ASEAN to look into free trade pact with EU
ASEAN to look into free trade pact with EU
Agence France-Presse, Hanoi
Economic ministers from Southeast Asian nations ended a meeting in Vietnam on Wednesday agreeing to study a potential free trade agreement (FTA) with the European Union, a joint statement said.
Ministers or senior officials from the 10 ASEAN countries met EU Trade Commissioner Peter Mandelson in Halong city 170 kilometers (more than 100 miles) east of Hanoi on Wednesday after talks among themselves the previous day.
The ministers discussed implementation of the "Trans-Regional EU-ASEAN Trade Initiative" and told Mandelson of its value in promoting regional integration as well as for "greater understanding between the two regions.
"These are important components not only in integrating ASEAN member countries but also in fostering ASEAN-EU economic cooperation, which would pave the way towards a closer ... partnership," the statement said.
Mandelson for his part briefed the ASEAN ministers on the new EU generalized system of preferences but said that "because of some sensitivities, especially in the textile sector, the process has been delayed," it noted.
The European Union has been considering the launch of an investigation into soaring Chinese clothing imports after the ending of a global quota system on Jan. 1, while France has urged more immediate measures to protect European textile producers.
The European Commission, while facing pressure from the textile industry to act against Chinese imports, Brussels is wary of not moving too quickly for fear of stirring up a painful dispute at the World Trade Organization (WTO).
On Tuesday, the Southeast Asian ministers discussed implementation of the ASEAN Framework Agreement for the Integration of Priority Sectors.
Under it, measures are identified to enable the integration of agro-based products, air travel, automotive, e-ASEAN, electronics, fisheries, healthcare, rubber-based products, textile and clothing, tourism, and wood-based products.
The ministers also broached issues regarding economic co- operation with non-block members namely China, Japan, South Korea, India, Australia and New Zealand to establish FTAs.
They noted that the region should examine the possible impacts of FTAs on integration plans and set up effective coordination to safeguard the interests of all members, especially the less advanced ones -- Vietnam, Laos, Cambodia and Myanmar.
The ASEAN-China accord signed at the Vientiane summit in December will start on July 1.
The two sides will have to start cutting tariffs on certain types of goods to between zero and five percent by 2010 for Southeast Asia's six more economically advanced members and by 2015 for Laos, Vietnam, Cambodia and Myanmar.