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U.S. Business Holds Dialogue with ASEAN Investment Ministers
U.S. Business Won't Retreat in Response to Terrorist Acts - Focus on Cooperation and New Business
(Hanoi, Vietnam) The US-ASEAN Business Council met today with the ASEAN Investment Area Council (AIA). The AIA is comprised of the ten ASEAN countries' ministers responsible for investment.
Although shocked by the terrorist attacks in the United States this week, the U.S. business leaders said they decided to carry through with these high level discussions. US-ASEAN Business Council President Ernest Bower said, "We decided to go forward with our consultations with ASEAN because we are committed to this region. Our colleagues in ASEAN have given us overwhelming support at this difficult time. Indeed, the feeling here is one of shared pain and mutual commitment to build a better future for our people through increased interaction and cooperation. I want my countrymen to know that the ASEAN countries are close friends of the United States."
In a wide-ranging dialogue, business leaders said the top priority was for ASEAN members to complete unfinished economic and financial sector reforms, and work toward regional economic integration. Realization of the ASEAN Free Trade Area (AFTA), they argued, is the key to enhance the region's competitiveness. American companies are the top investor in the ASEAN countries, and the United States continues to be the region's number one market. However, investment flows to Asia have begun to steer predominantly toward China, at ASEAN's expense. Currently, U.S. investment in ASEAN is far greater than in China - UYS$51 billion compared with US$9.5 billion at the close of year 2000.
"The role of China in the regional and global economy was the front-burner issue," said Bower. "China's economic growth will have a positive impact on trade in the region, particularly with their entry into the World Trade Organization (WTO) expected later this year. However, there is also concern that China will continue to draw investment away from ASEAN, and then target the same export markets ASEAN is serving. Our messages reinforces what ASEAN's leaders already know: ASEAN must work together to compete in the future."
Discussions were aimed at finding ways to draw more FDI into ASEAN. The Americans shared perceptions of the region and reviewed strategies that companies pursue in making foreign investment decisions. In the face of growing economic competition, the executives underlined the need for ASEAN to complete AFTA, and develop comparative advantages vis a vis competing markets such as China. ASEAN can achieve these goals by accelerating national treatment under the ASEAN Investment Area and implementing the ASEAN Customs Agreement.
The U.S. delegation included Gerry Kania, President of ASEAN Operations for Ford Motor Company, Tom Polhill of Cargill, Inc., and Steven Siqueira of American Express Company. "There are many challenges facing the auto industry in ASEAN today, such as weakening economies and a slowdown in FDI," said Gerry Kania of Ford. "However, we continue to believe that the successful and timely implementation of AFTA is the solution to the problem. We encourage ASEAN economies to continue their good work in order to demonstrate the attractiveness of ASEAN as an important region for continued U.S. investment."
"U.S. companies operating in this part of the world are long-term players and are they are committed to their customers, workers, and partners in Southeast Asia." Said Ernest Bower of the Council. He noted that the Council and its members would continue their extensive training and human resource development work as well as community development activities in ASEAN.
Highlights of the US-ASEAN Business Council meeting with the ASEAN Investment Ministers are available on the US-ASEAN Business Council web site at www.us-asean.org/ASEANOverivew/aem2001/. The US-ASEAN Business Council will hold an additional exchange of views on September 16 with ASEAN Economic Ministers (AEM) and senior officials.
The US-ASEAN Business Council is America’s leading private, non-profit business organization dedicated to promoting increased trade and investment between the United States and the member nations of ASEAN. For information on the US-ASEAN Business Council or general information on the ASEAN region, please contact John Goyer at jgoyer@usasean.org or visit the Council’s Web site at www.us-asean.org.
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