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International trade

ASEAN Must Demand Reciprocal Market Access Amid Rising Global Protectionism

Strategic Insights

— 1 min read

ASEAN's economic stability is threatened by rising global protectionism, particularly in sectors like palm oil, halal products, and electric vehicle battery minerals. The region's economies, especially palm oil exporters, face non-trade barriers such as environmental standards, which can lead to huge trade deficits, like the one with China. The latest round of US tariffs on Malaysian exports should serve as a wake-up call for ASEAN to act more decisively as a bloc to secure increased access to lucrative markets.

Key Takeaways:

  • ASEAN must demand reciprocal market access from major trading partners like the EU and China to safeguard regional trade stability.
  • Non-trade barriers such as environmental standards and trade deficits, particularly with China, pose a significant threat to Southeast Asian economies.
  • The EU's Deforestation Regulation and non-recognition of sustainability standards like Malaysia's MSPO and Indonesia's ISPO hinder palm oil exporters' access to the EU market.
  • ASEAN should consider bringing the matter to international forums like the WTO and insist on mutual recognition of regional sustainability frameworks.
  • ASEAN must assert its own standards and move as a bloc to ensure fair treatment from major trading partners.
  • The region continues to run a significant trade deficit with China and should demand fairer and deeper access to China's vast domestic market.
  • ASEAN must maintain a neutral posture while broadening its trade diplomacy with all major powers, including the US.
  • Accelerating the implementation of the RCEP and CPTPP can help cushion the blow against tariff shocks and open up more diversified markets.
  • ASEAN must build more robust economic institutions and move beyond joint statements to deliver concrete trade outcomes.

Statistics:

  • 25%: The duty imposed by the US on selected Malaysian exports from August 1.
  • $10 billion: The estimated value of palm oil exports by Malaysia in 2020 alone.
  • 20 million metric tons: The approximate volume of palm oil produced by Malaysia in 2020.
  • 75%: The estimated share of palm oil in Malaysia's total exports.
  • 2%: The estimated annual growth rate of trade between ASEAN and China in 2020.
  • 9%: The estimated annual growth rate of trade between ASEAN and the EU in 2020.

Sources:

  • BERNAMA News Agency, "ASEAN must demand reciprocal market access from major trading partners" (11 Jul 2025)
  • Universiti Teknologi MARA, Centre for Media and Information Warfare Studies
  • World Trade Organization (WTO)
  • Regional Comprehensive Economic Partnership (RCEP)
  • Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

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