Asean leaders push for stronger trade ties among RCEP members

Pact reaffirms its commitment to an open, rules-based trading system

- Hariz Baharudin Correspondent

The world's largest trade pact has stressed its commitment to an open, fair and rules-based multilateral trading system, amid an increasingly unsettled geopolitical climate.

At the 47th Asean Summit and related meetings in Kuala Lumpur on Oct 27, Asean leaders met their partners under the Regional Comprehensive Economic Partnership (RCEP), which is made up of 10 Asean states as well as Australia, China, Japan, New Zealand and South Korea.

"We are the world's largest trading bloc, representing a third of global GDP (gross domestic product) and a third of the world's population. When we move together, we can achieve scale and impact," said Prime Minister Lawrence Wong at the RCEP leaders' summit, the first to be held since 2020.

In a joint statement, the RCEP said it "reaffirmed our commitment to the World Trade Organisation rules and principles as the foundations of an open, transparent, fair and rules-based multilateral trading system that ensures predictability and nondiscrimination for all trading partners".

It also said it recognised the pact's pivotal role in contributing to regional economic integration and cooperation, and pledged to address longer-term challenges such as climate change, digital transformation and supply chain vulnerabilities.

At the RCEP meeting on Oct 27, PM Wong noted that the agreement has already delivered real benefits by lowering tariffs, harmonising rules and improving predictability for businesses.

He urged countries to ensure full and effective implementation of the pact by resolving outstanding issues such as tariff differentials, remaining open to new members and improving the agreement to cover emerging areas such as the green and digital economies.

"In this uncertain environment, it is more important than ever for our economies to come together, to show that free trade can deliver for our people and bring shared prosperity to our region," he said.