Hidden Protectionism May Derail Asean Integration Efforts, Dialogue Told

From Baizura Basri NEW DELHI, Feb 14 (Bernama) -- The Delhi Dialogue IV today was told of key issues and challenges faced by the Association of Southeast Asian Nations (Asean) community in its efforts towards the creation of the Asean Economic Community (AEC) by 2015. The panellists, during the first session entitled "Towards Economic Integration: Prospects and Challenges" on the second day of the dialogue, identified trade dispute settlement, rising non-tariff barriers and non-tariff measures, and private sector involvement in boosting intra-Asean trade as among the key issues and challenges that need to be addressed. Dr Sok Siphana, the advisor to the Cambodian government, said there was a creeping trend of rising non-tariff barriers (NTB) and non-tariff measures (NTMs) that could hinder the process and efforts of building AEC. "These new NTM and NTB, if unchecked, could nullify the benefits from tariff reductions. "We need to tackle them systematicaly in the larger frameworks of trade facilitation like simplification and harmonisation of customs, standards and conformance, and sanitary and phyto-sanitary measures," he said to some 500 dialogue participants comprising policymakers, academicians, analysts and businessmen. Referring this as hidden protectionism, he said there was a team at the World Trade Organisation (WTO) that actually monitors the development of these NTM and NTB. On trade dispute settlement, he said there was a need for Asean member countries to put together a mechanism that is agreeable by all its member countries that can address dispute settlement. "Currently, efforts are ongoing to beef up the procedures to put into operations the dispute settlement mechanism under the AEC for covered economic agreements so that festering economic disputes can be resolved in a more rules-based manner and quickly, thereby promoting greater confidence and transparency for the business community in the region. "Perhaps, we should look at the WTO disputes settlement mechanism as an example," he said. As for private sector involvement, he said there was a need to shift energy from the public sector to the private sector, which is the main driver to boost the AEC. "We need to bring our intra-regional trade share to at least 40 percent from the current 25 percent of the 10 Asean's total internal trade. In contrast, compare this with the 68 percent intra-trade among the 27 European Union (EU) members," he said. Meanwhile, Director of SAEA Group Research, R. Ravindran, said it was important for the grouping to address challenges in the mutual recognition arrangements (MRA) in the services sector, which is looking at the flow of professional services within the region. "One of the challenges will be the disruption of employment patterns in some countries which will create unemployment issue. "There are some Asean countries facing with unemployment rate among the locals and this needs to be tackled. "Another point is, if Asean does not take these talented professionals, it will be a loss to the region as this could affect capacity building for each member country," he said. The two-day dialogue which is an annual event organised by the India's Ministry of External Affairs. -- BERNAMA