Jakarta, Indonesia – December 1, 2023, 10:39 AM (GMT+7) – As global economic fragmentation accelerates, the Association of Southeast Asian Nations (ASEAN) faces increasing pressure to maintain unity and deepen integration, especially in navigating complex trade negotiations with major East Asian economies.A failure to coordinate could lead to disparate conditions for businesses operating across the region and weaken ASEAN’s collective bargaining power.
The intensifying geopolitical landscape and rising protectionist sentiments worldwide are forcing ASEAN to reassess its approach to regional economic cooperation. The stakes are high: maintaining ASEAN centrality-its role as a key driver of regional dialogue and integration-and ensuring a stable, predictable business surroundings for companies operating within its member states. Without coordinated action, ASEAN risks losing leverage in negotiations and facing increased costs due to differing regulations across its markets. This necessitates a renewed focus on initiatives promoting ASEAN integration to effectively respond to evolving global dynamics.
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A key concern is the potential for individual ASEAN member states to negotiate trade agreements independently, accepting varying conditions. This fragmented approach diminishes ASEAN’s collective strength and undermines its ability to present a unified front. The resulting inconsistencies in regulations across ASEAN markets would increase operational costs for businesses and hinder regional economic growth. Thus,enhanced coordination and the implementation of integration initiatives are crucial for ASEAN to navigate the current period of global economic uncertainty.
