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ASEAN to form EU-style trade bloc
BALI, Indonesia -- The 10 ASEAN countries meeting in Bali have signed an accord to establish a EU-style free trade zone by 2020. The agreement focusses on economic co-operation and is designed to help the nations counter the growing financial clout of China and to a lesser extent India, in the region. Several group members have urged an even quicker integration, if the region is to keep up with the rest of the world. The Bali Concord II agreement also includes moves towards greater security co-operation and the promotion of greater social and cultural integration. Philippines President Gloria Macapagal Arroyo told CNN Wednesday ASEAN had moved its partnership forward from economic co-operation to the formation of a security community and a socio-cultural community. Rather than have a formal defense alliance, ASEAN would do things "the Asian way", cooperating and helping each other by sharing information and intelligence on security matters. The ASEAN goal is to encourage investment in the region by creating a single market of 500 million people. "We have just witnessed a watershed in the history of ASEAN," Indonesian President Megawati Sukarnoputri said according to the Associated Press. That will make it possible for our children and their children to live in a state of enduring peace, stability and shared prosperity." Southeast Asia, a star performer of the global economy until the 1997-1998 Asian financial crisis, now attracts only a fifth of the foreign investment China receives. A decade ago, about 75 percent of direct American investment in East Asia went to Southeast Asia nations, the US-ASEAN Business Council said earlier this week. That figure has plunged to 10 percent as companies now put most of that money into China, the council said. The accord signed Tuesday sets deadlines for lowering tariffs and travel restrictions in the ASEAN region which has a trade totaling $720 billion a year, AP reports. It aims to create by 2020 the ASEAN Economic Community, modeled on European economic integration of the 1960s and 1970s. ASEAN also wants to create a free trade agreement with China forming a market of 1.7 billion consumers with a combined gross domestic product of $2 trillion -- the biggest free trade zone in terms of population. India, Japan and South Korea also are hoping to sign free trade agreements with ASEAN within the next decade. For 2003, ASEAN has forecast growth to average 4.3 percent to 4.9 percent, compared with 4.4 percent in 2002. Evidence of the emphasis on security in the region could be seen in the elaborate measures taken to protect leaders at the ninth summit from potential terrorist attack. Security tightSecurity forces have locked down the exclusive Nusa Dua resort region where the summit is taking place, with the presence continuing afterwards to protect those attending first anniversary commemorations for the October 12 Bali bombings. President Megawati also delivered an emotional tribute to the outgoing veteran Malaysian prime minister Mahathir Mohammed, who is attending his final ASEAN summit and will step down from his post at the end of the month. Another ASEAN leader in the spotlight has been Myanmar's military ruler, Prime Minister Gen. Khin Nyunt. Summit leaders have indicated the issue of the house arrest of Aung San Suu Kyi, whose party won 1990 elections but was barred from taking power, will be relegated to the sidelines of the two-day talks. But several leaders have said informal discussions will likely take place to encourage the military regime to release the Nobel peace laureate detained after a May 30 clash between her followers and pro-government supporters. ASEAN was founded in 1967 in Bangkok with five members and with Indonesia the moving force in the grouping. It has since expanded to 10 and comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. Copyright 2003 CNN. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report.
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