JP\/7\/PUSPA<\/p>\n
Working towards cooperation between ASEAN, East Asia<\/p>\n
S. Pushpanathan
\nHead, External Relations
\nASEAN Secretariat
\nJakarta<\/p>\n
Cooperation between the Association of Southeast Asian Nations
\n(ASEAN) and countries of East Asia was formally launched with the
\nJoint Statement on East Asia Cooperation in 1999, even though the
\nfirst meeting of the leaders of ASEAN and the "plus three"
\ncountries China, Japan and South Korea was initiated in 1997.<\/p>\n
Since then, cooperation has sprung up in a number of fronts --
\nin the fields of economy, science and technology, health,
\nenvironment, agriculture and culture.<\/p>\n
The ASEAN+3 cooperation has been substantive in the monetary
\nand finance sector and the reason for this is obvious. The
\npurpose is to put in place safety valves to ensure economic and
\nfinancial stability so that the region continues to grow and
\nprosper.<\/p>\n
A regional financing arrangement, the Chiang Mai Initiative,
\nwas initiated in 2000 and now comprises an expanded ASEAN swap
\narrangement of US$1 billion and 13 bilateral swap arrangements
\namounting to $32.5 billion.<\/p>\n
The ASEAN+3 countries are also looking at an Asian Bond Market
\nInitiative. Under the initiative, India has offered to invest $1
\nbillion in an Asian Bond Fund.<\/p>\n
Political and security cooperation has been slow since the
\nfocus of ASEAN+3 countries has been on economic cooperation.
\nHowever, the changing global situation and the rise of terrorism
\nand other transnational crimes has increased the need for
\npolitical and security engagement in East Asia.<\/p>\n
The consequence of the terror threat, especially on foreign
\ndirect investment and tourism, and on the social and moral fabric
\nof society is receiving increased attention from the ASEAN+3
\nSummit.<\/p>\n
The ASEAN+3 process is still in an early phase. ASEAN is now
\nintegrating itself economically and narrowing the development
\ngaps within and between its members. It is striving for a
\ncreation of a single market with its vision for an ASEAN Economic
\nCommunity by 2020.<\/p>\n
ASEAN is also taking steps to ensure that it stays competitive
\nin a knowledge based global economy, as well as working towards
\nestablishing economic links with its key trading partners such as
\nJapan, the European Union, the U.S. and potential economic
\npowerhouses such as China and India. This seems all the more
\nimportant after the failure of World Trade Organization talks in
\nCancun.<\/p>\n
One fundamental question is how ASEAN member countries will
\nfunction in an East Asia setting of 13 countries. Unlike the
\nASEAN+3 cooperation process where the initiative is with ASEAN
\nand the process is driven by ASEAN, in an East Asia setting,
\nChina and Japan may be at the wheel.<\/p>\n
This is especially so if ASEAN countries are not closely
\nintegrated and do not bridge their development gaps sufficiently
\nto catch up with their northeast Asian partners. Additionally,
\ntraditional rivalries between China and Japan could affect the
\ncooperation process since the ASEAN countries separately will not
\nbe fully able to play the buffer role with South Korea, as they
\nhave been in the ASEAN+3 Cooperation Process.<\/p>\n
Also, there is the lingering question of whether ASEAN would
\nbe subsumed under the greater East Asia framework where the rules
\nof the game could be entirely different from the "ASEAN Way".<\/p>\n
Then, there is the quandary as to whether East Asia
\ncooperation will pose a challenge to ASEAN's philosophy of being
\noutward oriented -- so far a key for its economic success and the
\nmagnet for attracting major global players to ASEAN.<\/p>\n
Given the importance of strengthening ASEAN+3, ASEAN will have
\nto carefully consider the many questions and challenges as it
\nmoves towards greater East Asia cooperation. A strategy will
\nhave to be developed to ensure that ASEAN make strides towards
\nachieving its goals of an ASEAN Economic Community and in forging
\neconomic links with as many potential economic partners as
\npossible while embracing East Asia cooperation.<\/p>\n
Such a strategy should include the following aspects. First,
\nASEAN will have to focus on expediting its economic integration
\nnot only in trade, investments and services but also in removing
\nnon-tariff barriers to trade.<\/p>\n
Second, it will have to sharpen its economic competitiveness
\nthrough integration of key economic sectors.<\/p>\n
Third, it will have to harmonize its investment regimes to
\nensure that investors can invest in any part of ASEAN and enjoy
\nsimilar privileges.<\/p>\n
Fourth, ASEAN will have to strive to create a peaceful and
\nharmonious region that can safeguard foreign direct investments
\nand provide a gateway for investments to grow and investors to
\nreap benefits. One key to this goal will be ASEAN's Treaty of
\nAmity and Cooperation which will be acceded to by China and India
\nat the Bali Summit. ASEAN should strive to gain the accession of
\nthe other two "plus three" countries of Japan and South Korea, as
\nwell as the U.S. to bolster the strategic balance in the region.<\/p>\n
At the same time, ASEAN should work closely with the major
\nglobal players in stamping out terrorism and other transnational
\ncrimes to clear the misperception that Southeast Asia is a hotbed
\nfor terrorists.<\/p>\n
ASEAN is heading in the right direction with the conclusion of
\na number of cooperation pacts with China, Russia, the U.S and the
\nEU in combating terrorism and transnational crimes. A joint
\ndeclaration with India was also signed at the Bali Summit.<\/p>\n
Fifth, ASEAN must continue to strive to stay outward looking
\nby engaging the other key trading partners. In terms of economic
\nlinkages, ASEAN should continue to strengthen its comprehensive
\neconomic partnership with Australia and New Zealand, work towards
\nthe realization of Trans-regional EU-ASEAN trade initiative as
\nwell as the Regional Trade and Investment Framework Agreement
\nwith the U.S.<\/p>\n
It will also have to embrace India, which was set to conclude
\na far-reaching comprehensive economic partnership framework with
\nASEAN in Bali. That could well set the stage for a free trade
\nagreement within a decade.<\/p>\n
Finally, ASEAN-East Asia cooperation should first follow up on
\nthe long-term steps recommended by the East Asia Study Group.<\/p>\n
These measures would be the building blocks toward full East
\nAsia cooperation.<\/p>\n
As for the long-term actions dealing with an East Asia Free
\nTrade Area (EFTA), and an East Asia Summit, these ideas, while
\npowerful, will have to take into consideration the current
\ndynamics in the relations and the situation in the two divides of
\nEast Asia.<\/p>\n
ASEAN and the "plus three" countries will have also to study
\ncarefully the future convening of the ASEAN+3 Summit. While it
\nmay be worthwhile to consider holding such summits once in three
\nto five years, to keep the long-term vision of an East Asia
\nSummit alive and to work towards the goal, it will be important
\nto convene the ASEAN+3 summits in between to consolidate
\ncooperation and to develop the comfort levels needed for further
\nEast Asia cooperation.<\/p>\n
The article reflects the writer's personal views.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jp7puspa-1447899208", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }