SPOTLIGHT

March 2013

 
 

 

 

 

 
 
 

India-ASEAN Partnership
Touching a New Pinnacle

By Dr Jagannath P Panda                         

Delhi Dialogue V, like in previous editions, covered a wide gamut of issues affecting the India-ASEAN engagement, ranging from greater connectivity, trade and economic cooperation to deeper political and security interactions, particularly in maritime affairs

 
   

India’s approach towards ASEAN is multi-dimensional as it views the regions of Southeast Asia vis-à-vis ASEAN as vital strategic entities in its foreign policy paradigm. India’s approach towards ASEAN was well articulated in Prime Minister Dr Manmohan Singh’s opening statement at the Plenary Session of India-ASEAN Commemorative Summit on December 20, 2012. He said: “We see our partnership with ASEAN not merely as a reaffirmation of ties with neighbouring countries or as an instrument of economic development, but also as an integral part of our vision of a stable, secure and prosperous Asia and its surrounding Indian Ocean and Pacific regions”. This perspective certainly explains not only India’s greater awareness and vision towards ASEAN; but also delves upon India’s strategic insights attached to this partnership.

One of the highlights of India-ASEAN growing partnership in recent years has been the gadget of Delhi Dialogue. The fifth round of Delhi Dialogue was held from February 19-20, and symbolised the new dynamics emerging and pushing the India-ASEAN partnership to a new level. The Delhi Dialogue process has certainly been an encouraging initiative, as it not only promotes institutional bonding between India and ASEAN at the ground level; but also equally explains the vitality of constant interactions and dialogue process that the two sides look from each other at the regional level. The spirit and ethos of Delhi Dialogue V was very similar to the spirits and sentiments that were expressed in Commemorative Summit held in New Delhi in December 2012. Like previous dialogues, the Delhi Dialogue V emphasised a range of issues; for instance; on greater connectivity, trade and economic cooperation and deeper political and security interactions, mainly in maritime affairs, between India and ASEAN. These are indeed optimistic parts of India-ASEAN engagement; but the manner and extent to which India and ASEAN can accommodate each other’s security interests, mainly on maritime security issues, needs to be seen.

Strategic Partnership: A New Arrival?

The year 2012-13 is an important period in the India-ASEAN relationship. In 2012, India and ASEAN decided to upgrade their bilateral relations to a ‘strategic partnership’. Both sides expect this will be beneficial from the regional perspective. Celebrating the 20th anniversary of India-ASEAN dialogue partnership and the 10th anniversary of India-ASEAN summit-level partnership, the two sides upgraded their relationship in a range of aspects. New thoughts and spirits emerged to maximise the partnership on political, economic, cultural and diplomatic issues. Yet, the most promising was security and maritime cooperation.

Crafting maritime and security cooperation between India and ASEAN is certainly a fresh idea. Earlier, the partnership was concentrated moreover trade and economic cooperation. This ethos of pushing maritime cooperation between both sides is encouraging particularly at a time when disputes in South China Sea and East China Sea have become highlights of regional politics. But from India’s perspective, there is enough scope for New Delhi to shape a well-crafted maritime drive over this Southeast region through ASEAN. The Vision Statement of the ASEAN-India Commemorative Summit assures this in India’s favour. Under the heading ‘Political and Security Cooperation’, the Vision Statement mentions that both India and ASEAN ‘are committed to strengthening cooperation to ensure maritime security and freedom of navigation, and safety of sea lines of communication for unfettered movement of trade in accordance with international law, including UNCLOS’. This is also relevant for India at a time when ASEAN is eager to craft better maritime ties with India.Countries like Vietnam, Philippines and Malaysia have been categorical in expressing their desire to see India as a better placed maritime power in the region. The Vision Statement explicitly states that there must be cooperation and engagement between India and ASEAN through the ASEAN Maritime Forum to address various challenges in the region.

The spirit and fundamentals of the India-ASEAN Commemorative Summit of December 2012 can become a basis for enlightened maritime politics in South-East Asia, with significant reference to ‘freedom of navigation’. Prime Minister Manmohan Singh had said, “TheVision Statement lays out a comprehensive roadmap for political, security, economic, socio-cultural and development cooperation. It imposes on us the responsibility to work diligently and innovatively to fulfill the heightened expectations.” He also stated: “We have decided today to elevate our relationship to a strategic partnership. This is a historic step, and together with the conclusion of the negotiations on FTA in Services and Investments, defines a qualitatively new paradigm of our friendship.” Under the ‘strategic partnership, there is ample scope for closer maritime cooperation between the two sides.

