Asian leaders to meet at economic summit

Asian leaders to meet at economic summit

Agence France-Presse Bangkok

The first summit of leaders from seven Asian nations representing 1.3 billion people starts here on Friday to rejuvenate the tortuous process towards establishing a free trade area by 2017.

The summit is designed to push on with closer economic cooperation after a stuttering start to the seven-year-old BIMSTEC group, as the region grows in confidence after the disastrous Asian financial crisis of 1997.

The gathering is big on symbolism -- bridging the gap between the two Asian regions -- but trade within the group represents only US$7.3 billion, or four percent of the total, with negotiations on tariff cuts are not even due to start until later this year.

The seven -- Bangladesh, India, Myanmar, Sri Lanka, Thailand and new members Bhutan and Nepal -- are due to draw up a "roadmap" to navigate the course towards the opening of markets.

But analysts played down the significance of the meeting in the Thai capital.

Prapat Thepchatree, director of the Centre for International Policy Studies, said: "The (Thai) government would like to promote this into a very big event. But for me as an observer, this kind of grouping and cooperation will be a gradual evolution, it will be a slow process."

"It's very nominal compared with Thai-U.S. trade, Japanese or other Asian countries."

The battles against terrorism and HIV/AIDS and the creation of an Asian monetary fund will also feature during the two days of discussions involving foreign ministers, six prime ministers and the Sri Lankan president.

While the foreign ministers gather on Friday, Thai Prime Minister Thaksin Shinawatra will meet his Myanmar counterpart General Khin Nyunt amid international concern over the pace of democratic reforms by the military junta.

Thaksin will try to persuade him to join a new multinational round of talks in Bangkok to push for democratic reforms and the release of opposition leader Aung San Suu Kyi from house arrest.

The summit also marks the first overseas trip by Indian Prime Minister Manmohan Singh since he took office in May.

"With the process of globalization moving apace, BIMSTEC countries realize the imperative of regional cooperation," Singh said in an interview with The Nation newspaper on Friday.

"We believe BIMSTEC can evolve into a dynamic, exemplary, economic grouping."

BIMSTEC (Bangladesh, India, Myanmar, Sri Lanka and Thailand - Economic Cooperation) was founded in 1997 -- the year the economic crisis hit -- to foster economic links between Southeast and South Asian nations, concentrating on six key sectors from tourism to technology.

The three most advanced members, India, Sri Lanka and Thailand, are committed to trade liberalization by 2012, with the others following within five years.

The signing of a free trade agreement in the Thai resort province of Phuket earlier this year was almost scuppered by the late withdrawal of Bangladesh because of a row over compensation for lost tariff revenue. It later signed up to the deal.

This summit has already been delayed five months after its cancellation in February when the then-Indian premier Atal Behari Vajpayee canceled his plans to attend.