Saturday 2 February 2013

EAS Status Multi-Faceted for India

India has had close historical ties with the countries of Southeast Asia. (JG Graphic)Though India has had close historical ties with the countries of Southeast and East Asia, it is only since the end of the Cold War that it started re-engaging them as part of its Look-East Policy.

India had drifted away from these countries as a result of decades of global conflict.

It has been a part of the East Asia Summit ever since the first one kicked off in Malaysia in 2005.

The idea of an East Asia Grouping was first proposed by the then-Malaysian Prime Minister Mahathir Mohamad, back in 1991. For India, it marked a big leap of faith as initially the response from the Association of Southeast Asian Nations and the East Asian countries for closer engagement with them had been lukewarm.

Many of the EAS member countries have been looking toward India to play some kind of a countervailing role to China in the region, especially in the light of China’s increasingly aggressive posture. China’s power projection in the region has increased significantly after it commissioned its first aircraft carrier, the Liaoning, last year.

However, at the same time, India has also been rapidly modernizing its defense forces and has now emerged as the world’s biggest arms importer. The Indian Navy is the strongest in the entire Indian Ocean region, through which a majority of imports and exports of many of the EAS member countries pass.

Not surprisingly, at the 7th East Asia Summit meeting in Phnom Penh in Cambodia on Nov. 20, Indian Prime Minister Manmohan Singh spoke about creating “an open, balanced, inclusive and rule-based architecture in the region.”

This assumes significance in the wake of territorial disputes between China and countries like Japan, Vietnam and the Philippines — all of which are members of the EAS. India is getting increasingly close to Japan and now, with the return of Shinzo Abe in Tokyo, the ties are set to grow even stronger.

For the first time, India held bilateral naval exercises with Japan in June last year as well as agreeing to jointly produce rare-earth elements with the country.

Singh also noted in his speech at the EAS that “for India, Asean has been the bridge to the East,” thereby emphasizing the centrality of Asean to India’s engagement with the Asia-Pacific region.

Trade with this region is critical for the health of the Indian economy, which has slowed of late. Many of the EAS member states are also worried that the major chunk of their trade is with China, and would like to expand their trade basket.

US President Barack Obama also attended the EAS in Cambodia, after the United States and Russia formally became EAS members in Bali in November 2011.

Prior to landing in Cambodia, Obama also visited Myanmar and Thailand, thereby making it clear that his administration’s “pivot” toward Asia would continue in his second term as well.

Since the signing of the Indo-US civilian nuclear deal in 2008, the countries have forged closer ties.

India can cooperate with other EAS countries like the United States and Japan in helping countries like Myanmar as it gradually makes the transition toward democracy. It can also help improve the infrastructure of Myanmar.

India already stands to gain a lot from the unexpected but gradual progression of Myanmar toward full-scale democracy as the country functions as a land-bridge to the Asean region.

Meanwhile, work is already progressing apace on the India-Myanmar-Thailand highway, which will be extended to Laos and Cambodia, while a new highway project is being planned that will connect India-Myanmar-Laos before entering Vietnam and then on to Cambodia.

The Cambodia summit also saw the start of negotiations on the Regional Comprehensive Economic Partnership agreement, which aims to bring together the 10 Asean countries with Japan, South Korea, China, India, Australia and New Zealand — with a total economic output of $20 trillion, or nearly one-third of the world economy.

In November last year, India hosted the EAS-India Workshop on Building a Regional Framework for Earthquake Risk Management which aimed to coalesce the expertise of the EAS member countries in responding to natural disasters like earthquakes.

The Indian prime minister also informed member countries that the prestigious Nalanda University project in India is on track and teaching expected to start from 2014-15. The Nalanda University was a historic place in India, attracting the best and brightest from all across Asia between the 5th and 12th centuries CE.

India’s ties with Asean have thus improved dramatically on all fronts. This year marks the 20th anniversary of the establishment of Asean-India bilateral ties and the 10th anniversary of the Annual Summits between the two sides. To mark this momentous occasion, the Asean-India Commemorative Summit was held in New Delhi on Dec. 20-21 last year.

India’s trade volume with Asean has already crossed the $70 billion target set for this year, but the Delhi summit also coincided with the successful ending of negotiations on an Asean-India free trade area in investments and services.

Additionally, India is working to create the Asean-India FTA, which will create a market of nearly 1.8 billion people and have a total GDP of $3.8 trillion.

But despite all the positive news, one of the problem areas for India in the EAS are its ties with China. Although trade volumes between the two countries are set to touch $100 billion by 2015, the unresolved border issue has dampened relations.

Initially, China was not in favor of India’s inclusion in the EAS, but due to the support of countries like Japan, India was able to make it to the inaugural summit.

Another problem area for India is that domestic political and agricultural lobbies have been pressing the government to rescind some of the favorable tariff rates given to the produce from the Asean countries as part of the Asean-India FTA in goods signed in 2009.

As India’s economic and military profile in the Asia-Pacific region grows, its role in the EAS is bound to increase in the years to come.

However, India will have to be ready to take a more proactive stand on issues like the territorial disputes in the South China Sea, if called upon by the EAS member countries.

At the same time, India will need the support of EAS member nations in its quest for a permanent seat on the UN Security Council.

Some deft diplomatic footwork will be required in these interesting times for India-EAS relations.

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