Deepening Economic Ties: The Imperative for EU and China to Strengthen RCEP Engagement with ASEAN - Phar Kim Beng
The Association of Southeast Asian Nations (ASEAN) finds itself in a delicate position as the U.S. administration's tariff regime causes concern among Europe, China, Japan, South Korea, and ASEAN itself. The goal is not to undermine the U.S., but to preserve a trading system that benefits all.
The danger for both Europe and Asia is falling into a Trumpian trap, as the U.S. president thrives on bilateral confrontations. ASEAN, however, must tread carefully and avoid being seen as openly challenging Washington, as its credibility rests on neutrality, not confrontation.
ASEAN's strength lies in neutrality and centrality, creating platforms for dialogue, not instruments of coercion. The wiser path forward for ASEAN is to build resilience without provocation, consolidating its role as the anchor of Asia's trade architecture.
The expansion and deepening of the Regional Comprehensive Economic Partnership (RCEP) is critical to transform it into a true global counterweight to protectionism. RCEP, the world's largest trade bloc, covering nearly a third of global GDP and population, creates a dense web of commitments that reduce tariffs, streamline rules of origin, and expand market access across Asia-Pacific.
For the European Union (EU), seeking alignment with Asia's trade architecture, especially RCEP, is essential. Greater involvement with RCEP offers three benefits to Europe: scale, diversification, and credibility. European Commission President Ursula von der Leyen recognizes the dilemma of overdependence on China but also sees value in leveraging RCEP as a stabilizing anchor.
Europe, China, and ASEAN deepening RCEP can create an economic bulwark capable of withstanding protectionist storms. However, ASEAN has no institutional experience in economic sanctions or punitive tariffs, and venturing into such territory could expose its weaknesses. ASEAN has never wielded sanctions or punitive tariffs as tools of statecraft and has no experience in weaponizing trade.
ASEAN's unity would shatter quickly if it were to join Europe and China in any overt anti-U.S. tariff front. The ASEAN countries that are members of RCEP are all ten ASEAN member states: Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
China should accept that integration, not confrontation, is the most effective way to resist unilateralism. It would be reckless for ASEAN to break its pattern of neutrality by trying to mount a coordinated economic counterstrike against Washington.
In conclusion, ASEAN's role in the global trade landscape is crucial, and its neutrality and centrality are key to maintaining a stable and open trading system. The deepening of RCEP offers a promising path forward for ASEAN, Europe, and China to create an economic bulwark against protectionism, while maintaining the unity and credibility that are the cornerstones of ASEAN's strength.
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