ASEAN+3 Economies Urged to Strengthen Free Trade Amid Rising Protectionism
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As rising protectionism erodes multilateralism and fuels geopolitical tensions, ASEAN+3 economies must reaffirm their commitment to free trade and rules-based governance. By deepening integration and strengthening macroeconomic coordination, they can help reshape globalization for the twenty-first century.
SINGAPORE – The risks posed by the fragmentation of the multilateral trading system transcend mere inefficiencies. Without a coherent, rules-based framework, global value chains will become vulnerable, investment risks will rise, and smaller, trade-dependent economies will be left increasingly exposed to the arbitrariness of bigger nations.
Deepening Integration is key
To counter these challenges, the ASEAN+3 economies are being encouraged to deepen their economic integration. This includes reducing trade barriers, streamlining customs procedures, and promoting investment flows within the region. Stronger macroeconomic coordination can also help to mitigate the impact of external shocks and ensure greater stability.
Without a coherent, rules-based framework, global value chains will become vulnerable.
By working together, the ASEAN+3 economies can create a more resilient and inclusive global economy. This requires a commitment to open markets, fair competition, and obvious regulations. It also means addressing the root causes of protectionism and promoting a more balanced distribution of the benefits of globalization.
The Future of Globalization
The call for strengthened cooperation comes at a time when the future of globalization is uncertain. Rising geopolitical tensions, trade wars, and the COVID-19 pandemic have all contributed to a sense of crisis. However, the ASEAN+3 economies have an opportunity to lead the way in shaping a new model of globalization that is more enduring and equitable.
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