MANILA -- Policymakers in the 10-member states of the Association of Southeast Asian Nations (ASEAN) are being urged by their counterparts from the European Union (EU) to boost regional integration to counter the decline in intra-ASEAN trade, as well as global economic pressures.
In a briefing Tuesday, EU-ASEAN Business Council Executive Director Chris Humphrey said the regional economic integration in ASEAN is moving at a “crazily slow pace”.
“We are not seeing huge improvements in the region. Issues such as improving customs procedures across Southeast Asia, removing non-tariff barriers is simply not happening. We’re seeing the intra-ASEAN trade has been falling in the past few years,” Humphrey said, noting that intra-ASEAN trade only share less than 23 percent of the region’s overall trade.
Intra-regional trade in ASEAN is much lower compared to the exchange of goods between North American countries, which share more than 40 percent of their total trade, as well as EU states’ trade of above 60 percent.
With the global economic downturns such as the trade friction between the United States and China, the executive noted that economic integration will provide a shield against growing a clamor for protectionism in the region.
Humphrey noted that most of ASEAN member states continue to impose special taxes for imports, which is against the ASEAN Trade in Goods Agreement (ATIGA). “ASEAN is not functioning as what it claimed to be,” he said.
“The Philippines needs to work with its neighbor here in Southeast Asia to improve inter-ASEAN linkages and trade, and make that use of regional value chains,” he added.
The country, along with other ASEAN members, is also urged to further ease doing business, intensify and improve customs procedures, and ensure an investor-friendly business climate.
With these in place, Humphrey noted that ASEAN will attract more European businesses that are looking into the region to place their long term investments. (PNA)
