Asean Leaders Seek US Trade Attention

Men Kimseng, VOA Khmer
Washington, DC Tuesday, 11 May 2010

“There is also the potential for modernizing Cambodian rice production, which the US should consider investing in."

Asean trade ministers spent a week in the US this month, meeting with congressmen, business leaders and policymakers in the capital and Seattle, to promote the region’s economic potential.

The 10-nation bloc of countries has become one of the fastest-growing regions in the world, but Asean leaders need to convince Americans to look at it as a single unit, Asean’s secretary-general, Surin Pitsuwan, said.

“We are part of Southeast Asia, which is expected to be a locomotive pulling the global economy along,” he said. “And I think in the past we have never disappointed them, and we want to do more.”

Asean has potential in automobile production, green technology and infrastructure, among others, he said.

Cambodia, “with more than 50 percent of its population below 20 years of age,” could be especially attractive to technology investors, Pan Sorasak, secretary of state for the Ministry of Commerce, told VOA Khmer.

“There is also the potential for modernizing Cambodian rice production, which the US should consider investing in,” he said. “And there is tourism, where we can have cooperation among airlines.”

Cambodia lags behind other Asean countries in its human resources and infrastructure, but the bloc works to help members, he said, and members don’t compete for external partners.

Asean includes Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

It is the fifth-largest trading partner and fourth-largest export market for the US, with two-way trade reaching nearly $180 billion in 2008, according to the US-Asean Business Council. US exports to Asean were more than $66 billion that year.

In Asia, the US should look beyond China and India

Future opportunity for US growth depends on whether President Obama focuses on Southeast Asia, not just China and India.

May 3, 2010
By Ernest Z. Bower
Christian Science Monitor
Washington

If the United States is to have a sustainable toehold in Asia, Washington has to start paying serious attention to some countries in the region that are not China or India.

There are 10 other countries in particular that hold the key to America’s central role in all of Asia. Engaging with them is a must for US prosperity and national security. That’s why President Obama must follow through on his overtures to the region and carve out time to attend the second ever US-ASEAN summit, this year.

The Association of Southeast Asian Nations (ASEAN) began in 1967 to accelerate economic growth and collaboration in the region. The group is made up of 10 countries in Southeast Asia: Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Burma (Myanmar), the Philippines, Singapore, Thailand, and Vietnam. About 650 million people live in the region, and each year gross domestic product adds up to around $1.5 trillion. The Philippines and Thailand are two longtime US treaty allies. According to the latest US Department of Commerce figures, which were for 2008, the US had $153 billion invested in ASEAN, $53 billion in China, and $14 billion in India.

Strategically, strong relations with ASEAN are vital to American interests in Asia. Both Mr. Obama and Secretary of State Hillary Rodham Clinton seem to be starting to recognize this. Secretary Clinton outlined core US principles for Asian regional architecture in Honolulu earlier this year. And Obama signed the ASEAN Treaty of Amity and Cooperation and declared that US interests in Southeast Asia are significant enough for annual presidential focus.

But lip service is only a beginning.

Strong ties with ASEAN are the metaphorical equivalent of strong core muscles. They are fundamental to the effective functioning of the other vital aspects of US policy in Asia, including engaging, supporting, and balancing the rapid transformation of both China and India onto the regional and global stage.

The president has a lot to gain from attending the US-ASEAN Leaders Summit. Obama himself initiated the first US-ASEAN Summit last November in Singapore. It was the first time a US president met directly with the leaders of all 10 ASEAN countries. And it was a smart move. ASEAN meets regularly with China, Japan, Korea, Australia, New Zealand, and India.

Major milestones come from those summits: (1) effective regional economic integration – ASEAN now has free-trade agreements with all of the aforementioned countries, (2) the beginning of regional security architecture, and (3) transnational issues – such as climate change and nuclear nonproliferation.

If the US is absent, it could be excluded from a future Asian “consensus” on such key issues.

If he attends, however, Obama could continue to rack up support for America’s positions.

He could also make substantial progress on trade, by supporting increased ASEAN involvement in the Transpacific Partnership – one of very few trade arrows in the administration’s quiver. Doing so would link US economic growth to Asia, which is expected to grow at more than two times the rate of the Western economies over the next several years, according to the World Bank.

By initiating the first US-ASEAN Summit, Obama laid down a clear marker that America recognized its significant stake in Southeast Asia and wasn’t ceding the region to China’s nouveau Monroe Doctrine.

