HARNESSING ASIA'S FREE TRADE AGREEMENTS

For Asian regions, FTAs are game changers F for expanding trade liberalisation through managing the global supply chain and cost burden for import-export.

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Apart from relaxing tariffs, it offers viable solutions to resolve behind-the-border barriers like temporary trade restrictions, goods shortages, and port closures. So, leveraging Free Trade Agreements FTAs across Asian boundaries ensures the smooth distribution of goods and services and attracts global investments.

Growing economic prosperity and globalisation have led to growing FTAs like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), started in 2017, connecting Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Although the USA dropped out of this agreement, it was still one of the largest global FTAs, bringing members a global GDP of 13.5 to 14.5% with uplifting trade barriers. Another significant FTA is the Regional Comprehensive Economic Partnership (RCEP), which started back in 2012 to establish economic integration. RCEP brings together 15 countries for liberal trading, including Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Australia, China, Japan, New Zealand, and the Republic of Korea.

This positively minimises the development gap, strengthens economic ties, and promotes trade. With 30% of the world's GDP contributing, it is one of the largest free trade agreements.