US cites trade importance of Asean
THE UNITED STATES has underscored the strategic importance of the Association of Southeast Asian Nations (Asean) as the region is deemed a “central pillar” to the economic giant’s “ Rebalance to Asia” strategy.
In a fact sheet released by the US Office of the Press Secretary ahead of the US-Asean Leaders’ Summit this week, the Southeast Asian region is believed to be “strategically important to US interests and is a key partner in addressing regional and global challenges.”
Collectively, the 10 member-states of the Asean comprised the third-biggest economy in Asia and the seventh-largest in the world, with a combined gross domestic product (GDP) of $2.4 trillion. The Asean region is also young and dynamic, with a combined population of 632 million people—more than 65 percent of whom are below the age of 35.
“The United States and Asean share a strong interest in building and sustaining a rules-based order in the Asia-Pacific, one in which countries can pursue their objectives peacefully and in accordance with international law and norms,” the fact sheet read.
In terms of bilateral trade, economic ties between the two parties continued to grow, with Asean countries collectively the US’ fourth-largest trading partner, with GDP growth that has exceeded the global average every year for the past 15 years.
“Trade in goods expanded 5 percent in 2015 and now tops $226 billion. During the Obama administration, trade in goods with Asean countries has expanded by 55 percent. More than 500,000 American jobs are now supported by trade in goods and services with Asean. US companies have been the leading source of foreign direct investment (FDI) in Asean. With a stock of over $226 billion, US FDI in Asean has nearly doubled since 2008. FDI from Asean countries in the US was $24.2 billion in 2014,” the paper further read.
In 2009, the US became a party to the Treaty of Amity and Cooperation in Southeast Asia—the bedrock diplomatic document of Asean—opening the door for the US to join the East Asia Summit (EAS). In 2010, the US also became the first non-Asean country to establish a dedicated diplomatic mission and appoint a resident ambassador to the Asean Secretariat in Jakarta.
Since 2010, the Obama administration has provided $4 billion in development assistance to Asean countries, which directly supported the US strategic Rebalance to Asia by promoting regional stability and sustainable development.
The US and Asean continue to cooperate closely to create a low-carbon economic growth trajectory and build more climate-resilient societies. The American government’s assistance to climate change adaptation in Cambodia and the Philippines has strengthened the capacity of local authorities to mitigate the impacts of destabilizing disasters.
Other areas of cooperation included partnerships in economic development and governance programs in countries such as the Philippines, Vietnam, and Indonesia.
