Enterprise for ASEAN Initiative (EAI)
Background: Pursuing Free Trade Globally, Regionally, and Bilaterally
The Enterprise for ASEAN
Initiative is integral to America's overall agenda for trade, economic growth,
hope, and opportunity. In addition to the Doha Development Agenda of global trade
negotiations, the United States is pursuing regional and bilateral trade
initiatives that will reinforce our global efforts, including:
- Launching FTA negotiations
with Central America and also with Morocco.
- Exploring an FTA with the
South African Customs Union.
- Preparing for possible FTA
negotiations with Australia, one of the world's foremost advocates of free
trade and among our closest allies. An FTA with Australia will bring
economic benefits to both countries, and further strengthen the alliance of
countries leading the effort toward global trade liberalization.
A Roadmap to Free Trade Agreements
- Under the EAI, the United
States and individual ASEAN countries will jointly determine if and when
they are ready to launch FTA negotiations.
- The EAI allows ASEAN countries
the flexibility to move at their own speed toward an FTA with the United
- The United States would expect
a potential FTA partner to be a member of the World Trade Organization (WTO),
and to have concluded a Trade and Investment Framework Agreement (TIFA) with
us -- thus laying the groundwork for future FTA negotiations.
- The United States will
continue to support the efforts of the three ASEAN members (Cambodia, Laos,
and Vietnam) that do not yet belong to the WTO to complete their accessions
- The United States has TIFAs
with Indonesia and the Philippines--and just signed one with Thailand.
- FTAs with ASEAN countries will
be based on the high standards set in the U.S.-Singapore FTA, which we are
aiming to complete this year, for action by Congress next year.
- This initiative will generate
significant benefits for both the United States and ASEAN. The ASEAN
countries are anticipating solid economic growth in the years ahead and,
with ASEAN's population of 500 million, the opportunities for U.S. companies
- Two-way trade reached nearly
$120 billion in 2001, making ASEAN the United States' third largest overseas
- U.S.-ASEAN two-way trade in
services totaled $16 billion in 2000, up 55 percent since the WTO was
established, and holds significant growth potential.
- With relatively high tariffs
on agricultural products (averaging 25 percent to 48 percent) and
tariff-rate quotas on products of interest to the United States, current
U.S. agricultural exports to ASEAN countries of $2.6 billion could expand
- U.S. exports to ASEAN
countries support nearly 800,000 high-paying American jobs from Alaska to
- For ASEAN, this initiative
will help boost trade and redirect investment back to the ASEAN region.