U.S., Southeast Asia in trade-liberalisation pact

KUALA LUMPUR (Reuters) – The United States and 10 Southeast
Asian nations signed a trade and investment agreement on Friday
that opens the door to possible free-trade talks.

U.S. Trade Representative Susan Schwab signed the Trade and
Investment Framework Agreement in Malaysia with the 10 member
states of the Association of South East Asian Nations (ASEAN).

“The can-do spirit of the members of ASEAN reflects the
can-do spirit we are so proud of in the United States,” Schwab
told reporters after signing the pact.

“The TIFA with ASEAN represents an important step forward
in the trade relationship with the region.”

The United States is the biggest buyer of ASEAN goods and
the region’s largest foreign direct investor, pumping $8.7
billion into the region last year, ASEAN data shows. In 2004,
U.S. demand accounted for 14 percent of ASEAN exports. The
framework agreement seeks to lower non-tariff barriers to trade
and investment and is a necessary first step if both sides want
to begin free-trade negotiations. Washington has played down
this prospect, though it has a free-trade deal already with
Singapore and is in free-trade talks with Malaysia and
Thailand.

Work to build on the pact will involve development of an
ASEAN single-window facility to smooth the flow of goods to the
United States, and cooperation to foster trade in agricultural
goods and new drugs, Malaysian Trade Minister Rafidah Aziz
said.

“This is not a legally binding document but a framework for
technical cooperation,” Rafidah added.

ASEAN comprises Brunei, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, the Philippines, Singapore, Thailand and
Vietnam.