Thursday, July 21, 2011

ASEAN needs to boost trade a third before 2015: Pitsuwan

Mustaqim Adamrah,
The Jakarta Post
Thu, 07/21/2011

Indonesia is hosting several ASEAN meetings in Nusa Dua, Bali, this week, including the 44th ASEAN Ministerial Meeting (AMM), Post-Ministerial Conferences (PMC) and the 18th ASEAN Regional Forum (ARF). Below are excerpts of an interview
The Jakarta Post’s Mustaqim Adamrah conducted with ASEAN Secretary-General Surin Pitsuwan on some of the issues under discussion at this week’s talks.

Question: What is your opinion on the International Court of Justice’s recent ruling on the Thai-Cambodian border conflict?

Answer: I think it will take some time for both parties to interpret and to comply with the judgment — which will be good.

ASEAN has been called upon to facilitate further, which is a confirmation of the mandate that the UN Security Council has already requested that ASEAN perform. We will have to wait for the two parties to agree on the next step forward before ASEAN is able to continue facilitating.

What do you think about the ICJ’s recommendation for Cambodia and Thailand to allow an ASEAN observer team into the disputedarea?

ASEAN shall facilitate an ASEAN observer [team], which is essentially observers from its chair [Indonesia] to take part in the observation of the secession of hostilities on the border.

This is an affirmation of ASEAN’s contribution as part of the regional arrangement in the UN charter used by the global community.

The world body –the UN– has been working with regional organizations to maintain of peace and
security around the world. ASEAN is no exception.

It is being called upon and will take the mandate forward. Again, ASEAN will need the cooperation of both parties, recognizing that ASEAN can make contribution.

No one has mentioned security in developing the guidelines of the Declaration of Conduct for the South China Sea. How can ASEAN ensure that the competing claims of its member nations will not escalate?

It’s still a work in progress. They will commit themselves to achieving the final rounds of discussions this year under the chairmanship of Indonesia, and they hope that next year at the 10th anniversary of the Declaration of Conduct of Parties on the South China Sea we will be able to conclude, sign and seal a deal.

We have seen a sense of urgency from both sides — on the ASEAN side and the Chinese side — and on the part of dialogue partners who have a strong interest in seeing the South China Sea being peaceful, managed effectively, and with stability, security and the freedom of navigation.

If there is anything that would have a negative impact on Southeast Asia or East Asia at all, this issue would certainly be it. It would impact the world because East Asia has become a new engine, a new locomotive, a new force for global development, global growth and global recovery.

What percentage of ASEAN trade is between member nations?

[It’s] hovering around 24 to 25 percent of our total trade, about US$500 billion — which is very still quite low.

Out of $2 trillion plus [in trade] a year, ASEAN should be aiming at 30 percent to 35 percent [internally] as we move toward the [ASEAN] Community.

What’s the level of ASEAN’s internal trade as compared to other economic communities or trading blocks?

When compared to the European Union, around 68 percent of trade is between its 27 members. In North America, under NAFTA [North American Free Trade Agreement], it’s around 48 percent. We need to bring up [inter-ASEAN trade] to 30, 35, 40 percent in the next few years.

After all, it’s going to be one market and one production base. It’s important that we take advantage of our own markets rather than opening up for the rest of the world to take advantage of our one market.

We have strategies. We’re promoting SMEs [small and medium enterprises]. We’re promoting the facilitation of trade. We’re promoting the reduction of tariffs, of course. Certainly non-tariff barriers are being discouraged and being dismantled – and being brought down to.

What’s your view of the competition between China, Japan and the US for ASEAN’s connectivity projects?

We welcome competition.

We are open for participation and the contribution of dialogue partners on ASEAN connectivity. We have to pay attention more to maritime connectivity. Archipelagic countries, like Indonesia, Brunei, Malaysia and the Philippines, can also benefit from the connectivity plan.

Countries like China, Japan, Korea and the US have their expertise and their technology in maritime connectivity.

They are in a position to help. The project is big enough: $8 trillion in the next 10 years.

We need infrastructure. China, Japan, Korea and the US can divide [projects] between themselves.

The cake is big enough for everyone.

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