...ia and Oceania. Looking back, this region has seen a remarkable transformation. Just a fe decades ago, it suffered from cross-border conflicts and struggled ith domestic instability and poverty. Today, the region has virtually no cross-border conflicts, has more open societies and democratic institutions, and boasts some of the most dynamic economies in the orld. Thirty years ago, Malaysias per capita GDP exceeded Koreas, and today Koreas per capita GDP is more than double Malaysias. Hong Kong and Singapore, hich earned a little more than 1,000 per capita in 1971, today exceed 21,000 in per capita GDP. Over the past 30 years, these economies have made great strides in overcoming income inequality and developing a solid middle class. Even amid the deep poverty I observed on my recent trip to Cambodia, I sa the beginnings of a middle class taking shape. Hoever, these economies are still struggling to overcome the setbacks of the Asian financial crisis of 1997-1998 and, more recently, economic fallout from the SARS epidemic. The Asian Financial crisis revealed structural eaknesses in the regions financial and corporate sectors. Some Asian countries, such as Korea, have taken important steps to resolve the tin problems of non-performing loans and non-performing assets, and have been amply rearded through increased groth rates. Most countries in the region have moved beyond the pegged exchange rates that exacerbated the crisis, and have seen an improvement in their investment environment. But many economies of Southeast Asia continue to restle ith bank and corporate reform, leaving structural problems that are seriously impeding groth. The economic impact of SARS on Southeast Asian countries remains unclear, but it is likely to shave at least some groth from the most affected economies this year. Countries like Singapore and Vietnam moved quickly and decisively to contain the disease and, by taking a transparent approach to the problem, succeeded in restoring the confidence that is key to continuing to attract investment. The APEC SARS Action Plan, recently endorsed by APECs Trade Ministers, emphasizes APECs strengths in cross-sectoral outreach to rebuild business confidence and mobility of persons through cooperation and information sharing. The Plan includes convening the first APEC Health Ministers meeting at the end of this month, and responding to the impact on tourism, transportation, industry, and social elfare. The focus you have put on Southeast Asia is ell placed, for this region is important to the United States, politically and economically. The region is home to some of the orlds fastest-groing economies and a number of significant trading partners of the United States. Last year, the U.S. sold to this market of a half-billion people 57 billion in goods and services, almost tice as much as to China and Hong Kong combined. Large U.S. investment, totaling 53 billion in the ASEAN countries, has both strengthened our economies ties ith the region and expanded opportunities for American business. These economic ties are part of deep and longstanding alliances and friendships in the region that are as critical to our security as they are to our prosperity. Virtually every country in the region has stood beside us in the ar on terrorism. The Bali bombing last October drove home to all of Asia that combating terrorism is a global challenge for local, regional, and orldide security. Steadfast friends such as Singapore, Indonesia, and the Philippines are helping in the fight against terrorism in many ays. Australia, Japan, Korea, and others stood by us on Afghanistan and Iraq. Australia contributed forces on the ground and in the air, Japan pledged 200 million toard Iraq reconstruction, and Korea sent medical and engineering personnel. U.S. Trade Policy Goals for the Region The United States number one economic objective in Southeast Asia is to promote groth through expanded trade and investment and accelerated structural reform. The region has seen significant progress in loering tariffs over the past decade and a half -- all but one of our trading partners in the region currently have average tariff rates of belo 10. e are continuing to push for even greater liberalization through The cutting edge FTAs e concluded ith Singapore and are negotiating ith Australia. Trade and Investment Frameork Agreements, or TIFAs, ith Indonesia, the Philippines, Thailand, and Brunei. The Enterprise for ASEAN Initiative EAI, announced by President Bush last October, hich offers the prospect of bilateral FTAs ith individual ASEAN countries that are committed to the economic reforms and openness inherent in an FTA ith the United States. The ultimate goal of the EAI is a netork of bilateral ASEAN FTAs. Bilateral Trade Agreements, ith Vietnam and Laos. The BTA ith Vietnam has been particularly successful, ith trade ith that country doubling since the BTA entered into force in December 2001. Our 8 million technical assistance program played an important role in that success. The BTA ith Laos ill not go into effect until e have NTR ith the country, and e are discussing NTR ith Congress. The human rights situation in Laos remains poor, and e hope that NTR ill improve the atmosphere for progress in human rights as ell. Close consultations ith the region to help ensure a successful conclusion of the Doha Development Agenda -- Southeast Asia ill be a major beneficiary of a successful global trade round. Continued engagement at the multilateral level through APEC and ASEAN. APEC remains a poerful vehicle for liberalization, as its members have committed themselves to free and open trade and investment in the Asia-Pacific no later than the year 2010 for industrialized economies and 2020 for developing economies. At the APEC Leaders meeting coming up in October in Bangkok, e expect President Bush to introduce ne initiatives related to countering terrorism hile facilitating trade and investment. e are also pursuing agreements in APEC designed to further liberalize air transportation, protect copyrights, and help APEC members implement the structural reform that ill be key to continued economic groth. As tariffs have fallen, e have focused increasing attention on non-tariff barriers faced by American business, such as eak judiciaries, inefficient customs procedures, divergent standards, and poor IPR enforcement. e are currently orking through both bilateral and multilateral channels to solve these issues. For example, the State Department, orking closely ith the U.S. and China Customs and the private sector in the APEC forum, launched an express package customs initiative in Shanghai that led to significant improvement in the speed and cost of customs processing. e are orking on an ASEAN Cooperation Arrangement on Automotive Standards to create consistent safety and environmental standards throughout ASEAN, and to further ASEAN economic integration. e are pushing in both ASEAN and APEC initiatives to ...
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