Southeast Asian Economies Vitally Important, USTR's Bhatia Says
United States must establish vision for long-term regional economic goals
By Susan Krause
Washington File Staff Writer
USINFO.State.gov
Washington -- The United States has made progress in building stronger and deeper trade relationships with economies in Southeast Asia, and now must establish a clear vision of where those relationships should lead in the long term, says Deputy U.S. Trade Representative (USTR) Karan Bhatia.
Bhatia addressed the annual dinner of the U.S.-ASEAN Business Council July 11 in Washington. The council promotes U.S. business interests within the Association of Southeast Asian Nations (ASEAN).
In the 12 years since the conclusion of the Uruguay Round of trade talks -- the negotiations which led to the creation of the World Trade Organization (WTO) -- trade between the United States and the ASEAN economies nearly has doubled, according to Bhatia.
"With almost 600 million people and a combined gross domestic product of $2.7 trillion, the ASEAN economies constitute the sixth largest economic group in the world, and they're our fourth largest trading partner," he said.
As a combined group, ASEAN is now a "vitally important" economic entity, and the United States has been very active in its engagement with individual member economies, Bhatia said.
ASEAN's 10 member economies are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Burma.
INCREASED ENGAGEMENT WITH ASEAN ECONOMIES
The deputy trade representative cited several recent initiatives:
• The United States and Singapore signed a bilateral free-trade agreement (FTA) in 2002. U.S. exports to Singapore have risen 12 percent since the agreement went into force in 2004.
• President Bush announced the Enterprise for ASEAN Initiative (EAI) in October 2002. The initiative was intended to increase trade and investment by establishing a network of bilateral FTAs.
• Under the EAI, the United States and Thailand opened negotiations on a bilateral FTA in 2004.
• In 2005, the United States and Malaysia launched FTA negotiations. A second round of talks is scheduled to start during the week of July 17.
Bhatia said the United States also has worked to strengthen its economic relationships in the region by establishing bilateral trade and investment framework agreements (TIFAs). These agreements cover a range of issues, including intellectual property rights protection, customs arrangements and regulation.
"We have robust TIFA dialogues with Indonesia, with the Philippines, and with Brunei," he said. "And with each of these countries, we are pursuing the building blocks that … hopefully will lay the groundwork someday for the negotiations of FTAs."
The United States recently established a new TIFA partnership with Cambodia, Bhatia said. "[W]e hope to use that dialogue … to strengthen our engagement in Cambodia and create new opportunities for businesses in both countries."
Another important development in the region, Bhatia said, was the recent conclusion of a bilateral market access agreement between the United States and Vietnam. That agreement will support Vietnam's accession to the WTO. (See related article.)
Bhatia said he expected that, under the Enterprise for ASEAN Initiative, additional FTAs would be negotiated, and bilateral FTAs would be "woven into a network."
"Clearly, we want to explore ways to do this so that they reinforce ASEAN integration and our mutual economic interests," he said.
MOVING BEYOND BILATERAL INITIATIVES
Even though bilateral initiatives are critical, Bhatia said, the United States must increase its direct involvement in regional fora.
"We are looking to support ASEAN integration and to institutionalize our relationship with ASEAN through a trade and investment agreement, with ASEAN as an institution," he said. "I believe we are very close to concluding that."
In pursuit of this goal, Bhatia said, President Bush and his counterparts from the ASEAN economies issued a "Joint Vision Statement for an Enhanced ASEAN-U.S. Partnership" in November 2005. (See related article.)
Secretary of State Condoleezza Rice will discuss the proposal at the ASEAN Regional Forum meeting scheduled to begin July 28 in Kuala Lumpur, Malaysia, Bhatia said.
The United States is also interested in increasing its involvement in the Asia-Pacific Regional Economic Cooperation forum, or APEC, Bhatia said.
"We are committed to APEC -- a forum that has united countries from around the Pacific Rim in support of trade liberalization and economic reform," he said. "[A]s it nears its 20th anniversary, I think it's important we think about how APEC can be strengthened."
APEC's progress in achieving trade liberalization has been "slower and more painstaking than most would like," Bhatia said.
"Many APEC members acknowledge this and, working with them, we have begun to think about the process of streamlining and reform," he said.
ADMINISTRATION REMAINS COMMITTED TO DOHA GOALS
On a side note, Bhatia reaffirmed the Bush administration's commitment to the WTO's Doha round of negotiations. The talks, which have struggled since their inception in 2001, deadlocked again recently. Trade ministers from more than 30 countries, meeting in Geneva between June 29 and July 2, failed to reach agreement on a formula for reducing farm subsidies and tariffs on agricultural and manufactured goods. (See related article.)
"I want to tell you tonight unequivocally that we remain fully committed to achieving an ambitious outcome to these negotiations," Bhatia said. "We will continue to provide the leadership that we have offered throughout the process to keep the momentum going."
But the United States alone cannot save the trade talks, he cautioned. "We need others to contribute … and to contribute meaningfully."
The European Union must offer more than minor cuts in agricultural tariffs "with huge loopholes" to create greater global consistency in agricultural support levels, Bhatia said. He also urged more advanced developing countries to make a greater effort to open their markets.
"While we are not pushing the world's poorest countries, the advanced developing countries cannot have a pass," the deputy USTR said. "Real market opening, including from these countries, will be essential to complete a successful Doha Round."
