US-China tensions make Asian free-trade deal ‘a priority’

Talks on the Regional Comprehensive Economic Partnership take on renewed urgency in the wake of Trump’s protectionism, says Malaysia’s top trade negotiator

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Cargo is loaded on a ship at Tianjin port in China. Photo: AP

Published: 2:55pm, 11 Oct 2018Updated: 10:43pm, 11 Oct 2018

The US-China trade war gives Southeast Asia fresh impetus to wrap up negotiations on a Beijing-backed free-trade deal that has been in the works for five years, Malaysia’s top trade negotiator has said.

Norazman Ayob’s comments at the South China Morning Post ’s China Conference in Kuala Lumpur echoed suggestions by regional leaders including Singapore’s Lee Hsien Loong that the 16-nation Regional Comprehensive Economic Partnership may be finalised by the end of the year, after 23 rounds of negotiations stretching back to 2012.

Countries such as Singapore and Malaysia had initially viewed the RCEP as of secondary importance to the United States-led Trans-Pacific Partnership (TPP) – but that has changed since the election of US President Donald Trump, who came to power last year on a protectionist platform.

Since Trump pulled the US out of the TPP, that pact has been watered down and rename the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Norazman said the RCEP was now the top priority.

RCEP, with Beijing’s involvement, was previously viewed as a direct challenge to the TPP – which excludes China.

Japanese Prime Minister Shinzo Abe and trade ministers from Asian countries at a Regional Comprehensive Economic Partnership meeting in Tokyo. The RCEP has taken on new urgency since Trump pulled the US out of the Trans-Pacific Partnership. Photo: AP

The RCEP includes the 10 Association of Southeast Asian Nations (Asean) nations as well as China, India, Japan, South Korea, New Zealand and Australia.