Later, the growth of U.S. & Japan from Southeast Asia

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Later, the growth of U.S. & Japan from Southeast Asia

Tuesday, 27 July 2010 09:49

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Later, the growth of U.S. & Japan from Southeast Asia
Kelak, pertumbuhan AS & Jepang dari Asia Tenggara
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JAKARTA - Secretary General of ASEAN Surin Pitsuwan believes the source of economic growth in the United States and Japan in the future comes from the Asean region.

"Asean region can not be underestimated," said Surin in the media gathering to discuss the results of the Asean Ministerial Meeting which was held to 43 in Hanoi, Vietnam last week, today.

He said economic growth in Japan on his way to touch a small range of stagnant or 1.5%, but the quality of the population can be sustained prosperity. Surin rate that is contributed to the production network in Asean countries.

With the United States, Japan's trade balance reached U.S. $ 176 billion. Although U.S. trade with Asean only covers about U.S. $ 1 billion, Surin just see it as an opportunity for the condition of the country, Uncle Sam to boost its market to the region.

From the investment side, Surin said ASEAN is the largest investor in Europe. China only take a 2.5% share of total investment entering. However, investment from the Bamboo Curtain Affairs is expected to continue increasing, particularly from small and medium companies in the midst of efforts to defuse the country's economic and trade acceleration.

"Asean interesting for them and we want to maintain our attractiveness," he added.

In the Asean ministerial meeting to-43 in Hanoi, the ministers agreed to expand the membership forum East Asia Summit (EAS) from the current 16 states. Russia and the United States have expressed interest to join.

EAS consists of 10 Asean countries, Japan, China, South Korea, Australia, New Zealand, and India. Expansion plans will include Papua New Guinea, Timor Leste, the United States and Russia. EAS also encourage the establishment of Comprehensive Economic Partnership between the country groups, but has not specified a target date for its formation.

According to Surin, Asean strategy to expand economic cooperation with East Asia and major countries like the U.S. and Russia is not merely to help the region solve their own problems, but also due to address global challenges like climate change or natural disasters which can not be handled alone.

He admits the strategy is ambitious because at the same time, ASEAN is still faced with internal issues in the efforts of economic integration under the framework of the Asean Community in 2015.

The biggest challenge for the integration of Asean, he said, are differences in economic characteristics and attitudes among their members. He gave an example in the Asean FTA, six states already enforce the 0% tariff reduction, while four countries still need to wait until 2015 to 2020.

However, he stressed the Asean seeks to integrate in a number of other fields such as financial market integration, ASEAN Bond guarantee facility, or the mobilization of reserve funds through the Chiang Mai Initiative framework Multilateralism.

"While consolidation in the internal Asean, we are expanding into a larger East Asia. That is our strategy."

By: Dewi Astuti (Business)

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