World

ASEAN Looks To Single Market

By CBSNews.com staff CBSNews.com staff

November 29, 1999 / 7:55 AM EST / CBS

Leaders of the Association of Southeast Asian Nations (ASEAN) have agreed to speed up their program to liberalize trade by the year 2010 -- five years ahead of schedule, reports Gaby Tabunar for CBS News.

Tariffs will be eliminated on most goods traded in the moving the region to its long-term goal of a common market with a common currency, which may be as much as a half-century away.

But in the short term, China, Japan, South Korea and the 10-nation Association agreed on extending cooperation in a wide range of financial and trade-related issues at Sunday's summit in Manila.

The East Asian markets encompass about two-fifths of the world's population and about $7.75 trillion in combined GDP.

Such a grouping could rival Europe and the United States, if it were ever united. But analysts say the staggering differences in economic development between the 13 nations involved would take decades to overcome.

Still, the summit moves signaled Â"a search for a common identity partly in opposition to a Western identity,Â" said Simon Flint, currency strategist at Bank of America in Hong Kong.

One sign was Japan's lobbying the summit successfully to back former vice finance minister Eisuke Sakakibara as the new managing director of the International Monetary Fund, a post usually the preserve of Europe.

The show of strength on Sakakibara was the first sign of the region's new assertiveness, said Neil Saker, head of economic research for SG Global Equities.

Â"It's very much like the formative years of the EU,Â" he said.

In the meantime the 13 countries would Â"form a very strong lobby group to counter the U.S.,Â" he said.

Premier Zhu Rongji of China, South Korean president Kim Dae Jung and prime minister Keizo Obuchi of Japan joined Philippines president Joseph Estrada in Manila for the conference.

Cambodia attended for the first time since being accepted in the group last May. It was also the first summit for new Indonesian President Abdulrrahman Wahid, who got support in the battle again st separatism from fellow ASEAN members.

"We have reiterated our full support for the sovereignty and the territorial integrity of the republic of Indonesia," said Estrada.

ASEAN leaders have held summit meetings for the past three years. This year was the first time the leaders came with their finance, economic and foreign ministers to underscore what they have called a comprehensive area of cooperation among ten member countries.