Slow progress on services 'could delay AEC'

Srirat Rastapana, director-general of the Trade Negotiations Department of the Thai Commerce Ministry, said that after only two and a half years of working towards the AEC, tariff barriers had been reduced considerably.
The AEC Blueprint Mid-Term Review showed that average tariffs now were very low among the six original Asean members at only 0.5 per cent, while average tariffs in the four newer members, Cambodia, Laos, Myanmar and Vietnam, were 2.6 per cent.
Srirat said the ERIA study showed that the AEC had helped eliminate tariff barriers and boost trade among the member states by a large degree. However, the study warned of rising non-tariff measures, as some countries were now creating many barriers to protect their local industries from the free flow of the market.
The study also indicated that liberalisation of the service sector had moved slowly because of high development gaps in the industry.
For instance, the liberalisation of finance, aviation, information and communications technology, capital, labour and energy had progressed slowly. This could lead to a delay in the full implementation of the AEC set for 2015, which aims to liberalise trade in goods, services and investment among the 10 Asean member states.
Moreover, the study suggested that Asean urgently negotiate with its six main trading partners – China, Japan, South Korea, India, Australia and New Zealand – on moving forward with the Asean+6 free-trade agreement (Regional Comprehensive Economic Partnership). It said this pact would significantly strengthen the economies of the Asia-Pacific region amid the economic downturn in Western countries.
After the Asean+3 (the main bloc plus China, Japan and Korea) and Asean+6 agreements, Thailand will enjoy the third-highest benefit from the integration, the study predicted. Vietnam will benefit the most, followed by Cambodia.