Movement of forest products within BIMP-EAGA sub-regions of ASEAN

Abstract

Brunei Darussalam, Kalimantan and Sulawesi of Indonesia, Sabah and Sarawak of Malaysia, and the southern regions of the Philippines formed the East ASEAN Growth Area (BIMP-EAGA). It is the third sub-region in the Association of the Southeast Asian Nations (ASEAN) slated for development following SIJORI and IMT-GT. Blessed with a huge reserve of natural and human resources, as producers the BIMP-EAGA member countries constitute a mutually beneficial network for one another. The impressive exports and intra-regional trade of the sub-regions were manifested as a potential powerhouse for the Asian economic boom. In an effort to make ASEAN a Free Trade Area (AFTA), two institutional instruments of economic cooperation the ASEAN Preferential Trade Arrangement and the Common Effective Preferential Tariffs scheme have been developed. The production, consumption and trade of forest products revealed the extent of protectionism in the sub-regions. Existing barriers and logistic infrastructure supports the free flow of goods and services were identified and the industrial investment opportunities were matched to the level of contention and compromise among the members. This paper was prepared to present the status quo and to gain supports at the fifth BIMP-EAGA senior official and ministerial forestry meeting on 4 July, 1996 at Davao City, Philippines. Considering the region as one big production and distribution center, the barriers and necessary logistic supports were to be tackled by consensus. Without committed and concerted efforts of both the governments and the private sectors toward alleviating the impediments and enhancing free movement of resources, the realization of AFTA is just another economic myth!