Asean leaders push for stronger trade ties among RCEP members and other partners
(Photo credit: ST Photo/Gavin Foo)
Source: The Straits Times
The world’s largest trade pact has stressed its commitment to an open, fair and rules-based multilateral trading system, amid an increasingly unsettled geopolitical climate.
At the 47th Asean Summit and related meetings in Kuala Lumpur on Oct 27, Asean leaders met their partners under the Regional Comprehensive Economic Partnership (RCEP), which is made up of 10 Asean states as well as Australia, China, Japan, New Zealand and South Korea.
“We are the world’s largest trading bloc, representing a third of global GDP (gross domestic product) and a third of the world’s population. When we move together, we can achieve scale and impact,” said Prime Minister Lawrence Wong at the RCEP leaders’ summit, the first to be held since 2020.
In a joint statement, the RCEP said it “reaffirmed our commitment to the World Trade Organisation rules and principles as the foundations of an open, transparent, fair and rules-based multilateral trading system that ensures predictability and non-discrimination for all trading partners”.
It also said it recognised the pact’s pivotal role in contributing to regional economic integration and cooperation, and pledged to address longer-term challenges such as climate change, digital transformation and supply chain vulnerabilities.
At the RCEP meeting on Oct 27, PM Wong noted that the agreement has already delivered real benefits by lowering tariffs, harmonising rules and improving predictability for businesses.
He urged countries to ensure full and effective implementation of the pact by resolving outstanding issues such as tariff differentials, remaining open to new members and improving the agreement to cover emerging areas such as the green and digital economies.
“In this uncertain environment, it is more important than ever for our economies to come together, to show that free trade can deliver for our people and bring shared prosperity to our region,” he said.
The RCEP, which members began negotiating in 2012, was conceived as an Asean-led initiative to consolidate the grouping’s existing free-trade agreements with its dialogue partners and create a unified framework for regional trade and investment.
It gained greater salience after the US withdrew from the Trans-Pacific Partnership in 2017, and is seen by some analysts as a potential buffer against US tariffs.
Several economies have recently expressed interest in joining the RCEP, namely Bangladesh, Chile, Hong Kong and Sri Lanka.
At the meeting, Philippine President Ferdinand Marcos Jr also urged participants to strengthen the RCEP, noting that it was a cornerstone of rules-based, transparent and predictable trade, which enabled continued growth and cooperation.
“The five years since the signing of the agreement have been a time of profound transformation in the global economic and geopolitical landscape,” he said.
“Amidst today’s global uncertainties, which include shifts to inward trade policies, Asean’s commitment to a rules-based trading system remains our strongest anchor,” he added.
Leaders of Asean, which admitted its 11th member, Timor Leste, on Oct 26, met more external partners at the 20th edition of the East Asia Summit (EAS), which included Australia, China, India, Japan, South Korea, New Zealand, Russia and the US.
In his opening remarks, Malaysian Prime Minister Anwar Ibrahim, who is the Asean chair, urged leaders to reaffirm the EAS’ role as a platform for principled and constructive engagement. Peace and security must continue to rest on multilateralism and international law, he added.
He said the summit’s founding vision, as a leader-led forum for strategic, political and economic dialogue, has remained as vital as ever amid global instability.
On Gaza, Datuk Seri Anwar said he welcomed US President Donald Trump’s “comprehensive plan” to end the conflict there, but said this must be closely looked at to ensure a “just and lasting political solution for Palestine”.
The plan, formalised in October, calls for an immediate ceasefire, the withdrawal of Israeli forces to agreed lines, the release of Israeli hostages in exchange for Palestinian prisoners, and the resumption of humanitarian access and reconstruction efforts in Gaza.
Asean leaders also had a meeting with their counterparts from China, Japan and South Korea at the 28th Asean Plus Three Summit.
At the meeting, Chinese Premier Li Qiang urged Asean leaders to uphold free trade and oppose protectionism.
“We must fully safeguard the hard-earned peace and stability in East Asia,” he said, urging countries to “uphold free trade and the multilateral trading system, oppose all forms of protectionism and continuously advance regional economic integration”.
PM Wong told the other leaders that the meeting recognised the substantive contributions to regional stability and prosperity made by the three partners, as well as the reality that developments in North-east Asia can have implications for Asean and its region.
“The partnership has also delivered tangible benefits to our peoples, from enhanced regional safety nets to stronger supply chains and better health security – building our collective resilience to face future challenges,” he said.
It has also helped the region weather “multiple storms”, from the 1997 Asian financial crisis and the 2008 global financial crisis to the Covid-19 pandemic, said PM Wong.
He outlined three ways the Asean Plus Three mechanism can continue to position the region for success.
First, PM Wong said, countries must strengthen their collective ability to withstand economic shocks amid rising protectionism and pressures on the multilateral trading system.
Second, he called for the region to build on its economic dynamism by accelerating integration through existing trade pacts such as the RCEP, while enhancing them to meet evolving needs.
Lastly, he urged Asean and its partners to seize opportunities in emerging areas such as digitalisation, green finance and clean energy, noting that initiatives like the Asean Power Grid could open new areas of collaboration and enhance regional energy security.
On Oct 27, Asean leaders also met South Korean President Lee Jae Myung and United Nations Secretary-General Antonio Guterres, before attending a gala dinner hosted by Mr Anwar and his wife.
A day earlier, during the retreat segment of the Asean Summit, Mr Wong noted that the leaders of the US and China were expected to meet in South Korea to discuss a trade deal.
While many hoped for a positive outcome, he cautioned fellow Asean leaders that mutual suspicion and mistrust between the two powers was unlikely to dissipate soon. Both sides, he said, would continue to insulate themselves from each other, which will in turn place growing pressure on the region to align with one or the other.
Asean therefore must stand together as one to respond effectively to preserve its strategic economy and to safeguard Asean centrality, he said. Asean centrality is the concept of the group taking the driver’s seat in shaping the region’s future, rather than having its course set by external powers.
To do this well, Asean solidarity and unity is vital, stressed PM Wong.
“We must demonstrate our ability to resolve differences amongst ourselves and maintain peace amongst ourselves. If we are unable to do this, or if we let disputes divide us, we will diminish our credibility, our agency and our relevance on the international stage. Asean will be finished.”