Singapore Prime Minister Lee Hsien Loong on Tuesday warned against "backsliding" toward protectionism as Southeast Asian economic ministers launched a week of talks to strengthen regional trade links. Speaking at the opening ceremony of the annual meeting of ministers from the Association of Southeast Asian Nations (Asean), Lee said the negotiations came at a key moment after the breakdown last month of global trade talks in Geneva.
While a strong rules-based global trading regime remained the best option for the world economy, Asean "should continue to integrate and liberalise" its own economies, he said. "Our purpose is not to create a trade bloc; we are committed to open regionalism and adopt an inclusive approach," Lee said. Asean's efforts will "demonstrate the practical benefits of economic openness and contribute in a modest way to maintaining the global momentum for trade liberalisation," he said.
But Lee urged ministers to be "watchful of any backsliding and resist the temptation to raise trade barriers or resort to protectionist practices for lack of an overall agreement." Asean, a 10-nation grouping of about 550 million people, has been among the most active regional organisations promoting free trade agreements (FTAs). At the Singapore meeting, which ends Friday, Asean is expected to seal an FTA with Asian giant India covering merchandise trade.
The Asean-India FTA, covering more than 1.5 billion people, is expected to be signed in December during the annual Asean summit in Bangkok. Asean is also hoping to announce that it has concluded talks on a "substantive portion" of a comprehensive economic agreement with Australia and New Zealand. A Southeast Asian trade official told AFP on Tuesday the negotiations with Asean's two Pacific neighbours were about "95 percent" finished, and a deal is also expected to be signed in December.
"We hope to complete negotiations this year. Officials have made very good progress over the past 12 months, and have successfully resolved between 90 and 95 percent of the issues before us," New Zealand Trade Minister Phil Goff said in Wellington.
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