ASEAN-JAPAN MULL 10-YEAR STRATEGIC PLAN

KUALA LUMPUR, July 9 (Bernama) –- Asean and its top-ranked source of foreign
direct investments, Japan, are mulling a 10-year strategic plan, to turn the
region into a global production centre that can match hubs such as China and
India.

The strategic plan, once established, would address the cross-flow of trade
and investments from Japan to Asean and vice versa, Minister of International
Trade and Industry, Mustapa Mohamed said Saturday.

"The meeting agreed to also further develop the proposal to establish a
ten-year strategic plan to make Asean more attractive for more trade and
investments," he added.

He was speaking to reporters at the end of the two-day dialogue session
between the Asean Economic Ministers, Japan’s Ministry of Economy, Trade and
Industry (METI) and the Federation of Japanese Chambers of Commerce and Industry
in Asean (FJCCIA), attended by 250 delegates.

The FJCCIA represents 4,441 member enterprises in the region. Among those
present at the dialogue was Indonesia’s Trade Minister, Dr Mari Elka Pangestu
who chaired the dialogue session and METI’s Banri Kaieda.

Japan’s investment in Asean amounted to US$5.2 billion in 2009. Japan
remains an important source of investment with a 13.4 per cent share of
total inward investment to Asean in 2009.

Mustapa said the new direction for the plan will consider areas such as
environment, energy, food security, green economy, renewable energy, small and
medium enterprises and connectivity that will complement the Economic
Partnership Agreement.

"To collaborate and cooperate in these kind of areas, we need a strategic
plan," he added.

Among others, Asean and Japan will further collaborate through
the public-private sector partnership to upgrade the ten-nation grouping's
productivity and competitiveness.

Malaysia, particularly, will work closely with other Asean member countries
to address the various implementation issues in order to create a regional
market and production base with minimum barriers.

These initiatives will be factored in the current review of the Asean
Economic Community (AEC) Blueprint, said Mustapa.

He said it is becoming increasingly important for Asean to streamline and
harmonise the various rules and regulations under the Asean+1 agreements signed
with China,Japan, Korea, India, Australia and New Zealand.

"Work is already in progress under the four working groups, namely
on the rules on origins, customs procedures, tariff nomenclature, and economic
cooperation," he added.

He stressed that work needed to accelerate also on eliminating non-tariff
barriers impeding free flow of trade within Asean and Japan, including the other
East Asian countries.

"One possible option is to address the elimination of non-tariff barriers
through the establishment of mutual recognition arrangements for products," he
said.

The ministers also agreed to consider the proposal by the Asean
secretary-general Dr Surin Pitsuwan, for Asean Economic Ministers to mount a
trade and investment mission to Japan next year to meet with in particular,
SMEs.

-- BERNAMA