Michael Richardson: Time for closer ties with Southeast Asia

Southeast Asia has recovered from the Asian financial crisis of 1997-98. Much of the region is growing impressively again and its trade with Australia and New Zealand is rising sharply.

A vibrant, economically integrated Southeast Asia is a globally attractive marketplace and centre for investment, especially when linked to other parts of Asia by agreements designed to expand trade and investment.

All sides stand to gain from closer ties. For Australia and New Zealand, a stable and increasingly prosperous and democratic Southeast Asia is very much in their strategic and economic interests.

For Southeast Asia, Australia and New Zealand are valuable as a market and source of technology, knowledge, expertise and capital.

Governments of the Association of Southeast Asian Nations (Asean) welcome Australia's and New Zealand's involvement in regional trade, investment and diplomacy.

They see it as part of a balance of interests that promotes constructive engagement by external powers such as the United States, Japan, China, India, the European Union and Russia. One way the transtasman neighbours and Asean can strengthen ties is by agreeing to launch negotiations to create a free trade zone in their combined regions.

A successful deal would ensure that Australia and New Zealand are connected with the emerging economic architecture in Asia as other regional arrangements evolve.

It would be good economics as well as good geopolitics.

Much of the trade between Australia and New Zealand and Southeast Asia is complementary rather than competitive. And there is considerable potential for growth.

A deal that liberalised and integrated the economies of the two regions would strengthen the international bargaining position of both as they negotiate trade deals with other countries or groups of countries.

It would also send a positive signal to investors that Australia, New Zealand and Asean are committed to continuing liberalisation.

Meanwhile, the two regions could take other steps to strengthen ties.

They could agree to a framework for scientific and technological collaboration, form a bio-security partnership to develop better protection against outbreaks and transmission of diseases and explore additional training and technical co-operation partnerships.

Australia and New Zealand should also accede to Asean's non-aggression pact and support Jakarta's bid for a permanent seat on the United Nations Security Council.

But if Asean is serious about re-engaging with Australia and New Zealand, it should make a leaders' summit an annual event, as it does with China and Japan.

The regions' leaders should also discuss and develop a new security agenda - one that responds more closely to the most pressing concerns of Asean countries with large numbers of poor and unemployed.

This means raising the profile of action to reduce poverty and improve governance, public health, housing and education

* The writer, a columnist for the Herald, is a visiting senior research fellow at the Institute of Southeast Asian Studies in Singapore.