ASEAN economic ministers meet to discuss closer economic integration

The economic ministers from the 10 members of the Association of Southeast Asian Nations (ASEAN) kicked off here a two-day meeting Saturday to discuss the establishment of the Economic Community (AEC).

AEC is designed to bring about closer economic integration of the 10 nations.

The meeting, titled "21st ASEAN Economic Minister's Retreat, started with a preparatory meeting of senior economic officials from the 10 members.

Sources from the meeting said this annual retreat is held in the northeastern city of Malaysia with the objective to enable the ministers to discuss more practical integration measures for AEC which is set to come into effect by December 31, 2015.

The recommendations from the private sector and the concerns over a perceived increase in non-tariff barriers to trade in the region when the AEC comes into effect will top the agenda of the meeting.

AEC is mainly an economic liberalization program aimed at increasing the international competitiveness of ASEAN and to make the ASEAN region as an attractive investment location.

Officials attending the meeting believe that AEC, which is aimed at creating a single market and production base in the region, will further bolster the bloc's progress and prosperity.

However, many economists said there will be great challenges ahead for the AEC, including large differences in tax rates on ( intra-and trans-regional) businesses and investments, different standardizations of laws and regulations on business and on competition, large differences in the rates of interest and inflation and no ASEAN common currency. Endi