Cambodia, Laos to join ASEAN and AFTA next July

JAKARTA (JP): Cambodia and Laos will join the Association of Southeast Asian Nations (ASEAN) and adopt the ASEAN Free Trade Area (AFTA) agreement next July, with a 10-year flexibility period to cut their tariffs to between 0 percent and 5 percent on most of their goods.

"They'll join AFTA on the day they join ASEAN. Next July, when they join (the association), they'll have to make a commitment that they will undertake the obligations and responsibilities as members of the organization," ASEAN Secretary-General Ajit Singh told reporters here over the weekend.

He noted that the flexibility provision will be the same as that already given to Vietnam, which joined ASEAN and AFTA last July.

Such a flexibility period is given under consideration that the three former Communist countries have some catching up to do to emulate the rapid-growing economies of the other six ASEAN members, he said.

Singh was speaking to reporters Saturday after the conclusion of ASEAN economic ministers' meeting with their Laotian and Cambodian counterparts to discuss the two countries preparations to join the regional organization.

ASEAN, set up in 1967 in part as a bulwark against the spread of Communism through the three countries, now groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

ASEAN has planned to create a regional free trade area under the Common Effective Preferential Tariff Scheme (CEPT) by 2003, when tariffs on most products traded by its member countries will be reduced to between 0 percent and 5 percent. But the ASEAN ministers agreed Thursday at their last meeting to exempt a number of agricultural commodities, including rice and sugar, from the plan until 2010.

Singh said that the exemption will also be given to Laos and Cambodia, which are major exporters of rice.

After the admission of Laos and Cambodia, ASEAN will also admit Myanmar as its member. But the time for its admission has not yet been determined.

According to Singh, Laos and Cambodia will have to finalize their CEPT lists for inclusion products late next year.

Indonesian Coordinating Minister for Production and Distribution Hartarto told reporters that during Saturday's consultative meeting, Cambodian Minister for Economy and Finance Keat Chhon and Laotian Minister for Commerce Sompadith Vorasane raised an issue on funding and human resources development in their respective countries.

"We're ready to give them any assistance they need to prepare themselves to join ASEAN. This will include training their staff on the ASEAN organization," said Hartarto.

He said, however, that in terms of funding, ASEAN will help them find financial assistance from its dialog partners or from other international sources. (13)

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