Community of free traders

The presence of more than 600 business leaders from all over the world, including 100 from major American corporations, at the first ASEAN business summit which opens today speaks volumes about the region's economic potential.

ASEAN's population of 430 million -- which will soon increase to 500 million if and when Cambodia, Laos and Myanmar join -- is a huge market that no corporation in the current era of increasing global competition can afford to ignore.

The rapid economic growth rates enjoyed by Indonesia, Malaysia, Thailand, and the Philippines, as well as Singapore, Brunei and Vietnam, in recent years has drawn investors from all around the world to this region. Investment begets more growth, which in turn begets more investors and so the process continues.

The combined gross domestic products of ASEAN's current seven members was put at US$500 billion in 1995. Given the present rate of growth, this is estimated to triple to $1.5 trillion by 2008. With international trade totaling $600 billion in 1995, ASEAN is the world's fourth largest trading region after the U.S., Japan and the European Union. And trade is still growing robustly.

Then there is the commitment shown by ASEAN leaders to promote free trade. Member countries are now racing to turn the region into a free trade area by 2003.

There appears to be a growing realization among many people in the region that one of the best ways of realizing the dream of creating a truly Southeast Asian community -- the goal set out when its visionary leaders founded ASEAN 30 years ago -- is by encouraging people to trade with one another more.

The history of various civilizations shows that trade paved the way to greater contact between people in various parts of the world. That rule applies today as it did then. Trade helps build a community by allowing people in the region to become better acquainted and develop a greater understanding of each other.

Southeast Asia does not exist in a vacuum. It is a member of the world community, and it has a responsibility towards the larger community too. The ASEAN Free Trade Agreement is initially aimed at removing barriers to trade and investments within the region. But eventually ASEAN has to open itself to outsiders.

No one should doubt the sincerity of ASEAN leaders' commitment to free trade. Indonesia, like other ASEAN members, has seen the wonders that trade liberalization measures can do for its people. It is reaping the benefits of the small dose of free trade it has allowed, but more benefits are promised when ASEAN free trade becomes a reality.

A lot now depends on businesspeople in the region to carry out their vision of building a Southeast Asian community. They are the players in the field on whose shoulder lies the responsibility of achieving most of the goals of free trade. In the final analysis, it is they who will make the foreign exchange earnings on behalf of their country, who will make the investment decisions, and who will create jobs for people in the region.

The first ASEAN business summit is a significant step for business leaders to seize the initiative in pushing the free trade goals of the region. Besides being a forum for making business contacts and for listening to the visions of various government leaders, the summit is a major opportunity for the ASEAN Chambers of Commerce and Industry (ASEAN-CCI) to showcase its strength and participation in its endeavor to build a community.

It is hoped the ASEAN-CCI will grow to become an effective lobby group to promote free trade. The free trade pledges by ASEAN leaders still have to be turned into reality. As the 2003 deadline nears, there is bound to be resistance from some people with vested interests against free trade. The task of ASEAN-CCI as a lobby group is to give the final push towards free trade for the interest of the entire community.