Thu, 25 Jul 1996

ASEAN, India set up cooperation bodies

JAKARTA (JP): The Association of Southeast Asian Nations (ASEAN) sought closer ties yesterday with its new partner India by forming a number of commissions.

Indian Foreign Minister Inder Kumar Gujral said after a dialog with ASEAN that both parties have agreed to set up various commissions to enhance their relations on tourism, science and technology and trade.

"Ultimately, the private sector is the primary force. That's why we will encourage our various institutions and individuals who are participating in trade, commerce, technology and science," Gujral told journalists.

Singapore Minister of Foreign Affairs S. Jayakumar, representing ASEAN, said in his opening statement at the dialog session that closer relations with India will benefit both parties.

"You can provide ASEAN with vital links to the Indian Ocean. ASEAN, on the other hand, can be India's springboard into the Asia Pacific," Jayakumar said.

Jayakumar, of Indian descent, said India will be increasingly important for ASEAN and the Asia-Pacific region, because India today stands as a strong economic power with a gross national product of more than US$280 billion.

"It would be hard to imagine an Asia-Pacific century without India's participation," Jayakumar said.

He noted that India, which traditionally had been looking to the West, is now looking at Southeast Asia and the Asia-Pacific for trade and investment opportunities.

In trade alone, from 1991 to 1995, Indian exports to ASEAN nations grew annually at a rate of 40 percent, with imports at a rate of 23 percent.

During the same period, India's exports to the United States grew by 28 percent; to Japan, by 18 percent; and to the European Union, by 24 percent. Imports from the United States grew by 15 percent; from Japan, by 17 percent; and from European Union, by 13 percent.

Jayakumar predicted that there will be new opportunities for closer cooperation in trade and investment as India's economic reforms bear fruit and ASEAN grows in membership.

"ASEAN investment could add impetus to India's economic reforms ... An expanded ASEAN will also be an important market and investment location for Indian companies," Jayakumar said.

ASEAN -- currently grouping Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam -- aims to cover Cambodia, Myanmar and Laos as full members by the end of the century.

In addition, ASEAN foreign ministers have agreed to accelerate the implementation of the ASEAN Free Trade Area agreement by the year 2000.

Aside from economic matters, ASEAN and India also discussed political and security issues. They underscored the importance of promoting and preserving regional stability.

However, they did not touch on contentious security issues, such as a Comprehensive Test Ban Treaty, which India is reluctant to participate in.

"It was not discussed anywhere," Gujral said when asked about the treaty. (rid)