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Southeast Asian leaders throw weight behind China-led trade pact

By AFP
June 23, 2019

Bangkok: Southeast Asian leaders gathered in Bangkok on Saturday determined to drive forward the world´s largest commercial pact, with the trade war between the US and China clouding the outlook for their export-led economies.

Disputes in the flashpoint South China Sea, Myanmar´s persecution of Rohingya Muslims and plastic pollution in the seas are also set to be discussed at the two-day Association of Southeast Asian Nations (ASEAN) summit, chaired by Thailand. But trade will take centre stage with ASEAN leaders keen to hasten the signing of a China-drafted commercial deal covering around half the world´s population.

The Regional Comprehensive Economic Partnership (RCEP) includes all 10 ASEAN economies, plus India, Japan, South Korea, Australia and New Zealand.

It is seen as a mechanism for China to draft the rules of Asia-Pacific trade, following a US retreat from the region.

Shortly after his election, President Donald Trump pulled the US from the Trans-Pacific Partnership (TPP) -- which would have been the world´s largest trade deal -- slamming it as an American "job killer". While tit-for-tat tariffs between the world´s biggest two economies have seen some manufacturers flee China to safer ASEAN hubs, economists say the big picture for global growth is bleak. In that context, "RCEP is key to increasing trade volume", Thai government spokesman Werachon Sukhondhapatipak told reporters.

"The faster it (RCEP) gets implemented the better," Martin M. Andanar, Philippines Communications Secretary, told reporters. "Free trade is definitely what we need here in this region," he said, adding that the US-China trade row has resulted in "the entire world catching a cold". Progress on the deal has stuttered in recent months with India digging in over fears cheap Chinese goods could flood its massive consumer market.

Australia and New Zealand have also raised concerns over a lack of labour and environmental safeguards.

With Southeast Asia awash in rubbish, from plastic-choked whales to trash-clogged canals, leaders are planning to push through a deal to fight maritime debris at the regional meeting.

Just five Asian countries -- China, Indonesia, the Philippines, Vietnam and Thailand -- dump more than half of the eight million tonnes of plastic waste that end up in oceans every year, according to a 2017 Ocean Conservancy report.

The region has come under fire for not doing enough to tackle its mounting trash troubles, with single-use plastic and sub-par waste management adding to the problem. Leaders at a weekend meeting are expected to sign a "Bangkok Declaration" on fighting maritime waste -- a first of its kind -- which promises to "prevent and significantly reduce marine debris", according to a draft seen by AFP.

But activists are worried the agreement doesn´t go far enough. "If we are not reducing single-use plastic at the production process, this ´Bangkok Declaration´... will not succeed," said Tara Buakamsri of Greenpeace in Thailand.

The agreement also omits penalties for the worst offending companies or countries, and fails to specify measures to tackle the problem.

ASEAN summit hosts Thailand billed the forum as environmentally friendly, handing out recycled paper notebooks and tote bags and food containers made from reused plastic. But venue meetings in giant air-conditioned hotels and rows of plastic water bottles next to signs promoting "green meetings" had some wondering how dedicated the hosts really were.

In addition to spewing out billions of tonnes every year, Southeast Asian nation are among the world´s top importers of trash from more developed economies, like to US and Canada.

Greenpeace has called on the countries to stop accepting rubbish, which can end up in landfills and waterways if not properly processed. Buakamsri said the marine waste declaration should be broadened to include the thorny issue of banning plastic imports. "We don´t expect them to actually incorporate this issue into the summit because there is no political will," he told AFP Saturday.

Alarming images of polluted canals in the Philippines, plastic-laden Vietnamese beaches, or whales, turtles and birds choking on plastic debris have thrust Southeast Asia´s plastic problem into global headlines. Some private businesses in Thailand and Vietnam have started replacing plastic products like bags and straws with recyclable materials, but government policies have yet to catch up.