Phl likely to miss 2015 AEC targets

MANILA, Philippines - The Association of Southeast Asian Nations (ASEAN) is unlikely to meet its targets for the region’s economic community by 2015 amid slow progress in addressing non-tariff barriers of member-states.

“It’s highly unlikely that all their (ASEAN) targets will be met by 2015. Even the ASEAN score card shows that,” Asian Development Bank’s lead economist for trade and regional cooperation Jayant Menon said during the Management Association of the Philippines’ general membership meeting yesterday.

He noted that while tariff targets are likely to be achieved by next year, there are non-tariff barriers that remain.

“In terms of score cards, it (what has been achieved) varies within two-thirds and three-quarters. The remaining bits are the hardest bits. These are the non-tariff barriers (such as) competition policy, intellectual property rights protection. These are moving very slowly,” he said.

He noted that the non-tariff barriers vary from country-to-country.

“In new member-countries, there is still a lot of red tape and the fact a lot of these customs procedures are not automated, not electronic, there is a lot of room for corruption. I see that is a major problem,” he said.

For the Philippines, among the biggest barriers impeding trade growth are the poor infrastructure and red tape.

“Infrastructure is still relatively weak so trade costs associated with infrastructure is still high. There is still a lot of red tape and licensing that can be simplified to reduce that,” Menon said.

He noted that the Philippine government needs to invest on roads, railways and ports to lower trade costs.

He added that the government also has to start automation of processes to improve efficiency and prevent corruption.

The ASEAN Economic Community, to be established in December 2015, would transform Southeast Asia into a region with free flow of goods, services, skilled labor, investments and capital.

Since January 2010, the ASEAN-6 member states Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand have eliminated import duties on 99.65 percent of trade tariff lines.

The other four member states Cambodia, Lao People’s Democratic Republic, Myanmar and Vietnam meanwhile, have 98.86 percent of their traded tariff lines reduced to zero to five percent.

Almost all duties have likewise been eliminated on agricultural and industrial products.