|
Keynote Speech
by
H.E.
Dr. Surakiart Sathirathai
Minister
of Foreign Affairs of Thailand
At
a Dinner for Members and Delegates to
The
Fourth Meeting of the ASEM Task Force for Closer Economic
Partnership
Ministry of Foreign Affairs, Bangkok
Thursday, 11th March 2004
Excellencies,
Distinguished
Guests,
Ladies
and Gentlemen,
It gives me great pleasure to host this dinner in honour
of the distinguished
members of the ASEM Task Force for Closer Economic Partnership,
ASEM delegates and the staff of the Task Force secretariat.
I am delighted that the Fourth Meeting is taking place in
Bangkok
as it was here in 1996 where the ASEM Leaders held their first
meeting.
I understand that you have had a hard days' work and
require time to crystalize
your thoughts for tomorrow's session.
But tonight offers a unique opportunity for me to elaborate
on the issues underscored by H.E. Prime Minister Thaksin at
this morning's discussion, as well as to share with you my
thoughts and ideas on building upon the dynamic complementarities
of Asia and Europe in forging
ASEM economic partnership.
We recognise your pivotal role in pushing forward Asia-Europe cooperative relationship and
economic partnership.
Thailand has followed
closely the discussions held during the series of Task Force
meetings. This Fourth Meeting is significant since the members
will start drafting the recommendations to be submitted to
the ASEM Leaders at their Fifth Summit in Hanoi, Viet
Nam, this October. The Task
Force's recommendations could point to the future
direction of ASEM as an effective
vehicle for economic cooperation between Asia and Europe.
During the first three years of its creation, the ASEM
process gained much momentum and generated great enthusiasm.
But the Asian financial crisis of 1997 and Europe's
increasing focus on her internal developments had impeded
the progress of this inter-regional grouping.
The dwindling attendance of the European Ministers
at the annual ASEM Ministerial Meeting is a case in point.
ASEM now stands at a critical juncture of searching for its
"raison d'etre".
ASEM cannot afford to remain complacent to international
developments. ASEM now needs to enhance its relevance by becoming
more responsive to emerging realities. ASEM now needs to move towards closer cooperation and economic partnership.
The ASEM Leaders at their Summit
in Copenhagen in 2002 had set
the priority and future direction for ASEM by expressing their
political commitment to enhance economic relations between
Asia and Europe as a basis for strong and lasting partnership. This
is a challenge for ASEM. This is a challenge for the Task
Force to submit proposals
on how
our goal
could be realized.
The work of the Task Force is taking place against
the backdrop of positive developments and transformation experienced
in our respective regions which augur well for the reinvigoration
of ASEM. The ASEM process needs to be guided by the "Bangkok
Spirit" generated from ASEM One which is a sense of goodwill,
mutual respect and equal partnership, amongst Asian and European
countries, characterized by informality, flexibility and pragmatism. The theme of ASEM V, "Further Revitalizing and Substantiating
the Asia-Europe Partnership" serves to build upon the
"Bangkok Spirit" in making ASEM relevant to our
peoples.
This evening,
I wish to share with you some key areas in which
Asia and Europe can make a difference and contribute
to the multilateral trading system and the international financial
architecture, namely
in trade, SMEs development, investment
and finance. The ASEM process should not be looked upon
solely as cooperation between two regions. Asia-Europe partnership
can become a new engine of global economic prosperity. I am personally
delighted that financial cooperation stands high on the ASEM
agenda. Back in 1995 when I was Finance Minister, I initiated
the idea of creating a forum for ASEM Finance Ministers.
Through my discussions with the then Chancellor of the Exchequer,
Kenneth Clark, the ASEM Leaders at their Summit Meeting in
February 1996 endorsed the initiative.
Distinguished
Guests,
Both Europe and Asia
are experiencing new developments and dynamism. The successful
launch of the euro, the sound economic fundamentals of the
euro areas, as well as the on-going process of European enlargement
have made Europe attractive
to domestic and foreign investors. In Asia, the rise of China and economic
recovery of Asian countries have generated impressive economic growth in the region. Closer economic integration
between ASEAN and the Plus Three Countries will unleash the
enormous potentials of our markets through trade, investment
and finance. The utilization of Asia's wealth is being reinforced through enhanced
region-wide cooperation of the Asia
continent known as Asia Cooperation Dialogue or ACD,
as earlier explained by Prime Minister Thaksin.
