Impact of the Association of Southeast Asian Nations - Case Study Example

Running Head: IMPACT OF ASEAN ON AUSTRALIA'S FOREIGN POLICY AND RELATIONS Impact of ASEAN on Australia’s foreign policy and relations Insert Name Insert Tutor Insert Date Introduction ASEAN refers to the Association of Southeast Asian Nations which is an economic as well as geo-political organization comprising of 10 countries. It was formed in 1967 by Thailand, Malaysia, Singapore, Philippines, and Indonesia all of which are in South East Asia. From that time to date its membership has been growing and other countries have been admitted into the organization. New members include Burma, Brunei, Cambodia, Vietnam and Laos. The organization aims at; accelerating social progress, economic growth, protection of regional stability, peace, cultural development and peaceful discussions of differences between the countries. ASEAN came after the Organization of South East Asia’ formed in 1961.Australia’s geographical location and its proximity to Asia has placed it into close cooperation with the countries of South East Asia especially in economic matters. ASEAN has therefore come out as a big economic block with a lot of potential which has made it significant to Australia in the course of time Moshirian, (2009).Australia has cooperation links with ASEAN in political, cultural and climate change or environmental matters as well. This paper discusses the influence that the countries forming the ASEAN organization are having on the relations and foreign policy of Australia. ASEAN is the biggest group in East Asia addressing issues of regional cooperation. Since 1974 Australia has been in a multilateral relationship with ASEAN. The cooperation between Australia and ASEAN has continually shaped Australia’s foreign policy and relations especially with the Asian countries in the area of economic, socio cultural and political cooperation. These adjustments have been necessitated by the simple fact that closer cooperation promotes regional security, peace, development and increased trade for mutual development of both parties. In order to create more cooperation and trade, Australia has had to make adjustments on various fronts and more so in its international policies. This is done in order to nurture a more harmonious relationship with ASEAN member countries since ASEAN is its major trading partner Cotton (2007). In 2008 July, an ambassador was appointed to ASEAN by Australia which later teamed up with New Zealand to sign a free trade agreement with the regional cooperation organization. The consolidation and revitalization of ASEAN has many benefits to bring to Australia. The regional confidence and cooperation development of ASEAN has brought gains to the security environment of Australia Okamoto (2010). Due to the rapid growth in the economies of ASEAN member countries, Australia has focused on them on a large scale for matters of trade. Consequently successive governments continually affirm the significance of the relationship between Australia and ASEAN. Out of South East Asia, Australia became the first nation to forge a joint relationship together with ASEAN which was officially inaugurated in 1974. The agenda for cooperation was aimed at the provision of multilateral economic assistance by Australia to ASEAN. This was developed into the “Australia-ASEAN Economic Cooperation Program.” Australia has been a participant in the ‘post ministerial conferences’ which are convened after the yearly ASEAN foreign ministers meetings. These meetings continue to provide the foreign ministers of Australia with direct and regular communication with their counterparts in ASEAN countries. During the 1980s there was enhancement of cooperation by reforms made in the economic sector in Australia among them reduction of tariffs and financial deregulations. The same thing also took place in some countries within the ASEAN organization Davison & Dorsch (2004).Beginning in the late 1980s there was close cooperation between major ASEAN countries especially Indonesia and Australia in the resolution of the conflict in Cambodia. Australia has also been keen on the enhancement of ASEAN role in discussions about the security of the region. Australia was instrumental in the deliberations which resulted into the creation of the ASEAN regional forum’ in which it has been taking part actively since it was inaugurated in 1994. After 1990s there was continued cooperation with ASEAN but some limitation and challenges came in the way of Australia with ASEAN member countries. Then the image of ASEAN as an economic success in the region was destroyed for some time by the Asian financial crisis. Australia undertook significant contributions in getting assistance packages to assist the hard hit countries such as Indonesia and Thailand. However the crisis continued to impede the multilateral relations. The Asian financial crisis was an encouragement for the pursuit of moves which were in existence since the 1990s to create a clearer way of cooperation avenues focusing on East Asia. Malaysian Prime Minister Mahathir was on the forefront to propose these moves. However Australia could not get a free way through since Mahathir was against the direct participation of Australia in the upcoming dialogues in East Asia Dieter (2009). In 1996 the European Union started holding meetings with ASEAN which reflected on the cooperation among the East Asian countries. These critical new arrangements locked Australia out. In the 1990s Australia also went through some hard times in its bilateral relationship with ASEAN. It experienced cool political relations with Malaysia although relations on the security and economic fronds were warm Dieter (2009).In 1998 when the Suharto regime ended in Indonesia; Australia made efforts to restore East Timor security by leading the stabilization efforts endorsed by the United Nations. It also supported the United Nation’s decision for a ballot to be held on the status of East Timor in 1999. Strains were experienced in Australia’s relations with Jakarta because of these initiatives. In this climate dominating the region after the year 2000, Australia had a number of problems