The leaders of Asean have succeeded in persuading their top trading
partners to start negotiations on the Regional Comprehensive Economic
Partnership (RCEP) to create the world’s largest trading bloc.
Cambodian Prime Minister Hun Sen formally launched the negotiations
on the RCEP during the Asean Summit and Related Summits yesterday at a
meeting at the Peace Palace in the western part of Phnom Penh.
The leaders of the 10-member regional grouping and their six major
trading partners agreed to create a trading bloc that will comprise more
than three billion people and with a combined GDP of US$15 trillion,
roughly equal to that of the US.
Asean also launched the US-Asean Expanded Economic Engagement
initiative, aimed at expanding trade and investment ties with the US and
smoothing a path for the Trans-Pacific Partnership.
Trade Minister Gita Wirjawan said that plans for the RCEP would be
welcomed by world leaders from Australia, India and the US as an amazing
tool of economic integration that might become the benchmark for other
regions.
“The spirit is not that of a zero-sum game. The economic integration
of other regions is complementary to the economic integration among
[Asean] member countries,” Wirjawan told The Jakarta Post on the
sidelines of the event.
“Many Asean member nations are conducting bilateral talks that are
just fine, because they are complementary [to the RCEP],” Wirjawan said.
The minister has previously said that the RCEP would “rewrap” five
current free trade agreements (FTAs) with Asean’s six major trading
partners, China, Japan, India, South Korea, Australia and New Zealand.
Asean’s FTA with Australia and New Zealand covers both nations.
Wirjawan said that the prospects for the RCEP were currently brighter
than of the Trans-Pacific Partnership (TPP) free trade agreement touted
by the US, as Asean already had FTAs in place, albeit mostly on goods
and tariffs, with most of the nations involved.
The RCEP will expand upon existing FTAs to include agreements covering services and investment.
Asean is currently in discussions to expand its FTA with India, which
it expects to complete in time for the Asean-India Commemorative Summit
next month in India. Similar negotiations will follow with Japan.
Earlier in the day, there was a global dialogue between Asean leaders
with the heads of world financial institutions, including Asia
Development Bank President Haruhiko Kuroda, IMF Managing Director
Christine Lagarde, World Bank Managing Director Caroline Anstey, UN
Conference on Trade and Development Secretary-General Supachai
Panitchpakdi and World Trade Organisation Director-General Pascal Lamy.
Wirjawan said that the leaders agreed that Asean had shown itself to
be resilient amid the global financial crisis, becoming a model for
other economic zones.
“Also discussed were efforts to face financial crises, such as the
Chiang Mai Initiative pool of funds, which has been increased from $120
million to $240 million,” Wirjawan said.
Another important decision that was made during meetings and summits
in Cambodia between November 15 and 20 was to start additional talks on
implementing the Asean Economic Community on Dec. 31, 2015, to aid
member nations in their preparations.
Asean’s leaders also adopted the Asean Human Rights Declaration,
despite critics who said that the document was not up to universal
standards of human rights protection, promotion, monitoring and
enjoyment.
At the end of the closing ceremony, Hun Sen presented the gavel to
Brunei Darussalam Sultan Hassanal Bolkiah to mark the handover of
Asean’s rotating chair from Cambodia to Brunei starting on January 1.
Bolkiah said it would be the fourth time that Brunei would hold
Asean’s chair, and that the nation had chosen a motto of “Our People,
Our Future Together” for Asean for 2013.
Asean Secretary-General Surin Pitsuwan of Thailand also brought to an
end to his term. He will be replaced by Vietnamese deputy foreign
minister Le Luong Minh, who has been endorsed by Asean’s member nations.
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An alternative to US President Barack Obama’s Trans-Pacific
Partnership, the 16-member Regional Comprehensive Partnership (RCEP) is
the newest concept for an economic union between ASEAN and six major
trading partners, China, Japan, India, South Korea, Australia and New
Zealand.
The RCEP is supposed to be a trading bloc that will comprise more
than three billion people with a combined GDP of $20 trillion, or almost
one-third of the global economy. Officials hope to have the talks
concluded by the end of 2015.
Source: Investvine
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Association of Southeast Asian Nations
The First ASEAN summit was held in February 1976 in Bali.
