Asean: Japan Refreshes Ties

IN THE 1980s and early 1990s when Japan was the leading light among East Asian countries dealing with Asean, it scarcely faced competition. Japanese leaders were in the spotlight. Armed with aid packages, they toured the Asean region to emphasise Tokyo's special relationship with its South-east Asian neighbours. But in recent years, when Japan was mired in economic stagnation, fast-growing China went on a charm offensive to court the Asean countries. This has not escaped Japan's notice, and it now wants to recover lost ground. At the Asean-Japan Commemorative Summit in Tokyo on Thursday, Prime Minister Junichiro Koizumi will try to re-invigorate an old relationship and change the perception that Japan's interest in South-east Asia has waned.

True, it was China's initiative to forge a free trade pact with Asean that goaded the Japanese into moving in the same direction. Beijing's decision to accede to Asean's Treaty of Amity and Cooperation likewise prodded Tokyo into action. Now that Japan wants to reclaim its centrality among South-east Asian countries, the summit is an appropriate forum for it. The fact remains that Japan is still Asean's top partner in trade and investment. Prime Minister Goh Chok Tong thinks that it will continue to have a substantive presence in South-east Asia over the next 20 years, despite China's growing stake in the region. Japan's trade with Asean, at 13.4 trillion yen (S$210 billion) last year, makes it South-east Asia's most important trading partner. It is Asean's largest investor (US$229.5 billion or S$390 billion) and its largest aid donor. Last year, three million Japanese tourists visited the Asean countries. Taken together, it underlines Japan's substantive interest in South-east Asia. Despite its economic problems, Tokyo still wields considerable influence. Above all, Japan as a vibrant democracy and free-enterprise economy is still a model for Asean's modernisation.

Mr Koizumi will renew Japan's commitment to deepen relations with Asean. He is expected to elaborate on his long-term proposal to create an East Asian economic community that links Japan, China, South Korea, the Asean countries, Australia and New Zealand. Among the measures which Japan will take to deepen its ties with Asean are bilateral negotiations on free trade agreements with Thailand, Malaysia and the Philippines. There are many obstacles ahead, with Asean's agricultural exports to Japan's highly protected market posing the biggest hurdle. The services sector and protection of intellectual property rights are also difficult areas. It is unrealistic to expect quick agreements on these issues. But Japan will reaffirm its commitment to continue providing funds for the less developed Asean countries to help them narrow the wealth gap with the richer member-states. Japan's official development assistance programme has been scaled down in the past few years, but Tokyo still accounts for 60 per cent of foreign aid to Asean countries, with Vietnam and Indonesia among the biggest recipients. Beyond economics, Japan and Asean will cooperate to ensure maritime safety, curb drug-trafficking and combat terrorism. To promote social and cultural exchanges, Tokyo will offer scholarships over the next five years to 10,000 students from Asean countries for them to visit Japan. The Tokyo summit will reaffirm the close political, economic and cultural links to cement a long-standing relationship. All this should help maintain Japan's key role in South-east Asia, pep up its Asean ties, and go some way to offsetting China's growing influence.