Trade on PM's Asean agenda

Prime Minister Atal Bihari Vajpayee today left for a seven-day visit to Indonesia and Thailand as part of the government's 'Look East' policy.

During his visit, Vajpayee will project India as an important element in the 'Look West' perspective offered by some Association of South East Asian Nations (Asean) member states, which are wary of China's role in the South China Sea, and want to maintain a strategic balance in the region. During the visit, three major agreements on combating terrorism and enhancing economic cooperation will be signed between New Delhi and the Asean.

Vajpayee's visit will also cement the economic relations between India and Asean countries, especially in the context of the World Trade Organisation (WTO). Ahead of the Asean Summit, Vajpayee will participate in an Asean Business and Investors' Forum on Tuesday.

On Wednesday, Vajpayee will go to Bali in Indonesia to attend the second India-Asean summit. The first, held in Cambodia last year, saw India sign agreements to cooperate in combating terrorism and agreeing to create a free trade area (FTA) with Asean in the next 10 years.

At the last meeting, Vajpayee had also announced greater tariff concessions to Myanmar, Cambodia, Laos and Vietnam. India had promised Cambodia it would work towards that country's inclusion in the WTO. This happened at Cancun earlier this year.

At Bali, India will sign accords with the regional grouping for cooperation in the fight against terror. New Delhi will reach another agreement with Asean on India's Accession to the Treaty of Amity and Cooperation with Southeast Asia.

Several bilateral meetings will be held and Vajpayee will meet the Prime Minister of China, Wen Jiabao, on the sidelines of the Asean summit.

Vajpayee's discussions and India's role in the Asean have to be viewed in the context of the changes taking place in the strategic relationship between several Asean member states and China. In the last four years, India has made rapid progress in forging new defence relations with several member states of Asean, including Vietnam (with which India now conducts joint naval exercises).

Although no Indian official wanted to refer to the dispute over the Spratly Islands, this is clearly an issue. The Spratly Islands is a collection of more than 100 small islands or reefs, of which about 45 are claimed and occupied by China, Malaysia, the Philippines, Taiwan, and Vietnam.

China and Vietnam had a major military standoff over the ownership of these islands in 1988. This issue remains a potentially dangerous flashpoint in an economically significant sea lane in the region. Beijing recently said any settlement of the dispute should not be prejudicial to its interests.

Vajpayee is also likely to discuss with Asean leaders the security threat to East Asia, posed by North Korea's ambiguity over its nuclear programme. China is acting as a facilitator in helping North Korea legitimise its nuclear weapons.

This sits ill with several Asean member states that had viewed India's nuclear explosions with alarm, but appeared to have been reassured by India's willingness to accede to the Treaty of Amity and Cooperation in Southeast Asia and its endorsement of the Southeast Asia Nuclear Weapons Free Zone (SEANWFZ).

In the second leg of his two-nation tour, the Prime Minister will fly to Bangkok, where he will hold wide-ranging talks with his Thai counterpart Thaksin Shinawatra, on a host of issues including the fight against terrorism, UN reforms and the situation in Iraq, West Asia and Afghanistan.

In a bid to strengthen their bilateral ties, the two nations will sign five accords on cooperation in agricultural science, tourism, biotechnology and on exemption of visa requirements for official passport holders.

The two sides will also ink a Framework Agreement to usher in a Free Trade Accord relating to goods, services and trade facilitation.

Officials said the Framework Agreement was a "major breakthrough" in Indo-Asean relations, and should contribute significantly to an increasing integration of the economic space over the coming years, including a free trade agreement.

During his stay, Vajpayee will also address a special session of the Thai Parliament, the first-ever by any foreign leader.