ASEAN seeks closer ties with CER, southern Africa

By Riyadi

KUALA LUMPUR (JP): The Association of Southeast Asian Nations (ASEAN) and the Closer Economic Relations (CER) group of Australia and New Zealand agreed in a consultation meeting here yesterday to eliminate trade barriers.

Malaysian Minister of International Trade and Industry Rafidah Aziz said that ministers from the regional countries had received a list of trade barriers from private sectors of both regions.

"The ministers recognize the value of such compilations to promote greater transparency in trade and they underscore the need for the lists to be continually updated," Rafidah said in a press briefing.

In view of the country-specific nature of the barriers identified, she added, the ministers had assigned officials from relevant countries in ASEAN and CER to look into this further on a bilateral basis.

According to an Indonesian official attending the meeting, most barriers identified by CER's private sector were mostly high tariffs imposed by some ASEAN countries.

ASEAN's private sector identified mostly nontariff barriers imposed by Australia and New Zealand, like antidumping measures, standards -- including quarantines -- and labeling.

Nevertheless, trade between the two regions has increased significantly. ASEAN's exports to CER rose 16.4 percent to US$6.9 billion last year from $5.9 billion in 1995. Imports from CER jumped 22 percent to $9.8 billion from $8 billion.

To improve trade flow between the two regions, the ministers directed senior officials to work with the ASEAN-CER Business Council to identify priority issues to be reported back to the next consultation meeting next year.

The ministers also discussed the existing cooperation activities toward ASEAN-CER linkages, like those in standards and conformance, service sectors -- especially transport and tourism -- and customs.

The ministers also agreed to pursue additional cooperation in human resources development, investment promotion, other service sectors -- especially professional and construction services -- electronic commerce and sanitary and phyto-sanitary issues.

The ministers also asserted that temporary economic difficulties and wild exchange rate fluctuations experienced by some economies in the region would not have a negative long-term impact on economic potential.

"The ministers expressed their confidence and optimism in the future economic prospects of these economies, and reaffirmed their commitment to undertake the necessary measures to advance such interregional linkages," said Australian Deputy Prime Minister and Minister of Trade Tim Fischer.

Besides interregional trade issues, ASEAN and CER ministers also discussed multilateral trade issues to seek common positions on various negotiations under the World Trade Organization, especially on agricultural and financial services.

ASEAN economic ministers also held another consultation meeting yesterday with ministers from southern African countries grouped in the Southern African Development Community (SADC) to strengthen trade and investment ties between the two regions.

Two-way trade between ASEAN and SADC countries was still very meager, standing at $3.2 billion last year, but the potential was very great, said SADC chairman William Shija, who is also Tanzanian minister of trade and industry.

"The SADC region has a market size of 184 million people, high economic growth, a low inflation rate, raw materials and other resources, including energy," Shija said.

ASEAN and SADC ministers agreed to enhance cooperation between the two regions, especially in metal engineering, telecommunications, agriculture and infrastructure development.

Nevertheless, the ministers agreed that initial cooperation between the two regions should focus on trade and investment promotion and facilitations, strengthening private sector linkages, links between research institutions, and transfer of technology between the two regions.