Asean and Australia reject protectionism

THE Association of South-East Asian Nations (Asean) and Australia reject protectionism, Australian Prime Minister Malcolm Turnbull and his Singapore counterpart said yesterday, amid fears about a possible trade war sparked by US plans to raise tariffs on steel and aluminium imports.

“You don’t grow stronger by closing the door to other markets. Protectionism is a dead end. It is not a ladder to get you out of the low growth trap, it is a shovel to dig it much deeper,” Mr Turnbull told a special meeting of Asean in Sydney.

“We must face the world, not turn from it. Embrace free trade, not retreat from it,” Mr Turnbull said on day one of the three-day summit.

The anti-protectionism comments come as market sentiment sours with signs of a looming trade war between the United States, China and Europe over US President Donald Trump’s plans to raise tariffs on steel and aluminium imports, and possibly up to $60 billion worth of Chinese imports, targeting technology and telecommunications sectors.

“I know the global mood may be heading in the opposite direction but within Asean we are working to deepen and deepen interdependence to work together to open up markets,” Singapore Prime Minister Lee Hsien Loong said.

Australia is hosting the Asean meeting, despite not being a member of the 10-nation bloc, as it seeks to deepen political and trade ties in the face of China’s rising influence.

Trade is a central topic of the meeting, though human rights and Chinese assertiveness are set to dominate talks between Australia and Asean countries.

Asked whether the Asean meeting was a direct counter to China’s growing interest in the region, Australian Foreign Minister Julie Bishop said Australia believed the bloc brought it “peace, stability and security”.

“We don’t see it as having a role to balance the powers in the Indo-Pacific but rather be at the heart of the engagement collaboration with other countries,” she told Australian Broadcasting Corp radio.

China claims most of the South China Sea, an important trade route which is believed to contain large quantities of oil and natural gas, and has been building artificial islands on reefs, some with ports and air strips.

Brunei, Malaysia, Vietnam, the Philippines, all of which are members of Asean, and Taiwan also have claims in the sea.

Indonesian Defence Minister Ryamizard Ryacudu said yesterday he had lobbied other Asean defence ministers to carry out maritime patrols in the South China Sea among efforts to improve regional security.

Although several Asean countries already conduct joint exercises, other China-aligned member nations oppose such operations, making a consensus at the summit difficult.