He also set the stage for working with the region’s leaders on key issues such as climate change, fighting terrorism, and creating a channel for US assistance supporting the development of regional standards – a key factor for US exports and investments in the region.

The organizers of the summit are currently holding off on setting a date until they hear from the US president. It’s worth fitting into his heavy schedule:

At the very least Obama could convince the ASEAN leaders to meet him in Hanoi, Vietnam, after the Asia-Pacific Economic Cooperation Summit in Japan in November. That way he would reinforce the reformers in Vietnam who are facing stiff competition from the hyperconservative elders of the Communist Party there. By following through on his commitment for the US to remain engaged in Southeast Asia he would prove the Chinese Ministry of Foreign Affairs and reactionary analysts in Beijing wrong.

Another option is to invite the ASEAN leaders to Washington or Hawaii to hold the US-ASEAN Leaders Summit on American soil before or after they visit the US for the annual United Nations General Assembly meeting in September.

A third option is to piggyback on his visits to Indonesia, Australia, and Guam in June or to India in October.

If Obama failed to show up it would be a serious blow to relations in Asia.

It would not only fulfill predictions made by interlocutors in China’s Ministry of Foreign Affairs that the US is only rhetorically, not substantively, committed to the region, but it would fuel ASEAN’s anxieties about the reliability of the US as a forward-deployed partner in the Pacific.

Following through on his overtures in Asia is core to sustaining a serious US presence in the region. Making time for the ASEAN summit, may seem like a small thing, but Obama’s attendance would benefit the US in the long run.

Ernest Z. Bower is director of the Southeast Asia program at the Center for Strategic and International Studies in Washington

First Asean-US summit: symbol and substance

November 2, 2009
By Kavi Chongkittavorn
The Nation

THE FIRST of the two hurdles have been overcome for the upcoming Asean-US summit meeting. At the informal Asean foreign ministerial meeting on October 22, they were told the November 15 meeting in Singapore would go for a full 90 minutes, up from the 40 minutes agreed in September at New York. Each leader will now have less than 10 minutes to speak.

The second hurdle is still under negotiation. Asean would like to call the meeting as the First Asean-US Summit. But the US preferred "the Leaders' Meeting". This weekend senior officials from the US and the Philippines will discuss and prepare a joint statement in Manila and settle the title. The Philippines is the country coordinator for Asean-US relations.

Whatever the US and Asean leaders choose to call their inaugural meeting would reveal deep down how they feel towards each other and their future relations. The previous plan would be a one-off summit to mark the three-decade cooperation. It is an open secret that the Asean leaders would like to have a regular and stand-alone summit on a yearly basis with the US leader.

During his presidency, George W Bush met with the Asean leaders three times - in October 2002 in Los Cabos, Mexico; in December 2005 in Busan, Korea and finally in September 2007, in Sydney. But these meetings were tagged on to the Apec meetings and limited to seven Asean members as Cambodia, Laos and Burma are not a part of Apec. This time, all 10 members will take part. Singapore has chosen Shangri-La Hotel as the venue for the summit, different from the Apec meeting.

After Asean's repeated diplomatic overtures to the US State Department and National Security Council, the grouping has lowered its expectation of an annual summit at its year-end meeting akin to the Asean+3 (China, Japan and Korea) to a mere commitment for follow-up meetings in the future. Now the ball is in the US court whether Washington wants to project enthusiasm and enhance its relationship at the highest level. But in the end it would be Obama who would make the difference.

At the G-20 Summit in Pittsburg, Obama told Prime Minister Abhisit Vejjajiva and Surin Pitsuwan, the Asean Secretary-General, that he would like to have a meaningful, substantial and efficient meeting with Asean leaders. "I would like to listen and see what we can do together," Surin quoted Obama as saying.

Apart from Japan, Korea and China, his week-long November trip to Asia would highlight his meeting with Asean and Apec counterparts. Obama will skip Indonesia this time but plans to visit there next summer.

With a new dynamism in US diplomacy and Obama's personal ties with Indonesia, the president would like to give a personal stamp on his presidency with Asean. He plans to invite his Asean counterparts to Washington DC next year. In 2007, his predecessor, George W Bush, also invited the Asean leaders to his Crawford Range, Texas. There has not been any follow-up. Obama will host the Apec meeting in 2011

BALANCING RELATIONS

While Asean is moving closer to the US, the grouping is also mindful of the importance of its relations with other dialogue partners, such as Russia. Abhisit's speech at Cha-am did mention that Asean and Russia are planning the second summit in Vietnam next year. Moscow scooped all the dialogue partners when President Vladimir Putin was invited to attend the inaugural East Asia Summit (EAS) in Kuala Lumpur in 2005 as a guest of the host. Russia was the first major power to express readiness to join EAS. Washington has recently made clear that it would like to be a member of an East Asian community in the future, whatever shape it will take.

