EAEC not trade bloc as feared by U.S.: ASEAN

EAEC not trade bloc as feared by U.S.: ASEAN

GENTING HIGHLANDS, Malaysia (AFP): Non-communist Southeast Asia will try to convince the United States next month that the East Asian Economic Caucus (EAEC) it has proposed for the region is not a trade bloc, officials said Saturday.

Economic ministers of the Association of Southeast Asian Nations (ASEAN), said at the end of two days of informal talks here that an "information paper" on the Malaysian-initiated EAEC would be presented at the annual ASEAN-U.S. dialogue to be held from May 5-7.

The EAEC, proposed by Malaysia in 1990, would have the major economies of East Asia as its core members, but would exclude the United States, officials said.

Malaysia's international trade minister, Rafidah Aziz, said the paper would outline the mechanics of the EAEC and seek to deepen Washington's understanding of EAEC, meant as a loose consultative forum for East Asia's fastest growing economies.

"We want to tell the U.S. that it is not a trade bloc so that it can have a better understanding of the caucus," Rafidah said, dismissing a suggestion that a U.S. endorsement to launch the EAEC was being sought.

The EAEC's take-off has been delayed largely due to political wrangling and U.S. objections which have made Japan reluctant to openly lend support.

"We don't need anybody's endorsement to launch the EAEC. We are just using the annual dialogue that will be attended by foreign ministry officials to present the paper to the U.S.," Rafidah told reporters at the end of the talks held at this golf resort.

Independent

Rafidah said the caucus would be an independent entity linked to the 17-member Asia-Pacific Economic Cooperation (APEC) forum because its core members were also APEC members.

"The core members are likely to involve the ASEAN -- which groups Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- and the major economies of East Asia that would include China, South Korea and Japan," Rafidah said.

Rafidah said it would focus primarily on economic development issues "and there is no reason for any objections or any adverse comments on it."

At the talks were Brunei's Industry Minister Abdul Rahman Taib, Indonesia's Coordinating Minister for Industry and Trade Hartarto and Trade Minister Joedono, Rizalino Navarro of the Philippines and Singapore's Yeo Cheow Tong.

Thailand was represented by its Deputy Premier Supachai Panitchpakdi and Commerce Minister Uthai Pimchaichorn.

ASEAN foreign ministers agreed in July 1992 to form the EAEC after debating the proposal for more than two-and-a-half years amid strong U.S. objections.

Under the agreement, the EAEC will operate as a caucus within APEC but under the direction of the ASEAN economic ministers.

The administration of President Bill Clinton has adopted a softer stance on the EAEC plan after the previous George Bush administration actively campaigned against the new grouping as essentially an Asian trade bloc.

Rafidah said it would be better if EAEC took off first with some core members so that time was not wasted on wrangling over who should eventually be its members.

"That will be a better alternative rather than bring in the whole world now and yet nothing gets done," Rafidah said.

But she could not say when the caucus would begin deliberations, although ASEAN officials had indicated earlier that they were working towards launching it this year.

"We have not determined any deadline. It takes time for such things to evolve. After all, the EU (European Union) took 30 years to come about," she said.