Call For RCEP Secretariat Highlights Importance Of Free Trade Area

By Nor Baizura Basri and Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Sept 25 (Bernama) -- The proposal to have a dedicated secretariat for the Regional Comprehensive Economic Partnership (RCEP) highlights the importance of what is the world’s largest free trade area by gross domestic product.

By having such a central office, ASEAN members and key dialogue partners have signalled their commitment to recalibrating regional trade priorities and operationalising the partnership in a free and open trade regime as potential new members line up to join RCEP.

The list of nations that have expressed their interest in joining the RCEP bandwagon includes Hong Kong, Bangladesh, Sri Lanka and Chile.

The ASEAN 10 and China, Japan, South Korea, Australia and New Zealand have gone further by agreeing to a review of the RCEP agreement to ensure that the partnership remains relevant amidst a changing economic landscape marked by increasing protectionist tendencies by economic superpower - the United States (US).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the proposal was among the key items discussed during the 4th RCEP Ministers’ Meeting, alongside plans to recommend a full RCEP Leaders’ Summit, which would reaffirm commitment to regional trade and investment, as well as explore the possibility of expanding membership.

“We are discussing the establishment of a dedicated RCEP Secretariat to focus solely on RCEP matters so that the agreement can be upgraded. It is also time for a review,” he added.

The RCEP review and expansion are part of ASEAN’s push to maintain the pact’s relevance amid a shifting trade landscape, including stronger sustainability clauses and deeper private sector utilisation.

Meanwhile, ASEAN’s ties with Australia and New Zealand have reached a new milestone as the upgraded ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), which entered into force in April this year, was commended as a ‘practical and forward-looking’ mechanism to tackle current economic disruptions. 

The 30th AEM–Closer Economic Relations (CER) Consultation marked 51 years of ASEAN–Australia relations and 50 years with New Zealand, underscoring the partnership’s depth, with ministers urging swift ratification of the upgraded AANZFTA by remaining parties to fully unlock its benefits.

US Trade Representative Jamieson Greer ruffled feathers here when he told reporters that Washington will not discount the possibility of imposing further tariffs on ASEAN countries if trade agreement negotiations do not favour the US.

 However, he stressed that the focus is now on negotiating trade deals and not tariffs. “That being said, if we are unable to reach agreements, then tariffs remain a possible solution.”

 Greer was, however, non-committal when asked whether tariffs would be imposed on semiconductor exports from ASEAN countries.

Elsewhere, the Malaysia-European Union Free Trade Agreement (MEUFTA) is expected to be finalised by next year, as the final stages of negotiations are set to proceed soon, according to European Commissioner for Trade and Economic Security, Maroš Šefčovič.

Across other sessions, the United Kingdom (UK) and ASEAN reiterated their commitment to advancing digital trade, including through exploratory talks on bilateral digital trade agreements with Malaysia and Thailand. 

UK Parliamentary Under-Secretary of State in the Department for Science, Innovation and Technology, Liz Lloyd pointed to London’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December 2024 as a milestone in embedding the UK in the Indo-Pacific trading order.

 In energy cooperation, Malaysia highlighted the Laos-Thailand-Malaysia, Singapore (LTMS) Power Integration Project and the proposed Borneo Grid as models for a fully interconnected ASEAN Power Grid.

A new memorandum of understanding on regional energy trading is expected to be signed at the upcoming ASEAN Energy Ministers’ Meeting in October.

ASEAN secretary-general Dr Kao Kim Hourn wrapped up the day, praising Malaysia’s “remarkable” chairmanship for navigating the region through a challenging global year.

He highlighted the progress on key deliverables such as the upgraded ASEAN Trade in Goods Agreement (ATIGA) and the substantial conclusion of the Digital Economy Framework Agreement (DEFA), both set for adoption at the October summit.

-- BERNAMA