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Free trade area brings opportunities, challenges: Commerce Minister
The public and private sectors should seek a better understanding of the Asean Free Trade Area (AFTA) as Laos integrates with the regional economic community in 2015, Minister of Industry and Commerce Dr Nam Vinhaket said yesterday.
Speaking at the opening ceremony of the high level workshop on Laos towards the Asean E conomic Community, held at the Don Chan Palace hotel in Vientiane, Dr Nam said that a better understanding of the trade rules involved would enable Laos to receive greater benefits from members hip of the regional economic bloc.
He also said a better understanding of the economic community would help Laos prepare to face a number of challenges associated with the formation of the Asean Free Trade Area, which will encompass 500 million people.
The Ministry of Industry and Commerce hosted the two day workshop to review the progress of Laos in implementing the Asean economic integration framework.
The workshop also gave opportunities for trade policy makers and the private sector to exchange lessons learnt during each stage of preparations towards the formation of the Asean Economic Community in 2015.
A number of high ranking officials and foreign diplomats including Deputy Minister of Foreign Affairs Mr Alounkeo Kittikhoune, German Ambassador to Laos Mr Robert Von Rimscha and US Ambassador to Laos Ms Karen B. Stewart attended the meeting.
During the workshop, participants were given a presentation on the implementation of relevant activities, achievements, weaknesses and challenges experienced by each concerned agency as well as recommendations for future directions and the way forward.
International Trade Policy Department Deputy Director General, Mr Saysana Sayakone, said Laos will benefit by joining the Asean Free Trade Area and integration is an opportunity for Laos to incorporate its economy with the international community.
Laos will have greater negotiation powers in the global community as it is represented by Asean. Moreover, the private sector will have an opportunity to expand its market into the region, increasing exports of Lao products.
Laos will learn from the experience of becoming a member of the World Trade Organisation (WTO) by improving regulations and laws to meet international standards.
One of the biggest benefits from joining the AFTA is having a greater capacity to attract foreign direct investment so that Laos can maintain high economic growth and create more jobs.
Production activities in Laos will also be modernised so that manufacturers can make goods suitable for the regional market and at competitive prices.
The capacity of Lao officials will also be improved so they can deliver Asean standard services to businesses wishing to invest in Laos.
Mr Saysana said there are also challenges that Laos must address, including the shortage of skilled workers and funding. Laos will also earn less from import tariffs, as these will be significantly reduced to facilitate imports as part of the move towards regional integration.
At present, the private sector has little knowledge of how to benefit from the Asean Free Trade Area.
vientiane times
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