Global economy, terrorist attacks dictate ASEAN meeting agenda
Global economy, terrorist attacks dictate ASEAN meeting agenda
Bernice Han, Agence France-Presse, Singapore
The Association of Southeast Asian Nations (ASEAN), set up to
accelerate regional growth, is having its agenda dictated by
events beyond its control as leaders of the 10-nation grouping
prepare for their annual summit.
But handled correctly, the twin impacts of an anaemic global
economy and the U.S.-led fight against terrorism, can be turned
to ASEAN's advantage and enhance the drive for regional free
trade, analysts said.
There is no room to revert to protectionist policies at next
week's summit in the Brunei capital of Bandar Seri Begawan, they
said.
"The ASEAN leaders are expected to address immediate concerns
to Southeast Asia such as the twin challenges posed by the global
economic downturn and the international fight against terrorism,"
Brunei's foreign ministry said.
"In dealing with these concerns, the ASEAN leaders are
expected to discuss a wide range of topics such as responding to
longer term challenges, accelerating regional integration and
bridging the development gap."
Critics have written off ASEAN as a "sunset organization",
saying it failed to respond adequately to the Asian financial
crisis in 1997 and would be tested again by the new economic
slump.
ASEAN Secretary General Rodolfo Severino said the grouping
must turn global events to its advantage -- using them as a prop
to further tear down tariff walls as regional economies bear the
brunt of the global slowdown.
"Of course, it has become more urgent because of the
developments in the United States," he told AFP.
"We need to do more like eliminating tariffs altogether
because what we would like to do is to integrate the ASEAN
economies. That is the only way we can compete."
Although many ASEAN economies are either in recession or on
the brink of one, Severino said there was no turning back from
tariff reduction.
"It's totally illogical to turn protectionist at this point,"
he said.
The ASEAN Free Trade Area (AFTA) covering the group's six
original members -- Malaysia, Thailand, Indonesia, Brunei, the
Philippines and Singapore -- is on track for implementation in
2003.
"AFTA is just about done," said Severino.
Newer entries Laos, Cambodia, Myanmar and Vietnam will join
between 2006 and 2010.
But with the two groups at different stages of economic
development and with varying political systems, they have
different perspectives of the risks and benefits of economic
liberalization and the free market.
From the former group, Malaysia also has reservations about a
no-holds-barred free trade pact.
Analysts, however, said that with regional economies
floundering against the backdrop of the campaign against
terrorism, they have to push for increased intra-regional
economic cooperation at the first summit since Sept. 11.
"Regional economic integration ... that is the key. The
process has to be strengthened further," Pradumna Rana, manager
of the Asian Development Bank's (ADB) regional economic
monitoring, told AFP.
"The 911 (Sept. 11) accident has brought in additional
uncertainty. We need lots of these regional efforts."
A senior ASEAN diplomat, who asked not to be named, said any
discussions on trade and economic issues would be linked to the
terror attacks in New York and Washington "and how the region can
cope."
The ADB's Rana said the progress of economic restructuring, an
issue that has faded since the region's recovery from the 1997-98
crisis, should also be on the agenda.
"It's still incomplete and that should be carried on," he
said.
The painful reforms are crucial in preparing ASEAN economies
for the long haul once the U.S. economy starts moving again, said
Rana.
The ambitious proposal for a ASEAN-China free trade agreement,
first mooted a year ago and aimed at a market of 1.7 billion
consumers, will be further discussed in Brunei with added
emphasis now that the world's most populous nation is listed to
enter the World Trade Organisation on Dec. 10.
But, Severino stressed: "The United States cannot be replaced
as a major market for ASEAN."