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.