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’Failure of GATT talks may force ASEAN become orotectionist’
KUALA LUMPUR. Dec 2: The Association of South East Asian Nations (ASEAN) may be forced to become protectionist If world trade talks fail. Malaysia's Deputy Minister for International Trade and Industry Chua Jul Meng said on Tuesday, reports Reuter.
There will be a tendency for countries to become Inward looking and protectionist If world trad? is restricted ... this is also applicable to South East Asia," he said.
"Intra-ASEAN trade is likely to be stepped up If the Uruguay Round talks under the General Agreement on Tariffs and Trade (GATT) fail," he told reporters after talks with France's Industry and Foreign Trade Minister Dominique Strauss-Kahn.
Chua said while an inward-looking ASEAN would help boost trade among the six-member countries, it was not desirable.
ASEAN, which groups Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand, wants to globalise trade and not restrict It to regions. Chua said.
"Although increased intraASEAN trade will be boost for the proposed ASEAN Free Trade Area (AFTA), we do not want to realise AFTA objectives In this way," he said.
ASEAN leaders agreed in Singapore last January to set up the free trade area by cutting or reducing tariffs for 15 products by the year 2008.
The stalled world trade talks made some headway following the recent US-
European Community (EC) accord on farm trade, a key obstacle. France has rejected the accord, however, and hopes to rope In more support against It from its EC partners.
Strauss-Kahn said after Tuesdays’ meeting that France and the EC wanted to reach a final agreement on the trade talks despite the dispute over farm subsidies.
Trance and the European Community want very much to reach a final agreement on the issue and other important topics like services, market access and a code on subsidies," he said.
Strauss-Kahn said the United States should reduce its farm subsidies “given out without using the same tools the EC uses. 'The United
States must bring down Its subsidies...this is why we are In tough negotiations with the United States."
He said France was waiting for the "next step forward" from the United States.
France has asked the EC to hold an emergency meeting on its farm pact with the United States, which Paris says goes beyond reforms of EC farm policy agreed to last spring.
"France is in favour of a final agreement not only over agriculture but everything else as well," Strauss-Kahn said.
AFP reports from Tokyo: Japan urged East Asian 'gov- -ernments Tuesday to liberalise their economise further to cope with rapid changes in the global economic climate and growing threats of protectionism In industrial countries.