ASEAN must deepen integration and stay united to tackle tariffs: Malaysia

Southeast Asian nations must accelerate regional economic integration, diversify their markets and stay united to tackle the fallout from global trade disruptions resulting from sweeping US tariff hikes, Malaysian Foreign Minister Mohamad Hasan said on Sunday.

Mohamad, opening a meeting of foreign ministers from the Association of Southeast Asian Nations, (ASEAN) also reiterated the bloc’s call to warring parties in Myanmar to cease hostilities.

“ASEAN nations are among those most heavily affected by the US-imposed tariffs. The US-China trade war is dramatically disrupting production and trade patterns worldwide. A global economic slowdown is likely to happen,” Mohamad said. “We must seize this moment to deepen regional economic integration, so that we can better shield our region from external shocks.”

ASEAN countries, many of which rely on exports to the US, are reeling from tariffs imposed by the Trump administration ranging from 10% to 49%. Six of the association’s 10 member nations were among the worst-hit with tarrifs ranging from 32% to 49%.

ASEAN unsuccessfully sought an initial meeting with the US as a bloc. When US President Donald Trump last month announced a 90-day pause on the tariffs, countries including Malaysia, Indonesia, Thailand and Vietnam swiftly began trade negotiations with Washington.

The meeting of foreign ministers preceded a planned ASEAN leaders’ summit Monday in Malaysia, the bloc’s current chair. A summit is expected to follow on Tuesday with Chinese Premier Li Qiang and leaders from the Gulf Cooperation Council comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

ASEAN’s unity is crucial as the region grapples with impacts of climate change and disruption from the malevolent use of artificial intelligence and other unregulated techologies, Mohamad said, adding that ASEAN’s centrality will be tested by external pressure, including a superpower rivalry.

“External pressures are rising, and the scope of challenges has never had higher stakes,” he said. “”It is therefore crucial that we reinforce the ties that bind us, so as to not unravel under external pressures. For ASEAN, unity is now more important than ever.”

ASEAN members have refused to take sides, engaging the U.S. and China, which are both key regional trading and investment partners.

ASEAN remained committed to help war-torn Myanmar, which is recovering from a March earthquake that killed more than 3,700 people, Mohamad said.

Myanmar’s military leaders were barred from attending ASEAN meetings after refusing to comply with ASEAN’s peace plan, which includes negotiations and delivery of humanitarian aid.

“We call on the stakeholders in Myanmar to cease hostilities, and to extend and expand the ceasefire, to facilitate the long and difficult path towards recovery,” Mohamad said.

Myanmar’s crisis has challenged the credibility of ASEAN, which has been hampered by its long-held policy of non-interference in each other’s affairs.

After informal consultations with bloc members, Mohamad said Saturday that ASEAN has to step up efforts as Myanmar’s problems had spilled over borders with a growing number of refugees fleeing to neighboring nations and rising transborder crime.

Malaysia’s efforts now focus on de-escalation of violence and greater access to humanitarian aid, but he said plans for political dialogue between the conflicting parties would be challenging due to a “trust deficit.”

Meanwhile, Chinese Premier Li Qiang met with Indonesia’s President Prabowo Subianto on Sunday to discuss ways to expand trade and investment during the U.S. global trade war and as economic globalization faces headwinds.

Li arrived in Indonesia’s capital, Jakarta, on Saturday afternoon for a three-day visit to Southeast Asia’s largest economy. It was the first stop of his first overseas visit this year.

Indonesia and China are member states of the Group 20 major developing countries and emerging economies and of BRICS.

Li brought 60 Chinese prominent businesspeople for his address to the Indonesia-China Business Reception on Sunday evening. He emphasized in his remarks that China’s economy has achieved rapid growth this year despite increasing external challenges.

“The current international situation is a stalemate,” Li said at the event which was also attended by Subianto, “Unilateralism and protectionism are on the rise, bullying behavior is increasing.”

Li noted that this year marks the 70th anniversary of the Non-Aligned Movement which was held by Asian and African countries in Indonesia’s Bandung city, when the world was at a historical crossroads more than seven decades ago.

The Bandung spirit of solidarity, friendship and cooperation has played a pivotal role in the unity and cooperation of the Global South countries, Li said.

“More than seven decades later, the world is once again at an important crossroads,” Li said.

He called on all countries to seek common ground while resolving differences through dialogue and peaceful coexistence.

Agencies