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World / Asia-Pacific

Summit will be a boost for Asean-India ties

By Elgin Toh (asianewsnet) Updated: 2012-12-19 12:30

Summit will be a boost for Asean-India ties
Indian sweepers walking past a billboard outside the venue for the 2nd India-Asean Business Fair and Business Conclave in New Delhi yesterday, which is being held together with the Asean-India summit. The two sides are expected to conclude a free trade agreement on services and investments. (PHOTO: AGENCE FRANCE-PRESSE)

 

Singapore Prime Minister Lee Hsien Loong arrives in New Delhi today to attend an Asean-India summit that commemorates 20 years of formal ties between the Southeast Asian grouping and the South Asian power.

The two-day event starting tomorrow, however, promises to be more than a celebration of the past: Ministers from both sides have dropped strong hints that it will mark major strides forward for the relationship.

These include a possible announcement on the elevation of Asean-India ties to that of a "strategic partnership", and the conclusion of an Asean-India Free Trade Agreement (FTA) on services and investments.

On Monday, Cambodian Commerce Minister Cham Prasidh said that India and Asean were ready to take their relationship to the next level. Cambodia is the current chair of the regional bloc.

Yesterday, a draft of the statement to be made at the summit that was leaked to the media indicated that ties would be upgraded to a strategic partnership.

This would bring a larger political and security dimension to their relationship. India is now one of Asean's dialogue partners.

The draft statement also commits Asean and India to boosting security ties and confronting maritime challenges such as piracy and navigation together.

Yesterday, Indian Commerce and Industry Minister Anand Sharma all but confirmed the finalisation of a services and investments FTA, which both sides have been negotiating since they signed an FTA on goods in 2009.

"Now we will definitely conclude it, then we are duty-bound to report to... the heads of governments, who shall formally make the declaration on Thursday," Sharma told a press conference.

Prasidh said: "We may be able to give you good news tomorrow."

Asean-India trade hit US$74.9 billion last year.

The summit holds special meaning for Singapore, which actively lobbied its neighbours to engage India in the 1990s. As a result, Asean made the South Asian giant a sectoral dialogue partner in 1992, a full dialogue partner in 1995, and admitted it to the Asean Regional Forum in 1996.

Singapore's support for warmer ties with India was based on its deep historical links to the region, its lack of territorial disputes with Asean members, and its possible role as a counterweight to other powers.

Tomorrow, Lee is due to visit Gurgaon city, the industrial and financial centre of Haryana state. There, he will explore possible Singapore tie-ups as he meets local politicians and industrialists, including Sunil Mittal, boss of India's largest cellular service provider, Bharti Airtel.

Lee, who is accompanied by his wife Ho Ching, will be here until Friday. Deputy Prime Minister Teo Chee Hean will be Acting Prime Minister in his absence.

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