Second EAS
Encyclopedia
The East Asia Summit is a pan-Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...

 forum held annually by the leaders of 16 countries in the East Asia
East Asia
East Asia or Eastern Asia is a subregion of Asia that can be defined in either geographical or cultural terms...

n region. EAS meetings are held after annual ASEAN leaders’ meetings.

Second summit

The Second EAS was to be held on December 13, 2006 in Metro Cebu
Metro Cebu
Metro Cebu is the main urban center of the province of Cebu in the Philippines. Metro Cebu is located along the central eastern portion of the island including the nearby island of Mactan...

, Philippines. After the confidence building of the First EAS
First EAS
The East Asia Summit is a pan-Asia forum held annually by the leaders of 16 countries in the East Asian region. EAS meetings are held after annual ASEAN leaders’ meetings.- First summit :...

 the 2006 EAS was to intended help to define the future role of the EAS, its relationship with ASEAN Plus Three and the involvement of Russia in EAS. However in the face of Tropical Typhoon Utor the summit was post-poned until January 2007. It has been re-scheduled for January 15, 2007, approximately a month after the original scheduled date.

The 16 countries involved were:

Issues for the second EAS

The meeting of EAS foreign ministers in Kuala Lumpur on 26 July 2006 identified energy, finance, education, avian flu and national disaster mitigation as the priority issues for the 2006 EAS. The Philippines, the host of the 2006 (now 2007) EAS, also said the failure of the Doha Round
Doha round
The Doha Development Round or Doha Development Agenda is the current trade-negotiation round of the World Trade Organization which commenced in November 2001. Its objective is to lower trade barriers around the world, which will help facilitate the increase of global trade...

 would be on the agenda.

EAS Free Trade Agreement/Comprehensive Economic Partnership for East Asia (CEPEA)

In April 2006 Japan announced a proposal for an East Asian Economic Partnership Agreement (also known as the Comprehensive Economic Partnership for East Asia (CEPEA) or the Nikai Initiative in reference to Toshihiro Nikai
Toshihiro Nikai
is a Japanese politician. He was the Minister of Economy, Trade and Industry. A member of the Liberal Democratic Party , Nikai is currently serving in his eighth term in the Lower House representing Wakayama's Third District....

 in reference to the then Japanese Economic Minister) consisting of the current members of the EAS. Japan, the promoter of the concept, described it as an "East Asia OECD". Initially this was linked with a timetable for discussions to commence in 2008 and to conclude in 2010, which met with some scepticism.

By August 2006 this had been refined to a Japanese proposal championed by Japanese Trade Minister Toshihiro Nikai
Toshihiro Nikai
is a Japanese politician. He was the Minister of Economy, Trade and Industry. A member of the Liberal Democratic Party , Nikai is currently serving in his eighth term in the Lower House representing Wakayama's Third District....

 consisting of:
  • a fund of US$80 million to $100 million to initiate a comprehensive economic partnership (CEP) with East Asia, modelled on the OECD; and
  • an institution to be named the East Asia Economic Research Institute for ASEAN and East Asia
    Economic Research Institute for ASEAN and East Asia
    The Economic Research Institute for ASEAN and East Asia or ERIA is a policy think tank proposed by Japan arising out of the East Asia Summit, proposed at the Second EAS and approved at the Third EAS. ERIA aims; to facilitate ASEAN Economic Community building; to support ASEAN's role as the driver...

     (ERIA) in an ASEAN country to research the benefits of a proposed Free Trade Agreement between the 16-members of the EAS; and
  • an East Asian Free Trade Agreement (EAFTA) between the EAS members.


Responses were mixed. Following the discussions of EAS Foreign Minister in Kuala Lumpur on 26 July 2006, to establish the agenda for the second EAS, it appeared that the proposal as it then stood did not have sufficient support to be included as an agenda item for the second EAS. Although the Philippines, which was the host for the second EAS, said trade would be on the agenda but in terms of the then present difficulties with the Doha Round
Doha round
The Doha Development Round or Doha Development Agenda is the current trade-negotiation round of the World Trade Organization which commenced in November 2001. Its objective is to lower trade barriers around the world, which will help facilitate the increase of global trade...

.

Nevertheless even after the meeting of the EAS Foreign Ministers Japan appeared keen to continue to discuss the idea in terms of a Free Trade Agreement between the members of the EAS.

India came out publicly in support of a pan-Asia Free Trade Agreement. New Zealand expressed its support. As has Malaysia. Australia described the proposal as "interesting". Indonesia gave guarded support to the proposal, linking it with the proposed East Asian Community and Asian Values
Asian values
Asian values was a concept that came into vogue briefly in the 1990s to justify authoritarian regimes in Asia, predicated on the belief in the existence within Asian countries of a unique set of institutions and political ideologies which reflected the region's culture and history...

. ASEAN gave its support to the Japanese proposal to research the proposed EAFTA.

Ong Keng Yong
Ong Keng Yong
Ong Keng Yong is a Singaporean diplomat. He was the Secretary-General of the Association of Southeast Asian Nations from 2003 to 2007....

, the secretary-general of ASEAN has suggested that "it can be done", referring to an EAFTA, and estimated it would take 10 years. ASEAN as a whole seemed to have a pessimistic view as to the feasibility of the idea at 2006.

Japan nevertheless said it was delighted with the positive response to the proposal.

