ASEAN-Korea Relations: Security, Trade, and Community Building

11. ASEAN and Korea in East Asian Co-operation

11 11 ASEAN and Korea in East Asian Co-operation Bae Geung-Chan RISE OF ASEAN PLUS THREE In recent years East Asia has been witnessing the emergence of a new regional co-operation framework, namely the Association of Southeast Asian Nations plus Three (ASEAN plus Three). ASEAN plus Three co-operation has indeed gained considerable momentum in a relatively short period without any formal binding agreements among the participating states or a central secretariat. Since the first-ever summit meeting among ASEAN, Korea, China, and Japan in 1997, relations between Southeast Asian and Northeast Asian states have steadily progressed. In the ASEAN plus Three process national leaders as well as finance, economic, and foreign ministers have been meeting regularly. Central bank governors and other senior officials have also begun to hold regular meetings. In 1998 the East Asia Vision Group (EAVG) was set up to explore ways in which it could expand co-operation in all sectors and at all levels throughout the countries in the region. In 1999 the ASEAN plus Three Summit adopted a Joint Statement on East Asian Co-operation, confirming the political will of East Asian leaders to work towards enhancing intra-regional co-operation. In 2000 the ASEAN plus Three Summit affirmed the Chiang Mai Initiative Chap11.indd 141 Chap11.indd 141 1/24/07 2:10:58 PM 1/24/07 2:10:58 PM 142 Bae Geung-Chan as one of the most tangible outcomes of ASEAN plus Three co-operation. The Chiang Mai Agreement was to set up a currency swap facility, which would enable the regional countries to respond more effectively to any future financial crisis. The leaders of ASEAN plus Three also agreed to set up the East Asia Study Group (EASG) to implement specific action plans for regional co-operation. In 2001 the ASEAN plus Three Summit reviewed the report of the EAVG, which presented key recommendations for the realization of an East Asian community (EAC). In 2002 the ASEAN plus Three Summit approved the final report of the EASG, including its seventeen short-term measures and nine mid- to long-term measures with high priority, together with its other details. Another important outcome of the ASEAN plus Three process is the continuation of formal dialogue among the leaders of the Northeast Asian countries of Korea, China, and Japan. On the sidelines of the ASEAN plus Three Summit, the first-ever summit meeting among the leaders of the three countries was held in 1999, thus providing an important milestone for Northeast Asian co-operation as well as East Asian co-operation. Since then, it has been formalized and regularized. In 2001, in order to move towards successful regional integration, the three leaders of Korea, China, and Japan agreed to hold regular foreign affairs and economic ministers meetings and to establish a business forum for Northeast Asia. In 2003 the three Northeast Asian leaders adopted a Joint Declaration on Tripartite Co-operation for the first time in history. The rise of ASEAN plus Three may be attributed to the launching of the Asia–Europe Meeting (ASEM) in 1996 and the 1997 Asian financial crisis. The European states fostered East Asian co-operation throughout the ASEM process. East Asian countries in particular acutely felt the necessity of regional identity for the first time when they had to negotiate with the highly integrated European Union (EU). In addition, the Asian financial crisis greatly heightened perceptions of economic interdependence between Northeast and Southeast Asia while most extra-regional powers, including the United States and EU, had assumed indifferent attitudes towards the region. At the same time, not only were measures taken by the International Monetary Fund (IMF) largely inappropriate in many cases, the Asia-Pacific Economic Co-operation (APEC), as an Asia-Pacific co-operation mechanism, also did nothing to alleviate the financial crisis. All these factors have given a further boost to the emergence of a sense of community in the region, which awakened the East Asian states to the significance of self-reliant regional co-operation. Chap11.indd 142 Chap11.indd 142 1/24/07 2:10:59 PM 1/24/07 2:10:59 PM 143 ASEAN and Korea in East Asian Co-operation OPENING AN EAST ASIA SUMMIT To date, the most notable outcome of the ASEAN plus Three process is the opening of the East...