with its relations with ASEAN. From the 1990s Australia expressed a desire to create a link between Asian Free Trade Area (AFTA) and the Australia- New Zealand ‘Closer Economic Relations’ (CER) agreement. Sadly in 2000 October, economic ministers of ASEAN member states met in Chiang Mai and agreed not to pursue this direct linkage. Instead the ministers agreed on the development of a limited but closer and useful economic partnership. Another set back came in 2002 when Australia requested as a dialogue partner to participate in the yearly leadership meetings of ASEAN which were being held in Phnom Penh but the request was turned down. Since 2004 there was a great improvement in the atmosphere of progress between the ASEAN-Australia cooperation. The Prime Ministers of New Zealand and Australia were invited to a commemorative summit’ in the yearly summit meetings of ASEAN held in Vientiane in 2004. ASEAN foreign ministers declared that there is some benefit if both regions can take their economic relations higher Dieter (2009).This was to be done through reviewing the proposal for the linkage between the Australia-New Zealand closer economic relations (CER) and Asian Free Trade Area. The international climate after September 11, 2001 and terrorism concerns deeply affected the international relations of Australia. From 2001 threats by terrorist movements such as Jemaah Islamiyah to ASEAN countries made more attention to be directed towards security. Attention increased to the maximum when bombings were reported in 2002 and 2005 in Bali, in Jakarta in 2003 August and September 2004 near the embassy of Australia Dieter (2009). Australia undertook a number of actions to increase cooperation in combating terrorism, forming bilateral agreements with some members of the ASEAN organization and making a multilateral agreement with ASEAN as a whole. There also exist regional cooperation between many members of the ASEAN community and the Federal police of Australia. With the retirement of Mahathir as Malaysia’s Prime Minister, relations with Australia improved. Relations between Australia and Indonesia also grew warmer after the 1999 chill. The Government and community of Australia gave a very warm response to the tsunami in 2004 which deepened the relationship between the two countries Bell Cotton (2007). The growth of china in the Asian region prompts associations with New Zealand and Australia which can help ASEAN get market access and the required technical skills which can increase competitiveness and economic growth. The increasing popularity of ‘free trade agreements’ within regions is an increasingly important factor Costello. With the collapse of the talks on the World Trade Organization and with the loss of momentum in the trade liberalization plans by APEC in Asia Pacific since the 1990s a trend has been witnessed which favors bilateral FTAs. Examples include Australia-Thailand, Australia-Singapore and South Korea-Chille Davison & Dorsch (2004). In 2004 Australia also formed a Free Trade Area with the United States. These re-alignments made ASEAN to reconsider closer economic ties with Australia. The record that Australia has made of continued growth rates sine the 1990s has improved its importance as a partner in the region. Since 2004 the relations between Australia and ASEAN have registered increasing advancement in political and economic undertakings. Economic cooperation has been an important area that Australia has focused its attention on. The ASEAN member countries make a population of 575 million and have a GDP of over US$1trillion make a significant trading partner for Australia. Combined, they form a bigger economic partner for Australia that any one individual country in the world. Australia is already through with signing ‘bilateral trade agreements’ with Thailand and Singapore and negotiations are going on to bring Malaysia and Indonesia on board. Education has become a major export whereby more than 65,000 ASEAN students were getting their education in Australia in 1997. Tourists from Australia find ASEAN a comfortable destination as Aid by Australia remains an important contributor to the multilateral and bilateral relations Moshirian (2009). Australia is keen on Aid provision to the poorer ASEAN countries since it seeks to remain an important contributor to the growth of these countries. This is a strategy aimed at fostering better relations as well as advancing regional economic development. Between 2008 and 2009 Australia gave out $ 902.4 million in assistance to ASEAN countries. Bilateral assistance provides $463 million for Indonesia, $93.1 million for Vietnam, $109.3 million for the Philippines, $27.8 million for Laos and $55 million for Cambodia Okamoto (2010).Other regional programs include provision of assistance to members of ASEAN in curbing narcotics and infectious diseases as well as dealing with the trafficking of people and sex tourism in children. An important assistance area is focused on boosting the programs of ASEAN for more integration. In 2002 the ASEAN-Australia Development Cooperation Program” was initiated to run for 6 years costing $A45 million in order to strengthen the social, economic cooperation in the region. It also aimed at enhancing the institutional capacities in the region and also to improve cooperation in environment, science and technology as well as helping the newer members in ASEAN as they integrate into the organization. Under phase two of the ASEAN-Australia Development Cooperation Program, Australia will give more than $57 million for a period of 7 years Moshirian (2009).Through this program the focus of Australia is to support ASEAN in its goal of establishing an ‘ASEAN Economic Community’ come 2015. The program is expected to target the provision of support to the lesser developed ASEAN countries in meeting the Millennium Development Goals of the UN via stronger integration and growth in the economy. Stronger emphasis will be placed on partnership since the management of the new program will be done jointly with ASEAN secretariat and with the use of the secretariat systems of ASEAN. It will avail policy advice, economic research and support for implementation