Asean fights foreign trade pressure at summits
Before the global leaders converged in Bandar Seri Begawan later this week for series of summits with Asean counterparts, they all have a long wish-list for their brief stopovers. Officials of Asean and members of East Asia Summit are still working days a
For the first Asean-US Summit – previously they were just the leaders’ meetings – US wants an agreement on the new Asean-US Expanded Economic Engagement (E3) Initiative. Washington pushes hard this new framework to expand trade and investment ties with Asean at the same time it tries to move ahead with the Trans Pacific Partnership (TPP). Without US President Barrack Obama’s presence, TPP will not get the right pump up.
Quite a few Asean countries are not happy with the US attitude as it is pressuring the grouping for a common position on the E3 initiative, an upgrade framework of Trade and Investment Framework Agreement (TIFA). The American trade negotiators assured Asean the E3 will be non-binding. But Asean does not buy it knowing full well it would change in the future. Moreover, Laos – the only Asean member – has not yet signed up on TIFA albeit the US desire to conclude the E3. Since 2006, Washington has made Asean its priority areas for opening up services and investment.
Both side are also working on the language related to security issues related to the Syria crisis and the bans of chemical weapons. Asean countries have issued statements to support the US-Russia agreement to ban the use of chemical weapons in Syria. Thailand came out with the strongest views condemning Syria’s record on chemical weapons. Other regional issues including the nuclear non-proliferation, Korean Peninsula and the progress on the negotiating process of code of conducts in South China Sea will be on the agenda of Asean-US summit.
For China, expansion of Asean-China free trade agreement would be the key issue. China’s enthusiasm has now caused concerns within Asean as they are negotiating the Regional Comprehensive Economic Partnership (RCEP). Asean wants the RCEP to be better that the current Asean plus one FTAs. If China expands the current FTAs, it will affect the future RCEP negotiations over incentives with other non-Asean members. It is unclear if China is willing to give the same privileges to Japan, Korea, India, Australia and New Zealand under the RCEP.
China and Asean are also finalising the planned joint statement on their 10th anniversary of their strategic relationship. As the first strategic dialogue partner of Asean, China has placed the grouping’s interest as its top foreign policy’s priorities. Both President Xi Jingping and Premier have reiterated China’s new development and people-oriented approach toward Asean with a twist on strengthening defense and security cooperation.
China is also very keen to hold a defense and security dialogue with Asean at the ministerial level annually – the idea first botched with Indonesia last year. But there is no consensus on this issue among Asean members. Currently, Asean and China have over 40 mechanisms to engage each other on all sectors at all levels. However, there is no exclusive Asean-China defence ministerial meeting.
For Japan, Asean remains the key players in its future economic and strategic development plans. All Asean leaders have agreed to attend a commemorative summit to celebrate the 40th anniversary of Asean-Japan ties in mid-December. Both sides want to fully implement the Asean Japan Comprehensive Economic Partnership signed in 2008. Five years have elapsed, some hiccups persist on the services and investment areas.
Apart from the strengthening economic cooperation, Japan and Asean are contemplating ways to strengthen their political and security cooperation. Recently, Japan has intensified its peace-building efforts in Myanmar, the Philippines and Indonesia. In March, Tokyo appointed Yohei Sasakawa, chairman of the Nippon Foundation, as a special envoy to help with the ethnic reconciliation in Myanmar. Japan also forges closer maritime security cooperation with the Philippines and Vietnam.
Although India and Asean just celebrated its 20th anniversary last December, their relations remain sluggish – they still require constant reminding. Progress has been slow to implement a comprehensive free trade agreement signed in 201q. The signing of agreement on trade in services and investment, delayed since last December, will be in Bali during the 9th World Trade Organisation Ministerial Conference in December, not in Bandar Seri Begawan this week as earlier scheduled.