The message came right after Senator Richard Lugar proposed the negotiation of an Asean-US free trade agreement (FTA) as part of a comprehensive strategy towards Asean. He reiterated that China, India, Australia, New Zealand and South Korea have already finalised FTAs with Asean and are sharpening their competitive edge over the US in Southeast Asia.

Obviously, at the top on the summit's agenda will be a discussion on the feasibility of an Asean-US FTA and other initiatives that would enhance economic cooperation. Singapore, which was the previous country coordinator of Asean-US relations, is keen to push for a joint study so that details of modalities can be worked out.

In 2005, Asean and the EU established the Asean-EU Vision Group to look into the feasibility of an Asean-EU FTA. The report, delivered in 2007, recommended that the negotiation would be based on a region-to-region approach which recognised and takes into consideration the different levels of economic development and capacity of Asean members.

Asean and the US can build on two important agreements - the Enterprise for Asean Initiative (EAI) in 2002 and Trade and Investment Framework (TIFA) in 2006. Both aim to increase the volume of trade and investment and bring economies on both sides closer. EAI and TIFA will also encourage bilateral and regional liberalisation for achieving free and open trade and investment. The total trade between Asean and US increased from US$161 billion in 2006 to more than US$178 billion in 2008. The total US investment flows to Asean grew from $3.4 billion in 2006 to $6.3 billion in 2007. The US has concluded a free trade agreement with Singapore and is negotiating with Malaysia. Talks on a Thailand-US FTA were discontinued after more than two years of negotiations.

Other items on the agenda will include review of the overall Asean-US dialogue relations and its future directions. Since 2002, the US has provided development assistance to support Asean integration and strengthen the Asean Secretariat. There will be an exchange of views on regional and international issues of common interest. The Burmese situation could be raised under this agenda. The outcome of this week's scheduled visit to Rangoon of Assistant Secretary of State for East Asian and Pacific Affairs, Kurt Campbell, could be brought up including the fund-raising conference for the post-Nargis Cyclone in Bangkok on November.25.

At least an additional $144 million funding is needed for the rehabilitation programme ending next July.

Furthermore, Washington is keen to initiate new cooperation in non-traditional issues, especially climate change, pandemic diseases, water management and energy security. Human rights, rule of law and democracy will also be discussed. The Asean side would continue to seek assurance of continued US engagement at the highest level as it remains the key source of capital, technology and market.

From the Asean side, Prime Minister Abhisit Vejjajiva, who will co-chair the summit with Obama, would be the first to speak. It will be followed by the country coordinator, the Philippines, and the host, Singapore.

US President Obama to invite ASEAN leaders to Washington [-SE Asian dictators will have a chance to visit the US?]

Sun, 01 Nov 2009
DPA

Bangkok - US President Barack Obama plans to invite the 10 leaders of the Association of South-East Asian Nations (ASEAN) to Washington next year to further strengthen ties with the region, media reports said Sunday. "Kurt Campbell, the assistant state secretary for East Asia and Pacific, revealed during an informal talk with international participants attending a conference in Washington on Burma (Myanmar) last week that Obama would make an official (invitation) announcement during the upcoming ASEAN-US summit in Singapore," The Nation newspaper reported.

Campbell is scheduled to visit Myanmar this week to discuss Washington's "re-engagement" policy with the pariah state, a member of ASEAN since 1997.

Obama will meet with seven of the ASEAN leaders in Singapore on November 15 after attending the Asia-Pacific Economic Cooperation (APEC) forum.

APEC's 21 members include Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, The Philippines, Russia, Singapore, Taipei, Thailand, the US and Vietnam.

APEC excludes ASEAN members Cambodia, Laos and Myanmar.

Since taking office in January, Obama has pursued a policy of re-engagement with South-East Asia, a region increasingly sidelined by the faster economic growth and diplomatic clout of Asian giants China and India.

In Singapore, the ASEAN-US meeting is expected to discuss the possibility of a free trade agreement between the US and South- East Asia, The Nation said.

