Obama Says U.S. Seeking Broader Engagement With Asia

Nov. 14 (Bloomberg) -- President Barack Obama promised broader engagement with Asia, staking a U.S. claim in shaping the future development of a region that is leading the world out of recession.

“We look to rising powers with the view that in the 21st century, the national security and economic growth of one country need not come at the expense of another,” Obama told an audience of Japanese business and political leaders in Tokyo’s Suntory Hall today.

Obama used his speech to plot a future relationship between the world’s biggest economy and a fast-expanding region where countries have forged partnerships that don’t include the U.S. The economic stakes are high. An International Monetary Fund report last month forecast the Asia region will grow 5.75 percent in 2010, compared with 1.25 percent growth for the Group of 7 economies.

“The United States expects to be involved in the discussions that shape the future of this region, and to participate fully in appropriate organizations,â€

Obama, on his first trip to Asia as president, also called for unified efforts to block North Korea’s nuclear weapons development and stressed the importance of increasing U.S. exports to achieve greater balance with countries that sell far more goods to the U.S. than they buy from American companies.

Save More, Spend Less

The global recession showed that the world can’t rely on U.S. consumers buying Asian exports to drive growth, Obama said. The recovery will lead to a realignment for the U.S. economy, which will mean “saving more and spending lessâ€

The U.S. trade deficit grew a larger-than-anticipated 18 percent to $36.5 billion in September from $30.8 billion in August, the Commerce Department reported Nov. 13. Imports surged by the most in 16 years, swamping a gain in exports as the U.S. economy recovered.

Obama said the U.S. will support “an ambitious and balanced” Doha trade agreement that will open markets. He also vowed to work toward completing a trade agreement with South Korea, currently stalled in the U.S., and enter into discussions with countries that are part of the Trans-Pacific Partnership trade accord with the aim of broadening its base.

APEC Gathering

In Singapore, where Obama arrived tonight for a meeting of the Asia Pacific Economic Cooperation forum, U.S. Trade Representative Ron Kirk said the U.S. will negotiate with current and future partnership members an agreement to “integrate the Asia-Pacific economies.”

Morgan Stanley Asia Chairman Stephen Roach said Obama’s desire to engage Asia is more a matter of economic rather than security concerns.

“This is a very tough period that the world is in and the U.S. is feeling a lot of pressure in that regard right now,â€

In reaching out to other nations, the U.S. won’t fundamentally alter its relationship with Japan, Obama said.

“Our efforts in the Asia Pacific will be rooted, in no small measure, through an enduring and revitalized alliance between the United States and Japan,” Obama said. “But while our commitment to this region begins in Japan, it doesn’t end there.”

Hawaii, Indonesia

Noting he was born in Hawaii and lived in Indonesia as a child, Obama said the Pacific Rim has “helped shape my world view.” He singled out Malaysia and Indonesia as examples of countries the U.S. sought to engage.

He said his administration will give greater attention to the region’s multilateral organizations, such as the Association of South East Asian Nations. Obama will become the first U.S. president to meet with all 10 members of the group, which includes Myanmar, a nation under U.S. economic sanctions. Obama said the U.S. also wants to be part of the East Asia Summit, an Asean-centered group that includes China and India.

“I know that the United States has been disengaged from these organizations in recent years,” Obama said. “So let me be clear: those days have passed.”

China’s growing economic and military influence in Asia doesn’t necessarily come at the expense of the U.S., Obama said.

“In an inter-connected world, power does not need to be a zero-sum game, and nations need not fear the success of another,” he said. “Cultivating spheres of cooperation -- not competing spheres of influence -- will lead to progress in the Asia Pacific.”

Praise for China

Obama lauded China’s role in the global recovery, saying the world’s third-largest economy played a “critical” part in helping mitigate the recession and jumpstart growth.

The U.S. will continue to approach its relationship with China based on American interests and will pursue areas of “pragmatic cooperation,” he said. That includes emphasizing expanded human rights, he added.

“The United States does not seek to contain China, nor does a deeper relationship with China mean a weakening of our bilateral alliances,” he said.

He made no mention of friction over China’s currency peg to the dollar that lawmakers in the U.S. say gives Chinese industries an unfair advantage.

U.S.-China cooperation may be tested by Obama’s pledge to push for a global accord on cutting emissions linked to climate change. Obama yesterday with Japan’s Prime Minister Yukio Hatoyama reaffirmed support for a target of cutting emissions by 80 percent by 2050 and today he said the world’s economies must strive for success at a United Nations climate conference in Copenhagen next month.

Climate Change

China is the world’s largest emitter of greenhouse gases.

“All nations must accept their responsibility,” he said. “Each of us must do what we can to grow our economies without endangering our planet, and we must do it together.”

Obama left Tokyo earlier than scheduled today to join a dinner of APEC leaders. After the conclusion of the APEC meeting tomorrow, Obama travels to China. He also plans a stop in South Korea before returning to Washington.

To contact the reporters on this story: Julianna Goldman in Tokyo at jgoldman6@bloomberg.net ; Edwin Chen in Tokyo at echen32@bloomberg.net