Malaysia says AFTA for most favored nations too

Malaysia says AFTA for most favored nations too

KUALA LUMPUR (Reuter): A free trade area proposed by Southeast
Asia will also grant non-tariff privileges to countries having
most favored nation (MFN) status in the region, Malaysian Trade
Minister Rafidah Aziz said yesterday.

"For us zero means it's for the world," Rafidah told
reporters, referring to the zero tariff rate for most products
envisioned in the Association of Southeast Asian Nations' Free
Trade Area (AFTA) by 2003.

AFTA is to be launched by the seven-member Southeast Asian
association, known as ASEAN, by 2000.

ASEAN -- which groups Brunei, Indonesia, Malaysia, the
Philippines, Singapore, Thailand and Vietnam -- originally
proposed AFTA as an exclusive free trade for members but recently
made known its plan to open the zone to others.

Indonesia's Coordinating Minister for Production and
Distribution Hartarto was quoted as saying in the International
Herald Tribune last week that Indonesia's proposed reduction of
import duties was based on the multinational MFN principle which
it planned to extend to AFTA.

Reacting to this in Kuala Lumpur, Rafidah said: "Under AFTA,
where we can allow MFN (countries), we should. It's provided
for."

AFTA aims to cut at least 90 percent of tariff on most
manufactured products in the region to no more than five percent
at its launch date, and abolish them altogether three years
later. Vietnam, which only joined ASEAN last year, will have
until 2006 to comply with this.

ASEAN economic ministers decided last month that all other
products in the region, including politically sensitive farm
commodities like rice and sugar, will have duties removed by
2010. The ministers will meet in Jakarta in September for further
discussions.