Initiated by Thailand
in June 2002, ACD serves as a cobweb of functional cooperation in key areas of
promoting Asia's competitiveness
by building upon the continent's inner strengths and diversity.
We should not just look within our respective regions.
We should look more to each other in utilizing our wealth and dynamism
for mutual prosperity.
Closer economic ties between Asia and Europe
offer prospects of mutual prosperity.
Distinguished Guests,
Let me now touch upon the key areas
for ASEM economic partnership.
First,
in the area of trade, the Task
Force has rightfully pointed to the need for Asia and Europe to strengthen the multilateral trading system, and
to support the WTO towards the opening of markets to trade
and investment. Thailand believes
that bilateral free trade agreements which are WTO consistent
and regional economic integration
serve as important
building blocks for promoting the multilateral trading
system. ASEM should contribute to the expansion of global
trade by being fully committed to the success of the Doha
Development Round, and work for the completion of unfinished
business by the agreed timetables.
While the Doha goals are yet to be realized, we should
strive to facilitate trade by addressing technical
and non-tariff barriers to trade resulting from divergent
regulatory processes and testing procedures. We should encourage
competent authorities in standard setting of ASEM partner
governments to discuss the possibility of developing equivalent
practices and mutual recognition arrangements (MRAs) on both
sides.
Secondly, as stressed by Prime Minister Thaksin,
Thailand
would like to see ASEM cooperation in the development and
linkage of SMEs in Asia and Europe. From our experience, SMEs can make a significant
contribution to our overall economic growth. The development
of SMEs forms an integral part of our efforts to generate
jobs and income, enhance economic stability and encourage
greater community development. This would result in fostering
multiplier effects which will trickle down to the grassroots
economy. Here in Asia, we
are intensifying SMEs networking under the ASEAN and ACD frameworks.
As pointed out by Prime
Minister Thaksin, Asia can
learn from
Europe's successful experience in the two
kinds of SMEs, namely "supporting industries" and
"stand alone". SMEs development in Asia is still
at its early stage compared to Europe. However, we can still build synergies, for example,
by linking Asian SMEs "supporting industries"
with the major industries in Europe to enhance market access and technological innovation.
ASEM can look at the
experiences of APEC
work in promoting
SME development. For example, an ad hoc working group could
be set up to identify impediments to trade for SMEs. Other areas of cooperation could include
extending financial resources for the creation of micro-businesses
and sharing experiences and expertise among ASEM partners
on the development of SMEs. These will strengthen the production,
entrepreneurship, and management of SMEs. Establishing an ASEM SME network could
be an important first step towards that end.
Thirdly, investment is another area where there is greater
scope of
cooperation. One sector that might be of interest to
both Asia and Europe is energy.
Sustained economic growth is dependent on adequate, reliable
and affordable supplies of energy.
The volatility of oil prices and the diminishing non-renewable
energy sources are challenges to economic stability and global
security. ASEM partners should respond to this challenge.
There are several cooperative projects under ASEAN, ACD
and APEC initiatives on energy security
which could extend to ASEM’s future work. Possible
cooperation on energy security could
include diversification of energy supply and distribution,
energy efficiency and conservation, alternative fuels and
clean energy. In addition, as scientific and technological
advances underlie our ability to meet energy challenges, ASEM
should intensify the dialogue on collaborative projects in
capacity building and exchange of experiences that would enable
ASEM partners to better respond to energy challenges.
Fourthly, as regards cooperation in finance,
Prime Minister
Thaksin has underscored the significance
of establishing a linkage between Asian bonds and Euro
bonds market. Given
the painful experience of the 1997
financial crisis, Thailand
recognizes the need for Asian countries to increase cooperation
to better ensure financial stability in Asia
and beyond. This is the genesis of the Asian Bond Market
Development Initiative (ABMI).
The
first Asian Bond Fund within the framework
of the
Executives’ Meeting of East Asia and Pacific Central Banks and Monetary Authorities
was created in 2003.
Many countries in Asia are participating in the Fund, including the Asian
members of ASEM. It received strong political support from the then
18 members of the Asia Cooperation Dialogue (ACD) as reflected
in the Chiang Mai Declaration on ABMI
adopted by ACD Foreign Ministers last June.
