For Immediate Release
Office of the Press Secretary
October 26, 2002
Fact Sheet: Enterprise for ASEAN Initiative
President Bush announced today an important new trade initiative
with the Association of Southeast Asian Nations (ASEAN) - the
Enterprise for ASEAN Initiative (EAI). The United States believes that
a strong U.S.-ASEAN relationship is a force for stability and
development in the Southeast Asian region. The EAI will enhance
already close U.S. ties with ASEAN.
The EAI offers the prospect of bilateral free trade agreements
(FTAs) between the United States and ASEAN countries that are committed
to economic reforms and openness. The goal is to create a network of
bilateral FTAs, which will increase trade and investment, tying more
closely together our economies and our futures. The EAI initiative
will encourage both bilateral and regional liberalization, and help
APEC reach the Bogor goals for achieving free and open trade and
investment in the Asia Pacific region.
A Roadmap to FTAs: Under the EAI, the United States and individual
ASEAN countries will jointly determine if and when they are ready to
launch FTA negotiations. The EAI allows ASEAN countries the
flexibility to move at their own speed toward an FTA with the United
States.
The United States would expect a potential FTA partner to be a
member of the World Trade Organization (WTO), and to have concluded a
Trade and Investment Framework Agreement (TIFA) with us -- thus laying
the groundwork for future FTA negotiations.
The United States
will continue to support the efforts of the three ASEAN members
(Cambodia, Laos, and Vietnam) that do not yet belong to the WTO to
complete their accessions successfully.
The United States has
TIFAs with Indonesia and the Philippines -- and just signed one with
Thailand.
FTAs with ASEAN countries will be based on the high
standards set in the U.S.-Singapore FTA, which we are aiming to
complete this year, for action by Congress next year.
Mutual Benefits: This initiative will generate significant
benefits for both the United States and ASEAN. The ASEAN countries are
anticipating solid economic growth in the years ahead and, with ASEAN's
population of 500 million, the opportunities for U.S. companies are
enormous:
Two-way trade reached nearly $120 billion in 2001, making
ASEAN the United States' third largest overseas market.
US-ASEAN two-way trade in services totaled $16 billion in
2000, up 55% since the WTO was established, and holds significant
growth potential.
With relatively high tariffs on agricultural
products (averaging 25% to 48%) and tariff-rate quotas on products of
interest to the United States, current U.S. agricultural exports to
ASEAN countries of $2.6 billion could expand significantly.
US exports to ASEAN countries support nearly 800,000 high-paying American jobs from Alaska to Florida.
For ASEAN, this initiative will help
boost trade and redirect investment back to the ASEAN region.
Background: Pursuing Free Trade Globally, Regionally, and
Bilaterally: The Enterprise for ASEAN Initiative is integral to
America's overall agenda for trade, economic growth, hope and
opportunity. In addition to the Doha Development Agenda of global
trade negotiations, the United States is pursuing regional and
bilateral trade initiatives that will reinforce our global efforts,
including:
Launching FTA negotiations with Central America and also with
Morocco.
Exploring an FTA with the South African Customs Union.
Preparing for possible FTA negotiations with Australia, one of the
world's foremost advocates of free trade and among our closest allies.
An FTA with Australia will bring economic benefits to both countries,
and further strengthen the alliance of countries leading the effort
toward global trade liberalization.
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