“I'm pleased to add my support to our agreement this morning to undertake a high-level feasibility study for a FTA," EU Trade Commissioner Peter Mandelson said at a press briefing after the 6th Consultation between ASEAN Economic Ministers and the commissioner concluded in Vietnam’s northern city of Ha Long.

"We agreed to deepen and intensify work together to boost ASEAN-EU economic cooperation,” the trade chief said.

A working group with representatives from the EU and ASEAN would make specific reports by the end of this year, he added.

Mandelson also noted that the "Trans-Regional EU-ASEAN Trade Initiative" (TREATI), initiated by the EU in 2003 to beef up trade and investment ties between two regions, will act as an important foundation of their cooperation ties in the future.

Economic integration

Under the TREATI, the cooperation initially centers on information exchange, mutual understanding enhancement and technical assistance for ASEAN.

Economic ministers from ASEAN members, at the consultation, agreed to have TREATI focus on policy dialogue and regulatory initiatives while other ASEAN-EU programs would complement TREATI through provisions of technical assistance, Indonesian Trade Minister Mari Elka Pangestu said at the briefing.

She said that, during the consultation, the ministers exchanged views on progress on the economic integration initiatives in the two blocks, including the progress made in working towards the realization of the ASEAN Economic Community, developments in the implementation of the 11 priority integration sectors and the status of ASEAN's FTA negotiations with dialogue partners, including Japan, South Korea, India, Australia, New Zealand and China.

The ministers agreed that ASEAN members would accelerate the integration process of farm produce, electronics, seafood and woodwork, of which 4 out of 11 sectors are stated in the ASEAN Framework Agreement for the Integration of Priority Sectors, inked in 2004 in Laos.

The 11 sectors are agro-based products, air travel, automotive, e-ASEAN, electronics, fisheries, healthcare, rubber-based products, textile and apparels, tourism and wood-based products.

Likely preferential treatment in July

ASEAN ministers expressed their interest in the EU Generalized System of Preferences (GSP) for developing countries in the ASEAN and said they hoped the EU would apply this program soon to benefit developing countries.

The EU Trade Commissioner told the participants that the EU GSP will likely be applicable this July.

On other issues, ASEAN and EU officials affirmed they back the World Trade Organization’s multilateral trade system and Doha talks.

They also showed their continued support for the early accession of Vietnam and Laos to the World Trade Organization.

ASEAN's exports to the EU account for some 15 percent of ASEAN's total export, and its import from the EU about 12 percent. Up to 25 percent of foreign direct investment in the ASEAN comes from the EU.

The ASEAN comprises of Vietnam, Thailand, Singapore, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar and the Philippines.

Together, ASEAN countries are expected to post average economic growth of 5.7 percent this year.

(Source: Vietnam News Agency, People’s Daily)