(Corrects paragraph 7 to hope to announce, not sign,
provisional agreement)
* Indian PM Modi does not mention RCEP at meeting
* Southeast Asian leaders appeal for progress
* Downgraded U.S. delegation a concern in Asia
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 the Association of Southeast
Asian Nations (ASEAN) in Bangkok, Thailand.
Indian Prime Minister Narendra Modi did not even mention the
RCEP deal in opening remarks at a meeting with Southeast Asian
leaders and instead spoke only of reviewing the existing trade
agreement between ASEAN and India.
"This will help not only further strengthen our economic
relations, but our trade will also be more balanced," Modi said.
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."
Southeast Asian countries had hoped at least a provisional
agreement could be announced on Monday.
"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 on Sunday.
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.
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.
Another advantage for Southeast Asian countries of having
India in the trade pact is that it would be less dominated by
China.
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 might. 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.