Solve Tariff Issues To Speed Up ASEAN Economic Integration- ASEAN-BAC

KUALA LUMPUR, July 11 (Bernama) -- ASEAN economic growth can be stunted if three major tariff-related issues are not addressed, said ASEAN Business Advisory (ASEAN-BAC) Council Chairman, Dr Mohd Munir Abdul Majid. The issues are a rise in non-tariff barriers (NTBs), trade costs, as well as lack of concerted efforts at bringing down tariffs in the region to zero. Mohd Munir said the failure in tackling these three assumptions could result in slower integration between the 10 members. “At present, the total NTBs has increased to about 3,000 issues from roughly 2,000 previously,” he added, during the ASEAN@50 media briefing and luncheon here Tuesday. On June 16, Prime Minister Najib Razak noted that the biggest obstacle encountered during the ASEAN integration process was NTBs and Non-Tariff Measures, for which statistics showed a jump to 5,975 issues from 1,634 between 2000 to 2015. The most common NTBs come in the form of product standards (the more the standards imposed, the higher the complexity for products to enter a market) and technical/government regulations (for example, customs rules). Mohd Munir also said the annual ASEAN economic growth rate stood at 5-6 per cent, but that of the Philippines and Cambodia, surpassed other members at 7-8 per cent. ASEAN has achieved significant milestones over the past 50 years, particularly in multiplying the economy 28 times to US$2.53 trillion (RM10.88 trillion) in 2014 from US$88.42 billion (RM380 billion) in 1975. (US$1 = RM4.29) This is now expected to grow to RM40 trillion by 2050, making it the fourth largest economic grouping in the world, from the current seventh largest economic bloc. Mohd Munir also suggested that the youth should be more participative in the integration of ASEAN’s economy as they are the generation to benefit from the economic integration. “Set up an ASEAN Youth Council to deliberate on what kind of ASEAN they want in the future. “This council could comprise between 5-7 representatives from each member state. The 50-70 member council could be presided over by an experienced hand. The goal is not only limited to being economically driven, but should also include education, among others,” he added. -- BERNAMA