From Fukuda to Abe: Japan’s expanding relations with ASEAN

29 April 2020

The recent ASEAN- Japan Economic Ministers’ Joint Statement issued on April 22 called for united and concrete efforts between ASEAN and Japan for sustaining closer economic ties, mitigating the adverse impact of COVID-19 on the economy and strengthening regional economic resilience.

In the wake of the United States’s withdrawal from the Trans-Pacific-Partnership (TPP) and China laying out its own economic ambitions, Japan has increased the pace of its regional economic diplomacy in Southeast Asia. The joint statement underlined therefore the response to curate economic proximity in the wake of the pandemic which will chart out wider avenues of engagement between Japan and ASEAN.

The changing geopolitical realities in the strategic landscape makes Japan-ASEAN relations an important component in the Indo Pacific region. Understanding their ever expanding robust relationship is important at this juncture. Economic diplomacy and strategic ties are the most important elements of this unique and growing partnership.

Deepening economic ties

The beginning of their robust economic relationship began in 1977 when the Fukuda Doctrine veered Japan’s approach towards ASEAN as a “heart to heart” relationship based on an equal partnership. ASEAN and Japan have thus continued to intensify their economic relations since then. The ASEAN -Japan Centre was established in 1981 to promote exports, investment, and tourism in the economic cooperation and development between Japan and the bloc’s member countries.

The Japan Comprehensive Economic Partnership Agreement signed in 2008 was another big step towards expanding economic diplomacy. Over the time they have enhanced mutual trade and investment.As per the aforementioned Joint Statement, Japan is ASEAN’s fourth largest trading partner and second largest external source of FDI (Foreign Direct Investment). For Japan, ASEAN is the second largest trading partner.

Japan’s government has also recently earmarked $ 2.2 billion to help its’ multinationals to leave China. The virus lockdown in China had stalled the supply of manufacturing components which Japan relies heavily on China for. Japan, in response to COVID-19 and other factors aims to reduce its’ dependence on the Chinese market. The planned exodus would require Japan to look for manufacturing units outside China, especially in Southeast Asia.

Southeast Asia stands on the brink in transitioning to become a manufacturing hub. ASEAN accounts for 7% of global exports making it the fourth largest exporting region in the world. This makes it well positioned for global trade flows.With a combined population of approximately 622 million people and a combined GDP of approximately $ 2.95 trillion, Southeast Asia represents a huge market with an enormous supply of skilled, semi skilled and non skilled labourers.

Countries like Vietnam, Singapore, Thailand, Indonesia, and Malaysia have already emerged individually as major manufacturing bases in the region. Hence tapping Japanese investment during such a crucial time won’t be difficult.

Taking ahead the ‘Vientiane Vision’

As a major trading nation in Southeast Asia, the strategic developments in the region are of huge consequence for Japan’s security and economic interests. PM Shinzo Abe authored the concept of Confluence of Seas looking at Indian Ocean and Pacific Oceans as one single strategic maritime unit.Against the backdrop of the disputes in the East China Sea and the diverging perceptions of power projections, China’s rising assertiveness in the South China Sea( part of the pacific Oceans), with overwhelming capabilities fits into Japan’s “China Threat” narrative.

ASEAN being at the center of a ‘confluence of seas’, broadly addressed as Indo-Pacific, is significant to Japan’s strategic moves within the region. Likewise Japan being a democratic political system adds to the leverage Tokyo has over China in backing up democratic countries in the region who are resisting China’s assertiveness in the region.

In November 2019, Japanese Defence Minister Taro Kono called for strengthening defence cooperation between Japan and ASEAN countries. Mr. Taro Kono proposed the “Vientiane Vision 2.0”,an extension of “Vientiane Vision”( incorporated in its’ Indo Pacific Vision) launched in 2016 underlining Japan- ASEAN defense cooperation. The Vientiane Vision 2.0 prioritizes : strengthening maritime security, cooperation in times of disaster and emergency and finally ensuring the rule of law. As per the revised guidelines Japan plans to transfer its defence equipment and related technological know how. It also intends to send Self Defence Forces to the ASEAN countries to train the latter on International rules and norm in the maritime and aviation realm.

Japan has moved on from the limitations imposed by its post World war II pacifist constitution. Japan reinterpreted its’ constitution to allow the use of force in defending itself and its allies. At this juncture Japan-ASEAN defense relationship becomes an important point of focus. Japan- ASEAN defence exchanges started back in 1990s. It was only from 2000s it became more practical and operational in character.

After 2010, the bilateral defense cooperation deepened through capacity building cooperation and promotion of multilateral cooperation through regional frameworks such as ADMM-Plus.Japan is also actively involved with various initiatives related to ARF (ASEAN Regional Forum), EAMF (Expanded ASEAN Maritime Forum). Japan’s Ship Rider Cooperation Program which completed its’ 3rd year in 2019 is a manifestation of Japan’s broadening security cooperation with ASEAN.

Conclusion

Japan’s engagement in ASEAN is based on democratic values, shared economic interest and shared concern about regional security.

While Japan-ASEAN summit completed its’ 50th year in 2017, Japanese Prime Minister Shinzo Abe reiterated his expectations of “ASEAN , facing the Indian and the Pacific Oceans, will lead the world together with Japan to advance the free and open international order based on the rule of law”. Recognizing the new geopolitical realities, the Abe doctrine marks a new turning point for ASEAN-Japan ties.

ASEAN is in the middle of China and Japan’s battle for influence in Southeast Asia. Japan’s expanding stakes in the region doesn’t ensure it a leverage over China , the latter being one of the main trading partners of ASEAN. 5 to 6% of China’s total investment abroad goes to ASEAN in sectors including manufacturing, mining, electricity production, commercial services ,wholesale and retail trade. Moreover as a key strategic partner of China, ASEAN is an important participant in the BRI project. Against this backdrop, Japan while engaging with ASEAN has to be very specific about its strategic objectives which is majorly shaped by China’s rising assertiveness in the region.

DISCLAIMER: All views expressed are those of the writer and do not necessarily represent that of the 9DASHLINE.com platform.

Author biography

Angana Guha Roy is a Research Associate with the Delhi Policy Group. Her research interests pertain to the geopolitics of East and Southeast Asia, and maritime affairs. Image credit: Office of the Prime Minister of Japan

Pacific9DLApril 29, 2020China, Indo-Pacific, Japan, ASEAN