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.