The two-day AEM Retreat in Chiang Mai ended yesterday.

Thai Commerce Minister Apiradi Tantraporn said Asean ministers had seen CLMV as developing countries with high economic growth rates, minimal impacts from the global economy and capabilities to drive the overall Asean economy.

Thailand and Malaysia have been asked to provide assistance to strengthen them, as the two countries have higher levels of development, she said.

Arin Jira, chairman of the Asean Business Advisory Council and vice chairman of the Federation of Thai Industries, said the council had agreed to have Laos as the logistics centre for products exported from several countries.

The Asean ministers at the retreat agreed to continue negotiations with China, India, South Korea, Japan, Australia and New Zealand on the Regional Comprehensive Economic Partnership (RCEP), which they believe will enhance trade and investment connectivity. The negotiations are targeted to be finalised this year.

Under RCEP, 80 per cent of products traded between Asean member states and the other six countries are expected to see tax reductions within 10 years. Initially, 65 per cent of the products traded must undergo tariff cuts.

TPP

Arin said the RCEP would be advantageous for the region, and if Thailand joins the US-led Trans-Pacific Partnership (TPP), that could also be good for trade and investment.

The Chiang Mai event was the first AEM Retreat since the Asean Economic Community (AEC) materialised late last year. A formal meeting of Asean economic ministers will be held in August.

“Trade and investment have been rising, particularly for CLMV, for the first two months of the AEC. IfAsean countries cooperate more, regional trade and investment could definitely be higher,” Apiradi said.

Arin said the business sectors in each country were keeping track of problems arising after theAEC that need state assistance. These problems include insufficient access by small and medium-sized enterprises to capital and technology. However, he urges SMEs to help themselves through more collaboration.

At the retreat, Asean ministers also discussed ways to promote Asean as the global producer of raw materials for food, which is in line with Thailand’s target to become the world’s kitchen, as the region contains sufficient quality food resources, Apiradi said.

Next year, an Asean-style food exhibition will be held and chefs from across the region will be invited to present each country’s cuisine at the event.

The ministers also discussed having the United States set up electronic connectivity centres in conjunction with Asean. The centres, which will facilitate trade and investment in technology and energy, are planned for Thailand, Indonesia and Singapore.

Asean is waiting for the US to send formal information about this plan to the bloc.