(Corrects title to Indian Prime Minister Narendra Modi in
paragraph 7)
* ASEAN summit is being held in Bangkok
* Trade will be the main topic, diplomats say
* Little discussion of regional problems expected
By Patpicha Tanakasempipat and Panu Wongcha-um
BANGKOK, Nov 2 (Reuters) - Plans to finalise an Asia-wide
trade deal at a summit in Bangkok this weekend were uncertain
after new demands raised by India in the negotiations to create
the world's largest trading bloc.
Southeast Asian leaders meeting in Thailand hope to make
progress on the China-backed Regional Comprehensive Economic
Partnership (RCEP) - which would comprise 16 countries that
account for a third of global gross domestic product and nearly
half the world's population.
Talks are expected to continue on the sidelines of the
Association of Southeast Asian Nations (ASEAN) summit in Bangkok
after a press conference was cancelled on Friday, raising
questions whether ministers could reach agreement in their last
formal negotiations ahead of a summit on the regional
partnership on Monday.
Host Thailand has been pushing for a preliminary deal by the
end of the year, keen to push ahead at a time when U.S.-China
tensions threaten to slow growth in the region.
A major sticking point has been demands from India, which is
worried about a potential flood of Chinese imports.
"It's a fact India has put new demands which are difficult
to meet," said a person with knowledge about New Delhi's
negotiations.
Indian Prime Minister Narendra Modi told the Bangkok Post in
an interview he is committed to ongoing RCEP negotiations but
added "opening the vast Indian market must be matched by
openings in some areas where our businesses can also benefit."
Another person with knowledge of the talks said the Thai
commerce minister had cancelled the press briefing in order to
continue the marathon negotiations late into Friday night.
TRADE WAR
Any breakthrough on the Regional Comprehensive Economic
Partnership would boost confidence in export-reliant Southeast
Asia that has been weighed down by U.S.-China trade war, with
growth expected to slow to its lowest in five years.
"The finalisation of the RCEP negotiation has become a key
test for ASEAN's capacity to deliver on its often-cited
centrality," Marty Natalegawa, a former Indonesian foreign
minister, told Reuters.
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".
Diplomats expected little discussion on perennial regional
problems such as maritime disputes with China over the South
China Sea and the plight of Rohingya refugees driven from
Myanmar.
The United States, an important trade partner, downgraded
its delegation compared to those in previous years. 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 is sending its premier, Li Keqiang.