Oct 15, 2011

Malaysia - ASEAN economic community council retreat 14-15 October 2011, Selangor


KUALA LUMPUR, Oct 15 (Bernama) -- The ASEAN Economic Council (AEC) Retreat was held on 14-15 October 2011 at the Palace of the Golden Horses, Selangor.

The Retreat was chaired by H.E. Dr. Mari Elka Pangestu, Minister of Trade Indonesia. Indonesia is the current Chair of ASEAN.

This Retreat was convened to discuss the economic inputs and documents for consideration of the 19th ASEAN Summit in Bali, 17-19 November 2011. The AEC Ministers deliberated on the:

i. ASEAN Framework for Equitable Economic Development: Guiding Principles for Inclusive and Sustainable Growth;

ii. ASEAN Framework for Regional Comprehensive Economic Partnership; and

iii. Economic Inputs for the Bali Declaration on ASEAN Community in a Global Community of Nations.

In the discussions to finalise the documents for the Summit, the Ministers noted that ASEAN is now faced with many external challenges, including the financial and economic crisis in Europe and United States.

In this regard, the Ministers also noted that the global economic growth for 2011 is expected to decline to
3.8% compared with 5.2% in 2010.

The Ministers noted that ASEAN economic integration initiatives have contributed to the economic growth of the region, especially with increased inflows of FDIs and expansion in intra-ASEAN and extra-ASEAN trade.

The Ministers agreed that in further deepening of economic integration and for ASEAN to move beyond ASEAN 2015, it is important for ASEAN to ensure equitable economic development within and between ASEAN Member States.

YB Dato Sri Mustapa Mohamed, Minister of International Trade and Industry informed the Meeting that to promote inclusive growth ASEAN will need to accelerate economic activities, reduce barriers to trade, intensify collaboration with sub-regional initiatives in the region, enhance SMEs access to finance, technology transfer and strengthen institutional capacity.

Another major topic discussed by the Ministers is to enhance ASEAN’s engagements with the current FTA partners, namely China, Japan, Korea, Australia, New Zealand and India. To ensure ASEAN’s centrality in this engagement, the Ministers tasked the Senior Officers to develop template for ASEAN’s engagement with these FTA and other external economic partners.

The AEC Ministers also deliberated on steps to further address non-tariff measures that could contribute to reduction in production and transaction costs.

YB Dato Sri Mustapa Mohamed highlighted the difficulties faced by Malaysian exporters. Among the measures that impede trade highlighted are delays in obtaining permits, non-recognition of standards, high costs imposed in undertaking pre-shipment inspection and market access conditions imposed such as requesting manufacturers to have local presence.

The Ministers tasked the Senior Officials to compile a comprehensive database on non-tariff measures.

The Ministers also agreed to establish a mechanism which would facilitate the private sector in addressing the non-tariff measures.

Since 2008, ASEAN has been implementing the ASEAN Economic Community Blueprint measures.

Currently, the second phase of measures (2010-2011) is being implemented. To date, ASEAN has implemented on the average 80 per cent of the measures for Phase I and Phase II.

In this context, Malaysia has implemented most of the commitments towards liberalization of trade in goods, services and investment.

The Ministers also expressed their sympathy to Thailand which is facing one of the worst floods in recent years. The ministers also noted the possible impact of the flood on the supply and distribution chain within the region.

SOURCE: Ministry of International Trade and Industry



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