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What are the dynamics shaping Southeast Asian trade policies?
Panellists:
Lili Yan Ing, Lead Advisor (Southeast Asia Region), ERIA - the Economic Research Institute for ASEAN and East Asia
Cyn-Young Park, Director, Economic Research and Regional Cooperation Department, Asian Development Bank
Moderator:
Rem Korteweg, Senior Research Fellow, Clingendael Institute
This podcast episode was recorded on 24 May 2023
The 2023 edition of the AIG Global Trade Series explores the extent and impact of regionalisation on the global trade landscape. Growing at a rapid pace, the 10 economies of Southeast Asia now collectively form the fifth largest economy globally - behind the US, China, Germany, and Japan. While intraregional trade is increasing - thanks to the new RCEP regional trade agreement that includes China, extra regional trade beyond Southeast Asia is booming.
On RSEP, ASEAN took the lead in making this trade agreement happen, which entered into force on 1 st January 2022 and currently covers over 30% of global trade. The most important trading partners of ASEAN are the United States, the European Union, and China - the largest trading partner by far.
However, these three trading blocks aim to increase resilience, diversify supplies and reduce their strategic dependencies, which may translate to decreasing their trade exposure to one another. Is ASEAN being caught in the middle? What is shaping ASEAN 's role in global trade, and how will outside dynamics impact it? As supply chain resilience becomes a major discussion point in Southeast Asia, how is ASEAN itself influenced by the supply shocks in the international trading system?
The Global Trade Series is a collaboration between AIG and the following international organisations with leading expertise on global trade: the Aspen Institute Germany; Chatham House (UK); CEBRI - the Brazilian Center for International Relations; the Clingendael Institute (The Netherlands); Institute of International Economic Law at Georgetown University Law Center (US); ISPI - the Italian Institute for International Political Studies; the Jacques Delors Institute (France); RIETI - the Research Institute of Economy, Trade and Industry (Japan) and the St. Gallen Endowment for Prosperity through Trade (Switzerland).
The views and opinions expressed in this podcast series are those of the speakers and do not necessarily reflect the official policy or position of American International Group, Inc. or its subsidiaries or affiliates (“AIG”). Any content provided by our speakers are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything. AIG makes no representations as to accuracy, completeness, correctness, or validity of any information provided during this podcast series and will not be liable for any errors, omissions, or delays in this information or any losses injuries, or damages arising from its use.
What are the dynamics shaping Southeast Asian trade policies?
Panellists:
Lili Yan Ing, Lead Advisor (Southeast Asia Region), ERIA - the Economic Research Institute for ASEAN and East Asia
Cyn-Young Park, Director, Economic Research and Regional Cooperation Department, Asian Development Bank
Moderator:
Rem Korteweg, Senior Research Fellow, Clingendael Institute
This podcast episode was recorded on 24 May 2023
The 2023 edition of the AIG Global Trade Series explores the extent and impact of regionalisation on the global trade landscape. Growing at a rapid pace, the 10 economies of Southeast Asia now collectively form the fifth largest economy globally - behind the US, China, Germany, and Japan. While intraregional trade is increasing - thanks to the new RCEP regional trade agreement that includes China, extra regional trade beyond Southeast Asia is booming.
On RSEP, ASEAN took the lead in making this trade agreement happen, which entered into force on 1 st January 2022 and currently covers over 30% of global trade. The most important trading partners of ASEAN are the United States, the European Union, and China - the largest trading partner by far.
However, these three trading blocks aim to increase resilience, diversify supplies and reduce their strategic dependencies, which may translate to decreasing their trade exposure to one another. Is ASEAN being caught in the middle? What is shaping ASEAN 's role in global trade, and how will outside dynamics impact it? As supply chain resilience becomes a major discussion point in Southeast Asia, how is ASEAN itself influenced by the supply shocks in the international trading system?
The Global Trade Series is a collaboration between AIG and the following international organisations with leading expertise on global trade: the Aspen Institute Germany; Chatham House (UK); CEBRI - the Brazilian Center for International Relations; the Clingendael Institute (The Netherlands); Institute of International Economic Law at Georgetown University Law Center (US); ISPI - the Italian Institute for International Political Studies; the Jacques Delors Institute (France); RIETI - the Research Institute of Economy, Trade and Industry (Japan) and the St. Gallen Endowment for Prosperity through Trade (Switzerland).
The views and opinions expressed in this podcast series are those of the speakers and do not necessarily reflect the official policy or position of American International Group, Inc. or its subsidiaries or affiliates (“AIG”). Any content provided by our speakers are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything. AIG makes no representations as to accuracy, completeness, correctness, or validity of any information provided during this podcast series and will not be liable for any errors, omissions, or delays in this information or any losses injuries, or damages arising from its use.
Back to the Future: a New Era of Managed Trade?
Globalisation’s next chapter is being written, driven by concerns about supply chain risks. The global trade in goods is increasingly seen through a security prism in capitals around the world and governments are developing new policies to reduce unwanted dependencies, seek new sources of leverage and guarantee supplies. Trade links are being reordered as policymakers scramble to secure access to strategic materials and positions in global value chains. Meanwhile, geopolitical turbulence and climate ambitions are giving rise to industrial policies, sanctions and a growing use of subsidies.
From investment screening to quotas to export controls, policymakers are proposing an increasing number of tools and policies to steer trade and investment flows. But despite worries about protectionism and fragmentation, trade continues as the private sector manages risk by embracing diversification. Elections in the US, EU, Mexico, UK, Indonesia, India and elsewhere may also lead to a reordering of the global politics of trade. Has the global trade system entered an era of managed trade? What will it mean for regional approaches to trade, and what does it mean for multilateralism and the WTO? Ultimately, the main question could be: who is in the driving seat in this brave new world for trade?