(Fixes typo in Minister in eighth paragraph)
By Panu Wongcha-um and Patpicha Tanakasempipat
BANGKOK, Nov 3 (Reuters) - Southeast Asian leaders, worried
by the U.S.-China trade war, pushed for a deal on what could be
the world's largest trade bloc on Sunday as officials worked
behind the scenes to try to salvage progress following new
demands from India.
Hopes of finalising the Asia-wide Regional Comprehensive
Economic Partnership (RCEP), which is backed by China, have been
thrown into doubt at the summit of of the Association of
Southeast Asian Nations (ASEAN) in Bangkok, Thailand.
"We should continue to work to conclude negotiations on the
RCEP within this year to stimulate economic growth, as well as
trade and investment," Thai Prime Minister Prayuth Chan-ocha
told the formal opening of the ASEAN summit.
He highlighted the risks of "trade frictions" and "geo
strategic competition" in a region where the trade tensions
between the United States and China have helped drive growth to
its slowest in five years in 2019.
"ASEAN must accelerate deeper economic integration through
concrete programs and projects, such as RCEP," a statement
quoted Philippines President Rodrigo Duterte as saying, adding
that he voiced alarm over protectionism and the trade war.
The 16 countries in RCEP would account for a third of
global gross domestic product and nearly half the world's
population.
But India is worried about a potential flood of Chinese
imports. A person with knowledge of New Delhi's negotiations
said new demands were made last week "which are difficult to
meet."
Indian Prime Minister Narendra Modi, who is in Bangkok, told
the Bangkok Post in an interview he is committed to RCEP talks
but added "opening the vast Indian market must be matched by
openings in some areas where our businesses can also benefit."
WITHOUT INDIA?
Some countries have raised the possibility of moving ahead
without India on forming a bloc that also included Japan, South
Korea, Australia and New Zealand.
But Thai commerce minister Jurin Laksanawisit told Reuters
on Sunday that India had not pulled out and all was good on RCEP
negotiations, a day ahead of a meeting at which the Thai hosts
hope major progress will be announced.
A draft final statement for the ASEAN summit seen by Reuters
said the leaders would express "deep concern over the rising
trade tensions and on-going protectionist and anti-globalisation
sentiments".
The U.S. decision to send a lower level delegation to the
summits this year has raised regional concerns that it can no
longer be relied on as a counterweight to China's increasing
regional dominance. Instead of President Donald Trump or Vice President Mike
Pence, the United States will be represented by Commerce
Secretary Wilbur Ross and White House national security adviser
Robert O'Brien.
China's premier, Li Keqiang, met ASEAN leaders on Sunday and
said China was ready to work with countries in the region for
long term peace and stability in the South China Sea, where
neighbours reject Beijing's sweeping maritime claims.
Li cited this year's progress on a code of conduct, due for
completion within three years. A legally binding code has long
been a goal for ASEAN members sparring over what they see as
China's disregard of sovereign rights and its obstruction of
their energy exploration and fishing.