The most recent 21st Summit was held from November 18-20, 2012 in Phnom Penh, Cambodia
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Video: ASEAN agenda
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Video: Opening Ceremony of the 21st ASEAN Summit
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Trans-Pacific Partnership
On November 12, 2011, the Leaders of the nine Trans-Pacific
Partnership countries – Australia, Brunei Darussalam, Chile, Malaysia,
New Zealand, Peru, Singapore, Vietnam, and the United States – announced
the achievement of the broad outlines of an ambitious, 21st-century
Trans-Pacific Partnership (TPP) agreement that will enhance trade and
investment among the TPP partner countries, promote innovation, economic
growth and development, and support the creation and retention of jobs.
INCREASING AMERICAN EXPORTS, SUPPORTING AMERICAN JOBS
President Obama announced in November 2009 the United States’
intention to participate in the Trans-Pacific Partnership (TPP)
negotiations to conclude an ambitious, next-generation, Asia-Pacific
trade agreement that reflects U.S. priorities and values. Through this
agreement, we are seeking to boost U.S. economic growth and support the
creation and retention of high-quality jobs at home by increasing
American exports to a region that includes some of the world’s most
robust economies and that represents more than 40 percent of global
trade. The Obama Administration has been working in partnership with
Congress and consulting closely with stakeholders around the country to
ensure TPP addresses the issues that American businesses and workers are
facing today, and may confront in the future.
The Trans-Pacific Partnership Framework
The United States, along with Australia, Brunei Darussalam, Chile,
Malaysia, New Zealand, Peru, Singapore, and Vietnam are working to craft
a high-standard agreement that addresses new and emerging trade issues
and 21st-century challenges. The agreement will include:
• Core issues traditionally included in trade agreements, including
industrial goods, agriculture, and textiles as well as rules on
intellectual property, technical barriers to trade, labor, and
environment.
• Cross-cutting issues not previously in trade agreements, such as
making the regulatory systems of TPP countries more compatible so U.S.
companies can operate more seamlessly in TPP markets, and helping
innovative, job-creating small- and medium-sized enterprises participate
more actively in international trade.
• New emerging trade issues such as addressing trade and investment
in innovative products and services, including digital technologies, and
ensuring state-owned enterprises compete fairly with private companies
and do not distort competition in ways that put U.S. companies and
workers at a disadvantage.
Leading Asia-Pacific Regional Integration Initiative
The TPP is the most credible pathway to broader Asia-Pacific regional
economic integration. After nine rounds of negotiations, the nine
countries made solid progress and have now achieved the broad outlines
of an agreement. During their meeting on the margins of the APEC meeting
in Honolulu, the TPP Leaders agreed to seek to conclude the agreement
as quickly as possible and instructed their negotiators to expedite
their work. The nine countries also welcomed the interest expressed by
other countries in joining the agreement and will begin bilateral
processes with these interested countries to discuss their readiness and
ambition to meet the standards and objectives of the TPP. Once these
bilateral processes have concluded, all current Parties will decide on
inclusion of new members by consensus.
American Competitiveness in the Asia-Pacific
The TPP is a key element of the Obama Administration strategy to make
U.S. engagement in the Asia-Pacific region a top priority. The huge and
growing markets of the Asia-Pacific already are key destinations for
U.S. manufactured goods, agricultural products, and services suppliers.
As a group, TPP countries are the fourth largest goods and services
export market of the United States. U.S. goods exports to the broader
Asia-Pacific totaled $775 billion in 2010, a 25.5 percent increase over
2009 and equal to 61 percent of total U.S. goods exports to the world.
U.S. exports of agricultural products to the region totaled $83 billion
in 2010 and accounted for 72 percent of total U.S. agricultural exports
to the world. U.S. private services exports totaled $177 billion in 2009
(latest data available), 37 percent of total U.S. private services
exports to the world. America’s small- and medium-sized enterprises
alone exported $171 billion to the Asia-Pacific in 2009 (latest data
available).
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Video: Trans-Pacific Partnership negotiated in secret
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Video: Dennis Kucinich discusses the secrecy of the Trans Pacific Partnership
Dennis Kucinich (Democrat) is a member of the U.S. House of Representatives from Ohio’s 10th district
October 18, 2012 before the elction of the U.S. President took place on November 6, 2012
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Sources: Novan Iman Santosa The Jakarta Post
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RCEP will promote and facilitate international trade among the 15 participating countries in the Asia-Pacific region and the expected increase in free trade will have a significant impact on the Malaysian property market. -NST/file pic.
; China and 14 other economies signed the world's largest trade deal, the Regional Comprehensive Economic Partn...Azmin showing the RCEP agreement document during the signing ceremony witnessed by Muhyiddin on Nov 15. – fotoBERNA...
