Anwar’s consistent message throughout the summits was that expanded trade would deepen economic integration and strengthen the region’s competitiveness and inclusivity, which ultimately would support ASEAN’s goal to becoming the world’s fourth largest free trade area.

For ASEAN, which now has an expanded membership of 11 with the inclusion of the lower to middle-income nation of Timor-Leste, the message is abundantly clear, which is to renew integration, expand trade and dismantle non-trade barriers to advance its free trade area.

Deeper integration is an imperative component towards building an unshakeable cornerstone for the Southeast Asian economy which is now reeling from increased costs due to the “Liberation Day” tariffs.

Economic gains from this resolve towards integration must be consistently accompanied by political will if ASEAN is to emerge as an effective regional economic grouping.

More than this, initiatives such as the ASEAN Digital Economy Framework Agreement (DEFA) to boost digital trade are vital to empower ASEAN’s more than 70 million micro, small and medium enterprises (MSMEs).

Increased region-wide online transactions will unleash an explosion of digital business and elevate these firms to becoming mid-sized and larger companies.

As for the ASEAN Trade in Goods Agreement (ATIGA), the pact will include more goods for free trade and expand their regional market comprising a consumer base in excess of 680 million people.

The signing of an expanded ASEAN-China Free Trade Agreement (ACFTA) followed by the grouping’s feverish discussions to conclude trade expanding agreements with India by next year are undeniably steps in the right direction given that they are populous markets and substantial trading partners of ASEAN. 

The reciprocal tariff agreements signed by the US with Malaysia, Vietnam, Thailand and Cambodia individually ensured tariffs would remain unchanged but included greater commitments for two-way trade and investments and opened up more sectors for economic cooperation.

Malaysia also signed a comprehensive strategic partnership agreement to elevate trade and investment linkages with the US.

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz dismissed criticism that these pacts would affect ASEAN sovereignty due to excessive concessions granted to Washington, saying Malaysia stands to gain in exports and investments.

Citing Malaysia’s case, he said some 1,711 product lines to America will enjoy tariffs lower than 19 per cent including palm oil, rubber, cocoa, pharmaceutical components and aerospace equipment, with these exports collectively amounting to about US$5.2 billion or about 12 per cent of total exports.

In the agreement signed with US President Donald Trump, Malaysia would be open to US investments or imports of critical rare earth minerals while Malaysia would continue to export semiconductors to the US without fear of sectoral tariffs as long as the agreements are adhered to.

Trump has promised unprecedented market access for these countries.

While this took place at the Kuala Lumpur Convention Centre, US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were engaged in intense trade talks a mile away in Malaysia’s tallest skyscraper, Merdeka 118, in efforts to reach a trade agreement.

Much to everyone’s relief, especially ASEAN countries whose economies are intrinsically intertwined to the markets of both economic superpowers, Washington and Beijing reached a framework agreement averting a disastrous 157 per cent tariff on Chinese goods and a trade war in the process.

To take this further, ASEAN leaders are expectant that Trump and China’s President Xi Jinping will meet face-to-face in Gyeongju in South Korea at the Asia-Pacific Economic Cooperation (Apec) Leaders’ Summit this week to soothe trade tensions.

It was also encouraging to note Trump held talks while in KL with Brazilian President Luiz Inacio Lula da Silva and they agreed to start discussions to tackle tariffs immediately, which effectively put an end to the brewing animosity between them.

Elsewhere, Australian Prime Minister Anthony Albanese affirmed Canberra’s commitment to an A$20 billion (A$1 = RM2.76) investment pipeline across Southeast Asia to deepen cooperation with ASEAN. 

South Africa, which was personally invited to the ASEAN Summit by Anwar, reaffirmed its commitment to deepen economic cooperation with Malaysia on palm oil while dialogue partner Canada said is looking to conclude a Comprehensive Free Trade Agreement with ASEAN (ACAFTA) by next year.

Meanwhile, Malaysia and New Zealand are looking to conclude the review of the Malaysia-New Zealand Free Trade Agreement (MNZFTA) by the end of this year and to strengthen cooperation in the halal sector, particularly to enhance the export halal meat products to Malaysia following the exchange of the upgraded halal implementing arrangement (HIA) with Putrajaya today.

Another major gathering convened here was that of the Regional Comprehensive Economic Partnership (RCEP), regarded as the largest free trade grouping in the world.

Besides the ASEAN 11, China, Japan, South Korea, Australia and New Zealand renewed their commitment to uphold an open, inclusive and rules-based multilateral trading against a backdrop of uncertainty in global trade.

As the baton for the ASEAN chairmanship is passed on to the Philippines, Malaysia can hold its head high for its exemplary astute diplomacy in further promoting ASEAN as an inclusive, reliable and competitive partner able to share its propensity for prosperity with both mature and developing economies alike as evidenced by the numerous agreements, deals, trade expansionary initiatives and renewed commitment to open regionalism which marked the summit.

-- BERNAMA