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The 10-nation regional block of Association of South East Asian Nation (ASEAN), and not China and India, is the leading destination of America's foreign direct investment, a top US trade official said Monday.
"I will bet if you were asked whether ASEAN, China, or India is the leading destination for US foreign direct investment, most of you would choose China and a few would guess India. But ASEAN is far and away the leading destination of US FDI -- with three times more than China, and nearly 10 times more than India," the US Trade Representative Ron Kirk said.
In his remarks at the US-ASEAN Economic Ministers Road Show luncheon at Seattle, Kirk said that US-ASEAN investment relations are strong.
"ASEAN countries together are the United States' fifth largest trading partner, with over $200 billion in goods and services trade in 2008. ASEAN is also a key export market for US goods, together ranking 4th among total export markets in 2009," he said.
"In addition, ASEAN presents a significant export market for our farmers and ranchers, with over $6 billion worth of agricultural exports to the region in 2009. With all 10 ASEAN economies expected to experience positive economic growth in 2010 and a population of nearly 600 million people, the dynamic economies of ASEAN offer growing market potential for American businesses both large and small," Kirk said.
The US Trade Representative said that the United States is negotiating a new Trans-Pacific Partnership that will expand US opportunities in the Asia-Pacific under a high-standard, 21st century agreement.
"In 2011, the United States will host the Asia-Pacific Economic Cooperation forum, which will give us a unique opportunity to grow jobs and increase our economic engagement," he said.
"We are working to address outstanding issues on pending Free Trade Agreements -- including the US-Korea agreement," Kirk said. "Our engagement with the ten countries of ASEAN is a good example of the Administration's trade policy goals at work. With the ASEAN countries, we are promoting exports, supporting small and medium-sized businesses in global trade, and deepening our trade and investment ties with the most dynamic region in the world," he added.
In addition to strengthening the US trade and investment relationship with ASEAN, Kirk said the US is actively supporting ASEAN's own goal of economic integration.
"ASEAN has been actively working to create a single economic area by 2015. This area would encompass a single market and production base, characterised by a free flow of goods, services, investment, and skilled labour, as well as a freer flow of capital. These integration efforts will strengthen the competitiveness of ASEAN countries while also enhancing the efficiency of US companies operating in the region," he said.