ASEAN Summit: Is India serious about regional trade pact?

Agencies
November 19, 2018

Singapore, Nov 19: If you were here in Singapore for the first time on a brief visit last week, you could be excused for wondering if it's normal for thousands of police officers to be patrolling the streets and for scores of Special Operations Command and other police vehicles to be parked all over the city. You may also be wondering if traffic is always really this bad.

Actually, no. Singapore is typically very safe and the police is usually not seen much. Neither will you hear sirens piercing the air every few minutes like in some other cities. And it's uncommon for traffic jams to occur.

Last week, besides the leaders of the 10 ASEAN countries, some of world's top leaders including Indian Prime Minister Narendra Modi, Russian President Vladimir Putin, Chinese Premier Li Keiqiang, Japanese Prime Minister Shinzo Abe, South Korean President Moon Jae-in, Canadian Prime Minister Justin Trudeau, Australian Prime Minister Scott Morrison and United States Vice President Mike Pence were in Singapore for the ASEAN Summit. Hence, the stepped-up security.

The world leaders who came, see this as a fantastic and convenient opportunity to meet at the sidelines of the summit to discuss bilateral issues especially ahead of the APEC Summit which takes place in Papua New Guinea immediately after the ASEAN conference. For example, President Putin met with Japan PM Abe as well as Vice President Pence. President Putin's attendance also allowed him to project Russia's desire to be a global influencer and show their willingness to engage with the region especially in economic matters.

The Association of Southeast Asian Nations or ASEAN is a regional intergovernmental organisation made up of 10 countries to promote and facilitate cooperation mainly in trade but also in security matters, education and culture integration and exchange. Meetings at various levels are held regularly with its secretariat located in Jakarta, Indonesia.

Together, ASEAN forms a market of US$2.6 trillion with a population of 622 million people. It is collectively the third largest economy in Asia after China and Japan and seventh largest in the world.

At the moment, the over-arching economic objective for the group is to achieve full economic integration by way of a single market fully connected with the global economy by 2025. Called the ASEAN Economic Community (AEC), it is a free trade zone copying the European Union model loosely.

In his opening address as Chairman of ASEAN, a title and responsibility which rotates among the countries every year, Singapore's Prime Minister Lee Hsien Loong said: "The international order is at a turning point. The existing free, open and rules-based multilateral system which has underpinned ASEAN's growth and stability, has come under stress. Countries, including major powers, are resorting to unilateral actions and bilateral deals, and even explicitly repudiating multilateral approaches and institutions."

Unsurprisingly, global trade uncertainties was one of the key subjects discussed at the summit.

However, the main economic topic on the agenda was the Regional Economic Comprehensive Partnership (RCEP). Other than the ASEAN countries, this agreement brings together China, Japan South Korea and, also Australia, New Zealand and India.

If completed, the RCEP will be the largest such trade agreement since the General Agreements on Tariffs and Trade (GATT) which was implemented in 1948. It will encompass 25 per cent of global gross domestic product (GDP) of US$25 trillion, 45 per cent of the total population, 30 per cent of global income and 30 per cent of global trade. Many were expecting it to be wrapped up this year but at the summit it was announced that it will be delayed till 2019. Leaders at the summit, however, were quick to emphasise that negotiations are at its final stage.

The pact is seen as vital in securing the region's continued prosperity, especially after a trade war broke out between its vital trading partners, US and China.

Although Prime Minister Modi urged an early conclusion to RCEP talks, it is not clear at this stage what level of commitment India has in participating. The RCEP is a traditional trade pact which cuts tariffs on tradable goods whereas India's strength is in the services sector. India is believed to be holding up for better market access for its professionals and to the services sector than is currently offered.

India also complained that imports to India from ASEAN has grown faster than Indian exports to the bloc. New Delhi is reluctant to cut tariffs and open its markets in the face of strong opposition from its farming as well as steel and textiles industries. The dilemma facing India is exacerbated by the fact that strategic rival China is part of the agreement although China is an important trading partner as well.

On the other hand, ASEAN nations are increasingly investing in India, including in ports, highways, townships and food processing. It was noted at the summit that with the Modi government improving ease of doing business, investment and trade with ASEAN has grown. Despite good progress being made on the India-Myanmar-Thailand trilateral highway with an extension to Laos, Cambodia and Vietnam, ASEAN has called for better maritime, air, land and digital connectivity between ASEAN and India.

With the Indian general elections expected next year, the RCEP negotiations come at a sensitive time for PM Modi.

India is the sixth largest trading partner of ASEAN having signed the India-ASEAN FTA (free trade agreement) in 2010 and bilateral trade is valued at US$80 billion but this is seen by economists as far short of its true potential.

