Strengthening free trade agreements within the region, pledging support to the ASEAN US$120 billion emergency currency swap fund, bettering food and energy security and enhancing regional integration will be the four major points in the ASEAN leaders meet in Pattaya, Thailand this weekend. The 10 nation regional body is collectively working at creating a strong integrated region where trade, finance and labor can transgress national borders easily.
During the weekend meet at the seaside resort of Pattaya, China which is part of ASEAN+3, will sign the ASEAN-China Investment Agreement, completing its FTA with ASEAN. China and ASEAN have formally signed agreements on goods and services in 2004 and 2007 respectively. China which increasing her influence in the region will create the world’s third largest trading bloc with ASEAN after North America and Europe in 2010 when the FTA is finalized. India which too is due to sign an FTA with ASEAN has postponed signing the agreement until after its national elections due in May are concluded.
The ASEAN+3 (China, Japan and South Korea) nations which collectively have roughly half the world’s foreign reserves – about US$ 3.6 trillion have also finalized their contributions to the US$120 billion dollar emergency currency swap fund. The fund which will be used as an emergency credit line will be contributed to mainly by China, Japan and South Korea. Indonesia, Malaysia, Singapore and Thailand would additionally each contribute US$4.76 billion while the Philippines will contribute US$3.68 billion dollars, Brunei, Cambodia, Laos, Myanmar and Vietnam will contribute according to their reserves.
The Pattaya summit will be followed by a global dialogue on Sunday where United Nations Secretary General Ban Ki-moon and the chiefs of the IMF, World Bank and the World Trade Organization will join the ASEAN+3 nations to discuss ways to rescue the global economy from further deterioration.
“Asia straddles many of the most challenging developing and developed world issues facing us, and is a key platform for restoring the global growth we need,” Robert Zoellick, President, World bank told Reuters.
