‘US-ASEAN Connect’ to promote trade set

Network of hubs

RANCHO MIRAGE, California – The United States has proposed a new initiative creating a network of hubs across Southeast Asia to facilitate more robust economic and trade activities.

At the culmination of the two-day Association of Southeast Asian NationsUS summit, US President Barack Obama announced the "US-ASEAN Connect" aimed at strengthening the United States economic engagement on business, energy, innovation and policy in the region.

Under the new initiative, the United States will establish three Connect Centers, namely in Jakarta, Singapore, and Bangkok, to coordinate US government resources on growing its economic engagement with ASEAN, private sector, multilateral development banks, and other regional stakeholders.

"Our engagement under US-ASEAN Connect will build on our existing efforts to support ASEAN’s economic integration, because a more integrated ASEAN will strengthen a rules-based and open economic order in the region," a statement from the US Mission to ASEAN read.

At present, the US enjoys strong economic relations with ASEAN, currently its fourth largest trading partner.

Bilateral trade in goods and services has tripled since the 1990s, reaching $254 billion in 2014. US businesses are also the biggest source of foreign direct investment in ASEAN.

To foster better US economic engagement in the region, the Business Connect will support increased commercial engagement between US and ASEAN businesses in a variety of regionally important sectors, including ICT and infrastructure. Business Connect will assist ASEAN in carrying out measures to facilitate greater trade and economic integration under the ASEAN Economic Community and offer coordinated, proactive support for US businesses.

Energy Connect will assist in the development of power sectors in ASEAN built around sustainable, efficient, and innovative technologies. It will support the connectivity, clean energy and energy security goals of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2015 – 2025 and the Master Plan on ASEAN Connectivity.

Innovation Connect supports Southeast Asia’s emerging entrepreneurial ecosystem through policy support and direct engagement with entrepreneurs. Technical assistance under Innovation Connect will include the Young Southeast Asian Leaders Initiative (YSEALI) Innovation Challenges and economic programs, the Global Entrepreneurship Program, Innovation Roadshows, and support for the ASEAN Science Prize for Women.