|
Article Excerpt
Article by Hemant Batra *
"I am never satisfied with the progress, I want things to move faster..." this was said by ASEAN Secretary General, H.E. Mr. Ong Keng Yong to the Business Standard, a business news publication, on the sidelines of a seminar organised by non-aligned Research and Information Systems and the Federation of Indian Chambers of Commerce and Industry (FICCI).
It is indispensable to appreciate the significance of intra-regional trade as it has a positive impact on the other countries, which form the inter-regional trade. Some people view world trade as consisting generally of intra-regional trade and the inter-regional trade. There is also talk of regionalisation versus globalisation of world trade. In 1980s, the share of intra-regional trade in total world trade increased in Western Europe, North America and Asia. In 1990 intra-regional trade in goods accounted for 61% of total trade in goods of the European Community - 41% for Asia and 35% for North America. Over 60% of the trade of the Pacific rim nations stays within the area. Regional integration schemes tend to increase intra-regional trade. Trade between the 12 members of the European Community (EC) increased to 60% in 1990. Intra-regional trade increased in the European Free Trade Association (EFTA) and the Association of South East Asian Nations (ASEAN).
Now, coming to one of the most important economic grouping in Asia - ASEAN and its relation with India, a burgeoning developing country.
ASEAN is a political, economic, and cultural organization of countries located in Southeast Asia. Founded on August 8th 1967, its aim is to foster cooperation and mutual assistance among members. The member countries meet annually every November in summits. The current member countries of ASEAN are, Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Viet Nam, Laos, Myanmar and Cambodia. Papua New Guinea enjoys the status of an observer in the ASEAN. The first four countries as mentioned above are its founding members. ASEAN regularly conducts dialogue meetings with other countries and organizations, collectively known as the ASEAN dialogue partners. They are Australia, Canada, The People's Republic of China, North Korea, South Korea, the United States, India, Japan, Mongolia, New Zealand, Russia, and the European Union. ASEAN Headquarters is located in Jakarta, Indonesia.
The ASEAN Regional Forum (ARF) is an informal multilateral dialogue of 23 members that seeks to address security issues in the Asia-Pacific region. The ARF met for the first time in 1994. The members include the 10 member states of the ASEAN, the observer Papua New Guinea, and the 12 ASEAN dialogue partners. The association includes about 8% of the world's population and in 2003 it had a combined GDP of about US$700 billion (roughly equivalent to South Korea) and this GDP was growing at an average rate of around 4% p.a. The economies of member countries of ASEAN are diverse, although its major products include electronic goods, oil and wood. The ASEAN countries are culturally diverse it includes more Muslims than any other geopolitical entity -- about a quarter of a billion, mostly in Indonesia and Malaysia. Other main religions of the various people in the region include large numbers of Buddhists in Thailand, Myanmar, Laos, Cambodia, Vietnam and Singapore and the predominantly Catholic Philippines. This simply proves that ASEAN is the only organisation with such diversity. ASEAN has governments with widely differing views on governance and political process, including practices in areas such as suffrage and representation. Government types range from democracy to communism and socialism. The level of corruption in ASEAN governments is also an area with large disparity.
ASEAN's interest in India arises from two considerations. First, ASEAN has traditionally engaged all the major powers of the world. India's rising economic and technological competence has the prospective to provide considerable opportunities for ASEAN countries. Second, ASEAN and India are working towards a free trade agreement, which leaders hope to make operational in a decade. This requires a considerably enhanced understanding of each other's economic structures, institutions, and political systems.
There is a lot of talk about how ASEAN can boost Indian economy and how relations with ASEAN can boost India's foreign trade. India's engagement with the ASEAN started with its "Look East Policy" in the year 1991. India became a Sectoral Dialogue Partner of ASEAN in 1992 and Full Dialogue Partner in 1996. In November 2001, the ASEAN-India relationship was upgraded to the summit level.
The 1st ASEAN Economic Ministers (AEM) - India Consultations were held on 15th September 2002 in Brunei Darussalam where the Ministers, after discussing the Joint Study Report decided to establish an ASEAN-India Economic Linkages Task Force (AIELTF). The AIELTF was asked to prepare a draft Framework Agreement to enhance the ASEAN-India trade and...
|
