Singapore - The leaders of the 10 member Association of South East Asian Nations (ASEAN) met in Singapore from 18th to 22nd of this month to give a further boost to regional integration of their economies. Singapore Prime Minister Mr. Lee Hsien Loong addressing a gathering of business leaders on the eve of the Summit meeting said that ASEAN countries offer a neutral core around which the rest of Asia can build economic ties and a regional framework of cooperation. To sustain this, ASEAN itself has to become more integrated and cohesive and only then can the ASEAN nations keep up with larger and stronger economies like China and India. Mr. Lee added, ASEAN states must show the political will to implement both the charter and economic community blueprint which sets the stage for a single market and production base by 2015. He said, the blueprint and the charter, which marks the first time that the 40 year old bloc will codify its basic principles and organizational rules, would be critical in enhancing ASEAN`s credibility and attracting investors. The charter commits ASEAN nations to strengthen democracy, enhance good governance and rule of law and promote and protect human rights and fundamental freedoms. The economic blueprint, which brings forward ASEAN`s target date for creation of a free market from 2020 to 2015, will mean greater benefits for companies and more than half a billion people residing in the countries of this regional group.
ASEAN was formed on the 8th August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand with the aim of accelerating economic growth and social progress and promoting regional peace. Later, the group expanded with the inclusion of Brunei Darussalam in 1984, Vietnam in 1995 , Laos and Myanmar in 1997 and Cambodia in 1999. Since nation building is often vulnerable to foreign intervention, the governing council of the ASEAN right from the beginning wanted to have free hands to conduct their policies in the knowledge that neighbours would refrain from interfering in their domestic affairs. As a result non-interference became the cardinal principle of the organization. Its members while remaining committed to non-use of force, were also often reluctant to institutionalize and legalize regional cooperation. Keeping this history of the organization in mind, it is therefore, significant to note that the member countries this time attempted to make ASEAN a rule based legal entity like the European Union.
But this was not the first time a framework for economic integration was attempted. In 1990 Malaysia proposed the creation of an East Asia Economic Caucus comprising the then members of the ASEAN as well as the Peoples Republic of China, Japan and South Korea. The member states continued to work for further integration and in 1992 the Common Effective Preferential Tariff (CEPT) was signed to phase out tariffs. The idea of today`s Asian Free Trade Area traces its genesis to the CEPT. But building a free trade area also means facing challenges such as opening up strategic sectors to foreign companies. Today, the economies of ASEAN countries are growing at the rate of about 4 per cent per annum compared China`s double digit and India`s more than 9 per cent.
This year`s ASEAN summit meeting, however, was not just a meeting of the heads of the government of 10 member nations. There were more than a thousand delegates from 43 countries and organizations. The world leaders like Chinese Prime Minister Mr. Wen Jaibao, Indian Prime Minister Dr. Manmohan Singh and Japanese Prime Minister Mr Yasuo Fukuda were also there to attend the East Asia Summit. For them, it was not just an occasion to meet the ASEAN leaders but also to improve bilateral relations. Mr Jiabao, Chinese Prime Minister and Dr Manmohan Singh apart from discussing the border issue between their two countries also deliberated upon how to expand bilateral cooperation in the areas of energy security and climate change. Mr Fukuda, Japanese Prime Minister and Dr Manmohan Singh in their meeting reviewed the progress on the dedicated freight corridor and Delhi-Mumbai industrial corridor. The two leaders reached an unanimity of view that East Asia Summit is an important building block for creating Asian Economic Community and pledged to work closely to further this objective.
Prime Minister said in Singapore “India has a stake in ASEAN`s stability and prosperity just as we believe ASEAN has a stake in the transformation that India is experiencing. India`s relationship with the ASEAN countries is the pillar of its “Look East” policy. Ever since India became Sectoral Dialogue partners of ASEAN 15 years ago, it has taken substantial strides in integrating the economies, societies and institutions.”
As far as India`s contribution in creating an Asian Free Trade Area is concerned, there was significant headway towards signing the India –ASEAN Free Trade Agreement, FTA. India`s Commerce secretary Mr G. K. Pillai announced that most parts of the FTA with the ASEAN have already been sealed. He said, the agreement may be signed in May next year. The Commerce secretary added that India will hold bilateral meetings with ASEAN members to resolve the pending issues on import duty cuts in tea, pepper, coffee and palm oil, the things that have been holding up the agreement so far. Earlier, addressing the East Asia Summit Prime Minister Dr. Manmohan Singh said, the trade turnover target of 30 billion dollars for 2007 has already been achieved and now India and the ASEAN have fixed a new target of 50 billion dollars by 2010. He further added that both India and the ASEAN have a common political will to reach an agreement at the earliest. Dr Manmohan Singh said, to facilitate the process, simplification of visa regime should be agreed upon so that businessmen from India can travel more easily to ASEAN countries and the vice versa. The Prime Minister said, India is keen to join open skies regime among ASEAN nations to achieve flight connectivity. He also proposed the setting up of an India – ASEAN network on climate change for sharing of expertise.
Coming back to the charter committing ASEAN nations to promote human rights and democratic ideals, it was adopted on the very first day of the Summit meeting. The charter enjoins the ASEAN members to keep the region free of nuclear weapons, ease poverty, protect environment and work toward an integrated market that allows for free flow of goods, services, investments and professionals.
Source: www.quamiekta.com (13 Desember 2007)
