ASIA DENOUNCES TRADE WAR
Asean and others concerned about devastating impact, seek Beijing’s deal
ASIAN countries have voiced concern about the potentially devastating impact of a United States-China trade war, with ministers calling for the acceleration of talks for a gigantic Beijing-backed free-trade deal that excludes the US.
Fear that a simmering trade spat between the world’s top two economies could spiral into a fullblown trade war — with painful consequences for China’s neighbours — was among topics dominating discussion at a regional summit here yesterday.
Tit-for-tat tariffs have fuelled months of tensions that were notched up on Friday as Beijing threatened to impose levies on US$60 billion (RM240 billion) of American goods, from beef to condoms.
The measures, which the White House ridiculed as “weak”, but China said were “fully justified”, came after Washington said it would increase the rate of additional tariffs on Chinese goods worth US$200 billion.
The prospect of a trade war is a “real threat” to Asian countries, Malaysian Foreign Minister Saifuddin Abdullah said.
“The threat is making many countries very concerned and... is becoming more complex.”
Other top Asian diplomats at yesterday’s forum, hosted by Asean, spoke out against protectionism, warning that it placed development in jeopardy.
Some ministers have called for the early conclusion of talks for the Regional Comprehensive Economic Partnership (RCEP), a 16-nation pact poised to become the world’s largest free-trade agreement, covering about half the global population.
RCEP would group the 10 members of Asean plus China, India, Japan, South Korea, Australia and New Zealand.
But it would not include the US, which had been leading another regional trade pact, the TransPacific Partnership (TPP), until US President Donald Trump abruptly abandoned it last year.
TPP cuts tariffs and requires members to comply with a high level of regulatory standards in areas like labour law and environmental protection.
RCEP also aims to cut tariffs, but has far less regulatory standards attached than TPP.
Nonetheless, Washington’s abandonment of TPP has given RCEP negotiations a fresh shot in the arm.