Cambodia, Laos to join ASEAN and AFTA next July

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)

Editorial -- Page 4

Trade issues -- Page 12