ASEAN Secretariat, Jakarta, 10 Feb - A high level task force composed of representatives of ASEAN countries plus Australia and New Zealand met in Jakarta yesterday to look into the feasibility of establishing an AFTA-CER free trade area by 2010.

The task force discussed the potential benefits and costs of establishing an AFTA-CER Free Trade Area. The Task Force also held initial discussions on the possible scope and coverage of the proposed FTA and agreed on the areas requiring further study and consideration which would include the views of the business community and the experiences of other regional groupings.

In 1997, a study conducted by the Canberra-based Center for International Economics concluded that the benefit for both parties would be higher level of economic activity, exports, and real consumption. These benefits would result in an expansion of trade as a result of removing tariff and non-tariff barriers, improvement in the productivity as a result of more competition and exploitation of economies of scale, and fostering of closer business links leading to greater levels of investment confidence.

The study estimated a net positive contribution to real production for all participants in the order of US$ 16 billion at 1997 prices. An AFTA-CER linkage would create a market of 523 million and a combined GDP of US$1.2 trillion.

The task force was established by the ASEAN Economic Ministers and Trade Ministers from the countries of the Australia-New Zealand Closer Economic Relations Agreement (CER) on 1 October 1999 at their fourth meeting held in Singapore.

Mr. Cesar Virata, former Prime Minister of the Philippines, chaired the Task Force. Member of Parliament Tim Fischer represented Australia, while Sir William Birch attended for New Zealand. The task force is expected to meet again in New Zealand on 27-28 April 2000.