PM Lee of Singapore urged India to be part of RCEP saying: "Together with the ASEAN-India Free Trade Area, we hope that this will help us reach the ASEAN-India trade target of US$200 billion in total trade by 2022."

If India can address its national interests through the on-going talks, the RCEP is a promising vehicle that can help a reluctant India which traditionally shies away from trade pacts, expands its markets through incorporation into a truly open trading bloc.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 30,2020

Washington, May 30: The United States will end its relationship with the World Health Organization over the body’s handling of the coronavirus pandemic, U.S. President Donald Trump said on Friday, accusing the U.N. agency of becoming a puppet of China.

The move to quit the Geneva-based body, which the United States formally joined in 1948, comes amid growing tensions between Washington and Beijing over the coronavirus outbreak. The virus first emerged in China’s Wuhan city late last year.

Speaking in the White House Rose Garden, Trump said Chinese officials “ignored their reporting obligations” to the WHO about the virus - that has killed hundreds of thousands of people globally - and pressured the agency to “mislead the world.”

“China has total control over the World Health Organization despite only paying $40 million per year compared to what the United States has been paying which is approximately $450 million a year,” he said.

Trump’s decision follows a pledge last week by Chinese President Xi Jinping to give $2 billion to the WHO over the next two years to help combat the coronavirus. The amount almost matches the WHO’s entire annual program budget for last year.

Trump last month halted funding for the 194-member organization, then in a May 18 letter gave the WHO 30 days to commit to reforms.

“Because they have failed to make the requested and greatly needed reforms, we will be today terminating our relationship with the World Health Organization and redirecting those funds to other worldwide and deserving urgent global public health needs,” Trump said on Friday.

It was not immediately clear when his decision would come into effect. A 1948 joint resolution of Congress on U.S. membership of the WHO said the country “reserves its right to withdraw from the organization on a one-year notice.”

The World Health Organization did not immediately respond to a request for comment on Trump’s announcement. It has previously denied Trump’s assertions that it promoted Chinese “disinformation” about the virus.

“It’s important to remember that the WHO is a platform for cooperation among countries,” said Donna McKay, executive director of Physicians for Human Rights. “Walking away from this critical institution in the midst of an historic pandemic will hurt people both in the United States and around the world.”

‘ABSOLUTELY CRITICAL’

The United States currently owes the WHO more than $200 million in assessed contributions, according to the WHO website. Washington also gives several hundred million dollars annually in voluntary funding tied to specific WHO programs such as polio eradication, HIV, hepatitis and tuberculosis.

Amesh A. Adalja, a senior scholar at Johns Hopkins Center for Health Security, said that in practice Trump’s decision was unlikely to change the operations of the WHO.

“From a symbolic or moral standpoint it’s the wrong type of action to be taking in the middle of a pandemic and seems to deflect responsibility for what we in the U.S. failed to do and blame the WHO,” said Adalja.

When Trump halted funding to the WHO last month, two Western diplomats said the U.S. suspension was more harmful politically to the WHO than to the agency’s current programs, which are funded for now.

The WHO is an independent international body that works with the United Nations. U.N. Secretary-General Antonio Guterres said last month that the WHO is “absolutely critical to the world’s efforts to win the war against COVID-19.”

When asked about Trump’s decision, a U.N. spokesman said: “We have consistently called for all states to support WHO.”

Trump has long scorned multilateralism as he focuses on an “America First” agenda. Since taking office, he has quit the U.N. Human Rights Council, the U.N. cultural agency, a global accord to tackle climate change and the Iran nuclear deal. He has also cut funding for the U.N. population fund and the U.N. agency that aids Palestinian refugees.

“The WHO is the world’s early warning system for infectious diseases,” said U.S. Representative Nita Lowey, a Democrat who chairs the House Committee on Appropriations. “Now, during a global pandemic that has cost over 100,000 American lives, is not the time to put the country further at risk.”

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
February 4,2020

The Seattle City Council, one of the most powerful city councils in the U.S., on Monday unanimously passed a resolution condemning India’s recently-enacted Citizenship Amendment Act (CAA) and the National Register of Citizens (NRC).

Reaffirming Seattle as a welcoming city and expressing solidarity with the city’s South Asian community regardless of religion and caste, the resolution “resolves that the Seattle City Council opposes the National Register of Citizens and the Citizenship Amendment Act in India, and finds these policies to be discriminatory to Muslims, oppressed castes, women, indigenous, and LGBT people“.

Introduced by Indian American City Council member Kshama Sawant, the resolution urges the Parliament of India to uphold the Indian Constitution by repealing the CAA, and to stop the National Register of Citizens, and take steps towards helping refugees by ratifying various UN treaties on refugees.

