Kuwait city: The Association of Southeast Asian Nations (ASEAN) is prepared to explore a free trade agreement with the Gulf Cooperation Council (GCC), as announced by Malaysia. This development follows a joint economic cooperation announcement issued at ASEAN's 46th summit in May.
According to Kuwait News Agency, Malaysia's Investment, Trade and Industry Minister, Tengku Zafrul Aziz, addressed the 57th ASEAN Economic Ministers' meeting in Kuala Lumpur, highlighting that the joint statement identified finance, food security, and energy as priority sectors for collaboration. He emphasized ASEAN's openness to partnerships with both Eastern and Western countries to diversify markets and enhance its role in global trade.
Minister Aziz pointed to the Regional Comprehensive Economic Partnership (RCEP) as a significant milestone, noting that it has established the world's largest free-trade area, encompassing approximately 30 percent of global Gross Domestic Product (GDP), with ASEAN at its center. He reiterated ASEAN's dedication to a rules-based multilateral trading system led by the World Trade Organization (WTO) and to advancing free, fair, and non-discriminatory trade amidst global economic uncertainties.
ASEAN has agreed to revise its Trade in Goods Agreement to reduce tariff and non-tariff barriers and aims to finalize a Digital Economy Agreement by the end of 2025. This agreement is intended to standardize digital regulations and support e-commerce and cross-border payments, according to Aziz.
As the current chair, Malaysia has proposed 18 priority economic measures focusing on facilitating trade within ASEAN, promoting green growth, enhancing trade agreements, and establishing regional digital frameworks. Aziz encouraged member states to complete these initiatives within the year and welcomed Timor-Leste's participation as it progresses toward future membership.
ASEAN, founded in 1967, includes Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The bloc boasts a population of over 680 million and a combined GDP of approximately USD 3.4 trillion.