Obama to announce measures to deepen economic ties

The US-Asean summit has President Barack Obama at the head of a horseshoe table. Prime Minister Prayut Chan-o-cha is third from left. (AFP photo)

RANCHO MIRAGE, California - US President Barack Obama on Tuesday promised a new package of measures designed to boost Southeast Asian economies, betting that the fast-growing region can be an ever more important trade partner.

He also called for the military regime to step down in Thailand.

"We continue to encourage a return to civilian rule in Thailand," Obama told a press conference.

At the conclusion of the summit, all sides agreed on the principle of freedom of navigation, although there was no progress in bridging gaps over China's moves to claim disputed areas in the South China Sea.

The US-Asean summit has President Barack Obama at the head of a horseshoe table. Prime Minister Prayut Chan-o-cha is third from left. (Reuters photo)

Obama and all Asean leaders said they share a commitment to "peaceful resolution" of disputes and "the rights of freedom of navigation and overflight," a joint statement said.

The final version of the statement, however, did not even name "South China Sea" due to opposition by Asean members who are close to China, especially Laos which currently holds the rotating Asean.

However, the summit signed off on the importance of "a rules-based regional and international order that upholds and protects the rights and privileges of all states."

The economic plan announced after the final summit session aims to establish three offices in Bangkok, Jakarta and Singapore to boost the US government's "economic engagement with Asean institutions," officials said.

Details were released after Obama closed the third and final session of the US-Asean summit at Rancho Mirage on Tuesday (early Wednesday Thailand time).

The White House sees the 10 nations of Asean as an emerging regional counterweight to China's regional dominance.

Collectively the countries are the fourth-largest trading partner for the United States.

According to White House figures, "two-way trade in goods and services has tripled since the 1990s, topping $254 billion in 2014," supporting around half a million US jobs.

"We have an increasingly deep and broad economic relationship with Asean," said US ambassador to Asean Nina Hachigian.

Asean includes Thailand, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore and Vietnam.

President Barack Obama greeted Prime Minister Prayut Chan-o-cha to begin the Rancho Mirage summit on Tuesday (Thailand time). (AFP photo)

While Southeast Asian economies are youthful and fast-growing, many sectors remain the under the control of government special interests.

But countries like Indonesia are beginning to open up. Its president Joko Widodo recently announced steps to open the economy to foreign investment that were welcomed in Washington.

The new "US-Asean Connect" package will include technical advice on how countries like Indonesia and the Philippines can prepare to join the Trans-Pacific Partnership, a vast Pacific-wide trade deal that is in the process of being ratified.

Other measures will focus on improving trade ties in the communications and infrastructure sectors among others, streamlining current government programs.

It will also address the power sector, an area where China has been especially active, building dams along the upper Mekong.

The biggest protest groups at the summit were Cambodian- and Lao-Americans, and anti-TPP groups. No Thai flag was seen. (Reuters photo)

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