BKK Post / December 8, 1998 CURTAIN-RAISER / ASEAN HEADS OF STATE SUMMIT Reduction in tariff levels tops Thai list of priorites Thailand will fly to Hanoi this week with a proposal to break down trade barriers if the nations of the region are to work together in bringing an end to our economic turmoil. Achara Ashayagachat Thailand is to call on fellow Southeast Asian states to help stimulate economic recovery by lowering trade barriers as Vietnam begins chairing preparations today for next week's summit of regional leaders in Hanoi. The Association of Southeast Asian Nations needs to adopt an outgoing approach if it is to regain the confidence of investors, according to economist Teerana Pongmakapat, an adviser to Supachai Panitchpakdi, the deputy prime minister and commerce minister. Mr Teerana said this approach should be adopted by establishing a real free trade area and by deepening economic integration among member states. Asean groups Brunei, Burma, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Six member states are committed to reducing tariffs to between zero and 5 percent by 2003, while Vietnam will follow by 2006, and Burma and Laos two years after that. But at the same time the member states have listed 379 agricultural sensitive and highly sensitive products which they feel should attract reduced tariff rates, although talks are proceeding to shorten the sensitive list and the final tariff rate for the highly sensitive items. Mr Teerana is encouraging the scrapping of the sensitive list and the finance ministry on Friday said Thailand would call for the removal of tariffs on all goods without exception. Thailand has placed only seven items, the least among Asean members, on the sensitive list. These include potatoes, coffee, dried coconut and flowers. Malaysia, with 104 items, including chicken wings, milk and shrimp, is seeking the most exemptions. It is followed by Laos with 96, the Philippines with 58, Burma with 42 and Vietnam with 23. Rice is on the highly sensitive list, with members calling for tariffs ranging from 20 to 100 percent. Thailand is expected to move for totally free trade at a meeting of economic ministers on Dec 12, three days before the Asean heads of government begin their summit on Dec 15 in Hanoi. "The more closed economies which are in transition have to be convinced that their domestic interest, both the economic and political aspects, will not be hurt much, as liberalisation in Asean is not that wide and it will help them prepare for opening at the World Trade Organisation level," said Mr Teerana. Mr Teerana also emphasised the need for deeper and faster economic integration, including that of markets in both goods and services. The current economic crisis experienced by most Asean members has resulted in dramatic drops in foreign direct investment: 12.5 percent in 1997, and 33.6 percent during the first half of this year. Asean export growth, which averaged 16 percent between 1993 and 1996, dropped to 6.3 percent last year. Plunges in the value of currencies and stock markets in the region following the floating of the baht in July 1997 have also been the most severe since Asean was set up in 1967. To reverse the trend of drastic reductions in bargaining power, Asean has to send a clear signal that its member states will not turn protectionist or "go their separate ways", said Karn Karuhadej, a regional economist with Dresdner Kleinwort Benson in Hong Kong. Asean has to move now or face possible new tariff and non-tariff barriers imposed by Europe and the United States next year as the full impact of the Asian crisis is felt, he said. Besides discussing measures for an economic recovery, including social safety nets, the Asean summit is scheduled to publish two major documents. These are the Hanoi Declaration and the Hanoi Plan of Action towards the Asean Vision 2020 agreed to at an informal summit in Kuala Lumpur last year. As Vietnam remains under one-party rule, Thailand's call for the establishment of an "open society" towards this vision is not