Bigger bloc better claims Supachai

By RON CORBEN

BANGKOK - The free-trade areas of New Zealand and Australia and that of South-east Asia could be merged before 2010, says Thai Commerce Minister Dr Supachai Panitchpakdi.

He says that current trade disputes between New Zealand and Australia and their Southeast Asian regional trading partners would diminish if the areas were combined.

New Zealand and Australia established Closer Economic Relations (CER) in 1990, while the 10-member Association of South East Asian Nations (Asean) free trade area (Afta) is due to begin next year.

Asean is made up of Thailand, Singapore, Malaysia, Indonesia, Brunei, Laos, Cambodia, Vietnam, Burma (Myanmar) and the Philippines.

Australian Trade Minister Mark Vaile and Foreign Minister Alexander Downer were in Thailand last week to meet Dr Supachai and Foreign Minister Surin Pitsuwan.

Deputy Prime Minister Dr Supachai, due to take over as Director-General of the World Trade Organisation from New Zealand's Mike Moore in three years, has been a long-time supporter of a merger of the two free-trade areas, and it has been included in bilateral talks in recent years.

But he says there is a chance to hasten the merger ahead of 2010.

"We look forward to the long-term goal of having the CER joining Afta and that would solve a lot of [trade problems] at the same time.

"We set the goal at [merging] at 2010, but you never know, the goal can always be brought forward."

Progress towards Afta is also set against progress expected on the Asia-Pacific Economic Cooperation (Apec) group, which includes north Asia and Pacific Rim states such as the United States and Canada.

Apec's members are seeking to liberalise the Asia-Pacific market by 2010.