Headlines galore, with a great deal of political drama hidden behind the scenes. Below CSA presents a few excerpts from recent news on the ever continuing development of economic and trading blocs between the East and West.
EU, Singapore agree free-trade deal
[Source] : The European Voice
By Andrew Gardner – 16.12.2012 / 16:05 CET
The agreement is the EU’s first with an Asean country and its second in Asia.
The European Union and Singapore today (16 December) announced that they have reached agreement on a free-trade deal, 33 months after they began formal negotiations.
This is the second free-trade agreement struck by the EU in Asia; the first – with South Korea – came into force in July 2011.
The EU began negotiations with Singapore in March 2010 after its hopes of lowering barriers with the ten-country Association of South-East Nations (Asean) were dashed in 2009, and Karel De Gucht, the European trade commissioner, said today he hoped the deal would “open the doors for FTAs [free-trade agreements] with other countries in the Asean region”.
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![[Img] : Courtesy of Wiki Commons, Leaders of the TPP](http://chinasouthamerica.com/home/wp-content/uploads/2012/12/Leaders_of_TPP_member_states-WikiCommons-300x152.jpg)
[Img] : Courtesy of Wiki Commons, Leaders of the TPP
Vietnam sees value in TPP
[Source] : Published: 17/12/2012 at 09:47 AM – Newspaper section: Asia focus
Two competing regional trade plans, while sharing the aims of liberalising trade and improving economic integration, are making many Asean countries nervous at the same time.
The Trans-Pacific Partnership (TPP) has the backing of the United States while the Regional Comprehensive Economic Partnership (RCEP) is favoured by China.
Smaller countries might resent being put in a position where they feel they have to choose between the two. But Vietnam has confidently embraced the TPP, believing it could increase its exports while helping the country attract more foreign investment.
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Trade power play
[Source] : Published: 17/12/2012 at 09:44 AM – Newspaper section: Asia focus
China’s attempt to convince Asean countries to support the Regional Comprehensive Economic Partnership (RCEP) reflects the country’s aim to become the real economic leader of Asia Pacific and keep the United States at bay, say experts.
While Beijing drums up support for the 16-country RCEP (Asean plus China, Japan, South Korea, India, Australia and New Zealand), Washington is making its case for the Trans Pacific Partnership (TPP).
Both countries went all-out at the Asean and East Asia Summit meetings last month in Phnom Penh, with newly re-elected President Barack Obama talking up the TPP with individual leaders. However, the RCEP now has some real momentum following its formal endorsement by the leaders of the 16 countries involved. They hope to start negotiations in 2013 and finish by 2015. A successful outcome would lead to the creation of the world’s largest regional trading bloc.
The TPP has been on the drawing board for a long time and has proved to be a tougher sell. It envisages a trading bloc covering all of the countries on the Pacific including those in North and South America. Singapore, Chile and New Zealand were original signatories back in 2005, followed by Brunei, while the United States didn’t even enter the picture until 2008. Since then there have been several rounds of talks and six more countries — Australia, Peru, Vietnam, Malaysia, Mexico and Canada — have entered negotiations.
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