JAKARTA: Moodys Investors Service says the finalisation by members of the Association of Southeast Asian Nations (ASEAN) of tariff liberalisation by the end of 2015 is credit positive for the region and will boost intra-regional trade and economic growth. Moodys analysis is contained in its just-published report \u0153Southeast Asia: ASEAN Economic Integration Credit Positive; Progress Is Incomplete,\u009d authored by Rahul Ghosh, a Moodys Vice President and Senior Research Analyst, and Christian de Guzman, a Vice President and Senior Analyst. \u0153Greater intra-regional trade is credit positive for the region given that growth in other key export markets, such as China, is slowing,\u009d said Ghosh. Moodys said the ASEAN Economic Community aims to accelerate integration among ASEANs 10 member nations through four distinct pillars: a single market and production base, a competitive economic region, equitable economic development, and integration with the global economy. It said intra-regional trade has reached record highs since the 2007 removal of tariffs for six ASEAN countries \u201c Brunei (unrated), Indonesia (Baa3 stable), Malaysia (A3 positive), the Philippines (Baa2 stable), Singapore (Aaa stable) and Thailand (Baa1 stable). These have been operating tariff-free on 99 per cent of products in the inclusion list. The rating agency said the relative strength of intra-ASEAN trade \u201c which accounts for roughly 24.2 per cent of the regions total \u201c will reduce the vulnerability of member states to external shocks. In addition, the rise in intra-regional foreign direct investment (FDI) \u201c due to ASEANs successful implementation of various free trade agreements and associated arrangements \u201c to 17.4 per cent of total flows in 2013, from 11.3 per cent in 2007, is another credit positive trend. Moodys said the Intra-ASEAN FDI is a more stable source of funding and insulates the regional economy from external headwinds. \u0153However, other important aspects of the AEC, including the elimination of non-tariff barriers, enhanced regional labour mobility and financial integration, will face delays due to intra-regional disparities, a lack of institutional capacity and a shift in focus towards domestic political issues,\u009d added Ghosh. Moodys however expects that the implementation of non-trade aspects of the AEC will face delays and execution risks, suggesting that the wider positive implications of economic integration will take some time to manifest. Key issues that hamper full implementation include various disparities among the regions countries such as population size, per-capita income and ease of doing business, as well as structural differences in regulatory and tax regimes, and corporate governance standards, notes Moodys. \u201c Bernama<\/p>\n