Mari Pangestu and Rania Teguh
There is a chorus of calls for ASEAN to walk the talk on its claims of centrality in the management of the strategic challenges to peace and prosperity in East Asia. Calls for ASEAN to ‘do more’ usually centre on its claiming a more assertive role in security affairs in the South China Sea and redoubling its efforts to encourage political dialogue in Myanmar.
But the bigger threat to ASEAN centrality is corrosion of the open economic order on which its prosperity and security depend. And there is opportunity to cement its role as a platform for negotiating a regional economic order attuned to its members’ interests in East Asia through the Regional Comprehensive Economic Partnership (RCEP), which is less politically fraught.
RCEP is the world’s largest trade agreement, with its 15 members of 2.3 billion people accounting for 32 per cent of global GDP and 29 per cent of world merchandise trade. It aims to create a more integrated and efficient regional market, driving growth, strengthening regional value chains and boosting competitiveness of member economies. RCEP will also promote investment by attracting more foreign direct investment into regional manufacturing.
Other provisions on e-commerce, competition, intellectual property and SME development can also support trade growth. In the 15–20 year phase-in for less developed members, the agreement provides for 92 per cent market access among all the partners.
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