Goods movement, liquor import duties must be solved under AEC
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The free movement of goods across borders and alcohol import duties are among the remaining issues that need to be resolved under the Asean Economic Community (AEC) blueprint that aims to create a single market and production base in the region.
Malaysia’s International Trade and Industry Minister Mustapa Mohamed said that despite these issues, Asean countries had expressed confidence that they could achieve at least 95 per cent of the AEC requirements by the end of next year.
“A small shortfall is expected and measures not achieved within the target year of 2015 will be continued and incorporated into the post-2015 Economic Vision that is now being developed," Mustapa said. He will be the minister in charge of the AEC when Malaysia becomes Asean chairman next year.
The AEC is targeted to be launched at the end of 2015 and involves the reduction or elimination of tariffs and progressive liberalisation and removal of barriers in trades and services, many of which have already been accomplished.
AEC is one of three pillars of a wider integration plan known as the Asean Community, the other two being political-security and socio-cultural.
Speaking to Malaysian reporters here on the sidelines of the two-day 25th Asean Summit, Mustapa said Malaysia and Indonesia had yet to agree on the issue of import duties for alcohol, which some member countries wanted to be reduced to zero under the AEC. He said that on Malaysia’s part, the Treasury was still studying the matter.
Another issue that has yet to be sorted out is transport agreements, which include the issue of free movement of lorries transporting goods across borders of member countries.
Mustapa said this could affect local transportation businesses and that Malaysia had yet to decide on the matter.
Despite challenges faced by Asean countries in aligning domestic economic policies to the proposed requirements, Mustapa described the overall progress towards implementing the blueprint as encouraging.
“Collective efforts are being exerted towards ensuring that regional integration is achieved, especially in facilitating a free flow of goods, services, investments and freer flow of capital and skilled workforce."
Mustapa said deeper economic integration would require time and that Asean was working to develop an integration roadmap beyond 2015.
The post-2015 economic vision would build on the current existing AEC pillars but with greater focus on creating a truly integrated regional market, he added.
