[asia-apec 1611] Afta advised to go beyond tariff deduction (thestar.com.my)

[APEC Monitoring Group]

Friday, October 6, 2000
Afta advised to go beyond tariff deduction

CHIANGMAI: The Asean Free Trade Area (Afta) liberalisation process should go beyond the reduction and elimination of tariff on goods, Thai Prime Minister Chuan Leekpai said yesterday. 
It should include removal of non-tariff trade barriers as well, Chuan said in his keynote address at the opening of the 32nd Asean Economic Ministers' Meeting (AEM). 

"Clearly, past experiences have shown that trade liberalisation schemes cannot be effective unless both tariff and non-tariff barriers are removed,'' Chuan said. 

He said the Asean leaders had taken steps to speed up the Afta process, enhance Asean investment climate and to strengthen the Asean Surveillance Process on financial and monetary issues. 

However, Chuan said despite Asean being closer to the realisation of a free trade area now than ever before, there still remained a number of criticial issues which needed to be addressed in order to make Afta a real success. 

Due to the pivotal role that Afta would play in stimulating trade and improving the region's investment climate, Asean needed to move promptly to fulfil its goals and objectives, he said. 

Chuan said: "As such, we must make certain that any flexibility injected into its framework is adopted and undertaken in a pragmatic manner so as not to jeopardise our long awaited vision. 

Malaysia has requested to delay tariff cuts on its completely built-up (CBU) and completely knocked-down (CKD) units to 2005 from 2003. 

This was agreed by Asean Economic Ministers (AEM) during the informal AEM meeting in Yangon, Myanmar last May. 

The delay has sparked talks that affected Asean countries, like Thailand, may ask Malaysia to pay compensation.--Bernama