ASEAN ‘should lead’ East Asia integration

ASEAN, China, Japan and South Korea should lead economic integration in Asia amid the new initiatives of new regional architecture, a seminar heard here Monday.

Djisman Simandjuntak, a chairman of Centre for Strategic and International Studies (CSIS), said the ASEAN+3 (APT) should become the driver of economic integration in the region because it has developed a mature arrangement compared to other existing forums, such as the East Asia Summit (EAS).

The EAS convenes APT together with India, Australia and New Zealand.

Djisman was speaking in a seminar to celebrate the 60th anniversary of diplomatic relations between Indonesia and China.

The seminar was cohosted by the CSIS, the Chinese People’s Institute of Foreign Affairs, the Indonesian Chamber of Commerce and Industry and the Chinese Embassy.

Djisman noted there had been rivalry between China and Japan to spearhead economic integration in the region with China preferring to move forward with ASEAN+3 while Japan pushes the EAS, adding the issue would take some time to solve.

Indonesia, the largest economy in Southeast Asia, will chair ASEAN next year as the grouping is set to induct new members the US and Russia to form the EAS in 2011.

Some critics voiced concerns that the expansion of the EAS with powerful member of the US would shift the attention away from ASEAN+3 and delay its economic agenda, including the establishment of a free trade agreement among members.   

“The [rivalry] leads to a new question of what is the position of ASEAN. I have to say this would put ASEAN in a difficult position because both Japan and China are important partners… But taking into consideration several issues, ASEAN+3 has a better chance to take the lead,” he said.

Djisman pointed to the Chiang Mai Initiative, the currency swap arrangement among ASEAN+3 members during times of emergency, as one example of mechanisms that should be further developed as a model for economic integration.

“EAS is a non economic forum in its nature and it is too large,” he said.

Speaking at the same seminar, Cai Jinbiao, vice president of the Chinese People’s Institute of Foreign Affairs, said the rise of Asia should bring the communities in the region closer to tackle the economic hurdles, both tariff and non-tariff challenges.

“Economic integration should be the region’s priority, and not so much how to make the region integrated in the fashion of the EU (European Union), because we are different to the EU,” he said.

He referred to the East Asia Community initiatives floated by Japanese former prime minister Yukio Hatoyama last year which was meant to be an comprehensive integration modeled after the EU.    

Cai said the economic integration should translate into more free trade agreements among countries in the region.

“ASEAN already has a free trade agreement with China [ASEAN+1] as well as with Japan and South Korea. We want to move to the next level of agreements in ASEAN+3 under what we have called the East Asia Economic Community,” he said.

The idea of a free trade zone in the East Asia region has been a topic of debate, especially with the integration of the US and Russia into the EAS next year.

Cai said, however, the free trade communities should not be made exclusive and be open for membership from other countries, including the US.