Asean ‘On Track’ to Cut Tariffs, Form Trade Zone by January
The Association of Southeast Asian Nations said it is “on track” to achieve its goal of eliminating tariffs on most goods traded within the region by the beginning of 2010.
The group aims to form a free-trade area by Jan. 1 that would remove tariffs on more than 87 percent of imports, according to a statement by Southeast Asian leaders, who are meeting in Cha-Am, Thailand this weekend. Six of the bloc’s 10 members will implement the tariff eliminations, while the rest, which are less developed, will follow later.
Asean is attempting to create an economic zone modeled after the European Union, without a common currency, by 2015. The group has said it needs to improve its competitiveness as China and India, the world’s two fastest-growing major economies, attract an increasing chunk of global investment.
“The effective implementation of this major milestone in the free-trade area brings Asean closer to the Asean Economic Community where free flow of goods is one of its major objectives,” the statement said.
The Southeast Asian nations are also planning to open industries including transportation and financial services. Meanwhile the group’s plan to implement a free-trade agreement in goods may be delayed amid disputes among some nations.
Thailand and the Philippines are arguing over tariffs on rice imports. Thailand has threatened not to approve the Asean Trade in Goods Agreement if the Philippines doesn’t lower import tariffs on rice, the Bangkok Post reported Oct. 20, citing Nuntawan Sakuntanaga, head of the Trade Negotiations Department.
“We urge member states to resolve the differences at the earliest opportunity,” the leaders said today.
As well as Thailand and the Philippines, Asean’s members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore and Vietnam.