ASEAN seeks more market access to Japan

ASEAN seeks more market access to Japan

By Riyadi

KUALA LUMPUR (JP): Economic ministers of the nine-member
Association of Southeast Asian Nations (ASEAN) demanded more
access Saturday to Japan's markets to help tackle slumping
exports.

In a consultation meeting with Japanese Minister of
International Trade and Industry Mitsuo Horiuchi here, ASEAN
economic ministers also called for more investment from Japan to
bring in badly needed foreign exchange to the region, currently
being badly hit by a currency crisis.

"We have had some problems with market access, not because of
tariffs, but more of non-tariff barriers like a trading network.
We would like Japan to make it easier for ASEAN goods to enter
its market," Malaysian Minister of International Trade and
Industry Rafidah Aziz said after the meeting.

Two-way trade between ASEAN countries and Japan dropped by 4
percent last year to US$116.2 billion, with ASEAN exports rising
by less than 1 percent to $43.1 billion and ASEAN imports
declining 6.6 percent to $73.3 billion. Still, ASEAN countries
suffered a combined trade deficit of $30.2 billion.

Rafidah said ASEAN also proposed that Japan help promote ASEAN
exports to Japan, modernize small- and medium-sized firms and
assist rural industrialization in the region.

Japan was also urged to continue support for existing ASEAN-
Japan cooperation programs, including support for industries,
intellectual property rights, total quality management and
generic industrial technology research.

Minister Horiuchi responded by saying that Japan would
continue to support existing cooperation programs through various
state and private institutions.

In addition, the Japanese minister introduced a new package of
programs for ASEAN, including assistance for export companies and
human resources development.

Rafidah said ASEAN ministers welcomed Japan's offer but
reiterated that the ministers needed more time to study it
further before making any concrete commitment.

Besides trade, Rafidah said ASEAN ministers also asked the
Japanese government to help woo more private firms to invest in
the region to benefit from low production costs and a larger
market of almost 500 million people, especially after the
accession of Laos and Myanmar into ASEAN's realm.

Foreign direct investment flow from Japan to ASEAN countries
amounted to $6.6 billion or 13.3 percent of Japan's total global
direct foreign investment of $49.72 billion last year.

"The ministers recognize the importance of facilitating
greater investment flow," Rafidah said.

Responding to ASEAN ministers' requests, Horiuchi said he
would help encourage Japan investors to go to ASEAN. He said
ASEAN governments themselves should try their best to attract
foreign investment by creating a conducive investment climate in
the region.

"ASEAN (countries) should continue to mobilize their own
private capital and also attract foreign capital to upgrade their
infrastructure, as infrastructure is vital for their economic
dynamism," the Japanese minister said.

To attract more foreign investment, Horiuchi said, ASEAN
governments should strengthen their economic cooperation and
deepen economic integration by reducing tariffs and abolishing
non-tariff barriers to create the needed economic scale.

"The current difficulties facing ASEAN countries, triggered by
a regional currency crisis, should strengthen their economic
linkages, enhance competitiveness of their industries and make
their region attractive for direct foreign investment," Horiuchi
said after the consultation meeting.

Also attending the meeting were Bruneian Minister of Industry
and Primary Resources Abdul Rahman Taib, Lao Minister of Commerce
Sompadith Vorasane, Myanmarese Minister of National Planning and
Economic Development David O. Abel, Philippine Secretary of Trade
and Industry Cesar B. Bautista, Singaporean Minister of Trade and
Industry Lee Yock Suan, Thai Minister of Commerce Narongchai
Akrasanee, Vietnamese Minister of Trade Truong Dinh Tuyen and
Bachrum Harahap, an assistant to the Indonesian coordinating
minister for production and distribution.

Cambodia Senior Minister in charge of Rehabilitation and
Development and Minister of Economy and Finance Keat Chhon also
attended the meeting as an observer.