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.