Trade & Economy

In order to craft a more decisive policy in this regard, New Delhi must capitalise on maximising trade and economic contacts with ASEAN. ASEAN is the prime multilateral body that connects Asia’s three key regions together: South Asia, East Asia and Southeast Asia. The thrust has been to capitalise the ‘strategic partnership’ between the two; yet the trade and economic relationship must be improved, as that has been the key of India-ASEAN relations so far. Prime Minister Singh has called the India-ASEAN agreement ‘transformational’, aimed at pushing India-ASEAN trade to almost $200 billion in the next decade; setting a realistic trade target of a $100 billion by 2015. Trade contacts between the two sides in the last one decade suggest that bilateral trade and economics have been on ascendancy, mainly since the FTA has come into force between the two sides (See Chart). While air and road infrastructure linkages could be one viable way to maximise trade, the focus should also be on maritime engagements. Bilateral trade and economic engagement between India and ASEAN has been the hallmark of this relationship over the years. After signing of the FTA in goods between India and ASEAN, bilateral trade increased massively to 41 percent in the year 2011-12, and touched the current figure of $80 billion. India and ASEAN signed free trade agreements (FTA) on services and investment during the Commemorative Summit last year.

Noting ASEAN Intent

ASEAN has also called for India to be forthcoming and promote intense institutional cooperation on trade, economy and maritime security and to take a more ‘decisive’ stance towards the region, including the South China Sea. Previously, the President of Vietnam, Nguyen Tan Dung had asked for direct intervention by India on the maritime issue. Similarly, the Prime Minister of Thailand Yingluck Shinawatra stressed on closer India-ASEAN cooperation and connectivity. She expressed the view that there should be intense cooperation between the two sides on sea safety, disaster management, energy security, etc. This is part of the general ASEAN thinking that there is a bigger role and space for India to engage in the region more intensely and closely. In fact, the highlight of the December 2012 summit was the statement by Prime Minister Manmohan Singh, that “as maritime nations, India and ASEAN nations should intensify their engagements for maritime security and safety, for freedom of navigation and for peaceful settlement of maritime disputes in accordance with international law.” This statement came against the background of rising tensions in the South China Sea in the recent past. While Chinese assertiveness over the South China Sea and East China Sea has been the centrality of most of East vis-à-vis South-East Asian politics, China’s objection to India’s oil exploration and commercial activities in the maritime region, mainly to joint oil exploration activities with Vietnam, has been the highlight of regional maritime politics in the recent past. In this context, the flagship event of sending the shipping expedition INS Sudarshinito South-East Asia could mark the beginning of this new maritime diplomacy.

Thrust on ASEAN+6 RCEP

Debates and dialogues across Asia continue over the process of East Asia economic integration. These discussions continue in the backdrop of the US ‘pivot’ to Asia policy, and continuing tensions over disputes in South China Sea and East China Sea disputes. The main thrust behind the East Asian economic integration has been ASEAN+6 Agreement and the East Asian Summit (EAS); where the aim is building a stable Regional Comprehensive Economic Partnership (RCEP) among countries in Asia. The ASEAN+6 RCEP is aimed at transforming the region by higher economic growth through more cross-border trade and investment.

There is no dispute that ASEAN is the most important multilateral body in Asia, which connects and brings together maritime politics of four important sub-regions of Asia- South Asia, Southeast Asia, East Asia and Asia-Pacific. Besides, ASEAN remain the gateway for Ocean politics in Asia, where the East China Sea, South China Sea and Indian Ocean are closely linked with each other. The volume and import of ASEAN is well known in regional vis-à-vis global politics. More than ASEAN, it is the region of Southeast, with its political, economic and maritime strength, that attracts many local, regional and global powers to connect with it. In this regard, the main aim should be to integrate the region more intensely through trade and economic engagements and institutional bonding. The ASEAN+6 mechanism will not only help bring together the extra-territorial economies to the region, but will also help in addressing the maritime politics more intensely.

India would like to see the fulfilment of the ASEAN+6 RCEP as soon as possible. This will help furthering the aims and objectives of India’s Look-East Policy. RCEP will have huge trade potential. In real practice, RCEP once formalised, will emerge as the most effective and largest free-trade bloc in the world. The combined geo-political resources put this grouping in a totally different league, making it the most important economic grouping of the world. It will bring ten ASEAN countries and other six countries (China, Japan, South Korea, India, Australia and New Zealand) together. These six members currently have FTAs with ASEAN. The idea of RCEP negotiations is a new one; and was mainly discussed during the East Asia Summit in Phnom Penh (Cambodia) in November 2012.

The year 2012 was a key year for India-ASEAN relations. In this year, the relationship will depend on how both parties maximise the ethos and sentiments expressed in the December 2012 Commemorative Summit. During that summit, several understandings, agreements and deals between India and ASEAN pushed the partnership ahead.

Delhi Dialogue encourages the rising ‘institutionalisation’ process taking place between both sides in recent times. While India-ASEAN annual summits have been institutionalised; many sectorial and TRACK-II level dialogues have been upgraded and advanced to the Ministerial consultation level meetings. The ASEAN-India Eminent Persons report to the leaders (October 2012) notes that there currently exist almost 25 dialogue and cooperative mechanisms between India and ASEAN. Much will depend on how diligently and carefully both parties push their bilateral relationship to a security and strategic partnership, and address their mutual strategic interests and concerns that are centred on maximising maritime bonding.

 
Dr Jagannath P Panda is Research Fellow at the Institute for Defence Studies and Analyses (IDSA), New Delhi. He is also Research Director (India) at the Institute for Transnational Studies (ITS), Germany/Italy. He may be contacted at jppjagannath@gmail.com    

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