Country Report Brunei March 2011

Outlook for 2011-12: International relations

Despite Brunei's small size, it is able to play a role in the Association of South-East Asian Nations (ASEAN), and also maintains strong contacts with other countries, especially Muslim ones. In 2010 Brunei and Malaysia finally concluded an agreement, which had been in the offing for some time, whereby previously disputed maritime areas were acknowledged as Bruneian, and the two countries reached a production-sharing agreement for oil output from these areas. Brunei has yet to reach an agreement with China on territorial claims in the South China Sea, but the two sides seem to be open to joint exploitation of the area. International relations within the region focus on the expansion of trade and investment links, and disputes tend to be glossed over. Brunei is continuing to play a peacekeeping role in the Philippines and Lebanon.

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