Asean seeks coordinated efforts on rising prices

JAKARTA, Indonesia – Trade and Industry Secretary Gregory Domingo said here that members of the Association of Southeast Asian Nations (ASEAN) are pushing for coordinated efforts to address the rising prices of oil and other basic commodities.

Domingo, who arrived here ahead of President Aquino and the other Filipino delegates for the ASEAN leaders’ summit and other related meetings, said the high prices of goods has become part of the agenda because these had been affecting countries worldwide.

“We need to have coordinated efforts within ASEAN to be able to help each other on how to keep prices stable,” Domingo said.

High oil prices due to political unrest in the Middle East have been pushing up the prices of other basic commodities.

Domingo attended the ASEAN-European Union Business Summit and other trade and economic related meetings, including the symposium on strengthening small and medium enterprises in the region.

He said, the need to help small businesses in the region was again highlighted.

Domingo disclosed the Philippines proposed more simplified procedures for SMEs in doing their businesses because a longer process could add to their costs. “If for example you’re an SME seeking to be an exporter and wants to take advantage of the Free Trade Agreement even as a small businessman, you need to fill out forms and undergo procedures that are arduous,” Domingo said.

He noted that the small businessmen would need to adhere to rules of origin or provide proof that the materials used for their products came from ASEAN so there would be no duties to pay.

“If you do not follow, you have to pay MFN (Most Favore Nation) rates, WTO (World Trade Organization) rates,” Domingo said.

“So a lot of small businesses would no longer export because of the arduous process. That is what we’re pushing to simplify for our small businessmen,” Domingo said.

Domingo said the President instructed him to protect Philippine interests and ensure fair treatment even as the country agreed to open up some trade barriers.

“Our businessmen should learn to compete abroad because ASEAN is such a big market and most of the ASEAN countries have zero tariff, there are no more duties so we can now export to Thailand, Indonesia, Malaysia, Brunei, Cambodia, so there are many countries available instead of just marketing in the Philippines. You have a lot of choices now,” Domingo said.