Enlarged East Asian FTA not intended to replace WTO
Bernama, Malaysia
Enlarged East Asian FTA Not Intended To Replace WTO
By Siti Hawa Othman
10 December 2005
KUALA LUMPUR, Dec 10 (Bernama) — Prime Minister Datuk Seri Abdullah Ahmad Badawi said the enlarged East Asian free trade agreement (FTA) was not intended to replace the World Trade Organisation (WTO) as most of the negotiations done by Asean were WTO-compatible.
"What we are doing now is not inconsistent. It has no intention to replace WTO but will be blocs towards a global kind of FTA and a global WTO," he told a press conference after officiating the 3rd Asean Business and Investment Summit, here Saturday.
Abdullah said this in response to a question on whether the enlarged East Asian FTA would be a back-up should the WTO ministerial meeting in Hong Kong next week failed.
As the negotiations were compatible with the WTO, he said that Asean could go ahead implementing what was agreed upon as the principle was about liberalisation and trade enhancement.
He said that a smaller grouping would be easier to talk to on the subject of liberalisation as it gave some kind of familiarity on the objectives of liberalisation and how beneficial it can be.
When asked on a study of the enlarged East Asian FTA, the Prime Minister said the progress of the FTA between Asean and its dialogue partners — Japan, Korea and China — has been good and should become a reality depending on those involved in the negotiating process.
It was only natural to see this kind of FTA being expanded to friends of Asean like Australia, New Zealand and India in the future, he said.
As to whether Russia would come on board at the next summit in Manila, Abdullah said that it has not yet been decided.
However, it has been agreed that an Asean-Russia Summit be held.
He said that Foreign Minister Datuk Seri Syed Hamid Albar has written letters to leaders to enable Russia to speak during their retreat.
That would be the way to bring Russia closer to Asean, he said.
Asked whether there was a unified policy on oil prices, Abdullah said that the subject would be discussed but it would not be easy as some members were producers and some are not.
However, the important thing was to develop energy efficiency, that is to economise on expenses for oil and consumption of oil, he said.
Abdullah, who is also Finance Minister, said there were opportunities in collaborating together on the development of other sources of energy and not only should this be done early but the source should also be affordable.
"If it is expensive than petrol, then it is a waste of time but I always put faith on technology," he said.
As for the "think Asean" concept, he said that it would be for Asean to do things in common together and have enough strength and capability to position itself to be part of global economic development and cooperation.
On the subject of Myanmar, he said that he hoped Myanmar would accept the proposed Asean delegation to the country in the good spirit of Asean friendship and neighbourliness.
He said that what Asean did was as a "friend and (Asean) is aware of the pressure that has been put on it to settle things."
"How can we speak for Myanmar if we are not settled about what is happening there," he said.
Abdullah said that the intention of sending the delegation was done in good faith and not to interfere in their affairs.
He said that Asean would render whatever assistance necessary, pointing out that it had always stood by Myanmar even during times when there were objections to Myanmar’s participations in regional meetings.