The
Asian Bond Market Development Initiative will be pursued
further within the framework of the
ACD itself. As
prime mover on financial cooperation, Thailand
will host the second meeting of the ACD Working Group on Financial
Cooperation followed
by the first meeting of ACD Finance Ministers on 1-2 May 2004.
The meetings will extensively discuss three major components
of ABMI, namely the demand, supply, and infrastructure. We
will discuss how
the Fund can be professionally managed, whether we should
start with sovereign and quasi sovereign bonds, how we can
launch an ACD Asian Bond Fund in Asian denominated currencies,
and how we can develop the supply side of the bond market.
The Thai Cabinet has approved the establishment of a national
secretariat to
coordinate our work on Asian Bond Market Development among
the 22 ACD countries.
Thailand also attaches
importance to the development of
the Asian Bond Market Initiative in other fora. Thailand
has been cooperating with other Asian countries in the framework
of APEC Finance Ministers’ Meeting to improve the quality
and the diversity of bonds to be issued by Asian governments
and to put in place the necessary infrastructure.
The ASEAN+3 Finance Ministers’ Meeting provides another
forum where the supply side of the Asian bond market is being
addressed with the technical assistance from the Asian Development
Bank (ADB).
As
the Asian bond market is being developed, both the private
and
public sectors from countries beyond Asia are encouraged to
participate in these financial opportunities. For Europeans,
Asian bonds provide alternative investment that would contribute
to economic benefits and international financial stability.
Such cooperation would allow Asian countries to reduce
the excessive dependence on US dollars and promote the use
of the euro in the Asian region.
ASEM can play a pivotal
role in encouraging Asia-Europe cooperation in the further
development of the Asian Bond market.
In this regard, we
should utilize the ASEM forum to materialize this
endeavor through capacity-building cooperation such as sharing
of technical expertise and exchange of experiences and human
resources. The EU’s experiences in creating a Euro bond fund
can be complementary to the development of Asian bond market.
At the ASEM Ministerial Meeting in Dublin next month, there
will be discussion on the linkage between Asian and Euro bonds
based on the Task Force study which I hope will lead to concrete
financial cooperation between our two regions.
Fifthly, as ASEM is set to
move towards a closer economic partnership, the role of the
private sector of
Asia and Europe
should be further enhanced under the ASEM framework.
Thailand is pleased to learn that the Task Force has
been considering how to intensify the involvement
of the
business community in the ASEM process. We believe there should
be a stronger linkage between the Asia-Europe Business Forum
(AEBF) and other ASEM bodies, especially the ministerial and
summit meetings. The Business Forum should be able to participate
in relevant ASEM meetings and hold regular dialogue with ASEM leaders to give
business perspectives on specific areas of economic cooperation.
The APEC Business Advisory Council (ABAC) could provide a
model for ASEM in this endeavour.
Sixthly, Thailand believes
that to empower ASEM in providing more concrete results, the ASEM process should move beyond
a mere “dialogue” process.
It should evolve into a “cooperation forum”. Regular and intensive consultations should
be further promoted to make full use of strengths and resources
of Asia and Europe so as to cope with the dynamism and complexities
of the global economy.
As ASEM increases its cooperative activities, it is
inevitable to address the need for ASEM to be institutionalized.
Lastly, as
we all know that regional economies always change. The Task
Force should address the issue of membership of ASEM from
the Asian side. Not only that in the future the numbers of
members from both sides will be even more off-balance, but
also that we may not be economically realistic not to include
some Asian countries which have economic potentials into ASEM,
especially if ASEM will move into "cooperation forum".
Distinguished Guests,
ASEM members are committed to strengthening our efforts and
work together to
help ensure the well-being of our peoples.
The assignment entrusted to the Task Force is, therefore,
significant, not only for the peoples of ASEM members but
also for the future of ASEM. I
hope that at this Fourth Meeting,
the Task Force will begin to elaborate on its recommendations
to the ASEM Leaders in October 2004.
I understand the heavy but challenging tasks ahead
of you. I hope that some of the points raised tonight will be considered by the
Task Force. I wish you every success in your deliberations
and look forward to reading your report.
Thank you.
|
