With ASEAN in mind, Australia is looking to strengthen economic cooperation, not only to promote trade and investment, but also to build partnerships to protect multilateralism and the rules-based trading order.
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| Heads of delegations at the Special Summit to celebrate 50 years of ASEAN-Australia relations on March 5 in Melbourne, Australia. (Photo: Tuan Anh) |
The East Asia Forum website on December 15 published an article by two experts, Peter Drysdale and Shiro Armstrong of the Australian National University, stating that ASEAN is becoming an increasingly important international economic entity, with trade turnover increasing significantly as it integrates into the global economy.
ASEAN GDP growth is expected to stabilize at around 4% for the rest of the decade – higher than the average growth of the Group of Seven (G7) or European Union (EU) and on par with China.
Exports from ASEAN have increased by 480% since the turn of the century, taking the bloc’s share of global exports from 5.4% to 7.8%. ASEAN now has trade exceeding 100% of its total GDP, compared to 70% in Europe and 22% in North America.
As a club of small and middle-sized states, ASEAN recognizes the value of collective action so as not to be passive recipients of policies set by major powers in a global environment where open and rules-based trade is being undermined by the use of economics as a geopolitical tool.
Canberra is looking to strengthen economic cooperation with ASEAN, not only to boost trade and investment, but also to build a partnership to protect multilateralism and the rules-based trade order.
Experts say that Australia needs to proactively participate in the ASEAN integration process to outline an economic cooperation program focusing on reducing trade and investment barriers in the region and protecting the multilateral trade regime.
In addition, appropriate rules need to be established to attract finance and technology to achieve the rapid decarbonization goals of the region's economies.
At the 2024 ASEAN-Australia Special Summit, the two sides affirmed their desire to cooperate to achieve common interests in an open, rules-based and sustainable economic order.
To get this agenda moving as soon as possible, Australia needs to be more realistic about who its “like-minded” allies are in a world where long-time friends are leaning toward protectionism – something that goes against their national interests, experts say.
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