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Obama in Asia

12/01/2011    40

What did President Obama’s 10 day visit to Asia, covering India, Indonesia, South Korea and Japan and attendance at the G20 Summit in Seoul and the APEC Summit in Yokohama achieve?

First, he has erased all the uncertainties in India on whether he would continue the strategic partnership that Bush 43 and PM Manmohan Singh had launched.  His eloquent speech to the Lok Sabha, including endorsing India’s quest for a permanent seat in the UN Security Council was sweet music to Indian ears.

Second, after three postponements, President Obama’s much awaited visit to Indonesia was, as he put it, balik kampong (going back to his village).  In his speech to the students of the University of Indonesia, he won their hearts and minds, by extolling Indonesia’s democracy and its culture of diversity and religious tolerance and by his humorous recollections of his childhood experiences in Jakarta in fluent Bahasa Indonesia.

Third, President Obama’s second visit to Asia has reinforced the growing importance of Asia to America’s future. China and Japan are the world’s third and fourth largest economies, after the EU and the US.  Soon India will overtake Japan to be the fourth largest economy.  ASEAN is not far behind with a common market of 600 million consumers, a combined GDP equal to that of India and hosting more foreign direct investment from America than China and India combined.  Asia accounts for 26 per cent of US exports.  This percentage will rise dramatically in the coming decades as the Asian economy is growing much faster than those of the US and EU.  Also, Asia will soon have the world’s largest middle-class, most of whom seem to have an insatiable appetite for American goods, services and culture.

Fourth, Asia can help President Obama achieve his objectives of doubling US exports in 5 years and in creating jobs.  During his visit to India, he wrapped up trade deals worth US$10 billion, which will create 55,000 jobs.  There was a preliminary agreement for India to purchase 10 C-17 military transport aircraft which will be worth another US$10 billion, and will create another 22,000 jobs.

Fifth, the US will succeed Japan as the chairman of APEC in 2011.  APEC is economically and strategically important to the US because, inter alia, APEC accounts for 58 per cent of US exports.  One of the ongoing initiatives within APEC is the Trans Pacific Partnership (TPP) started by four small and open economies: Brunei, Chile, New Zealand and Singapore.  The TPP is being extended to 5 other partner economies: Australia, US, Peru, Vietnam, and Malaysia.  Japan has indicated interest in joining.  The US hopes to conclude the negotiations in time for the leaders of the nine economies to sign the agreement in Honolulu next year.  The TPP is a stepping stone to the ambitious goal of a Free Trade Area of the Asia Pacific (FTAAP).  At the Yokohama Summit, the APEC leaders declared that, ‘now is the time for APEC to translate FTAAP from an aspirational to a more concrete vision’.

Sixth, there was agreement, both at G20 and APEC, by the leaders to seize the critical window of opportunity next year to bring the Doha Development Agenda to a successful conclusion.  They also agreed to honour their pledge to resist all manifestations of protectionism.

Economically, and strategically, Asia needs the US and the US needs Asia.  President Obama summed it up well at Yokohama, when he said: ‘In the 21st century, the security and prosperity of the American people is linked to the security and prosperity of Asia’.

Professor Tommy Koh is currently Ambassador-At-Large at the Ministry of Foreign Affairs and Chairman of the Centre for International Law, NUS.

November 30th, 2010

Author: Tommy Koh, NUS

Source: http://www.eastasiaforum.org/tag/trans-pacific-partnership/

 

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