ASEAN told to resist linking trade to politics

ASEAN told to resist linking trade to politics

KUALA LUMPUR (AFP): Malaysia urged member countries of the Association of Southeast Asian Nations (ASEAN) yesterday to resist moves by major trading nations to link trade to politics.

Citing Washington's recent ban on U.S. investments in Myanmar, International Trade and Industry Minister Rafidah Aziz warned that such policies would hamper free trade and investment in the regional grouping.

"This is completely untenable and ASEAN must resist such moves," Rafidah said when opening a two-day seminar on Globalization and free trade: implications for ASEAN here.

"ASEAN, as a group, must act in concert and resist attempts to dilute ASEAN's collective force, or to erode the grouping's united position on issues of common concern in trade and investments," she added.

Rafidah called on member states to continue with the collaborative strategy to monitor trade policies of the region's major trading partners to prevent any imposition of rules and legislation that would curtail its exports.

"In fact, ASEAN must be able to leverage on its economic strength to ensure that the markets of its trading partners are not constrained by unacceptable trade policies," she said.

Rafidah pointed out that any discriminatory policy must be consistent with the provisions of universally accepted World Trade Organization rules and cannot be trade distortive.

"There is really no such thing as free trade. No country has a market that is absolutely free of rules. What is being sought after is more liberal trade, with no undue constraints," she said.

The United States, which announced the investment ban last Tuesday, ended the week by appealing to ASEAN countries to block Yangon's admittance to the grouping over its poor human rights record.

But ASEAN, which groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam, has brushed aside U.S. sanctions and is pressing ahead with preparations to admit Myanmar.