‘Revive EAEC to deal with trade protectionism’
TOKYO: Prime Minister Tun Dr Mahathir Mohamad yesterday proposed that the East Asia Economic Caucus (EAEC) be revived in the face of growing trade protectionism.
The EAEC is a regional free trade zone (FTA) first proposed in 1997 by Dr Mahathir, and encompasses Asean member states, China, Japan, and South Korea.
“I am still in favour of EAEC. We should consider it seriously, but also include India and some central Asian countries,” he said at a dialogue session at the 2018 Nikkei Conference here yesterday.
EAEC failed to take off then due to opposition by the United States and exclusion of Western nations, which were already members of the Asia-Pacific Economic Cooperation and other regional organisations in East Asia.
“But now US is more isolationist, so it is not in a position to oppose the EAEC,” Dr Mahathir added.
At the just-concluded G7 Summit in Canada, US faced off against other industrialised economies over its trade tariffs to protect American industries.
Some have threatened retaliatory measures.
Dr Mahathir said although many countries paid lip service to free trade, in reality most of them had some form of trade restrictions.
“Countries with different capacities to compete must be given certain flexibility and protection for their weaknesses,” he said.
Dr Mahathir said while small countries should be protected, it was not justified for developed countries like US to indulge in protected trade.
“Today, the world has become more separated than ever. In East Asia, we do not yet have a grouping of like-minded countries.”