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Australian Financial Review
Saturday, July 24, 1999

Asian tigers urged to bare
teeth on tariffs

By Tim Dodd, Singapore

The Singaporean Prime Minister, Mr Goh Chok Tong, urged the 10 members of the
Association of South-East Asian Nations on Friday to do some honest
reappraisal to deal with the weaknesses exposed by the Asian economic crisis.

Opening the 32nd ASEAN ministerial meeting in Singapore, he said the economic
crisis had "seriously dented" the organisation's reputation.

"It has exposed the structural flaws behind ASEAN countries' past miraculous
growth," he said.

"New tensions between ASEAN countries have also emerged under the stresses of
the crisis. ASEAN countries were seen to lack a clear vision and a common
strategy in overcoming a common enemy in the economic crisis."

But the indications are that the meeting, attended by the foreign ministers
of member nations, does not have sufficient will, or unity, to develop new
solutions to the economic problems facing South-East Asia.

The big issue facing members Singapore, Malaysia, the Philippines, Thailand,
Indonesia, Vietnam, Cambodia, Laos, Myanmar and Brunei is how to deal with
the agreement made last December to create a tariff-free trade zone, the
Asian Free Trade Area, by 2002 one year ahead of the original schedule.

The less developed economies of the four new members Vietnam, Cambodia, Laos
and Myanmar were to receive more time to phase out tariffs. Now Malaysia,
Thailand and the Philippines are pushing hard for more time for their
industries to adjust to the tariff phaseout, which throws the timing in doubt
for creating the ASEAN vision of a 500 million strong consumer market, large
enough to be a powerful, globally competitive economic unit.

Already, the Philippines has erected temporary trade barriers to protect some
sectors of its economy. But Mr Goh warned the meeting on Friday against
building tariff walls.

"A retreat from openness is at best a temporary solution. The only real
long-term solution is to strengthen our economies to cope with global
competition," he said.

In his speech at the meeting's opening session, the Thai Foreign Minister, Dr
Surin Pitsuwan, also called on ASEAN to be bold in facing change.

"Globalisation and geo-economic realities necessitate a thorough review of
our position. Are we tigers ascendant, an integral part of a new Pacific
century, or are we last year's wounded cubs, transposed and forgotten?" he
asked.

However, Malaysian Foreign Minister Mr Syed Hamid Albar, cautioned against
hasty moves. "We should not accept those [changes] which are alien to our
national psyche and hurtful to our national objectives," he said.

During the meeting, which was to end on Saturday, ASEAN will reaffirm its
"One China" policy in response to the dangerous tension which is developing
between China and Taiwan.

In the coming week, 10 other nations, including the US, China and Australia,
will join the meeting in the annual ASEAN regional forum and then a series of
bilateral discussions.

The East Timor ballot on independence will be high on the agenda, as will the
simmering territorial dispute over the Spratlys Islands in the South China
Sea.

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Didistribusikan tgl. 23 Jul 1999 jam 20:12:03 GMT+1
oleh: Indonesia Daily News Online <[EMAIL PROTECTED]>
http://www.Indo-News.com/
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