U.S. must further engage Southeast Asia: Business group
U.S. must further engage Southeast Asia: Business group
Martin Abbugao, Agence France-Presse, Singapore
The United States should enhance political, economic and security cooperation with Southeast Asia as the region's importance has significantly risen after the terrorist attacks of September 2001, according to an influential business group.
"There are opportunities for decisive action that can be taken this year to send strong signals of confidence to investors, and boost trade and investment opportunities for companies and workers in both the U.S. and ASEAN," said Ernest Bower, president of the U.S.-ASEAN Business Council.
A visit by U.S. President George W. Bush to the region to attend the annual Asia-Pacific leaders' summit in Bangkok this October would be one measure which could signal Washington's commitment, he said.
The council, which groups top U.S. firms doing business in the 10 member Association of Southeast Asian Nations (ASEAN), has submitted its recommendations to the U.S. government and Congress, according to a report obtained here Tuesday.
"Over the past two years, the U.S. government has significantly increased its engagement of ASEAN and its member nations in Southeast Asia.
"But the importance of the region to American political, economic and security interests is increasing -- and there is more to be done," it said.
In addition to Bush's trip, the U.S. Congress should approve the U.S.-Singapore Free Trade Agreement "at the earliest possible time" and the U.S. Trade Representative should kickstart talks for a similar deal with Thailand.
The council said approval of the U.S.-Singapore FTA on a bipartisan basis would "signal that the U.S. wants liberalized trade regimes in Asia." Singapore and the U.S. recently wrapped up negotiations on the FTA.
Washington should also complete a trade facilitation agreement with Malaysia, establish normal trading relations with Laos and help prepare Laos, Cambodia and Vietnam for entry into the World Trade Organization, the report added.
It suggested that the U.S. Secretary of State should continue to participate in the ASEAN Regional Forum on security and that the U.S. Trade Representative hold regular talks with the region's economic ministers.
It also proposed that Indonesia and the Philippines should be made recipients of U.S. financial assistance under the Millennium Challenge Account.
The council noted that Southeast Asia quickly supported the U.S.-led global war against terrorism launched after the devastating attacks on the U.S. mainland and stressed that ASEAN's participation is crucial to its success.
In economic terms, U.S.-ASEAN trade reached US$120 billion last year and the region hosts $50 billion in U.S. investment, the council said.
ASEAN will also "play a critical role in helping strengthen the U.S. economy" this year, the council said, adding that the region will be important in America's effort to tighten security on global trade.
U.S. exports to ASEAN totaled $44 billion last year, more than twice as large as its exports to China.
ASEAN -- comprising the Philippines, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Brunei, Singapore and Indonesia -- is America's fifth largest export market behind Canada, the European Union, Mexico and Japan.
U.S. policy-makers must also deal with developments ahead of future elections in the Philippines, Indonesia, Malaysia and "possibly Singapore" which could lead to the emergence of new leaders, the report said.