Soon-to-Be WTO Official Warns Conflicts May `Marginalise' Regional Bloc.

Byline: Cholada Ingsrisawang

Dec. 1--The Asean Free Trade Area (Afta) faced the threat of being marginalised in the global arena as internal conflicts and infighting undermined the potential of the regional bloc, Supachai Panitchpakdi warned yesterday.

Dr Supachai, who will take the position of director-general of the World Trade Organisation next September, said that while Afta had achieved some gains in industrial liberalisation, little progress had been made in financial, agricultural and services sectors.

"Even in industry, in automobiles, there remain conflicts in the group," he said at a competitiveness seminar yesterday at the National Institute of Development Administration (Nida).

Under Afta, tariffs are to be cut to a maximum of 5 percent by 2003. But increasing signs of backsliding and protectionism by members have undermined the potential of the free trade area.

One visible example has been Malaysia's refusal to bring auto parts into the programme to protect its national car industry.

Thailand, which aims to become an auto manufacturing hub for the region, has been engaged in talks with Malaysia for months over compensation for losses by Thai manufacturers caused by delays in reducing tariffs.