Beijing Arbitration Commission

Around the globe, economic recovery from the 2008 global financial crisis is fragile and tenuous. With the US recovery in disarray, the Euro zone debt crisis spreading, a Japan shaken by the Great Tohoku Earthquake and Tsunami and the Middle East locked down in riots, the threat of yet another global recession looms. Amidst the crashing stock markets, silver linings are few and far in between.

One bright spot in this gloomy environment is the advent of the China ASEAN Free Trade Area (CAFTA) and the booming trade and investments in the region. A year after the China ASEAN Free Trade Agreement took effect in January 2010, optimism in the CAFTA region is palpable and spreading.

Tapping into this revival in China ASEAN trade and economic cooperation, the Malaysian Bar Council together with China Law Society, the ASEAN Law Association of Malaysia and the Kuala Lumpur Regional Arbitration Centre are jointly hosting the 5th China ASEAN Legal Forum on Legal Cooperation and Development in Kuala Lumpur, Malaysia from 26-27 September 2011 (more information and registration at www.cafta2011.com).

Far back in history, China and her South East Asian neighbors have always enjoyed thriving trade and commerce plied by Chinese junks and Arab trading dhows along the maritime Silk Route spanning the Chinese coast through Vietnam, the Malay archipelago and Indonesian isles onward to India, Middle East and Africa. In this modern day and age, there is every reason to hitch our South East Asian economies to the booming Chinese juggernaut and every reason to believe in the mutual prosperity and benefit of Win-Win Cooperation among CAFTA members says Lim Chee Wee, President of the Malaysian Bar.

With Chinas plan to rely on domestic consumer spending to fuel its huge economy, there is a rising global shortage of raw materials, minerals, energy, commodities and food. Japans northern food basket was drastically impacted by the Fukushima radiation fallout, thus making food security, the global food shortage and rising prices major issues worldwide. Most ASEAN economies are endowed with fertile land and abundant rainfall well suited for the cultivation of food and commodity crops on a massive scale. There is also an abundance of untapped energy and mineral resources in the region and Chinese investments are flowing into ASEAN at a fast clip.

Jeff Leong, senior partner of Malaysian law firm Jeff Leong, Poon & Wong and a Host Committee member points out, The China ASEAN Legal Forum is one of the best networking opportunities for business lawyers and investors to establish working ties with participants from China and ASEAN for investment projects in energy, mining, commodities and food security such oil & gas, coal, iron ore, oil palm, rubber, tea, coffee and rice. According to Leong, transactional lawyers in Asia will be kept busy structuring such deals for the next few years.

The possibility of disputes can never be entirely ruled out, despite the best of trade ties and relationships, says Sundra Rajoo, Director of the Kuala Lumpur Regional Arbitration Centre and a panelist of the upcoming forum. So efforts are undertaken to address treaty disputes and coordinate arbitral centers in the CAFTA region. The forum is an excellent platform for ADR professionals to network and exchange ideas, especially in view of the diverse cultures, legal traditions and background of the countries in the CAFTA region, says another panelist Yang Ing Loong, a partner at international law firm Sidley & Austin, Hong Kong.

A China ASEAN Mediation Centre will also be launched at the forum, says The Honorable Justice Tan Sri James Foong, Chairman of the Host Committee and a senior Federal Court Judge in Malaysia. A brainchild of China Law Society, the mediation centre will be located at the southern Chinese island of Hainan and is intended to match make joint venture parties in the CAFTA region. Where differences in opinion and disputes arise, the mediation centre will help resolve disputes without damaging business relationships and trade ties, explains Tan Sri James Foong.

In times of crisis and recession, the quick and the nimble survive by managing risks and tapping opportunities. Some of these opportunities lie in the CAFTA region. Those interested in attending the 5th China ASEAN Legal Forum may do so by registering at www.cafta2011.com or contacting CAFTA 2011 Organising Officer Janet Nathan at Tel No. 603 20502103 or by email: janet@malaysianbar.org.my