Geopolitics

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[url="http://online.wsj.com/article/SB10001424052748704454004575135633609958248.html?mod=WSJ_latestheadlines"]Asia's Drive for Free Trade [/url]

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Fears of rising protectionism in the West are inspiring a newfound Asian enthusiasm to promote intraregional trade.



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Bilateral free-trade agreements are sprouting like weeds. Last August, Asean signed a deal with India, and one with China came into effect in January. India also inked a deal with South Korea. Japan, South Korea and China are exploring a trilateral trade agreement, and India and China are looking at a deal of their own.



Trade within the region has been growing by leaps and bounds. In the five years between 2002 and 2006, trade among the 10 Asean members more than doubled to $188 billion, and trade between China and Asean tripled from $59 billion to $192 billion, according to data Mr. Mahbubani cited.



However, a significant portion involved components for goods ultimately destined for export to the U.S. and Europe, highlighting the limits to any aspirations of Asian regional self-reliance. Political tensions within the region also pose serious obstacles to trade growth



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"The Raj created this whole region into a single market," Mr. Mohan said. "We need a policy initiative from the Indian side which takes the leadership to open its markets unilaterally."



Other optimistic visions of ways to promote regional trade included a suggestion by Victor Zhikai Gao, director of the China National Association of International Studies, that China extend a high-speed rail network connecting Beijing with Tibet across the Himalayan border into India.



"This would be a major breakthrough," enthused Mr. Gao, and "would really increase the exchange of people, goods and eventually ideas between these two countries." Of course, critics of the railway's environmental impact and China's controversial policies toward its Tibetan population probably wouldn't be too thrilled.



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