Amitendu Palit on developments during the ASEAN meetings

Key Concepts

• US-India Defense Cooperation Framework: A 10-year agreement for collaboration on defense between the United States and India.
• Trade Tariffs: Taxes imposed on imported goods, a point of contention between the US and India.
• ASEAN (Association of Southeast Asian Nations): A regional organization focused on economic, political, and security cooperation among its member states.
• APEC (Asia-Pacific Economic Cooperation): A regional economic forum promoting free trade throughout the Asia-Pacific region.
• Economic Security: The protection of a nation's economic interests and stability, increasingly integrated into trade agreements.
• Legally Binding Document: An agreement with enforceable legal obligations.
• Third Parties: Entities (countries or groups) other than the direct signatories to an agreement.
• WTO (World Trade Organization): An international organization that regulates international trade.

US-India Defense Deal and Broader Relations

The discussion begins by highlighting the signing of a 10-year defense cooperation framework between the US and India. Dr. Amitendu Palit, Senior Research Fellow and Research Lead of Trade and Economics at the Institute of South Asian Studies, National University of Singapore, clarifies that defense cooperation has historically been a strong area for both nations, with no significant issues or "red lines." This contrasts sharply with trade relations, which are characterized by larger tensions and more prominent disagreements due to the impact of market access on domestic constituencies. While defense cooperation does not adversely affect domestic interests, trade negotiations often do, making them more challenging to resolve.

Impact of Trade on Regional Summits (ASEAN and APEC)

The conversation then shifts to the broader context of regional summits like ASEAN and APEC. Dr. Palit agrees that trade issues, particularly those driven by President Trump's agenda, have overshadowed the intended focus of these significant regional events. The annual ASEAN and APEC summits are crucial for the region, with member states anticipating specific deliverables. However, this year, the primary attention has been on President Trump's itinerary and his engagements with various leaders, diverting focus from the constructive work being undertaken by ASEAN and APEC themselves. This personal focus on President Trump's actions and their implications for other nations' alignment has unfortunately detracted from the substantive discussions these summits are designed for.

New Template for Trade Agreements: Economic Security

Despite the overshadowing of summits by trade disputes, a "bright spot" is identified in the agreements reached between the US and individual ASEAN member states. Specifically, four agreements were signed, with two being more formal, notably the one with Malaysia. Dr. Palit emphasizes the significant character of these agreements with Malaysia and Cambodia, and those anticipated with Vietnam and Thailand.

Key Features of the New Agreements:

• Legally Binding: Unlike many previous US deals, these are legally binding documents.
• Specific Provisions on Economic Security: This is a novel and crucial aspect. Article 5 of both the Malaysia and Cambodia agreements stipulates that these countries will cooperate with the US on economic security.
• Alignment with US Security Interests: Cambodia and Malaysia commit to not taking actions that do not align with US security interests.
• Response to Third-Party Measures: They also agree to respond to measures taken by third parties that work against US security interests.

Dr. Palit argues that this marks a new chapter in trade agreements, moving beyond traditional free trade agreements (FTAs) that focused solely on market access, barriers, investment, and dispute settlement. These new agreements integrate security interests, a dimension previously absent, even from the WTO's purview. This shift signifies a new phase initiated by the United States, potentially setting a template for future international economic partnerships where economic security becomes a paramount consideration.

Conclusion

The discussion concludes by acknowledging the intense diplomatic activity observed over the past few days. The core takeaway is that while US-India defense cooperation remains robust, trade relations are complex. Furthermore, the US's approach to trade agreements is evolving, with a significant emphasis now placed on economic security, potentially reshaping the landscape of international economic partnerships.