Russia, Australia sign key pacts with ASEAN

Russia, Australia sign key pacts with ASEAN

Rob Delaney and Cherian Thomas, Bloomberg/Kuala Lumpur

Russia signed an economic cooperation agreement with the Association of Southeast Asian Nations (ASEAN) on Saturday, at the same day the association signed a non-aggression treaty with Australia.

The accord, which pledges to deepen two-way trade and investment between Russia and the regional bloc, makes Russia a so-called dialogue partner of ASEAN, Malaysian Foreign Minister Syed Hamid Albar told reporters after the deal was signed in Malaysia's capital Kuala Lumpur.

"This economic declaration would form the basis for the comprehensive program of cooperation between Russia and ASEAN for the years from 2005 to 2015," Russian Foreign Minister Sergei Lavrov said after signing the accord.

The agreement may help Russia tap a market with a combined gross domestic product of US$800 billion and a population of 558 million. Russia's economy is $521 billion.

Russian President Vladimir Putin will meet the region's leaders at an ASEAN-Russia Summit scheduled for Dec. 13. Although Russia is not a part of the East Asian group, Putin will address leaders at a special session, Malaysia's Bernama new agency reported on Dec. 7, citing Syed Hamid.

"Our relationship with Russia has always been focused on political and security cooperation," Syed Hamid said on Saturday. "But now we'll see the development of the relationship in the areas of economics, trade, investment, science and technology."

Australia signed with its Asian neighbors the non-aggression treaty as a "quid pro quo" to be a part of the East Asian economic community, Australian Foreign Minister Alexander Downer said.

ASEAN ministers said in a statement on April 11 that Australia and New Zealand must sign non-aggression accords if they wanted to attend the Dec. 14 summit.

Australia wants to join ASEAN -- with a population of 500 million and combined gross domestic product $737 billion -- to boost trade and security. Australia, New Zealand and India have been invited to the East Asia summit, which will include the 10- member ASEAN bloc and China, Japan and South Korea, Downer said.

"To put it bluntly, this is a quid pro quo and we are happy to live with it," Downer told a news conference. "We see East Asia as an important institution, taking forward a broader community of nations and making a solid contribution in regional cooperation."

Australia and New Zealand are currently negotiating a free trade agreement with ASEAN, Downer said. ASEAN economies have a combined gross domestic product of $800 billion.

"The fact that they have subscribed shows that, geopolitically and economically, they want to be part of this region," Malaysian Foreign Minister Syed Hamid Albar told reporters.

ASEAN member countries are Indonesia, Thailand, Malaysia, Singapore, Brunei, the Philippines, Cambodia, Laos, Myanmar and Vietnam.