Gloria pushes free trade between Asean, Europe
Manila Standard Today
Gloria pushes free trade between Asean, Europe
By Joyce Pangco Pañares
7 June 2007
President Gloria Macapagal Arroyo has expressed confidence that the long-awaited Free Trade Agreement between the economic power bloc of the European Union and the 10-member Association of Southeast Asian Nations can be concluded in November.
Mrs. Arroyo said that since the Doha Round of Trade Talks before the World Trade Organization is “not moving forward,” Asean needs to forge trade accords with other economic blocs to increase trade and investments in the region.
“We hope it [EU-Asean FTA] can be signed in November in Singapore during the presidency of Portugal in the European Union,” said Mrs. Arroyo, who is the outgoing chairman of Asean.
The President said Asean is determined to push for the creation of a single free market encompassing the entire region similar to what the 25-nation EU has achieved.
She said Asean targets to achieve the “one-market, one-product” strategy by 2015, or five years ahead of the 2020 schedule.
But Asean secretary general Ong Keng Yong expressed reservations that the document for the free trade agreement will be accomplished this year due to organizational differences of the two regional blocs.
“The EU is a rules-based economic grouping, while Asean is far from any formalized integrated economic structure,’’ Ong said.
“They have defined rules and established practices for every sector and product and it will take a long time for us from Asean to digest and conclude acceptable arrangements for both sides. It’ll be a long, drawn-out process.’’
In 2005, trade between the EU and Southeast Asia reached about $140 billion annually. It is estimated that an agreement between the two groups of nations would result in increases in exports for each region, with Asean experiencing a targeted 18.5-percent growth and the EU an additional 40 billion euros annually.
The EU-Asean free trade agreement is set to cover issues outside the scope of the WTO, such as investment, trade in certain services, and opening trade barriers that restrict the free movement of professionals. Strengthening intellectual property rights protection and liberalizing trade to the greatest possible extent are also high priorities on the agenda.
