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.