Nevertheless China, South Korea and ASEAN were also said to have indirectly expressed scepticism about the idea. The difficulties with the ASEAN - India FTA does not augur well for a larger FTA. Japan also had to defend itself from the allegation that the proposal was advanced as a mechanism to counter China

The position of China was expected by some commentators although not all agreed. China appears to prefer the narrower grouping of ASEAN plus Three for a future Free Trade Agreement. New Zealand has expressed confidence that China will support the proposal, especially if the research shows a benefit to East Asia from an EAFTA

The United States of America has proposed an FTA within the members of APEC which may be in response to the suggestion of an FTA between the members of the EAS. Japan has suggested that the EAFTA could be used as a building block for the larger APEC FTA. The US is aggressively coming out against such a move concerned about a line down the middle of the Pacific while Asian economies are concerned about the US's ability to deliver a broad based FTA.

In September 2006 Toshihiro Nikai
Toshihiro Nikai
is a Japanese politician. He was the Minister of Economy, Trade and Industry. A member of the Liberal Democratic Party , Nikai is currently serving in his eighth term in the Lower House representing Wakayama's Third District....

 was replaced as Minister of Economy, Trade and Industry (Japan)
Minister of Economy, Trade and Industry (Japan)
The is the Cabinet of Japan member in charge of the Ministry of Economy, Trade and Industry . The current Minister is Banri Kaieda.-List of Ministers of Economy, Trade and Industry:...

 by Akira Amari
Akira Amari
is a Japanese politician of the Liberal Democratic Party and a member of the lower house. He was the Minister of Economy, Trade and Industry from 2006 to 2008 and is currently Minister of State in charge of Administrative Reform....

. Nikai's successor has pursued the Nikai initiative - Comprehensive Economic Partnership for East Asia (CEPEA).

Growth in India and China ties and the Japanese thaw

In November 2006 India and China announced plans to double bilateral trade by 2010. The growing relationship between the world's two most populous nations was seen as a potential source of stability and co-operation for the region. The two countries joint declaration of 21 November 2006 agreed at paragraph 43 to "cooperate closely" in the context of the EAS.

Further the change in leadership in Japan with Shinzo Abe
Shinzo Abe
was the 90th Prime Minister of Japan, elected by a special session of the National Diet on 26 September 2006. He was Japan's youngest post–World War II prime minister and the first born after the war. Abe served as prime minister for nearly twelve months, before resigning on 12 September 2007...

's election to the Prime Ministership of Japan in September 2006 brought about some thawing in Japan's relationship with both China and South Korea.

These changes suggested the potential for different dynamics in the second EAS to the tensions in the First EAS
First EAS
The East Asia Summit is a pan-Asia forum held annually by the leaders of 16 countries in the East Asian region. EAS meetings are held after annual ASEAN leaders’ meetings.- First summit :...

.

Fuel stockpiles

It is proposed that an agreement to standardise rules for bio-fuels and agreements on stockpiling fuels will form part of the 2006 EAS.

Outcome of the second EAS

The outcomes are summarised in the Statement of the Second East Asia Summit.

Energy

The EAS members signed the Cebu Declaration on East Asian Energy Security
Cebu Declaration on East Asian Energy Security
The Cebu Declaration on East Asian Energy Security was signed by 16 nations after a three hour meeting of delegates at the East Asia Summit in Cebu on January 15, 2007. The countries have agreed to promote energy security and find energy alternatives to conventional fuels.The Declaration lists a...

, a declaration on energy security and biofuels containing statement for members to prepare, non-binding, targets.

Trade and the Comprehensive Economic Partnership for East Asia (CEPEA)

As to trade and regional integration the following was noted in the Chair's report:


12. We welcomed ASEAN's efforts towards further integration and community building, and reaffirmed our resolve to work closely together in narrowing development gaps in our region. We reiterated our support for ASEAN's role as the driving force for economic integration in this region. To deepen integration, we agreed to launch a Track Two study on a Comprehensive Economic Partnership in East Asia (CEPEA) among EAS participants. We tasked the ASEAN Secretariat to prepare a time frame for the study and to invite all our countries to nominate their respective participants in it.

We welcomed Japan's proposal for an Economic Research Institute for ASEAN and East Asia
Economic Research Institute for ASEAN and East Asia
The Economic Research Institute for ASEAN and East Asia or ERIA is a policy think tank proposed by Japan arising out of the East Asia Summit, proposed at the Second EAS and approved at the Third EAS. ERIA aims; to facilitate ASEAN Economic Community building; to support ASEAN's role as the driver...

 (ERIA).


According to some press reports the debate as to whether there will be a trade grouping based on ASEAN Plus 3 or the EAS.

The United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 has substequently stated that it opposes any trade group in the region not involving itself. The preference of the United States appears to be a trading group based on APEC.

The reality appears however that movement towards such a relationship is a long way-off. Lee Kuan Yew
Lee Kuan Yew
Lee Kuan Yew, GCMG, CH is a Singaporean statesman. He was the first Prime Minister of the Republic of Singapore, governing for three decades...

 has compared the relationshiop between South-East Asia and India with that of the European Community and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

, and has suggested that a free-trade area involving South-East Asia and India is 30 to 50 years away.

ERIA

The members of EAS agreed to study the Japanese proposed Comprehensive Economic Partnership for East Asia (CEPEA). As noted above the second EAS welcomed the Economic Research Institute for ASEAN and East Asia (ERIA). The ERIA as an institute that is envisaged as a network of think-tanks to drive the study required.

It was subsequently announced that the ERIA would be established in November 2007.
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