02:59
Amid rising protectionism and growing skepticism in multilateral trade agreements, South East Asia is rapidly moving in the opposite direction. The ASEAN Free Trade Agreement, encompassing an area of almost 650 million people, has eliminated tariffs among its 10 member countries. And aside from continuing to sign bilateral trade pacts, ASEAN is also keen on broader deals like the Regional Comprehensive Economic Partnership, that will include Asia's biggest economies and billions of people. Rian Maelzer reports from Kuala Lumpur.
ASEAN countries now trade more with each other than with any other country or bloc. Intra-ASEAN exports even surpass the bloc's booming exports to China.
It's not only local companies that are taking advantage of the tariff-free flow of goods in the region.
This Chinese company produces steel pipes in the tiny sultanate of Brunei.
GAO WENGE, DEPUTY GENERAL MANAGER HLDS STEEL "We have a very high-tech method of welding the pipe. Our products are used in industries like oil and gas, and construction."
And they export across ASEAN.
MICHAEL YEOH KINGSLEY STRATEGIC INSTITUTE "ASEAN can be held up as an example for other regions particularly in African countries to look at how they can come together and through regional subgroupings, being able to accelerate trade and investment and then increase domestic economic growth."
As others have wavered on free trade – and especially the multilateral approach – ASEAN has forged deals with a multitude of countries.
Four ASEAN countries are signatories to the revamped Trans Pacific Partnership, with more keen to get on board.
RIAN MAELZER KUALA LUMPUR "And all ASEAN members are pushing to conclude the Regional Comprehensive Economic Partnership, which will create a vast, populous trading bloc stretching from China, Japan and South Korea to India and south to Australia."
ABDUL MAJID KHAN FORMER MALAYSIAN DIR. GEN. FOR ASEAN "ASEAN's growth and prosperity has been due to its international trade and its participation in various organizations to achieve greater market access. So I think ASEAN will continue with this philosophy, with emphasis on inclusivity, free and also fair trade."
So a region that has worked so hard to eliminate its trade barriers should help to keep up the momentum for greater trade liberalization across the Asia Pacific.
Rian Maelzer, CGTN, Kuala Lumpur.