Asean's ambitious 2045 plan faces Trump tariffs and implementation woes

Members of the
Asean bloc have laid out an ambitious plan to become the world's fourth-largest economy by 2045, but analysts warn the region must first overcome deep-rooted trade barriers, domestic implementation woes and a shifting global trade order.
Advertisement
Released on Tuesday during the Association of Southeast Asian Nations summit in Kuala Lumpur, the five-year strategy to achieve the economic goal aims to boost regional integration and better address complex issues.
'Carrying on with business as usual will not suffice for this highly dynamic economic region,' the statement said. 'For Asean to become the fourth-largest global economy by 2045, countries in the region will need to deepen their economic integration and enhance their agility to address multifaceted challenges.'
The plan's announcement, which called for increased energy security, transport security, and strengthened supply chains, came after the bloc finalised negotiations on an upgraded Asean Trade in Goods Agreement (ATIGA) on Monday.
First implemented in 2010, ATIGA removed tariffs on 98.6 per cent of goods traded among member states. The upgraded version – expected to be signed in October – aims to further boost intra-Asean trade by eliminating remaining duties and removing non-tariff barriers, such as complex customs procedures and licensing rules.
Advertisement
ATIGA is one of three major agreements that form the foundation of the Asean free-trade area, which seeks to lower trade barriers and build a unified regional market.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

The Standard

39 minutes ago

• The Standard

Singaporean PM begins five-day official visit to Beijing

Chinese Premier Li Qiang meets with Singaporean Prime Minister Lawrence Wong on the sidelines of the leaders' meetings on East Asia cooperation held in Vientiane, Laos, Oct. 11, 2024. (File Phoro)

South China Morning Post

3 hours ago

• South China Morning Post

China looks to Singapore to help secure global supply chains from US trade war turmoil

China and Singapore should work together to safeguard global supply chains, Chinese Premier Li Qiang said on Monday as Beijing seeks deeper ties with neighbouring countries to help offset trade tensions with Washington. In talks with Singaporean Prime Minister Lawrence Wong at the Great Hall of the People in Beijing, Li said bilateral ties had continued to strengthen, and the two countries were 'friendly neighbours and important partners'. 'China is willing to maintain close high-level exchanges with Singapore, strengthen strategic communication, consolidate political mutual trust, and promote more fruitful results in bilateral relations and cooperation,' he said, according to state broadcaster CCTV. 'As beneficiaries and defenders of economic globalisation and free trade, China and Singapore should uphold open regionalism and true multilateralism, actively promote trade and investment liberalisation and facilitation, and maintain the stability and smooth functioning of the global supply chain.' China, Li said, was willing to expand the scale of the country's trade and investment with Singapore, strengthen cultural exchanges, and further cooperate in sectors including the digital economy and artificial intelligence. China was also willing to work with the city state and other Association of Southeast Asian Nations (Asean) economies to promote regional cooperation, he said.

South China Morning Post

3 hours ago

• South China Morning Post

Sara Duterte warns against Marcos' US pivot, ‘leaning' on a foreign power

The Philippines ' Vice-President Sara Duterte-Carpio has called on the country to steer away from its 'unbalanced' foreign policy in an implicit criticism of President Ferdinand Marcos Jnr , as she offered her clearest indication yet of where she stands on China. In a speech delivered to a group of Filipinos at the Parliament Gardens in Melbourne on Sunday, Duterte-Carpio warned against leaning on 'a foreign power' and allowing its weapons systems to be deployed in the Philippines, calling such moves contrary to the constitutional requirement of an independent foreign policy. Although she did not specifically name it, her speech made a clear reference to the US military's Medium Range Capability (MRC) missile system – also known as Typhon – which has been stationed in northern Luzon since last year. There have also been discussions regarding Manila hosting more of the launchers. The ground-based launcher can fire Tomahawk and SM-6 missiles with ranges of up to 2,000km, which puts parts of the South China Sea, the Taiwan Strait and even southern China within striking range. Beijing has called the Typhon's deployment provocative and dangerous on multiple occasions, saying it could fuel an arms race and destabilise Southeast Asia. In May, Chinese defence ministry spokesman Wu Qian called it 'a strategic offensive weapon' that 'brings huge risks of war into the region'. The stationing of the US-made Medium Range Capability (MRC) missile system, or Typhon, in the Philippines has triggered objections from China. Handout via US Army/RCCTO During her speech, Duterte-Carpio said: 'It is stated in our constitution that we should have an independent foreign policy that does not lean towards a foreign power, that does not favour the US or does not favour China.'