Free trade deals vital for ASEAN survival: Singapore
Free trade deals vital for ASEAN survival: Singapore
Agence France-Presse, Singapore
Free trade agreements are vital for the Association of
Southeast Asian Nations (ASEAN) to maintain its relevance under
the lengthening economic shadows of giant neighbors China and
India, a Singapore minister said Friday.
Initiatives for ASEAN to forge free trade links with China,
Japan and India as well as efforts by individual members to
negotiate bilateral free trade agreements (FTAs) should augur
well for the 10-nation grouping, said Minister of State for
Foreign Affairs and Trade and Industry Raymond Lim.
"This spate of activity marks a milestone in ASEAN's entry
into the new era of global economic relationships where FTAs play
a major part," he said at a symposium on FTAs here.
"This has a snowballing effect. With each new initiative,
ASEAN's other trading partners become even more interested in
strengthening their linkages with us," he said.
Lim said the 36-year-old regional bloc is facing tougher
competition from China, which has been getting the bulk of
foreign direct investment into Asia, and India which is also
making strides to strengthen its trade.
ASEAN also faces competition as a manufacturing base from
beyond Asia, particularly Latin America, he said.
"In this competitive environment, it is vital that ASEAN
remains relevant," said Lim, whose country has signed FTAs with
Australia, New Zealand, Japan and the European Free Trade
Association, and is awaiting the implementation of a free trade
deal with the United States this year.
Lim noted that other ASEAN countries have decided to negotiate
their own free trade pacts with their trading partners -- a move
that will prompt these nations to strengthen their own capacity
to compete.
ASEAN as a whole is looking at setting up FTAs with Japan,
China and India within the next 10 years, while the US has
announced it intends to pursue greater trade links with ASEAN.
Lim said FTAs will play a key role in promoting ASEAN as an
investment destination and trading partner.
"By nurturing its FTA strategy and strengthening linkages with
its major trading partners, ASEAN will become even more
attractive as a single market and a single manufacturing base,"
he said.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, the Philippines, Singapore, Thailand and Vietnam with a
total population of about 500 million people.