Context:
• The 47th ASEAN Summit held in Kuala Lumpur reaffirmed ASEAN’s growing salience in a world shaped by US–China competition.
• India emphasized ASEAN centrality and pressed for a review of the India–ASEAN Free Trade Agreement (AITIGA) to correct trade imbalances and enhance connectivity.
Key Highlights
- ASEAN’s Strategic Relevance
- Summit underscored ASEAN’s importance amidst the shifting dynamics of US–China geopolitical tensions.
- ASEAN—founded in 1967—now includes 11 nations, with East Timor (Timor Leste) as the newest member.
- India’s Position at the Summit
- PM Narendra Modi addressed the meeting virtually, stressing the urgency of reviewing the India–ASEAN FTA.
- Review of AITIGA, launched in 2022, aims to rectify India’s perceived trade disadvantages.
- Regional Trade & Connectivity
- Intra-ASEAN trade is second only to that of the European Union, making the grouping an economic powerhouse.
- Key projects strengthening India–ASEAN connectivity include:
• India–Myanmar–Thailand Trilateral Highway
• Kaladan Multi-Modal Transit Transport Project
Significances
- Evolution of ASEAN
- Initially formed as a political bloc against communism, ASEAN has transformed into a pivotal economic and security grouping.
- It plays a central role in regional structures like the EAS, ADMM+, and ASEAN Regional Forum.
- Indo-Pacific at the Heart of Global Trade
- With the global economic center shifting to the Indo-Pacific, 40–50% of India’s trade moves through this region.
- Stability of sea lanes is critical for India’s economic security.
- China’s Expanding Role
- China remains ASEAN’s largest trading partner, but its assertiveness—especially the nine-dash line in the South China Sea—creates strategic uncertainty.
- US–China tussle places ASEAN states at the intersection of great-power competition.
- India’s Act East Strategy
- India’s engagement with ASEAN is built on:
• Look East Policy (1992)
• Act East Policy (2014) - Focuses on connectivity, culture, commerce, and security cooperation.
- Historical and civilizational links (Buddhism, maritime trade routes) strengthen this partnership.
- India’s Trade Decisions
- India stayed out of RCEP due to concerns over Chinese imports, rules of origin, and protection of domestic industries.
- Revising AITIGA is crucial for balanced trade.
- Regional Groupings Complementing ASEAN
- BIMSTEC (Bay of Bengal region) and BBIN (Bangladesh-Bhutan-India-Nepal) can draw lessons from ASEAN’s successful model of consistent regional cooperation.
Prelims Focus
- ASEAN’s founding members & new entrants (East Timor).
- AITIGA and India–ASEAN institutional mechanisms.
- Key connectivity initiatives (Kaladan, Trilateral Highway).
- Features distinguishing RCEP from ASEAN+1 FTAs.
Mains Relevance
GS 2 – International Relations
- ASEAN centrality in Indo-Pacific
- India–ASEAN strategic and economic cooperation
- Impact of US–China rivalry on regional diplomacy
GS 3 – Economy
- FTA review and trade imbalances
- Connectivity for trade facilitation
- Regional economic integration in the Indo-Pacific