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Viewing cable 06MANILA4984, ASEAN TRADE MINISTERS TACKLE TARIFFS

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Reference ID Created Released Classification Origin
06MANILA4984 2006-12-13 09:45 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Manila
VZCZCXRO3684
OO RUEHCHI RUEHDT RUEHHM
DE RUEHML #4984 3470945
ZNR UUUUU ZZH
O 130945Z DEC 06
FM AMEMBASSY MANILA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4256
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS IMMEDIATE
RUEHBJ/AMEMBASSY BEIJING IMMEDIATE 5933
RUCPDOC/DEPT OF COMMERCE WASHDC IMMEDIATE
UNCLAS MANILA 004984 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/EP, EAP/MTS, AND EB/TP/MTA 
USDOC FOR RP DESK (BERLINGUETTE) 
STATE PASS USTR (KATZ) 
 
E.O. 12958: N/A 
TAGS: ETRD ECIN PREL PHUM EAID CH RP
SUBJECT: ASEAN TRADE MINISTERS TACKLE TARIFFS 
 
REF: MANILA 4935 
 
1.  (U) Despite the postponement of the Association of 
Southeast Asian Nations (ASEAN) Leaders' Summit, ASEAN trade 
ministers on December 8 succeeded in signing six agreements 
intended to expand economic integration in the region.  Four 
focus on enhancing intra-ASEAN trade and two agreements 
deepen the ASEAN-China trade relationship. 
 
2.  (SBU) According to Department of Trade and Industry (DTI) 
Bureau of International Trade Relations Director Ramon 
Kabigting, ASEAN aspires to be a common market in 11 priority 
sectors:  electronics, information technology, rubber-based 
products, textiles and apparel, agro-based products, 
fisheries, air travel, and tourism.  In their meetings in 
Cebu, the trade ministers also added a twelfth priority 
sector, logistics, at the behest of the Philippines, which 
aims to be a East Asian hub for trans-pacific shipments. 
 
3.  (U)  The four intra-ASEAN agreements include an agreement 
to allow for the mutual recognition of nursing credentials, 
commitments to lower barriers on the services trade, and two 
additional agreements relating to the elimination of tariffs 
and non-tariff barriers.  According to Kabigting, the 
ministers approved the fast-tracked elimination of tariffs on 
a number of products in priority integration sectors 
beginning January 1, 2007.  This is three years ahead of the 
original deadline.  The "downstream electronics" sector was, 
however, exempted for three years from this measure, 
including appliances such as washing machines and 
air-conditioners.  The fourth intra-ASEAN agreement concerns 
the elimination of non-tariff trade barriers, including 
anti-dumping measures, countervailing duties, import 
restrictions, and quotas.  Brunei, Indonesia, Malaysia, 
Singapore, and Thailand will eliminate non-tariff trade 
barriers in stages from 2008 to 2010.  The Philippines is not 
required to begin eliminating non-tariff trade barriers until 
2010. 
 
4.  (SBU)  Two of the six agreements promote the ASEAN-China 
Free Trade Area.  The first is a protocol in which the 
Philippines joins the "early harvest program" of tariff cuts. 
 The second agreement, between China and Vietnam, dealt with 
trade concessions.  A services trade component of the 
ASEAN-China free trade deal was postponed at the request of 
Chinese officials, who wanted the signing witnessed by 
ASEAN's and China's heads of government.  Department of 
Foreign Affairs' North Asia Division Director Daniel Espiritu 
confirmed that Chinese Premier Wen Jiabao had postponed his 
December 14 visit to Manila and will likely reschedule for 
mid-January 2007, which would allow him to participate in 
the ASEAN-China Summit on January 13, the ASEAN 3 Summit on 
January 14, and the East Asia Summit on January 14, if all 
participants agree on these dates. 
KENNEY