Philippines optimistic on United States-Asean Summit

MANILA, Philippines - The first-ever summit between the US and Southeast Asian nations this week is proof the world’s superpower remains serious on its “pivot to Asia” policy both in economic and security fronts, the country’s finance chief said.

‘’We look forward to the US-ASEAN Summit bolstering our economic and diplomatic ties, furthering the pivot toward the Asian Century in a bid to sustain global peace and prosperity,” Finance Secretary Cesar Purisima said in a statement.

Purisima is joining President Aquino’s delegation to the US for the first-ever summit with the Association of Southeast Asian Nations (ASEAN) on Feb. 15 and 16.

The meeting comes at a time of global economic slowdown which saw emerging markets, including the Philippines, suffer a sell-off in financial markets.

Concerns are growing developing economies, led by China, are slowing excessively and are pulling down the entire global economy.

Purisima, for his part, said the summit provides opportunity for economic growth through stronger trade with the US, especially with two trade agreements in the offing.

The US and 11 other countries just signed the Trans-Pacific Partnership (TPP) this month, while ASEAN already started the process toward economic integration by the end of 2015.

Four of the 10 ASEAN members are TPP signatories. They are Brunei Darussalam, Malaysia, Singapore and Vietnam. Purisima said the Philippines remains interested to join.

“The future looks bright for US-ASEAN economic cooperation,” he said.

“In particular, the Expanded Economic Engagement (E3) Initiative would further strengthen trade investment relations between ASEAN and the US, forming a crucial building block...in joining the TPP,” the finance chief explained.

Launched in November 2012, the E3 serves as the framework of economic cooperation between the US and ASEAN.

Amid ongoing missions in the Middle East, US President Barack Obama re-focused his foreign policy toward Asia, particularly to challenge China’s growing influence in economy and diplomacy.

According to ASEAN data, the US was the region’s third largest trade partner last year with $212.43 billion worth of goods that crossed borders.

Broken down, the US accounted for 9.5 percent of exports and 7.3 percent of imports of the entire 10-member bloc, preliminary data showed.

In terms of foreign direct investments, the US funneled an average of $32.35 billion in investments in ASEAN from 2012 to 2014, the second biggest next only to Japan.

Sought for comment, Nicholas Antonio Mapa, research officer at Bank of the Philippine Islands, said the summit could be a venue to tackle “security issues in the region.”

The ASEAN is embroiled in territorial disputes with China, also one of its biggest trade partners, over the West Philippine Sea. The Philippines filed an arbitration case against Beijing before the international court.

“Possible application to the TPP will be key as we look to strengthen ties with the US given our security issues in the region,” Mapa said in an e-mail.

“This also shows how determined the US is to push its TPP as another means to act as a counterbalance to China in Asia,” he added.

Ramon Casiple, political analyst at Institute for Political and Economic Reform, agreed. “US is attempting (or temping) ASEAN to align economically and politically with it,” Casiple said in a text message.

“ASEAN should see it as opportunity to play a greater role vis-a-vis both US and China,” he said.