Dow Jones Newswires -- September 11, 2000
US-Asean Business Council Calls For Regional Open Skies
BANGKOK -- The U.S.-Asean Business Council said Monday that it has
urged Thai Prime Minister Chuan Leekpai to push for a regional "open
skies" policy, along with other customs policy harmonization and
transportation infrastructure to boost efficiency and investment.
James Kelly, chairman of the council and chief executive officer of
United Parcel Service of America, Inc. (UPS), told a news conference
after meeting with the premier that $50 billion worth of U.S.-Asean
imports and exports were moved via air express in 1999, supporting
350,000 jobs in the region.
Air express cargo represented 1% of that trade by weight, but 57% by
value, he said.
Meanwhile, as regional production of high-technology items increases,
the need for integrated air services will increase at an estimated 20%
annually.
"The Asean region needs to embrace full liberalization, an open skies
civil aviation agreement," in order to fully benefit from the boost to
efficiency and trade which door-to-door air delivery services provide,
Kelly said.
The business council has begun a swing through Asean countries to
present a report on the air express industry's benefits and
requirements, and to urge that liberalization and harmonization of
customs regulations continue under the framework of the Asean Free
Trade Area agreements.
The report was compiled with the cooperation of UPS's competitors.
Fedex Corp.'s (FDX) Asia-Pacific President David Cunningham expressed
full support for the study's findings.
Kelly said the report also called for continued development of
airports, roads and highways, as vital infrastructure for efficient
integration of local manufacturers into global production networks.
He said the council appreciated the modernization of Thai Customs
Department procedures.
The council represented $10 billion worth of direct investment and
50,000 jobs in Thailand, Kelly said.
Meanwhile, a U.S.-Asean Business Council representative said a group
of 20 pension fund managers and 20 other fund managers, known as the
Russell 20-20 group, will visit Asean countries next month to review
possibilities for both portfolio and direct investment.
The group has some $3 trillion in funds under management.
According to U.S. Commerce Department data, the 1999 figure for U.S.
investment in Thailand was $6.97 billion, behind $24.78 billion in
Singapore and $10.50 billion in Indonesia, the council said in a
statement.
Investment in Thailand showed the biggest growth between 1997 and
1999, however, at 61%, compared with 56% and 37% for Indonesia and
Singapore, respectively.
U.S. direct investment in Asean stood at $52 billion in 1999, up 34%
from 1997. Investment in Malaysia dropped 8% over the period to $5.99
billion, but climbed 18% in the Philippines to $3.79 billion.
Of total direct U.S. investment in Asean, 28% was in the petroleum
sector, 36% in manufacturing and an equal amount in services and
related industries.
Data on U.S. investment in Brunei, Cambodia, Laos, Myanmar and Vietnam
- smaller economies which are also members of the Association of
Southeast Asian Nations, or Asean - weren't included in the statement.
U.S. exports to Asean in the first five months of 2000 rose 14% from
the same period a year earlier to $17.58 billion.
Exports declined only in the case of Myanmar, where the military
directly or indirectly controls most production. U.S. exports to the
country were down 33% to $3 million.
-By Tom Fox, Dow Jones Newswires; 662-266-0744; tom.fox@dowjones.com
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