Hawaii courts
ASEAN leadersState officials are using two
events to promote the economy,
natural resources and security
to visiting dignitaries
With more than 500 million consumers, a gross domestic product of $800 billion and ties to the fastest-growing region in the world, the Association of Southeast Asian Nations is a power player in the global economy.
And it's no wonder Hawaii's leaders want to capture their share of this emerging market.
RICHARD WALKER / RWALKER@STARBULLETIN.COM
DBEDT Director Ted Liu said Hawaii is focused on Asia.
Hawaii's business leaders and politicians are wooing ASEAN leaders with a tour for the US-ASEAN Business Council. The event is taking place in concert with the inaugural Asia-Pacific Homeland Security Summit and Exposition, which kicks off today. The two events will attempt to sell Hawaii's economic strength, natural resources and expertise in homeland security to visiting dignitaries from 10 Southeast Asian countries.
"The discussions in Hawaii will build on the momentum created by President Bush's historic visit to four ASEAN countries last month," said Ernest Bower, president of the US ASEAN Business Council. "Balancing trade and development with security is something we have to focus on to achieve sustainable economic growth. That is the agenda in Hawaii."
The US-ASEAN Business Council, which serves as the voice of the American private sector in the ASEAN market, has spent the past two decades building strategic alliances and working relationships with ASEAN regional organizations, as well as with government and private sector leaders in each country. The council's membership includes approximately 150 of the Fortune 1,000 American companies with trade and investment interests in the ASEAN region.
The countries represent a diverse range of industries, including aerospace, agribusiness, automobiles, computers and information technology, consumer goods, energy exploration and development, express delivery services, financial services, health care and pharmaceuticals, software, and telecommunications.
While they are in town, ASEAN ambassadors, who represent the third-largest overseas market for the United States, and council members will discuss trade and security issues with state leaders. Ambassadors from Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, who arrived in Honolulu Monday evening, are scheduled to participate in the discussions.
The ASEAN delegation of ambassadors and council members were greeted with a reception hosted by Mayor Jeremy Harris on Monday.
Yesterday, they met with local business, government and academic leaders to discuss regional trends.
Today, they are scheduled to tour tourist attractions in Oahu. They'll finish up their visit at the anti-terrorism summit, which concludes Friday. They'll also be meeting and discussing partnerships with business owners from Hawaii's small and medium sized businesses at the summit's exposition.
"The big corporations and the Fortune 500 companies look after themselves," said Chan Heng Chee, Singapore ambassador to the United States. "Many businesses in the United States and ASEAN countries are small- and medium-sized. Ambassadors can help them exchange cards and meet."
Chan said she's seen business ties develop after ASEAN leaders made similar visits to the mainland and believes such exchanges will help anchor the United States to ASEAN countries as they continue on their path to greater economic development.
Two-way trade for the ASEAN region exceeded $120 billion last year, and several of its countries have pursued or are interested in pursuing trade arrangements with the United States and with Hawaii.
"Clearly it's the 'Asia-Pacific Era' and we want to be focused on Asia where the real issues of the globe will be confronted," said Ted Liu, director of the Department of Business, Economic Development & Tourism for Hawaii. "And we believe that Hawaii is the ideal place to access the know-how and the best practices that emerging Asia needs as it continues on its path."
Based on current statistics from the Asian Development Bank, ASEAN countries are growing at a phenomenal rate and will continue to grow, Liu said. The organization has forecast Asia's growth rate next year will be in the 5 to 6 percent range, he said.
However, the US-ASEAN Business Council sees many challenges that lie ahead in ASEAN's pursuit of sustained economic growth, including the threat of terrorism, Bower said.
"Secretary (Tom) Ridge's high-profile role in this conference is further proof that the Bush Administration is investing in this balancing effort. With that larger policy picture now coming into focus, the state of Hawaii's Summit will help businesses in the U.S. and Asia better understand the careful balance between security and commerce," Bower said. Ridge will speak via teleconference at the summit.
In recent times, the United States and ASEAN have been pursuing closer commerce ties.
The United States and Singapore recently reached a trade agreement that would sweep away barriers and spur bilateral trade and investment. Singapore is the 11th-largest trading partner of the United States, with nearly $33 billion in bilateral goods trade in 2001. Last month, President Bush announced plans to pursue such an agreement with Thailand. Thailand is the United States' 18th-largest trading partner, with two-way trade totaling nearly $20 billion in 2002.
It's believed that an such an agreement would increase U.S. exports to Thailand and eliminate tariffs and non-tariff barriers, creating new opportunities for U.S. businesses. Top U.S. exports to Thailand include machinery, agricultural products and aircraft, said H.E. Sakthip Krairiksh, Royal Thai ambassador to the U.S.
"Thailand and Hawaii have many things in common," Krairiksh said. "We hope a (free trade agreement) will start next year and that it will bring Thailand and the U.S. even closer."
Leaders from the United States and ASEAN countries also have discussed creating a network of bilateral trade agreements, called the Enterprise for ASEAN Initiative. The EAI, which has been bandied about since 2002, would increase trade and investment, create economic reform and foster openness, leaders said.
