ASEAN ministers to meet to speed up AFTA

ASEAN ministers to meet to speed up AFTA

GENTING HIGHLANDS, Malaysia (AFP): Trade ministers of Southeast Asia's freewheeling economies met here yesterday to work out a plan that could set a regional free trade area into orbit within 10 years.

Officials said the urgency to speed up implementation of the ASEAN Free Trade Area (AFTA) had been amplified by the Uruguay Round accord reached in Marrakesh, Morocco, to liberalize world trade.

"We discussed the need to review and shorten AFTA's 15-year schedule and that was the general feeling among the officials from all (ASEAN) nations," said Mahadi Wasli, deputy secretary- general of the Association of Southeast Asian Nations.

Officials said a review of AFTA's schedule was on the top of the agenda of the ministerial talks that "teed-off" early yesterday with a friendly round of golf at this highlands golf resort, while awaiting the arrival of Thai ministers.

Mahadi said late Thursday at the conclusion of two days of talks among senior economic officials of ASEAN that amendments should be made to the program to suit the recent conclusion of the Uruguay accord under the General Agreement on Tariffs and Trade (GATT) that had set a 10-year target to dismantle barriers in world trade.

ASEAN, grouping Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, already has a set of program to gradually tear down tariff barriers towards achieving AFTA in 15 years from this year.

Original plan

Singapore's Trade Minister Yeo Cheow Tong said last week that the Uruguay accord had rendered it senseless for AFTA to stick to its original time frame.

Malaysian International Trade Minister Rafidah Aziz, representing Kuala Lumpur at the talks, said on Monday a comprehensive agenda to speed up economic cooperation would be worked out.

"We will for the first time devise a vision for ASEAN. We cannot live day to day because the world is changing so fast around us and we better optimize our vast potential," she said.

The economic blueprint would be presented at the next ASEAN government leaders summit in Bangkok next year, she said.

Mahadi said the governments will have to consult their private sectors as well before a decision could be made.

"While some sectors are progressive enough to adjust to a shorter time frame, there are others who may not be ready yet," Mahadi said.

The ASEAN area, which has a combined population of about 330 million people, is the world's fastest growing region.

Analysts say the emergence of regional economies in Europe and North America would pose a worry for ASEAN and provide the stimulus towards greater intra-ASEAN economic cooperation.