Thai-US [and US-ASEAN] relations should change little under Obama

19/01/2009
By Achara Ashayagachat
Bangkok Post Opinion

With a fresh, young United States administration being sworn in tomorrow, hope is up for closer ties between Bangkok and Washington, and also between the US and Asean.

Yet critics are warning that the deepening economic woes and domestic dynamics within both nations will keep the two allies apart and maintain the status quo on pending free trade negotiations.

John Brandon, director of the Asia Foundation's international relations programme, said Southeast Asia might receive a little more attention than it has under the Bush administration. However, with President-elect Barack Obama inheriting a US$1 trillion budget deficit, an economic crisis that has cost millions of jobs and depleted pension funds, reforms on health care and the education system, the expectations might not be met with realistic priorities.

Mr Obama will not be the only one tending to domestic problems. According to Mr Brandon, Southeast Asia is likely to look inwards as well. In several countries, the political situation remains volatile. Malaysia is getting a new leadership soon. Indonesia is having a presidential election. Thailand, meanwhile, is soldiering on in an attempt to get back to normalcy.

He said the Abhisit government could help Asean by working with the US in reinforcing the Asean charter which is highly recognised by Americans as a hopeful mechanism to lead the regional bloc towards being a rule-based entity.

"If I was an Asean citizen, I would not prepare a laundry list for the new US administration but would rather focus on what Asean should do in such issues as climate change, biodiversity, food and energy security, and easing up political restrictions in Burma," he said.

Harry Harding, Georgetown University professor of international affairs, said Washington has yet to be convinced on how much benefit it will get from institutionalisation within Asean.

In his view, Asean has become lacklustre due to its slow process. Its partners have been more attentive to newer forums such as the Shanghai Dialogue which involves people in direct charge of security affairs such as intelligence and defence officers, unlike the Asean Regional Forum which is more of a venue for those from the ministries of foreign affairs.

Still, Mr Harding believes the Obama administration should be more engaging and involving Asia to fill the gaps due to Washington's previous selective engagements within the region.

The US, said Mr Harding, needs to rebuild its power through both military, economic and soft-power influences, although the Asian region might not want to see any particular domination.

"We need to be less rhetorical and be moderate in such issues as human rights and rebuild our economic competitiveness by being a champion of freer trade, and revive the vibrancy of public diplomacy to regain the US' soft power," the American scholar said.

Thitinan Pongsudhirak, director of Chulalongkorn University's Institute of Security and International Studies, said the US should not only focus on their traditional interests but pay more attention to the dynamism in domestic politics in the region which would in the end affect and formulate each country's policies or attitude towards the US.

Vivat Mungkarndee, a keen US observer, said while the superpower was trying to keep Asian protectionism at bay, the region was also concerned if the US itself will become more protectionist in the face of the recession.

Regarding the economy, Somkiat Tangkitvanich, Thailand Development Research Institute's vice-president, believes internal US challenges will force both the Obama administration and Congress to change its FTA strategy.

The recession, the possibility of growing anti-globalisation sentiment and expiry of the trade promotion authority since 2007 will also impede any move to advance the FTA negotiations with Thailand.

For Thailand, political instability, residual anti-market and globalisation sentiment from the anti-Thaksin squabbling as well as procedural requirements will stall bilateral trade talks between Thailand and the US. The status quo is likely to prevail, according to Mr Somkiat.

A US Congress expert on Asia, Emma Chanlett-Avery, agrees times will be tough for free trade issues. Even the ongoing and finished FTAs with Colombia and Korea might not get a "yes" vote easily or smoothly, she said.

Other thorny issues remaining in the way include the Thailand-US Free Trade Agreement (FTA) negotiations, suspended since 2006, the US Trade Representative's elevation of Thailand to its Priority Watch List in 2007 for intellectual property rights violations, wrangling over the issue of compulsory licensing for some drugs and a discontinuation of GSP privileges to three more export products from Thailand since 2007.

Several analysts therefore see the risk of a drift in bilateral relations, although they generally agree there will be no major shift in overall cooperation. Despite the impeding factors, Thailand-US relations from both the administration and congressional points of view remain important because of Thailand's status as a long-time military ally and a significant trade and economic partner.

The picture will become clearer mid-year when the presence of incoming US Secretary of State Hillary Clinton is required as a dialogue partner of Asean at the annual Asean Regional Forum to be held in Bangkok in July. As chair of Asean until the end of the year, Thailand is working hard to get Mrs Clinton on board.

Only time will tell if the "change" mantra will spread to the international scene.