economic issues in the region. Australia together with New Zealand has deliberated on a multilateral free trade agreement with ASEAN The AFTA-CER agreement was studied by the Australian ‘Centre of International Economics (CIE) in 2000 and the results showed that in the period of 2000-2020 the net gains made would be US$48 billion which would serve as a stimulant for more investment inflows. The linkage was expected to come with other benefits. The study by CIE indicated that with the integration of economies comes growth in trust, contacts and networks which are followed with confidence in relationships geared at more business Moshirian (2009). A link between AFTA and CER would bring about an important effect which would encourage more APEC liberalization. In 2008 August, it was announced that there would be formed the free trade agreement between Australia, New Zealand and ASEAN (AANZFTA). Reports indicated that Australian beef, dairy, wine and producers of horticultural products would be the major beneficiaries. The agreement was also expected to create opportunities in Indonesia for financial sectors and insurance, as well as education services in countries such as the Philippines, Malaysia and Vietnam. There has been an improvement in the political relations of Australia and ASEAN in the past years as well. In 2005 July, Australia acceded to the TAC treaty which gave it a way to take part in the first East Asia Summit. The beginning of the EAS provided a new venue and of high profile through which Australia could interact with ASEAN as well as other major countries in Asia. Engagements between ASEAN and Australia have been pursued with the two parties signing a Joint Declaration on the ASEAN Australia Comprehensive Partnership’ in 2007 Okamoto (2010). The foreign affairs minister of Australia at that time Mr. Downer said that the joint declaration was a reflection of the maturity and breadth of the relationship between Australia and ASEAN which in future will cove political, socio cultural, economic, security and development cooperation. The declaration is an indicator of the intention of Australia and ASEAN to increase cooperation as they support improved economic integration, disaster preparedness, and emergency response, conservation of the environment as well as infectious and communicable diseases Okamoto (2010). The Australia-ASEAN relationship was reaffirmed by the government of Prime Minister Rudd. He visited the Secretariat of ASEAN in 2008. He became the first leader from ASEAN’s dialogue partners to take that step. He announced that phase two of ASEAN-Australia Development Cooperation Program’ would be inaugurated. Through this program Australia was to provide policy advice of high levels, research and support in implementation to assist in major economic cooperation areas with ASEAN such as standard harmonization, tariff elimination and reduction of other barriers which are not tariffs Okamoto (2010). Australia has also been active in supporting the efforts of ASEAN countries in dealing with climate change and general environmental issues since it values the matters of climate change. Together with ASEAN in 2007, Australia took part in the discussions of the “Singapore declaration on Climate Change Energy and the Environment. Most ASEAN members together with Australia are members of the “Asia Pacific Network for Climate Change.” Australia, in its effort to foster better relations in the area of environment it has provided $1.5 million to the Mekong River Commission. It has also partnered with the World Bank to provide $ 15 million for rural power development in Cambodia, Laos and Vietnam within a four year period Moshirian (2009). In cultural matters there have been efforts to enhance international relations between Australia and ASEAN. This is accomplished through programs developed by the Foreign Affairs department, institutes and councils, scholarship programs and education missions among other avenues. There have been four main presentations in ASEAN countries of the culture of Australia in the few years past. Australia does a lot in supporting education in ASEAN countries by providing scholarships through the Australian Scholarships Program which offers development opportunities in research, educational and professional areas to establish individual, country and institutional level links in the region. Australia also supports dialogue between various faiths in an effort to build understanding and tolerance within the Asian region Dieter (2009). Conclusion In conclusion this paper has elaborated into the issues surrounding the impact of the Association of South East Asian Nations (ASEAN) on the relations and foreign policy of Australia. Australia being close to Asia in terms of geographical location, it has found it inevitable to avoid the influence of East Asia on its affairs. It has instead taken this as a grand opportunity for international cooperation with the members of ASEAN. Australia has therefore made efforts to occupy a significant position in the affairs of the region through signing of bilateral trade agreements and participation in the activities of ASEAN and other major Asian countries. Its policies have to a large extent been shaped by the consideration of ASEAN and its contribution to the growth of trade volumes and development for Australia. ASEAN being Australia’s main economic partner, Australia has even established Aid programs to help these nations and in their process increase regional cooperation between ASEAN and itself. Cooperation is being pursued in economical, cultural and political spheres References Moshirian, F. (2009) “Can an Asia Pacific Community, Similar to the European Community, Emerge?” Journal of Banking & Finance, 33(1) Cotton, J. (2007) “Timor-Leste and the Discourse of State Failure”, Australian Journal of International Affairs, 61(4) Dieter, H. (2009) “Changing Patterns of Regional Governance: From Security to Political Economy?”, The Pacific Review, 22(1). Okamoto J. (2010); Australia’s foreign economic policy and ASEAN Penguin Books Davison & Dorsch J. (eds) (2004); The New Global Politics of the Asia-Pacific, London and New York, Routledge Curzon. Read More