Thailand says new Asian trade deal to be signed in 2020

[webfact]

Thailand says new Asian trade deal to be signed in 2020

By Panu Wongcha-um, Patpicha Tanakasempipat and Liz Lee

 

Thailand's Prime Minister Prayuth Chan-ocha addresses the Opening Ceremony of the 35th ASEAN Summit in Bangkok, Thailand November 3, 2019. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand said on Sunday that Southeast Asian nations are committed to signing a pact by February 2020 on forging what could become the world's largest trade bloc, even after new demands by India dealt a blow to the process backed by China.

 

Going into this weekend's summit of the Association of Southeast Asian Nations (ASEAN) in Bangkok there had been hopes of finalizing negotiations this year on the 16-nation Regional Comprehensive Economic Partnership (RCEP).

 

But the ASEAN chairman's final statement released on Sunday night said the 10-nation grouping welcomed a "commitment to sign the RCEP Agreement in 2020".

 

"This will significantly contribute to an open, inclusive and rules-based international trading system and expansion of value chains."

 

New impetus to reach agreement has come from the U.S.-China trade war, which has helped knock regional economic growth to its lowest in five years.

 

"The early conclusion of RCEP negotiations will lay the foundation for East Asia's economic integration," said a statement from China's foreign ministry after Premier Li Keqiang met Southeast Asian leaders.

 

But Indian Prime Minister Narendra Modi did not even mention the RCEP talks in opening remarks at a meeting with Southeast Asian leaders and instead spoke only of reviewing the existing trade agreement between ASEAN and India.

 

Nor did Modi mention the trade bloc, whose 16 countries would account for a third of global gross domestic product and nearly half the world's population, in Twitter posts after meeting Thai and Indonesian leaders.

 

An Indian foreign ministry official later told a media briefing "Let's take all the RCEP questions tomorrow."

 

Southeast Asian countries had hoped at least a provisional agreement could be announced on Monday.

 

But India has been worried about a potential flood of Chinese imports. A person with knowledge of New Delhi's negotiations said new demands were made last week "which are difficult to meet."

 

TRADE WAR IMPACT

Negotiators were meeting into the evening on Sunday to try to come to an agreement, Thai government spokeswoman Narumon Pinyosinwat told reporters on Sunday.

 

"We don't have a conclusion yet. Once there is one, it would be announced," she said. "Commerce ministers are still discussing outstanding issues. The signing is expected around February next year."

 

Thai Prime Minister Prayuth Chan-ocha told the formal opening of the ASEAN summit on Sunday that the 16 nations in the potential trade bloc ought to come to agreement this year to stimulate economic growth, trade and investment.

 

He highlighted the risks of "trade frictions" and "geo strategic competition" in the region.

 

Some countries have raised the possibility of moving ahead without India on forming a bloc that also included Japan, South Korea, Australia and New Zealand.

 

But Thai commerce minister Jurin Laksanawisit told Reuters on Sunday that India had not pulled out.

 

Another advantage for Southeast Asian countries from having relative heavyweight India in the trade pact would be less domination by China.

 

Longstanding rivals China and India, which fought a border war in 1962, have clashed verbally in recent days over India's decision to formally revoke the constitutional autonomy of the disputed Muslim majority state of Kashmir.

 

The U.S. decision to send a lower level delegation to the summits this year has raised regional concerns that it can no longer be relied on as a counterweight to China's increasing regional might.

 

Instead of President Donald Trump or Vice President Mike Pence, the United States will be represented by Commerce Secretary Wilbur Ross and White House national security adviser Robert O'Brien.

 

The Thai spokeswoman said a planned U.S.-ASEAN leaders meeting would instead be represented by only three leaders from the 10-nation bloc meeting with the U.S. delegation.

 

(Writing by Matthew Tostevin and Kay Johnson; editing by Jason Neely)

 

 

-- © Copyright Reuters 2019-11-04

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[mfd101]

US abdicating its central role in world affairs - both militarily in the Middle East and economically in the Indo-Pacific. It will be a struggle for Trump's eventual successors to recover, over perhaps many years and with no guarantee of success. Once the world has gotten used to doing without you, they tend not to welcome your later interventions.

