Goh for Asian free trade zone

By V. Jayanth

CHENNAI, JAN. 22. Asia must think of a ``free trade area'' to avoid being marginalised because of the goings on in other parts of the world, the Singapore Prime Minister, Mr. Goh Chok Tong, said today.

In an interview to The Hindu at the end of his six-day visit to India, Mr. Goh said, ``It was your Finance Minister's idea and my argument was that the WTO free trade regime was preferable. Since another round of negotiations is not about to begin and since the West has its own free trade arrangements, Asia may be marginalised.''

He said that the North American Free Trade Area (NAFTA) could expand to cover the Americas and that the European Community was expanding to include other countries. So an Asian Free Trade Area would be a good idea. ``I think it is for the long term. I see no harm in getting some economists and academics to study this idea. If the benefits are obvious, then I think we must consider this seriously.''

The Prime Minister said there was a ``lapse of attention'' in the interaction between India and the ASEAN. ``We were preoccupied with the financial crisis and India was not too deeply affected by it. Now that the crisis is over, I think both sides must begin to nurture our cordial relations and turn it to something much stronger.'' Mr. Goh, who visited India after a gap of five years, said that during his earlier visit, only the Prime Minister, Mr. P.V. Narasimha Rao, and the Finance Minister, Dr. Manmohan Singh, were talking about reforms. But now, there was a wider consensus. One major change now was that the States and their Chief Ministers were pro-active and there was a healthy competition to attract foreign investments. ``They must work for a pro- investment climate for foreign investors and we are certainly keen on tapping Indian potential.''

If India pushed ahead with the second generation reforms and opened up its economy, besides increasing its trade with the ASEAN, the time would come to invite India to a summit of ASEAN leaders, Mr. Goh said.

Making it clear it was his view, the Prime Minister said, ``I have to test this out on my colleagues in the ASEAN. We have this regular dialogue with the East Asian countries of Japan, South Korea and China because of the economic benefits. If India opens up and there is a increase in trade between India and the ASEAN, I think a dialogue is called for at our regular summits. At the right time, I think there is a place for India at the ASEAN-plus- Asian countries dialogue.''

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