“Seattle City’s decision to condemn CAA should be a message to all who wish to undermine pluralism and religious freedom. They cannot peddle in hate and bigotry, and expect to have international acceptability at the same time,” said Ahsan Khan, president of Indian American Muslim Council.

Thenmozhi Soundararajan of Equality Labs, which organised the community in support of the resolution, welcomed its passage. “We are proud of the Seattle City Council for standing on the right side of history today. Seattle is leading the moral consensus in the global outcry against the CAA, she said.

Soundararajan said that thousands of organizers across the country have called, e-mailed, and visited Seattle City Council members to amplify this resolution, and it sets an example to cities across the United States.

“At a time when members of the Indian ruling party sided Trump, the Muslim ban, and his war on immigrants as justification for targeting hundreds of millions of Indian minorities, Americans have a unique responsibility to stand up and speak about this human rights crisis. We are glad that Seattle is leading the way on this,” she said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
February 29,2020

Doha, Feb 29: The United States signed a landmark deal with the Taliban on Saturday, laying out a timetable for a full troop withdrawal from Afghanistan within 14 months as it seeks an exit from its longest-ever war.

President Donald Trump urged the Afghan people to embrace the chance for a new future, saying the deal held out the possibility of ending the 18-year conflict.

"If the Taliban and the government of Afghanistan live up to these commitments, we will have a powerful path forward to end the war in Afghanistan and bring our troops home," he said on the eve of the event in Doha.

Secretary of State Mike Pompeo arrived in the Qatari capital to witness the signing of the accord, while Defence Secretary Mark Esper was in Kabul for a separate joint declaration with the Afghan government.

The agreement is expected to lead to a dialogue between the Kabul government and the Taliban that, if successful, could ultimately see the Afghan war wind down.

But the position of the Afghan government, which has been excluded from direct US-Taliban talks, remains unclear and the country is gripped by a fresh political crisis amid contested election results.

The United States and its allies will withdraw all their forces from Afghanistan within 14 months if the Taliban abide by the Doha agreement, Washington and Kabul said in a joint statement.

After an initial reduction of troops to 8,600 within 135 days of Saturday's signing, the US and its partners "will complete the withdrawal of their remaining forces from Afghanistan within 14 months... and will withdraw all their forces from remaining bases", the declaration stated.

The Doha accord was drafted over a tempestuous year of dialogue marked by the abrupt cancellation of the effort by Trump in September.

The signing comes after a week-long, partial truce that has mostly held across Afghanistan, aimed at building confidence between the warring parties and showing the Taliban can control their forces.

NATO Secretary General Jens Stoltenberg heralded the agreement as a "first step to lasting peace".

"The way to peace is long and hard. We have to be prepared for setbacks, spoilers, there is no easy way to peace but this is an important first step," the Norwegian former prime minister told reporters in Kabul.

Since the US-led invasion that ousted the Taliban after the September 11, 2001 attacks, America has spent more than $1 trillion in fighting and rebuilding in Afghanistan.

About 2,400 US soldiers have been killed, along with unknown tens of thousands of Afghan troops, Taliban fighters and Afghan civilians.

The insurgents said they had halted all hostilities Saturday in honour of the agreement.

"Since the deal is being signed today, and our people are happy and celebrating it, we have halted all our military operations across the country," Taliban spokesman Zabihullah Mujahid told AFP.

Close to 30 nations were represented at Saturday's signing in the Qatari capital.

While Kabul will not be represented at the Doha ceremony, set for 1245 GMT, it will send a six-person taskforce to the Qatari capital to make initial contact with the Taliban political office, established in 2013.

Any insurgent pledge to guarantee Afghanistan is never again used by jihadist movements such as Al-Qaeda and the Islamic State group to plot attacks abroad will be key to the deal's viability.

The Taliban's sheltering of Al-Qaeda was the main reason for the US invasion following the 9/11 attacks.

The group, which had risen to power in the 1990s in the chaos of civil war, suffered a swift defeat at the hands of the US and its allies. They retreated before re-emerging to lead a deadly insurgency against the new government in Kabul.

After the NATO combat mission ended in December 2014, the bulk of Western forces withdrew from the country, leaving it in an increasingly precarious position.

While Afghans are eager to see an end to the violence, experts say any prospective peace will depend on the outcome of talks between the Taliban and the Kabul government.

But with President Ashraf Ghani and rival Abdullah Abdullah at loggerheads over contested election results, few expect the pair to present a united front, unlike the Taliban, who would then be in a position to take the upper hand in negotiations.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.