The 10-member Association of Southeast Asian Nations (ASEAN) will need its collective economic strength to realize bargaining power world wide, especially amid trade tensions between the world’s two largest economies, Thai Prime Minister Prayuth Chan-ocha said at a news conference as Chair of the thirty fourth ASEAN Summit.
Prayuth called on ASEAN countries to finish negotiations this 12 months on the China-initiated Regional Comprehensive Economic Partnership (RCEP) pact, which covers 16 countries.
“This will help ASEAN cope with the changes and uncertainties that will occur in the region in the future, in particular the impact of trade tensions between important ASEAN trading partners.”
Negotiations began in 2012 on RCEP, which goals to create a free trade area covering 45% of the world’s population and over a 3rd of its GDP, but doesn’t include the United States.
First proposed by China, RCEP’s 16 signatories include 10 ASEAN member states and 6 countries within the Asia-Pacific region, including major economies China, India, Japan and South Korea. ASEAN has existing free trade agreements with all six countries.
“If we succeed, we can have bargaining power and a basis for negotiations. Because together we constitute 650 million people, the biggest regional bloc on the planet,” said the Thai Prime Minister.
Prayuth said 4 ASEAN countries – Thailand, Indonesia, Singapore and Vietnam – will discuss the trade war at next week’s G20 summit of 20 major economies in Tokyo.
ASEAN countries also agreed on a typical approach on the US-led Indo-Pacific Initiative at a time when tensions between the US and China were rising, forcing ASEAN countries to take a stand.
Prayuth praised the bloc’s agreement on ASEAN’s Indo-Pacific outlook as a “significant step” for the region.
The approved outlook document, seen by Reuters, recognizes “maritime issues, equivalent to unresolved maritime disputes that might trigger open conflict,” as existing and emerging geopolitical challenges.
It defines maritime cooperation “for the peaceful settlement of disputes.” It also goals to offer connectivity within the Indo-Pacific region.
Source : Reuters
