Talks on Asian trade deal ‘conclusive’: Commerce minister

Talks on Asian trade deal ‘conclusive’: Commerce minister

Prime Minister Prayut Chan-o-cha, Asean foreign ministers and US National Security Advisor Robert C. O’Brien attend the 7th Asean-United States Summit in Bangkok on Monday. (Reuters photo)
Prime Minister Prayut Chan-o-cha, Asean foreign ministers and US National Security Advisor Robert C. O’Brien attend the 7th Asean-United States Summit in Bangkok on Monday. (Reuters photo)

Asian countries held conclusive talks on what could be the world's biggest trade pact and there will be an announcement of success at a summit in Bangkok, despite doubts raised by India, Commerce Minister Jurin Laksanawisit said on Monday.

But questions still hung over India's participation in the China-backed 16-nation Regional Comprehensive Economic Partnership (RCEP), which has been given new impetus by the US-China trade war.

Despite a message of support from US President Donald Trump to the Association of Southeast Asian Nations (Asean), regional countries noted that Washington had downgraded its delegation for the annual Asian meetings.

Southeast Asian countries hoped to announce at least provisional agreement on the 16-nation trade bloc that would account for a third of global gross domestic product and nearly half the world's population.

But last-minute demands raised by India meant negotiations among ministers went late into the night. The bloc includes the 10 Asean members plus China, South Korea, Japan, India, Australia and New Zealand.

"The negotiation last night was conclusive," Commerce Minister Jurin Laksanawisit told Reuters.

"There will be an announcement together on the success of the RCEP agreement by the leaders later today. India is part of this as well and will jointly make the announcement. The signing will be next year."

But an Indian official with close knowledge of talks said not everything had been resolved and discussions were still on, adding that it was "all being decided politically".

China's foreign ministry referred in a statement to "RCEP-15 member states" concluding most negotiations - implying that only 15 countries had agreed. Australia's trade minister Simon Birmingham also cast doubt on whether India was on board.

New impetus to complete the deal has come from the trade war, which has knocked regional growth, but India fears a potential flood of Chinese imports and officials with knowledge of the negotiations said India had raised late demands.

One advantage for Southeast Asian countries of including relative heavyweight India in the trade pact would be less domination by China.

Diplomatic and security calculations in Southeast Asia have shifted under the Trump administration.

And the US decision to send a lower level delegation to the summits this year has raised regional concerns that it can no longer be relied on as a counterweight to China's increasing regional might.

Because of the downgrade in the US delegation, only three of the 10 regional leaders joined the usual US-Asean meeting.

US Commerce Secretary Wilbur Ross told a business meeting on the sidelines of the summit that the administration of US President Donald Trump was "extremely engaged and fully committed" to the region.

White House national security adviser Robert O'Brien brought a personal message from Trump offering to host a meeting of Southeast Asian leaders in the United States.

He also condemned Chinese "intimidation" in the South China Sea, where several regional states reject China's sweeping maritime claims and complain that Beijing is illegally stopping them from exploiting their energy resources and fishing grounds.

But diplomats and analysts said the message from Washington was clear.

"Doubts have been raised in a more serious way about the Trump administration engaging and this may also play into the hands of other superpowers in pushing their own agendas," said Panitan Wattanayagorn, a former Thai national security adviser. 

Do you like the content of this article?

President Biden to attend Asean-US summit on Tuesday

BANDAR SERI BEGAWAN: US President Joe Biden will attend a meeting with the Association of Southeast Asian Nations (Asean) on Tuesday, the US embassy in Brunei told Reuters.

25 Oct 2021

UN: World greenhouse gas levels hit record last year

GENEVA: Greenhouse gas concentrations hit a record last year and the world is "way off track" on climate goals, the UN weather agency said on Monday, showing the scale of the task facing governments scrambling to avert dangerous levels of warming.

25 Oct 2021

Indonesia in talks to buy Merck's Covid-19 antiviral pill

JAKARTA: Indonesia is "finalising" a deal with Merck & Co to procure its experimental antiviral pills, named molnupiravir, to treat Covid-19 ailments, Health Minister Budi Gunadi Sadikin said on Monday.

25 Oct 2021