[Kabar-indonesia] 5 ASEAN reports: Doubts Over Accelerating Single Market [+Pharmaceuticals]

[JoyoNews at aol.com]

5 reports: 

- JP: Doubts greet move to speed 
  up ASEAN single market 

- ASEAN five to implement common 
  standards on pharmaceuticals

- ASEAN, South Korea to free up trade 
  by 2007, but Thailand stays out over 
  rice dispute

- ASEAN ministers review trade talks with 
  key partners 

- ST: Help for Asean states in push for 
  single market [More developed members 
  will ensure no one is left behind]

The Jakarta Post
Thursday, August 24, 2006

Doubts greet move to speed up ASEAN single market 

Andi Haswidi and Chrysanthi Tarigan, 
The Jakarta Post, Jakarta

Economists and business players acknowledged Wednesday that creating an ASEAN 
single market five years ahead of schedule would help its members compete 
with giants China and India, but doubted it could be implemented on time. 

"ASEAN as a whole is not ready for it. These ministers are making statements 
without considering whether they can do it or not," Hadi Soesastro of the 
Centre for Strategic and International Studies (CSIS) told The Jakarta Post. 

He added that without the institutional improvement of the ASEAN secretariat, 
the single regional market would not be able to perform to expectations. 

"There is no coordination among ASEAN members. There is no clarity. All of 
those are because there is no institution that controls the process of the 
economic integration of these countries," he said. 

"ASEAN needs a mechanism to support the integration. Or else, it would be 
joke." 

Trade ministers of the Association of Southeast Asian Nations (ASEAN) member 
countries agreed in a meeting in Kuala Lumpur on Tuesday to push for the 
creation of the European-style single market by 2015, although it was originally 
scheduled for 2020. 

In a joint statement issued after two days of talks, the ministers pledged to 
remove all forms of restrictions that affect national treatment and market 
access limitations. The plan is scheduled to be approved during the meeting of 
the association's leaders in the Philippines later this year. 

Hadi said the extreme example for an economic integration was the European 
Union, but ASEAN countries were not ready for that because they refused to 
surrender part of their sovereignty to an institution. 

"What these ministers have to do is to convince their leaders to establish an 
institution that can strengthen the ASEAN secretariat," he said. 

"For example, create an institution that is run by professionals who are 
independent from the government so that it will serve as the coordinating body of 
a particular sector within the economy." 

Hadi believed that with the poor state of Indonesia's economy, the country 
could not compete with its counterparts in taking advantage of the bigger market 
to be created by the establishment of a common market. 

Didik J. Rachbini, a member of House Commission VI for trade and industry, 
doubted the single market would benefit Indonesia. 

He said the country's 220 million people would be put at a disadvantage 
because it would be difficult for the local industries to compete with those from 
other ASEAN members. 

"Our trade policies have been very open as they are right now. It's better to 
maximize them instead of opening more doors that could probably jeopardize 
the local industries," Didik said. 

John A. Prasetio, a senior executive of the Indonesian Chamber of Commerce 
and Industry (Kadin), said the creation of the single regional market earlier 
than its initial schedule could be positive for a few established Indonesian 
companies because it would give them a bigger market. 

"But I don't think the establishment of the common market will bring much 
help in competing with India and China considering the scale of their economy," 
he told Post 

John said the current issue in Indonesia was no longer about tariffs because 
they were already competitive within the ASEAN market. 

He said the main problem now was in supporting infrastructure to facilitate 
the trade of goods and services between ASEAN countries. 

----------------------------------------

Agence France-Presse
August 24, 2006

ASEAN five to implement common standards on pharmaceuticals

Malaysia, Singapore, Thailand, Indonesia and Vietnam will push ahead with 
adopting common standards for documenting exports of pharmaceuticals, 
aimed at cutting red-tape, by the end of year, officials said.

"So it will make the flow of goods smooth and cost is minimum," Malaysian 
trade minister Rafidah Aziz told reporters on the sidelines of the ASEAN 
economic ministers meeting.

The other members, Cambodia, Laos, Myanmar, and the Philippines are expected 
to implement the common practice by December 31, 2008, officials said.

One ASEAN official said the five countries are expected to implement the 
ASEAN Common Technical Dossiers in pharmaceuticals, a billion dollar industry, by 
the end of this year.

"At the moment if you send something to Thailand, they have their own set of 
documents. We are trying to harmonise it. This is what integration is all 
about," he said.

