NEW DELHI, 3 October 2003 — India will sign a draft economic agreement with Southeast Asian countries as a precursor to a sweeping free trade pact during a regional summit to be attended by Prime Minister Atal Behari Vajpayee in Bali, the government said yesterday.
Foreign Minister Yashwant Sinha said India wanted to boost trade with the 10-member Association of Southeast Asian Nations (ASEAN) as part of a new “Look East” policy.
“The new phase of this policy is characterized by an expanded definition of East, extending from Australia to East Asia, with ASEAN as its core,” Sinha said in comments carried on a government website.
“It is matter of great satisfaction to us that the framework agreement for this purpose has been finalized between India and ASEAN and will be signed at the second India-ASEAN summit at Bali in a few days.
“This major breakthrough should contribute significantly to an increasing integration of the India-ASEAN economic space over the coming years, including a free trade agreement.”
On Sept. 4, Indian and ASEAN economic ministers met in New Delhi to finalize the draft of the economic cooperation agreement to be signed at Bali.
India and the ASEAN nations are aiming to increase trade from the current annual level of $10 billion to $15 billion in the next two years and then to $30 billion by 2007.
Sinha said that India and ASEAN countries should also expand economic cooperation to security issues such as joint protection of sea lanes and countering terrorism.
The fight against international terrorism is also expected to figure on Vajpayee’s agenda during his meeting with ASEAN leaders in Bali at the Oct. 7-8 summit.
Nuclear powers China and India and possibly Russia are due to sign a non-aggression pact with Southeast Asia during the summit, ASEAN officials say.
Vajpayee will also stop in Thailand on his way back from Bali.
“In the past, India’s engagement with much of Asia, including Southeast and East Asia, was built on an idealistic conception of Asian brotherhood, based on shared experiences of colonialism and of cultural ties,” said Sinha.
“The rhythm of the region today is determined, however, as much by trade, investment and production as by history and culture.”
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
