PM: Cooperate on trade, climate change to boost East Asia Summit

Straits Times 26 Oct 09;

CHA-AM: As the 16 member nations of the fledging East Asia Summit (EAS) continue to try to work more closely, Singapore Prime Minister Lee Hsien Loong yesterday had some suggestions.

In a speech he delivered during the fourth EAS held in Cha-am, he laid out some ideas on how the grouping's members could strengthen cooperation.

These include setting up a trade finance mechanism, improving cooperation on fighting climate change, and deepening understanding and appreciation of shared heritage among EAS members.

EAS members include the 10 Asean states, plus China, Japan, South Korea, India, Australia and New Zealand.

Mr Lee started by urging officials of the 16 member-states to start work soon on an appropriate trade finance mechanism. This was necessary, he noted, even though trade finance - a key concern during the global economic crisis earlier this year - has become less urgent now.

'It's still worthwhile to set up a system,' said Mr Lee, noting that officials had held a workshop on the issue in Bangkok earlier this month.

Next, he noted the rising prominence of the Group of 20 (G-20) as a global economic forum, and called on EAS members to support Asean's continued participation in future G-20 discussions.

For this reason, he said, he welcomed a proposal by Australia for EAS finance ministers to meet ahead of G-20 meetings.

Mr Lee then went on to urge governments to band together to support the upswing in world trade and investment.

One way is to create a region-wide Free Trade Area through the Comprehensive Economic Partnership of East Asia, something that is now being considered by EAS members.

'Moving on this quickly will signal our resolve to push for deeper economic integration and trade liberalisation,' observed Mr Lee.

The Singapore leader also singled out the ongoing Nalanda University project as an example of how EAS cooperation could strengthen the understanding and appreciation of shared heritage in the region.

The project, which aims to rebuild the ancient Buddhist university of Nalanda in north-east India, is led by a 10-member Nalanda Mentor Group and is supported by the EAS.

PM Lee said he hopes Nalanda University, scheduled to open in two years' time, will grow into 'a 21st century centre of learning linking South and East Asia'.

He said: 'These are good examples of how deepening EAS cooperation can benefit the entire region'.

Another example of regional cooperation was in disaster management.

Yesterday, EAS leaders issued the Cha-am Hua Hin Statement on EAS Disaster Management, pledging a commitment to cooperate in responding to natural disasters.

KOR KIAN BENG

Asean

# New high-level task force being set up to develop a master plan and infrastructure development fund to improve transport and electronic links.

# Asean Plus Three to implement the US$120billion (S$167billion) Chiang Mai Initiative Multilateralisation by year-end. This is a currency swap arrangement that countries can use to defend their currencies when needed.

# Asean and six dialogue partners - China, Japan, South Korea, India, Australia and New Zealand - are studying two economic pacts that could create a free-trade area for a region with 3.1 billion people and combined GDP of US$14.1 trillion.

Dialogue partners have pledged or are contributing to various funds. They include:

# China: US$10 billion for the China-Asean Fund on Investment Cooperation and US$15 billion in commercial credit; US$200 million for the credit guarantee and investment mechanism under the Asian Bonds Market Initiative.

# Japan: US$13 million for the Japan-Asean Integration for cooperation in disaster management and emergency cooperation.

# South Korea: US$100 million from the East Asia Climate Partnership initiative for projects fighting climate change.

# India: US$50 million to the Asean-India Cooperation Fund and Asean Development Fund.