'ASEAN won't create closed trading bloc'

JAKARTA (JP): Association of Southeast Asian Nations (ASEAN) Secretary-General Dato Ajit Singh asserted yesterday that greater integration of the group's economic activities would not create a closed trading bloc.

Speaking before a seminar on "Latin America and the Caribbean: Economic Outlook and Opportunities" at the Centre for Strategic and International Studies, Singh said in this age of high economic competition, member states are conscious of the need to continuously expand their economic activities.

"Thus, ASEAN may have no alternative but to move beyond closer economic cooperation towards greater economic integration," he said.

However, he assured participants at the seminar that such an integration would not evolve into a "fortress ASEAN" or a closed trading bloc.

"What is certain at this stage is that even as ASEAN moves closer together, it remains committed to the principle of open regionalism," he said.

Formed in 1967, ASEAN comprises Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. It is expected that within the next year, the three remaining countries in Southeast Asia -- Cambodia, Laos and Myanmar -- will also be admitted.

In its economic cooperation, the regional grouping has established an ASEAN Free Trade Area (Afta) which hopes to cut down import duties on various goods specified in their "inclusion list" to a maximum of 5 percent by the year 2003.

Singh maintained that despite the establishment of this regional trade arrangement, ASEAN remains open to cooperation with other trading regimes.

"ASEAN member countries do not discriminate as severely as other countries against non-ASEAN member countries as far as trade is concerned," he said.

Singh then elaborated that an analysis of the Most Favored Nation (MFN) and Common Effective Preferential Treatment (CEPT) tariff rates in ASEAN would show that in almost half the tariff lines, there was no difference between the CEPT and the MFN rates.

"ASEAN is ready to form cross linkages with other regional trading arrangements in order to facilitate trade and reduce non- tariff barriers," he said.

One such example is the close work being conducted with Australia and New Zealand's Closer Economic Relations in areas such as information exchange, customs matters and investment facilitation and information.

"ASEAN is ready to extend the same cooperation to other regional trading arrangements," Singh remarked. (mds)