http://www.latimes.com/business/la-fi-china30nov30.story New Trade Pact Could Cut Clout of U.S. in Asia
The economic zone's creation will boost China's interests in an area where its relations have been strained.
By Evelyn Iritani Times Staff Writer November 30, 2004
China inked a deal with 10 Southeast Asian countries Monday to create the world's largest free trade area, bolstering its influence in a region long dominated by the United States.
The leaders attending the Assn. of Southeast Asian Nations meeting in Laos also announced plans to hold the first-ever East Asian Summit next year in Malaysia. The Asia-only gathering would include China, Japan and South Korea.
The moves are likely to boost China's political and economic interests in an area where its relations have been strained by territorial disputes and lingering war animosities.
That could reduce U.S. clout among Southeast Asian nations that are key military allies and large markets for U.S. farm goods, machinery and Hollywood films.
"This is a wake-up call," said Myron Brilliant, senior vice president of Asia policy for the U.S. Chamber of Commerce. "China is becoming more aggressive in its outreach to its neighbors, and we don't want to be left behind."<snip>
Under the trade pact, the six largest members of ASEAN — Singapore, Indonesia, Malaysia, Brunei, Thailand and the Philippines — agreed to cut tariffs on 4,000 categories of goods to between zero and 5% by 2010. The four poorest countries — Laos, Vietnam, Cambodia and Myanmar — have until 2015. Governments are given leeway to move more slowly in lowering tariffs on their most sensitive products, such as sugar, steel and automobiles.<snip>