ASEAN's deal to lower import taxes welcomed

ASEAN's deal to lower import taxes welcomed

SINGAPORE (AP): Economic ministers from the Association of Southeast Asian Nations said Thursday they welcomed agreements to lower import taxes within the region and make it more attractive to outside investors.

"ASEAN has started the process of opening up its closed or restricted industries and sectors for investments," the ministers from the 10-member organization said in a statement.

They also said they were encouraged by progress towards making the region a "zero-tariff" trade area by 2018.

On Wednesday, ASEAN officials took a major step towards making the region a free trade area by reducing tariffs to a maximum of 5 percent for various agricultural and manufacturing products in six nations by Jan. 1. Malaysia, however, later urged ASEAN to postpone reducing tariffs on imported cars.

Commenting on developments in the World Trade Organization, the ministers said they were concerned by the proliferation of anti-dumping investigations and the use of anti-circumvention measures. They added that certain provisions of the anti-dumping agreement should be clarified.

Earlier Thursday, Singapore Prime Minister Goh Chok Tong said that Southeast Asian countries still face huge economic and political challenges even though the worst of the financial crisis appears to be over.

"Despite improvements, I would caution against any hasty conclusion that things would only get better," Goh told economic ministers and officials at the opening of the 31st meeting of ASEAN economic ministers.

Goh warned that foreign investment in most ASEAN countries has remained weak, and that banks remain wary about extending new loans to businesses.

He also said the region's political stability will be crucial in achieving a full recovery.

"Indonesia, the largest ASEAN member, with two-fifths of ASEAN's total population, is in political transition," Goh said.

"Investors will be watching developments in Indonesia closely."

Goh urged ASEAN countries to continue reforming and liberalizing their economies, and urged the ministers to make a "bold, collective effort to market ASEAN to the world."

ASEAN includes Brunei, Myanmar, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Cambodia and Vietnam.

The ministers will continue to discuss the region's economic and industrial cooperation with officials from Australia, New Zealand and Japan through Saturday.