BANGKOK — The strategic presence of the United States in Southeast Asia takes two forms, both of which are interrelated: The relationship is institutionalized through the Pacific Command in Honolulu and then formalized through various hub-and-spoke agreements with member states of the 10-member Association of Southeast Asian Nations (ASEAN).
The annual Cobra Gold military exercises with Thailand; the Visiting Forces Agreement with the Philippines; and the right of passage through the Strait of Malacca with the mutual consent of Indonesia, Malaysia and Singapore, all manifest the extent to which the U.S. remains engaged in the region. This has had some analysts referring to the U.S. as a classic offshore balancer: It guarantees the security of the region, and in turn, ensures that its best interests are protected.
With the advent of peace comes prosperity and dynamism generated through trade. Southeast Asia now boasts a collective gross domestic product of nearly $800 billion as of the end of 2007. Over the last 10 years, the region has hosted nearly $90 billion in U.S. foreign direct investment.