PRESS RELEASE

ASEAN NOTES BOTH THREATS AND OPPORTUNITIES IN CHINA'S ENTRY INTO WTO

 The Association of Southeast Asian Nations (ASEAN) has noted both threats and opportunities for ASEAN trade in China's eventual admission into the World Trade Organization (WTO).

China is scheduled to be formally admitted into the WTO when the world body convenes in Seattle, Washington D.C. on November 30.

Philippine Trade and Industry Secretary Jose Pardo said in a press briefing Friday that the threats are derived mainly from China's expected heightened competition with ASEAN countries in export and foreign direct investments in Asia itself.

Pardo chairs the ASEAN Economic Ministers Meeting (AEM) now convening in Manila as part of the ongoing 3rd ASEAN Informal Summit hosted by the Philippines.

The positive aspect of China's entry into the WTO, Pardo added, lies in the fact that it "would in general provide predictability and stability of the trading environment with China being bound by the same rules aside from opening up vast opportunities for market niches."

Pardo said the AEM has expressed confidence that the deeper economic integration initiatives ASEAN has achieved so far, including the ASEAN Free Trade Area (AFTA), ASEAN Investment Area (AIA), and the ASEAN Investment Cooperation (AICO) have adequately prepared for such competition.

"This is reflected by the fact that ASEAN was able to recover from a crisis only two years after it began," Pardo pointed out, referring to the regional financial meltdown that started in mid-1997.

In a related development, Pardo said the ASEAN Economic Ministers have expressed their support for the proposed East Asia Business Council that will include both private and government representatives from all 10 member countries of ASEAN and from China, Japan and South Korea.

The proposed establishment of the East Asia Business Council was included in the Joint Statement on East Asia Cooperation the AEM adopted after its Thursday session.