Asean for dispute settlement system

South-East Asian countries on Tuesday agreed to set up a trade dispute settlement mechanism by the end of next year and also decided to promote 11 specific industries in the region.

A joint statement said the ministers backed a plan to set up an effective dispute settlement system, which would set up a legal unit and a ‘‘compliance body’’ to make use of peer pressure to resolve trade disputes, the statement said. It said the ministers endorsed another plan to speed up the integration of 11 sectors in which Asean as a group enjoys competitive advantage.

Under the plan, the Asean members will grant special incentives like zero tariffs, harmonisation of product standards and faster and simplified customs clearance on products coming out of these 11 sectors. It said the sectors include wood-based products, automotive, rubber-based products, textiles, apparels, agricultural products, fisheries, electronics, health care, air travel and tourism.