Japan, Australia ‘Test’ Asean With Competing Economic Visions

Oct. 25 (Bloomberg) -- Japan and Australia are set to elaborate on competing visions for building an East Asian bloc that may involve trade ties and a common currency during a summit of 16 Asian nations in Thailand.

Australian Prime Minister Kevin Rudd is scheduled to sell his plan in meetings today with leaders of the Association of Southeast Asian Nations, China, Japan, South Korea, India and New Zealand. His idea for an “Asia-Pacific Community” would include the United States and India.

Japan’s Prime Minister Yukio Hatoyama, who took power last month, will put forth his “long-term vision” of an “East Asian Community,” foreign ministry spokesman Kazuo Kodama told reporters yesterday. Japan will “closely discuss and coordinate” with the U.S. on the group’s formation, Kodama said. Southeast Asian countries would play a “pivotal role” in the plan, Kodama said.

The countries that are eventually included in the group will benefit from trade in a region approaching half of the world’s population and a quarter of global gross domestic product. Thai Prime Minister Abhisit Vejjajiva said today the Australian and Japanese plans amounted to a “test” for Asean, which is trying to raise its stature and attract global investment.

The U.S. signed a friendship pact with Asean in July to bolster ties with an area that contains sea lanes vital to world trade, as well as coal, oil and other commodities. China is “positive and open” to the establishment of an “East Asian community,” Assistant Foreign Minister Hu Zhengyue said on Oct. 21.