Mahathir warns ASEAN members of back-door entry via AFTA
Mahathir warns ASEAN members of back-door entry via AFTA
KUALA LUMPUR (AFP): Prime Minister Mahathir Mohamad has warned Southeast Asian nations to watch out for backdoor attempts to enter the ASEAN Free Trade Area (AFTA) once it comes into force in 2003.
"Many non-ASEAN countries are hoping to enter the markets of our countries through the back door," he said in a speech late Tuesday at a dinner in honor of Thai Prime Minister Thaksin Shinawatra.
"We must not allow this to happen as it will lessen the benefits of AFTA to us.
"AFTA actually provides us with the opportunity to enlarge our industrial and commercial capacities and we must not let the opportunities be wasted and lost to us."
Under the Association of Southeast Asian Nations (ASEAN) Free Trade Area, most members must cut tariffs on imports for agreed products to a maximum of five percent.
Malaysia has said it would not stand for any attempt by Australia or New Zealand to use bilateral free trade pacts with Singapore as a back door into AFTA.
Mahathir said Malaysia was committed to liberalize its markets under AFTA requirements.
He defended a two-year reprieve given to Malaysia's auto industry until 2005, saying it was to allow the national car industry to "undertake a necessary restructuring exercise to remain competitive."
The premier urged Thailand's private sector to tie-up with Malaysian companies to boost intra-regional trade and gain from AFTA.
He said it would be an "added feather in our cap if we could facilitate and expedite" the implementation of a stalled gas pipeline joint venture.
The pipeline will take gas to southern Thailand from the Malaysia-Thailand Joint Development Area along their maritime border. It has been stalled by strong opposition from Thai environmental groups.
"Landing the gas in south Thailand will provide that less- developed region and people with an increase in job opportunities and businesses," Mahathir added.
Thaksin said Tuesday Thailand would push ahead with the project but it needed time to seek support from residents in the area.
The pipeline is a joint venture between Malaysia's state energy firm Petronas and the Petroleum Authority of Thailand. The first stage, estimated to cost one billion dollars, is due to be completed by mid-2002.