Threats to free trade 'cannot be taken lightly,' ASEAN chief warns

The chief of Southeast Asia's regional bloc on Monday pushed back against the emerging anti-globalization mood, stressing a commitment to continued economic integration and open trade.

Le Luong Minh, a veteran Vietnamese diplomat who became secretary-general of the Association of Southeast Asian Nations in 2013, was speaking to the annual Future of Asia conference in Tokyo. "What stands out the most from the current phenomenon is that globalization is now under threat" from those that used to be its strongest proponents, Minh said. "For a region so deeply embedded in global value chains, a threat to globalization and free trade cannot be taken lightly."

The 10-member bloc established the ASEAN Economic Community in 2015 to lower tariffs and ease cross-border flows of capital and labor.

Minh said there are two lessons to be learned from the recent rise of protectionist sentiment. One is the importance of communication with the public: "What is happening in the emerging discourse on globalization and free trade is at least partly brought about by public misperceptions on what is the cause of their domestic situation -- from unemployment [and] underemployment to inequality."

The second is that, to be sustainable, integration "needs to be inclusive and to deliver meaningful benefits to the stakeholders."

While pursuing integration within its ranks, Minh stressed, the bloc will aim to trade with the rest of the world in an open manner. "As the tide is turning against globalization and free trade," he said, "ASEAN is seen as the beacon of open regionalism."

Minh noted that the Regional Comprehensive Economic Partnership -- a proposed trade pact being negotiated ASEAN states, China, India, South Korea, Australia, New Zealand and Japan -- was first initiated by the ASEAN. "Beyond the RCEP, ASEAN will further strengthen its global engagement with its free trade agreement partners and beyond," Minh said.

In his concluding remarks, Minh said ASEAN will "continue to embrace globalization, free trade and open regionalism."

"ASEAN remains committed to its regional integration" and to ensuring that such efforts are "sustainable."

June 5, 2017

Source: Nikkei