The full text (PDF, 6 pages) of Bhatia's remarks, as prepared for delivery, can be found at the Web site of the Office of the U.S. Trade Representative.
For additional information, see East Asia and the Pacific and Trade and Economics.
(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
Bhatia addressed the annual dinner of the U.S.-ASEAN Business Council July 11 in Washington. The council promotes U.S. business interests within the Association of Southeast Asian Nations (ASEAN).
In the 12 years since the conclusion of the Uruguay Round of trade talks -- the negotiations which led to the creation of the World Trade Organization (WTO) -- trade between the United States and the ASEAN economies nearly has doubled, according to Bhatia.
"With almost 600 million people and a combined gross domestic product of $2.7 trillion, the ASEAN economies constitute the sixth largest economic group in the world, and they're our fourth largest trading partner," he said.
As a combined group, ASEAN is now a "vitally important" economic entity, and the United States has been very active in its engagement with individual member economies, Bhatia said.
ASEAN's 10 member economies are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam and Burma.
INCREASED ENGAGEMENT WITH ASEAN ECONOMIES
The deputy trade representative cited several recent initiatives:
• The United States and Singapore signed a bilateral free-trade agreement (FTA) in 2002. U.S. exports to Singapore have risen 12 percent since the agreement went into force in 2004.
• President Bush announced the Enterprise for ASEAN Initiative (EAI) in October 2002. The initiative was intended to increase trade and investment by establishing a network of bilateral FTAs.
• Under the EAI, the United States and Thailand opened negotiations on a bilateral FTA in 2004.
• In 2005, the United States and Malaysia launched FTA negotiations. A second round of talks is scheduled to start during the week of July 17.
Bhatia said the United States also has worked to strengthen its economic relationships in the region by establishing bilateral trade and investment framework agreements (TIFAs). These agreements cover a range of issues, including intellectual property rights protection, customs arrangements and regulation.
"We have robust TIFA dialogues with Indonesia, with the Philippines, and with Brunei," he said. "And with each of these countries, we are pursuing the building blocks that … hopefully will lay the groundwork someday for the negotiations of FTAs."
The United States recently established a new TIFA partnership with Cambodia, Bhatia said. "[W]e hope to use that dialogue … to strengthen our engagement in Cambodia and create new opportunities for businesses in both countries."
Another important development in the region, Bhatia said, was the recent conclusion of a bilateral market access agreement between the United States and Vietnam. That agreement will support Vietnam's accession to the WTO. (See related article.)
Bhatia said he expected that, under the Enterprise for ASEAN Initiative, additional FTAs would be negotiated, and bilateral FTAs would be "woven into a network."
"Clearly, we want to explore ways to do this so that they reinforce ASEAN integration and our mutual economic interests," he said.
MOVING BEYOND BILATERAL INITIATIVES
Even though bilateral initiatives are critical, Bhatia said, the United States must increase its direct involvement in regional fora.
"We are looking to support ASEAN integration and to institutionalize our relationship with ASEAN through a trade and investment agreement, with ASEAN as an institution," he said. "I believe we are very close to concluding that."
In pursuit of this goal, Bhatia said, President Bush and his counterparts from the ASEAN economies issued a "Joint Vision Statement for an Enhanced ASEAN-U.S. Partnership" in November 2005. (See related article.)
Secretary of State Condoleezza Rice will discuss the proposal at the ASEAN Regional Forum meeting scheduled to begin July 28 in Kuala Lumpur, Malaysia, Bhatia said.
The United States is also interested in increasing its involvement in the Asia-Pacific Regional Economic Cooperation forum, or APEC, Bhatia said.
"We are committed to APEC -- a forum that has united countries from around the Pacific Rim in support of trade liberalization and economic reform," he said. "[A]s it nears its 20th anniversary, I think it's important we think about how APEC can be strengthened."
APEC's progress in achieving trade liberalization has been "slower and more painstaking than most would like," Bhatia said.
"Many APEC members acknowledge this and, working with them, we have begun to think about the process of streamlining and reform," he said.
ADMINISTRATION REMAINS COMMITTED TO DOHA GOALS
On a side note, Bhatia reaffirmed the Bush administration's commitment to the WTO's Doha round of negotiations. The talks, which have struggled since their inception in 2001, deadlocked again recently. Trade ministers from more than 30 countries, meeting in Geneva between June 29 and July 2, failed to reach agreement on a formula for reducing farm subsidies and tariffs on agricultural and manufactured goods. (See related article.)
"I want to tell you tonight unequivocally that we remain fully committed to achieving an ambitious outcome to these negotiations," Bhatia said. "We will continue to provide the leadership that we have offered throughout the process to keep the momentum going."
But the United States alone cannot save the trade talks, he cautioned. "We need others to contribute … and to contribute meaningfully."
The European Union must offer more than minor cuts in agricultural tariffs "with huge loopholes" to create greater global consistency in agricultural support levels, Bhatia said. He also urged more advanced developing countries to make a greater effort to open their markets.
"While we are not pushing the world's poorest countries, the advanced developing countries cannot have a pass," the deputy USTR said. "Real market opening, including from these countries, will be essential to complete a successful Doha Round."
The full text (PDF, 6 pages) of Bhatia's remarks, as prepared for delivery, can be found at the Web site of the Office of the U.S. Trade Representative.
For additional information, see East Asia and the Pacific and Trade and Economics.
(The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
No comments:
Post a Comment