expected to feature high on the agenda. Some officials have cited time constraints for the unlikelihood of free discussion on this matter. The vision for the year 2020 calls for "a concert of Southeast Asian nations, outward-looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies" . Towards a more open Asean, Thailand last July moved for "flexible engagement" - or open discussion among member states of internal issues that are of regional concern. Burma and most other member states opposed the idea, which went against the grouping's cardinal rule of non- interference. Member states since have been more candid about their neighbours' internal situation, as evidenced by comments from Indonesia and the Philippines on events in Malaysia following the dismissal in September of Anwar Ibrahim, the deputy premier and finance minister. But some sources maintain that the Thai initiative has worsened relations at a time of much needed cooperation. Surin Pitsuwan, the foreign minister who initiated the idea of "flexible engagement", however continues to advocate reform. In recent remarks in Tokyo, he called on Asean to "accommodate pressure and to heed calls for reform, for democracy and for wider participation of our peoples in the political and economic processes". But it remains to be seen if Thailand will seize the opportunity to play a leading role at the summit at a time when there is a leadership vacuum in the region. If Chuan Leekpai, the prime minister, is not too preoccupied with the possibility of a no-confidence debate at home, he should "lead candid discussions to ward off fresh bouts of turmoil, particularly on the social aspect, as Thailand will be the chairman of the Asean Standing Committee from July 1999 to July 2000", said one analyst. Games-Shooting-Results of finals BANGKOK, Dec 8 (Reuters) - Results of shooting finals at the 1998 Asian Games on Tuesday: Men's team free rifle prone 1. Thailand 1,758 points (Samarn Jongsuk, T Majcharcheep, N Yavilaspradit) 2. Kyrgyzstan 1,752 (Tachir Ismailov, Yury Lomov, Alexander Babchenko) 3. China 1,751 (Ning Lijia, Li Wenjie ,Yu Bo) 4. Korea 1,749 (Park Bong-Dunk, Choi Byung Woo, Cha Young Chul) 5. Uzbekistan 1,745 (Dmitry Davidov, Vyacheslav Skoromnov, Ivan Shakhov) 6. Japan 1,743 (Naoki Kurita, Hiroyuki Kanesaka, Ryohei Koba) 7. Kazakhstan 1,735 (Yuriy Melsitov, Sergey Belyayev, Alexandr Melsitov) 8. Taiwan 1,735 (Tsai Wenhsin, Wu Huimin, Lee Jisheng) 9. Oman 1,730 (Hilal Alrasheedi, K.S.Salim, M.H.Ali) 10. Malaysia 1,714 (Mohammed Zakaria, Vilow Kabah, Abdul Razak) 11. Maldives 1,699 (Maadhi Ismail, Naseem Ahamed, Waheed Ismail ) 11. Laos 1,674 (P.Bounlieng, Saya Sisane, Phommalath Phomhat) Women's team air pistol 1. China 1,151 points (Cai Yeqing, Ren Jie, Luna Tao) 2. Kazakhstan 1,148 (Dina Aspandiyarova, Galina Belyayeva, Yuliya Bondareva) 3. South Korea 1,133 (Boo Soon-Hee, Ko Jin-Sook, Kim Mi-Jung) 4. Mongolia 1,119 (T. Munkhzuk, Otryad Gundegmaa, D. Munkhbayar) 5. Japan 1,114 (Chiaki Saito, Tomoko Hasegawa, Yoko Inada) 6. Taiwan 1,108 (Jen Sujen, Chen Chiuyen, Ma Yumei) 7. Thailand 1,105 (Sriyai Rampai, Pornpan Kumhor, Panchang Chaisa-ard) 8. Iran 1,088 (Hourieh Seyed Derakhshani, Manijeh Kazemi, Marzieh Mehrabi) 9. Macao 1,088 (Vong Iok-In, Chong Kuai-Iok, Chan Pou-pou) 10. United Arab Emirates 1,087 (Amal Abbas Mohammed, Sumaya Saleh Mubarak, Shamma Ahmed Al Mehairi) Men's team skeet 1. Kuwait 356 points (Saleh Al-Mutairi, Tami Al-Rashidi, Abdullah Al-Rashidi) 2. China 355 (Chen Dongjie, Zhang Xindong, Li Xu) 3. Kazakhstan 350 (Ivan Struchayev, Sergey Kolos, Sergy Yashin) 4. South Korea 345 (Kim Chang-Nyun, Kim Ha-Yeon, Ha Jong-Han) 5. Japan 343 (Takao Yasuda, Soichiro Ito, Hiroyasu Miyoshi) 6. Taiwan 340 (Shih Weitin, Chang Chien, Lee Sungchieh) 7. North Korea 335 (Pak Nam-Su, Ri Myong-Son, Ra Sang-uk) 8. Thailand 330 (Boonkiat Supsiriyoukong, Krisada Varadharmapinich, Pongstorn Bholganist) 9. United Arab Emirates 324 (A. Mujren-Alkendi, A. Mejren bin Sultan, Sheikh Al Maktoum) 10.India 316 (Rahul Rai, Harinder Singh Bedi, Rao Inderjit Singh)