ASEAN and Australia: Australia Proposes to Grow Trade Ties at ASEAN Forum

Context: 

India’s bilateral relations with Asean is going to be affected due to Australia’s Investment in Southeast Asia, setting aside $1.3 billion to enhance trade in the region during a summit of the 10-nation ASEAN forum in Melbourne.

ASEAN and Australia: A Renewable Partnership

• India’s trading partner “Australia” is focusing towards strengthening economic relationships beyond its longstanding trade partner, China.
• Climate Change and Clean Energy Transition: Energy demand in Southeast Asia heavily relies on fossil fuels, while Australia is a major gas and thermal coal exporter.
  • Transition towards renewable energy sources: Both regions are increasingly interested in transitioning towards renewable energy sources.
    • This investment aligns with global efforts to combat climate change and fulfill commitments under the Paris Agreement.

About ASEAN 

• ASEAN stands for the Association of Southeast Asian Nations. 
• This entity is  an intergovernmental organization consisting of ten nations in Southeast Asia.
  • The member countries include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
• It was established on 8 August 1967 in Bangkok, Thailand. 
• It serves as a platform for cooperation and collaboration among these nations on various regional and international issues.
• Through diplomatic dialogue and multilateral agreements, member states work together to address common challenges and pursue shared goals.
• Objectives:  The organisation aims to promote the Southeast Asian region through 
  • Acceleration of economic growth
  • social progress and cultural development in the region
  • fostering peace and stability in the region by upholding principles of justice and adherence to the rule of law in interstate relations.
  • Encouragement of the study of Southeast Asia 
  • Maintenance of strong collaboration with established international organisations.

Why is ASEAN Important to India?

• Trade: 

• • Asean has significance for India in trade areas as it is the 4th largest trading partner of India. 
    • Export Items: There are various goods such as gems, pharmaceuticals, electronic goods, jewellery, wheat, and spices that India exports. 
    • Import Items: Similarly, India imports goods such as electronic goods, vegetable oils, newsprints, pearls and precious stones, and natural rubber from ASEAN.

• China’s Influence: 

  • China holds significant influence in Southeast Asia because of its economy, location, and connections. However, relying too much on China can restrict India’s ability to pursue its goals. 
    • Diversification of partnerships: Several ASEAN members object to China for claiming the South China Sea. In such a situation, India too can benefit by increasing ties with other ASEAN members and reducing reliance on China. 

• Maritime Cooperation: 

  • India and ASEAN cooperation for sustainable use of ocean resources (Indo-Pacific region) will be useful in the protection of  India as well as ASEAN Interest. 

• Economic Growth Opportunities: 

• • The ASEAN bloc is emerging as an economic powerhouse due to rapid population growth. This situation can create various growth opportunities such as an increased market and push for higher production of goods and services. 

News Source: The Hindu

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