 

[cf Brexit and the UK's glorious future.]

[alant]

2 hours ago, webfact said:

Thailand said on Sunday that Southeast Asian nations are committed to signing a pact by February 2020

I can't see how that will happen reading this...

[Scot123]

Trump derangement syndrome is strong on here and the need to have swipes and derogatory snips at Brexit. This is about trade in Asia is it so hard to grasp? Thailand I am surprised any of your fellow Asians bother to sign any form of trade deal with you as they must know you will not honour it. Are those chinese/malay busses still sitting rusting away? 

[Srikcir]

Prime Minister General Prayut Chan-o-cha had just told United Nations Secretary-General António Guterres that Thailand will focus on establishing a partnership with Asean nations to promote sustainable development among Asean and other regions globally.

I guess India didn't get the memo.

I'm sure it's difficult for Prayut to image any nation that doesn't partner 'lockstep' with China as does Thailand. 

[Isaan sailor]

Thais should know China will eat their lunch--sum tam and all.  No way they will compete with the 800-lb gorilla in the room.

[hotchilli]

Does Thailand understand what a fair trade deal actually means, like dropping tariffs?

[mfd101]

Well, certainly India doesn't seem to understand about reducing tariffs. It's India and its fear of Chinese goods flooding in that is holding up the works.

 

Everyone else, including Oz, NZ & Japan, more or less ready to roll.

[Mavideol]

3 minutes ago, mfd101 said:

Well, certainly India doesn't seem to understand about reducing tariffs. It's India and its fear of Chinese goods flooding in that is holding up the works.

 

Everyone else, including Oz, NZ & Japan, more or less ready to roll.

sure India have to protect their manufacturing, they have been trying to negotiate with China but Chinese are not budging, they want it all in the SCS, it appears Viet and Phil not ready neither

[pixelaoffy]

Nothing meaningful will happen. Self interest will prevent any real free trade   Simple Fact .

[pixelaoffy]

55 minutes ago, hotchilli said:

Does Thailand understand what a fair trade deal actually means, like dropping tariffs?

nope! the 100% tariffs on food products deemed a "luxury" sums up Thailands mentality 

[fforest1]

Dont hold your breath waiting for the price of wine to drop...

[Fex Bluse]

9 hours ago, webfact said:

"This will significantly contribute to an open, inclusive and rules-based international trading system and expansion of value chains."

Don't make us laugh. 

 

Nobody with any common sense would expect you bunch of corrupt countries in Asia to honor any deals. 

 

Everyone expects each country to systematically undermine others until the whole trade deal falls apart. 

 

Not in 100 years could these silly cartoon countries manage an multinational trade pact. 

[sammieuk1]

Sounds like a great deal for China certainly not for a masquerading general ????

[mfd101]

So, according to tomorrow's 'Australian', and despite the usual cynicism & pessimism above, the deal is now done, with India not yet signing up but has indicated it could do so next year. All of ASEAN + China, Japan, Oz, NZ & Sth Korea.

 

The Oz PM hails it as "an enormous victory" that dwarfs the Trans-Pacific Partnership.

[Fex Bluse]

20 minutes ago, mfd101 said:

So, according to tomorrow's 'Australian', and despite the usual cynicism & pessimism above, the deal is now done, with India not yet signing up but has indicated it could do so next year. All of ASEAN + China, Japan, Oz, NZ & Sth Korea.

 

The Oz PM hails it as "an enormous victory" that dwarfs the Trans-Pacific Partnership.

Indian media reporting No Deal. 

 

Without India, it's a much less impressive trade deal. 

[mfd101]

Without India it can work.

 

India can join later once it's ready (at last) to blow away the last remnants of socialist protectionism.

[Isaan sailor]

Win for ChiComs.  Big losses for the Paper Tigers.  They simply cannot compete, if China holds all the cards.

[30la]

22 hours ago, webfact said:

Thailand said on Sunday that Southeast Asian nations are committed to signing a pact by February 2020 on forging what could become the world's largest trade bloc, even after new demands by India dealt a blow to the process backed by China.

At this point, what do you need the USA for?
If that were to happen, it would be the largest global market in the world!