Implications of sub-regional groupings for the success of Pacific regional trade liberalisation

Abstract

Twenty-five years after its formation, Asean is now at the crossroads. I am saying so from two aspects. First, the internal aspect. Internally, Asean needs to bring about a more effective and substantive intra-Asean eco- nomic co-operation. Bold and innovative initiatives are currently being considered with regard to intra-Asean economic co-operation. These are likely to be brought up in the Summit Meeting scheduled at the end of January 1992 in Singapore. Among these initiatives, (a couple of them have already been brought up by Dr Noordin Sopiee in his opening remarks in this Forum), are the proposals for a free trade area for Asean, a system of a common effective preferential tariff, and the Asean Treaty of Economic Co-operation which would entail a legal framework that will bind Asean into a form of legal entity. This latter proposal was initiated by the Philippines. On the external aspect, Asean is concerned with its relationships with the dialogue partners and with its response to future co-operative programmes. Since my topic is going to cover the larger East Asia grouping, let me again refer you to Dr Noordin's opening statement which listed not less than 8 'ideas' for economic co-operation for the East Asia region Which encompasses China, Japan, Korea, Indochina and the Asean. These are the developments which Asean will have to address.