ASEAN contemplates models for regional economic integration+

BANGKOK, Aug. 14 Kyodo -
Economic ministers from 10 Southeast Asian nations discussed Friday
possibilities for analytical models for economic integration with Japan, China,
South Korea, India, Australia and New Zealand.

Thai Commerce Minister Porntiva Nakasai, who chaired the annual talks with her
counterparts from the Association of Southeast Asian Nations, told a press
conference that a working group would be set up to study regional economic
integration, including on customs procedures and trade liberalization rules
between ASEAN and the other six countries.
On Thursday, a free-trade agreement between ASEAN and India was signed by
Indian Commerce and Industry Minister Anand Sharma and economic ministers from
the 10 ASEAN countries -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar,
the Philippines, Singapore, Thailand and Vietnam.
ASEAN has been implementing bilateral FTAs with China, Japan and South Korea.
And the group signed in February a free trade pact with Australia and New Zealand.
At the same press conference, ASEAN Secretary General Surin Pitsuwan stressed
there was ''neither commitment nor decision'' on whether ASEAN will end up
forming a custom union among the 10 or 16 countries.
''ASEAN is thinking into the future but keeping our options open...it's just an
analytical exercise for ourselves to explore possibilities and choices,'' Surin
said.
Porntiva explained that she and her ASEAN counterparts wanted to give more
priority to achieving commitments under the ASEAN Economic Community by 2015.
''We agreed that we should look into the future while we emphasize accelerating
the AEC commitments. It is possible for us to explore forming a custom union
and thus a feasibility study should be conducted,'' she said.
The idea of an ASEAN customs union was brought up in July when a panel of
senior ASEAN economic officials met in Singapore and started discussing the
group beyond 2015, the timeline that has been fixed for achieving a single
market and production base ASEAN.
By Jan. 1 next year, the six original ASEAN countries -- Brunei, Indonesia,
Malaysia, the Philippines, Thailand and Singapore -- are committed to
dismantling import tariffs on most commodities within the region.
The other four members -- Cambodia, Laos, Myanmar and Vietnam -- will have to
do so by 2015.
They also set up intra-region liberalization plans on trade in services and
investment as a principal aim of the group to achieve a free flow of goods,
services, investment, capital and skilled labor within the region.
The ASEAN ministers are to meet with their counterparts from China, Japan and
South Korea on Saturday when they are expected to discuss an ongoing
feasibility study of a region-wide free trade agreement covering the 13
countries.
Another feasibility study for a larger free trade agreement that would include
India, Australia and New Zealand is also under way.
The two studies are expected to be presented to leaders of ASEAN and their six
trading partners.
No decision is expected this weekend, according to senior officials.
Japan initiated the FTA plan covering 16 countries, calling it the
''Comprehensive Economic Partnership in East Asia,'' while the 13-country
scheme backed by China and South Korea is called the ''East Asia Free Trade
Area.''
==Kyodo