003 to increase trade and lure back investors.

Thai Deputy Premier Supachai Panitchpakdi said the commitments
would send a "correct signal to the world that we are moving
ahead" with economic liberalization despite the turmoil.

In his speech, Estrada urged fellow ASEAN members to reform
their banking systems and adopt fiscal discipline to tame
inflation while pump-priming the economy and assisting viable
enterprises through credit.

"We have to maintain internationally viable foreign exchange
rates. These can bring back business and private sector
confidence and in turn draw investments and long-term capital,"
Estrada added, in apparent reference to Malaysia which imposed
currency controls last month.

Malaysia's trade minister, Rafidah Aziz, was not at the
opening session and was represented by a junior minister.
Organizers said she would be arriving later Wednesday.

Philippine Trade Secretary Jose Pardo said Tuesday that
Malaysia appeared to be alone in its move to adopt foreign
exchange restrictions, with the rest of the region committed to
free currency flows.