Southeast Asian economic ministers agreed Tuesday to push for the creation of 
a single regional market by 2015, five years ahead of schedule, to avert the 
loss of foreign investment to China and India.

As part of its bid to slash the tariffs and red tape which made the unified 
China market more attractive to manufacturers, ASEAN has also agreed to adopt a 
"standstill" on non-tariff barriers.

--------------------------------------

ASEAN, South Korea to free up trade by 2007, 
but Thailand stays out over rice dispute

By EILEEN NG
Associated Press Writer

KUALA LUMPUR, August 24 (AP) - South Korea and ASEAN countries will
start cutting tariffs on merchandise trade by Jan. 1, 2007, but talks
with the group's key member Thailand remains stalled amid a dispute
over rice, ministers said Thursday.

The 10-member Association of Southeast Asian Nations -- except
Thailand -- signed an agreement in May to start freeing up trade in
goods as part of plans to create a free trade area by 2012. Thailand,
the world's top rice exporter, refused to join to protest South
Korea's insistence on excluding rice.

"Rice is an extremely sensitive product for us. This is obviously a
very difficult issue," South Korean Trade Minister Kim Hyun-chong told
a news conference after talks with his ASEAN counterparts.

Kim urged Thailand to accept concessions that have been agreed upon by
South Korea and the other nine ASEAN members in the pact.

"That should be the basis for us to conduct negotiations....both sides
will be working to try to conclude negotiations as soon as possible,
he said, expressing hope that it could be resolved within a year so
that Thailand can come on board.

Thai officials were not immediately available for comment. Talks
between the two sides have also been stalled by Thailand's political
crisis, officials said.

Apart from Thailand, ASEAN also groups Brunei, Indonesia, Laos,
Cambodia, Malaysia, Myanmar, the Philippines, Singapore and Vietnam.

Malaysian Trade Minister Rafidah Aziz said the nine other ASEAN
countries are in the process of ratifying the trade in goods agreement
and both sides expect to implement the pact by Jan. 1.

She said negotiations to liberalize trade in services and investment
are ongoing and could hopefully be concluded by the year-end.

The two sides will gradually cut tariffs on merchandize goods starting
next year, with all duties to be fully eliminated by 2010. By 2012,
the two sides hope to remove barriers to services and investment to
create a broad free trade area.

"This obviously represents a giant step forward," said Kim, the South
Korean minister. "For the services and investment component, we will
be working very hard to finish it. Both sides will exercise
flexibility to accommodate each other's needs."

Kim said ASEAN has signed an agreement to support a joint North-South
industrial complex in North Korea's western border city of Kaesong,
which is developed to help provide funds for the cash-strapped
communist north.

"ASEAN will accept 100 products (manufactured) there as South Korean
origin," he said. "It is an important step in integrating North Korea
into the international community."

In a joint statement, the ministers said trade flows between ASEAN and
South Korea rose 15 percent on-year to surpass US$50 billion (€42
billion) last year. South Korea remains among top 10 investors in the
region, investing US$628 million (€523 million) in 2005.

The ministers said the ASEAN-South Korea agreement in trade in goods
would further invigorate trade and investment flows and stimulate
greater interest from investors. They urged Thailand and South Korea
to continue consultations to overcome their differences.

-----------------------------------------

ASEAN ministers review trade talks with key partners 

KUALA LUMPUR, Aug. 24 (AP): Southeast Asian trade ministers moved Thursday to 
narrow differences in free trade talks with South Korea, China, Japan and 
India as the region sought to boost links with its top trading partners.

But the 10-member Association of Southeast Asian's renewed zest for economic 
openness and efforts to speak as a single entity did not help key member 
Thailand overcome a dispute with South Koreaover rice imports under its regional 
pact.

ASEAN countries, with the exception of Thailand, signed an agreement in May 
to free up trade in goods as part of plans to create a free trade area by 2012. 
World top rice exporter Thailand, however, stayed out in protest of South 
Korea's insistence on excluding rice from the accord.

"Rice is an extremely sensitive product for us. This is obviously a very 
difficult issue," South Korean Trade Minister Kim Hyun-chong told a news 
conference after talks with his ASEAN counterparts.

Talks between the two sides have also been stalled by Thailand's political 
crisis, officials said. ASEAN's nine other members, except for Thailand, are 
expected to implement a trade in goods pact by Jan. 1, 2007.

