New targets were set for promoting trade between ASEAN and its partners this week at the 46th ASEAN Economic Ministers Meeting (AEM) in the Burmese capital of Nay Pyi Taw. The four-day meeting specifically focused on the implementation of free trade agreements (FTAs) between ASEAN and East Asia, as well as the removal of non-tariff barriers to trade—identified as a major stumbling block for unlocking growth in the region.
In his opening address, Myanmar President U Thein Sein reiterated the need to meet the targets specified in the ASEAN Economic Community (AEC) Blueprint, which were said to currently stand at 82.1 percent fulfillment. Thein praised the recent launch of negotiations on an ASEAN-Hong Kong FTA, and stated that Myanmar is prioritizing the development of SMEs as a means to narrow the inequity gap between ASEAN nations.
On Tuesday, the ASEAN economic ministers held discussions with their counterparts from China, South Korea and Japan on the expansion of their respective “ASEAN+1” trade treaties. Additional plans were laid down for four new agreements on the liberalization of services within ASEAN and amendments to the region’s FTAs with Australia and New Zealand.
East Asia was made the special focus of the meeting, which also included representatives from Australia, Canada, European Union (EU), India, New Zealand, Russia and the United States.
The meeting was also used to publicize statistics showing that China has remained ASEAN’s largest trading partner, accounting for 14 percent of the bloc’s total trade. In 2013, China-ASEAN trade reached US$350.5 billion, an increase of 9.7 percent from the year previous. Officials on both side reaffirmed commitments to reach a target of US$500 billion by the end of 2015 and noted this may entail upgrading the China-ASEAN FTA and expediting the conclusion of talks on customs procedures and trade facilitation.
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In the case of South Korea, it was reported that total trade with ASEAN grew to US$135 billion in 2013, in large part thanks to the ASEAN-South Korea Trade in Goods FTA ratified in 2007. Calls were made to expand this agreement through line-by-line tariff reduction schedules, as well as to remove non-tariff barriers to trade between the two parties.
Lastly, two-way trade between ASEAN and Japan, the bloc’s third largest trading partner after China and the E.U. was reported as having reached US$240.9 billion last year, accounting for 9.6 percent of total ASEAN trade. The two sides agreed to strengthen cooperation in several industries, including health care and environmental businesses.
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