Some in the business community have, however, questioned the progress of the talks and worry that the four ASEAN states involved in negotiations for the Trans Pacific Partnership Agreement (TPPA) – a free trade agreement among 12 Pacific Rim nations, including the United States may be distracted.
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Besides the large multinational corporations, Abdul Wahid said the small and medium enterprises must not be neglected in order for the people of Asean to benefit from the integrated community.
These challenges include the fall in oil and commodity prices, the currency concerns and the external economic environment, “over which we have little control”, he said. ASEAN’s total GDP is now estimated at $2.7 trillion, according to a MITI press release.
“A couple of areas are already in motion”, he said, referring to the link-up between the Yunnan Province of China and the Greater Mekong Sub-Region of ASEAN, and the establishment of the Asian Infrastructure Investment Bank (AIIB) where ASEAN countries are founding members.
On the AEC, which will create a single market and production base in the region, Mustapa said its creation will not mean that all red tape will become untangled and that all trade and investment will flow freely across borders come Jan 1 next year.
However, ASEAN member states are determined to push ahead with economic integration and the formation of the AEC by the yearend, he said, adding that the establishment of the AEC does not mean the end of the integration process, but rather the conclusion of a stage in ASEAN development and the opening of a new phase.
Free trade agreements that a grouping of Southeast Asian countries has with China, Japan and South Korea will be “upgraded” by year’s end to boost services and investment sectors, Malaysian trade chief Mustapa Mohamad said Sunday.
The ASEAN economic ministers’ meeting kicked off here Saturday to put the finishing touches to the establishment of the ASEAN Economic Community (AEC) by year-end, while pushing closer ties with its leading trading partners including China.
Asean will continue strengthening trade relations with China despite the present economic challenges and following the recent devaluation of the yuan.
Mustapa said ASEAN is committed to reducing the gaps among its members and engage more intensively with its dialogue partners. “We will inevitably talk about TPP”, he told reporters recently.
“In the end, economic integration only has meaning if it leads to equitable and inclusive growth which provides meaningful opportunities for our growing young population”, Mustapa said.
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Differences still remain over contentious issues including liberalization of dairy products and intellectual property rights.
