|
US Set to Conclude Trade Boosting Pact with ASEAN
WASHINGTON, Aug 22, 2006 (AFP) - The United
States is set to conclude an agreement with Southeast Asia this week
that is expected to boost free trade and help Americans benefit from
a larger East Asian tariff-busting program. The trade and investment
framework pact is expected to be clinched by US Trade Representative
Susan Schwab and her counterparts from the Association of Southeast
Asian Nations (ASEAN) after talks in Kuala Lumpur Friday, officials
said. The United States at present has trade and investment
framework agreements, popularly known as TIFA, with key individual
ASEAN economies, aimed at setting the stage for free trade
agreements. As the upcoming TIFA deal is regional in nature, many
expect it to lay the guidelines for a future free trade pact between
the 10-member ASEAN and the United States, its largest trading
partner. "It's early to predict what the next step is but the
US-ASEAN TIFA arrangement is a positive opening of possibilities on
the trade front," said Ben Dolven, senior director at
BrooksBowerAsia, a Southeast Asia focused advisory firm. "It
reflects an understanding on the part of the United States that a
great deal is happening at the regional level and that the United
States wants to be there," he said. ASEAN member countries now are
the fourth largest trading partner of the United States, with
two-way trade totaling about 150 billion dollars last year. The
United States has a free trade agreement with only one ASEAN member,
Singapore, and is negotiating similar pacts with Malaysia and
Thailand. It has TIFA deals with Indonesia, the Philippines, Brunei
and Cambodia, addressing issues ranging from intellectual property
rights to regulations impeding agricultural trade to customs
agreements to combat shipments of illegal goods. The other ASEAN
member states are Laos, Myanmar and Vietnam, which has concluded a
much-awaited agreement with the United States for its accession to
the World Trade Organization. US bilateral free trade agreements in
Southeast Asia should ultimately bring down business barriers across
ASEAN and enhance regional integration, officials said. "I do
believe that our ASEAN-TIFA is a very important first step, and it
will help us lay the groundwork, and build the capacity, and
intensify cooperation and address specific trade issues that are
going to be necessary to facilitate those consultations and
ultimately achieve that vision," Deputy US Trade Representative
Karan Bhatia said recently. Analysts note that the United States is
beginning to strengthen links with ASEAN as a grouping, moving away
from its traditional focus on bilateral links in the region which
has come under criticism. "This criticism has finally sunk in," said
Brad Glosserman, executive director of the Hawaii-based Pacific
Forum. This shift "is an attempt to broaden the terms of engagement
and to demonstrate the US commitment to being a partner to the
region," he said. The emphasis on building ties with ASEAN, for
example, could help link the United States to an evolving East Asian
regional free trade area, analysts said. ASEAN economies, aside from
forging a regional free trade area among themselves, have launched
plans for a free trade area with China that could create a unified
market of nearly two billion people -- the largest in the world.
ASEAN also has pacts to forge free trade with Japan and South Korea.
There are now plans to expand this East Asian free trade arrangement
to include India, Australia and New Zealand under a Japanese
initiative called the "pan-Asian comprehensive economic
partnership." pp/ddl |