ASEAN countries meet for historic trade talks

Australia, New Zealand and the 10-member Association of Southeast Asian Nations launched historic talks today on a free trade deal linking the regions.

The negotiations, among senior trade officials, follow years of resistance from some Asian countries to tighter ties. Former Malaysian Prime Minister Mahathir Mohamad was a strong opponent of closer economic links, saying Australia was too Western to become entwined with its Asian neighbours.

But with Mahathir now retired, ASEAN leaders late last year agreed at a summit in Laos to open trade negotiations.

Australian Trade Minister Mark Vaile welcomed the talks, which opened in the southern city of Melbourne on Monday.

“With a population of 545 million, combined GDP of almost 700 billion dollars (€536bn) and growth rates predicted to be well above the global average in coming years, ASEAN presents exciting commercial opportunities for Australia,” Vaile said in a statement.

“This initial round of talks has allowed us to map out the way forward for the negotiations,” he said.

The 12 nations hope to complete a free trade agreement within two years, and have it fully implemented within 10 years.

Formally opening the talks, Vaile said it was a tough timetable.

“This will not be an easy task,” he told negotiators. ”There will need to be regular and intensive discussions between our countries to conclude the FTA within the two-year time frame.”

Trade ministers from the 12 countries involved in the negotiations are scheduled to meet in September in Laos to review progress.

Australia already exports more than 17 billion Australian dollars (€10bn) in goods to ASEAN nations each year.

Exports to ASEAN make up 11.7% of all Australia’s overseas sales while ASEAN provides 16.4% of imports to Australia.

“An FTA with ASEAN provides the opportunity to expand this trade significantly and will complement our bilateral FTAs with Singapore and Thailand as well as our scoping study on a possible FTA with Malaysia,” Vaile said.

The Association of Southeast Asian Nations is made up of Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.