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2. Association of South East Asian Nations (ASEAN)

 

2.1. What is ASEAN?Map 5.3 ASEAN Members♤ It has evolved into a regional grouping that promotes economic, political, and security cooperation among its members.♤ It’s secretariat is based in Jakarta.♤ The group has spurred economic integration, signing six free-trade agreements with other regional economies (Australia, China, India, Japan, New Zealand and South Korea)Map 5.4-ASEAN and Affiliated groups♤ Regional security issues are dealt with through ASEAN or the following ASEAN-led forums ASEAN Regional Forum (ARF)-♤ First meeting Held at Bangkok, Thailand, in 1994.East Asia Summit (EAS)ASEAN+32.2. India and South East Asia2.2.1. Background♤ India and ASEAN have just completed 25 years of dialogue partnership, 15 years of summit-level interaction and five years of strategic partnership.2.2.2. From Look East to Act East: Evolving Policy Framework2.2.3. The Look East Policy♤ Factors responsible for India’s Look East Policy:$ 12 billion in 2002.(a) Trilateral Highway- India-Myanmar-Thailand♤ Further, apart from ASEAN, ASEAN Regional Forum (ARF) and East Asia Summit (EAS), India has also been actively engaged in regional fora such as Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), Asia Cooperation Dialogue (ACD), Mekong Ganga Cooperation (MGC) and Indian Ocean Rim Association (IORA).2.3. India-Asean♤ India's relationship with ASEAN is a key pillar of our foreign policy and the foundation of our Act East Policy.♤ India became a Sectoral Partner of the ASEAN in 1992, Dialogue Partner in 1996 and Summit Level Partner in 2002.♤ India had, in 2015, proposed a $ 1 billion line of credit to promote projects with ASEAN. In addition.♤ Japan had inaugurated an Act East forum with India on 5 December 2017. The forum is also meant to expand cooperation with the Japan in the north east.2.3.2. Trade♤ ASEAN is India's fourth largest trading partner.2.3.3. Investment2.4. RCEP Negotiations: From Trade to Economic Partnership♤ The huge goods trade deficit has led to questions on whether the pact is only helping ASEAN nations and not benefiting India.♤ The RCEP involves negotiations in goods, services, investment, economic and technical cooperation, intellectual property rights, competition, dispute settlement and other issues like Rules of Origin, customs procedures and trade facilitation measures.♤ The economies of countries involved in RCEP negotiations account for about half of the world's population, and about 30% of the global GDP.o It will deepen its ties with the ASEAN further.2.4.2. RCEP and India’s Current Concerns♤ India has said no to e-commerce negotiations at the WTO and any difference in its stance at the RCEP is likely to have repercussions.♤ In 2017 the Ministry of External Affairs (MEA) has taken a strong stand that the country should restrain itself from concluding any such pact from which it would not gain in the medium term.2.5. ConnectivityASEAN-India connectivity is a priority for India as also the ASEAN countries.♤ A possible extension to India-Myanmar-Thailand Trilateral Highway to Cambodia, Lao PDR and Viet Nam is also under consideration.♤ In 2015 PM announced a Line of Credit of US$ 1 billion to promote projects that support physical and digital connectivity between India and ASEAN ando Tri services command in Andaman and NIcobar♤ These island chains are claimed by a number of countries in the region including China, Vietnam, the Philippines, Malaysia, Indonesia and Brunei.Map 5.5 South China Sea♤ China viewed the principal subject matters in dispute as political and beyond the jurisdiction and competence of the Tribunal.♤ In 2016 a final Award ruled that many of China’s maritime claims in the South China Sea were contrary to the United Nations Convention on the Law of the Sea (UNCLOS) and had thereby violated Philippine sovereign rights and freedoms.♤ More the 55 % of India’s trade passes through the region.♤ By taking a principled stand on the territorial disputes, India must contribute to the restoration of strategic equilibrium in the Indo-Pacific.2.6.3. Need for Further Action:♤ India needs to expand the vision of SAGAR (Security and Growth for All in the Region)2.7. Cultural Ties Between India and South East Asia♤ India’s soft power is reflected in2.8. India and Singapore2.8.1. Background♤ Subhash Chandra Bose had resided in Singapore. Jawahar Lal Nehru visited in 1937 and 1946♤ 2015 marked 50th anniversary of the bilateral relations and bilateral ties were elevated to a Strategic Partnership.Comprehensive Economic Cooperation Agreement (CECA) of 2005.2.8.2. Trade & Investment♤ Bilateral trade expanded after the conclusion of CECA from US$ 6.7 billion in 2004-05 to reachUS$ 16.7 billion in 2016-17.2.8.3. Smart Cities2.8.4. Defence Cooperation2.9. India and Vietnam