Asean summit: World’s largest free trade agreement ‘expected’ in Feb 2020

Hopes of signing the world’s largest free trade pact at a regional summit in Bangkok have been thrown into doubt after objections from India.

China, hurt by its trade war with the US, is keen to see the deal finalised.

UN Secretary-General Antonio Guterres, Thai Prime Minister Prayut Chan-o-cha, Brunei’s Sultan Hassanal Bolkiah and Cambodian Prime Minister Hun Sen are also keen on it.

An agreement to create the world’s largest trade bloc may only be signed by Asian countries in February 2020, the Thai government said late on Sunday.

Thailand, which is hosting the three-day Association of Southeast Asian Nations (Asean) summit in Bangkok, had previously said it hoped to conclude negotiations on the trade deal by the end of the year.

“We don’t have a conclusion yet. Once there is one it would be announced,” Thai government spokeswoman Narumon Pinyosinwat told reporters at the summit.

“Commerce ministers are still discussing outstanding issues. The signing is expected around February next year.”

The new trade area, known as the Regional Comprehensive Economic Partnership (RCEP), involves the 10 Asean members, plus China, Australia, New Zealand, India, Japan and South Korea. If finalised, it would be the world’s largest free trade bloc, comprising nearly half the global population and about a third of its gross domestic product (GDP).

The trade war between China and the United States has taken a toll on export-dependent Southeast Asian countries. Economic growth in the region is projected to slow this year to its lowest level in five years, making the signing of the deal more pressing for many Asean members.

Speaking at the summit’s formal opening, Thai Prime Minister Prayut Chan-o-cha called for a swift agreement “within this year to stimulate economic growth as well as trade and investment”.

“The early conclusion of RCEP negotiations will lay the foundation for East Asia’s economic integration,” a statement from China’s Foreign Ministry said on Sunday.

But RCEP negotiations have stalled, with India raising concerns about the impact a potential flood of cheap Chinese goods could have on local businesses.

An individual with knowledge of New Delhi’s negotiations, who was cited by a news agency, said new demands were made last week “which are difficult to meet”.

Some countries have also raised the possibility of moving ahead without India. Discussions on the deal will resume when member states meet on Monday afternoon.

Tensions over the contested South China Sea were also on the agenda at the Asean gathering. After meeting leaders, Chinese Premier Li Keqiang said Beijing was ready to work with countries in the region to ensure long term peace and stability.

Mr Li said significant progress had been made on a legally binding code of conduct, which is due to be completed by 2021. The document has long been an aim for Asean countries, that reject China’s vast maritime claims and accuse Beijing of encroaching on their territory.

ASEAN is made up of Indonesia, Thailand, Singapore, the Philippines, Malaysia, Vietnam, Brunei, Cambodia, Myanmar and Laos.

Leaders also discussed air pollution, illegal fishing and further economic cooperation before the summit ended. DW(This news came from Khmertimes.com)