Following talks with Kim, ASEAN ministers hold a dialogue with China, Japan 
and Korea as a group; and are to meet later with India. They will also hold 
consultations Friday with U.S. Trade Representative Susan Schwab, Australia and 
New Zealand.

The bloc's secretary-general Ong Keng Yong has said the group is urgently 
moving forward with trade liberalization plans as it has seen China and India 
grow economically and lure foreign investment away from Southeast Asia.

Attempts to liberalize trade in Southeast Asia have gone on for over a decade 
but distrust, nationalistic policies, poverty and differences have hindered 
progress.

ASEAN ministers earlier this week endorsed plans to move up the creation of 
an EU-style economic community to 2015, five years earlier than planned. 

The proposed ASEAN Economic Community, or AEC, would allow the free flow of 
goods, services and investment across the region, which has a market of 560 
million people.

A wide economic gulf divides ASEAN's six more developed nations - Malaysia, 
Indonesia, Singapore, Brunei, Thailand and the Philippines - and its four newer 
members - communist Vietnam and Laos, military-ruled Myanmar and Cambodia in 
a region home to 560 million people. 

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The Straits Times (Singapore)
Thursday, August 24, 2006

Help for Asean states in push for single market

More developed members will 
ensure no one is left behind

Leslie Lau, Malaysia Correspondent

KUALA LUMPUR - ASEAN'S more developed members will do their best to
ensure that their less prosperous neighbours are not left behind when
the grouping speeds torwards to a single market by 2015.

Trade ministers yesterday concluded their two-day meeting here
expressing optimism that a single Asean market would materialise five
years ahead of schedule even though not all member nations are as
developed as Singapore.

Asean secretary-general Ong Keng Yong said the six richer countries in
the region would just have to find ways to help the four less
developed states - Cambodia, Laos, Myanmar and Vietnam, also known by
the acronym CLMV.

'We just have to find a way to bring them along. We are all on the
same bus,' he said.

Malaysian International Trade and Industry Minister Rafidah Aziz, who
chaired the meetings, said the less developed countries would be given
longer timeframes to cut tariffs and fully implement other legal
procedures.

She pointed out that the Asean minus x principle also allowed
countries the option to opt out of certain agreements.

'It is futile to think of Asean as a homogeneous entity,'' she said.

She said Asean's integration process was underlined by realism
'because we have many countries which are not as developed as
Singapore'.

The ministers announced plans on Tuesday to form an Asean Economic
Community (AEC) by 2015. The accelerated plan will be presented for
endorsement at the Asean Summit in Cebu in the Philippines in
December.

Countries like Singapore, Malaysia and Indonesia wanted to move faster
towards a single market, as part of the region's efforts to counter
increasing competition from China and India.

Officials hope that an integrated Asean with US$646 billion (S$1
trillion) worth of exports in 2005 will have better negotiating powers
at global trade talks.

Meanwhile, Asean has told Japan that while studies for a single market
in East Asia covering 16 countries is fine, what is more crucial is
that both parties conclude an Asean-Japan trade pact first.

Only then will the grouping clinch similar single market deals with
China and South Korea and thereafter bring in Australia, New Zealand
and India.

'Asean insists on concluding the Asean-Japan FTA talks and adopt
practical steps needed to accelerate negotiations by April next year,'
Datuk Seri Rafidah Aziz told a press conference after consultations
between the Asean ministers and Japan's Minister of Economy, Trade and
Industry, Mr Toshihiro Nikai.

Mr Ong denied suggestions that the Asean single-market plan and trade
talks among the members could be hampered by sensitive issues like
rice exports.

The ministers have been ironing out kinks in outstanding trade issues
over the past two days.

They also reviewed ongoing trade liberalisation in goods and decided
to push for liberalisation in the services sector by 2015 as well

Asean began trade liberalisation moves in 1993 and hopes to become a
single market and production base to allow free flow of goods,
services and investment across the region.

Talks are still on among Asean countries to implement the Single Window 
system.

Under the Single Window system, goods brought into an Asean country
will not need further Customs clearance when re-exported within the
region.

The move to form a single market in Asean is being watched closely
because the region attracts huge foreign investments.

Foreign direct investment into Asean was US$38 billion last year, the
highest in more than 10 years. But it still lagged behind China, which
attracts around US$50 billion a year.

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Joyo Indonesia News Service
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