S'pore to seek expanded Asean trade ties as chair in 2027

MANILA - South-east Asia and its businesses can benefit from wider partnerships with countries and groupings from around the world, and as ASEAN chair in 2027 Singapore will seek to advance such cooperation, said Prime Minister and Finance Minister Lawrence Wong.When ASEAN marks its 60th anniversary next year, it will also mark milestone anniversaries with various dialogue partners such as America, the European Union (EU), and Canada, he noted.“We should use that opportunity to strengthen our partnerships with existing and new stakeholders,” he said at a meeting with the ASEAN Business Advisory Council on Nov 15.He cited ongoing trade talks with Canada, and interest from both ASEAN and the EU to come closer through a free trade agreement (FTA) between the groupings.ASEAN can also consider forging closer links with the Gulf Cooperation Council in the Middle East, and to explore an upgrade of the Regional Comprehensive Economic Partnership (RCEP) to keep pace with evolving business needs, he added.The RCEP, the world’s largest FTA, was conceived in 2011 as an ASEAN-led initiative to consolidate the grouping’s existing free-trade agreements with its dialogue partners and create a unified framework for regional trade and investment.Its 15 member countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, as well as Australia, China, Japan, South Korea and New Zealand.In September, RCEP members announced that an ad hoc working group was approved to advance membership applications for Bangladesh, Chile, Hong Kong, and Sri Lanka into the pact. Uruguay has also expressed interest in joining.PM Wong said that at a time of rising barriers to trade and investments around the world, ASEAN must remain open and connected to sustain its competitive advantage.On Nov 15, PM Wong also met with Brazil President Luiz Inácio Lula da Silva on the sidelines of the summit.In a Facebook post, the Prime Minister said he congratulated President Lula on being re-elected to a historic fourth term.The two leaders also discussed how the MERCOSUR-Singapore FTA - which also includes Argentina, Paraguay and Uruguay - can deepen cooperation across the regions.At the meeting with the business council, PM Wong noted that companies in the region want more integration and not more protection, unlike in many other parts of the world.While ASEAN is almost tariff-free, there are still non-tariff barriers that need to be removed and this has to be done step by step, he said.The council plays a vital role in providing feedback, to ensure that the wider partnerships and regional economic integration translates into practical outcomes for businesses, he added.He noted that it provided useful suggestions during the negotiations for the ASEAN Digital Economy Framework Agreement (DEFA) that was signed on Nov 14.DEFA will make it easier for businesses to transact and operate across the region by establishing common rules to facilitate digital trade and trusted data flows.But signing the agreement is only the beginning and the real test is in its implementation, he added. Businesses will need a lot more help to understand how best to make use of the agreement, and he suggested working through business associations in the various ASEAN countries to develop practical guides for small and medium enterprises. This is also where the council can help identify new frictions and pain points and provide feedback that can help fine-tune processes, he added.Besides celebrating its 60th anniversary next year, ASEAN will mark the 50th anniversary of dialogue relations with the USA, European Union and Canada and 30 years of the Asean Plus Three framework with China, Japan and South Korea.“We should use these milestones to reaffirm our commitment to open and mutually beneficial partnerships and identify new opportunities for practical cooperation,” said PM Wong at a Nov 15 plenary meeting with fellow South-east Asian leaders.