Kuala lumpur: ASEAN must demand reciprocal market access from major trading partners such as the European Union (EU) and China, especially in sectors like palm oil, halal products, and electric vehicle (EV) battery minerals, to safeguard its regional trade stability amid rising global protectionism, an analyst said.
According to BERNAMA News Agency, Universiti Teknologi MARA’s senior fellow at the Centre for Media and Information Warfare Studies, Dr. Noor Nirwandy Mat Noordin, highlighted that Southeast Asian economies, particularly palm oil exporters, are subjected to non-trade barriers such as environmental standards or suffer huge trade deficits, as is the case with China.
He noted that the latest round of United States (US) tariffs, with Malaysia being slapped with a 25 percent duty on selected exports from August 1, should serve as a wake-up call for ASEAN to act more decisively as a bloc to garner increased access to lucrative markets. While ASEAN is often recognized as a strategic partner, especially by the EU, he lamented that the region continues to face restrictive market access measures.
Dr. Noor cited the EU Deforestation Regulation (EUDR) and the non-recognition of sustainability standards, such as Malaysia’s Sustainable Palm Oil (MSPO) and Indonesia’s Sustainable Palm Oil (ISPO), as stumbling blocks for Malaysian and other palm oil exporters. He expressed that these represent clear double standards and emphasized the need for ASEAN to assert its own standards if it wants fair treatment.
He suggested that ASEAN should consider bringing the matter to international forums such as the World Trade Organization (WTO) and insist on mutual recognition of regional sustainability frameworks to ensure palm oil producers are not unfairly penalized. He added that Malaysia’s MSPO and Indonesia’s ISPO are already robust standards, and it is inconsistent for the EU to disregard them while demanding deeper engagement with ASEAN.
In terms of trade with China, Dr. Noor highlighted that ASEAN continues to run a significant trade deficit and urged member states to demand fairer and deeper access to China’s vast domestic market, particularly for high-value exports like halal-certified goods and EV battery minerals. He stated that China benefits enormously from ASEAN trade, and it is time for ASEAN countries, especially middle powers like Malaysia, to use strategic exports as leverage to negotiate better terms.
Dr. Noor emphasized the importance of ASEAN maintaining a neutral posture while broadening its trade diplomacy with all major powers, including the US. He argued that neutrality is ASEAN’s strength, but it does not mean inaction, calling for assertive economic diplomacy that reflects ASEAN’s importance in global supply chains.
He also mentioned that the new round of US tariffs could catalyze ASEAN to accelerate the implementation of the Regional Comprehensive Economic Partnership (RCEP) and broaden participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These trade frameworks, he asserted, can help cushion the impact of tariff shocks and open up more diversified markets.
Finally, Dr. Noor called for stronger bloc-level negotiation mechanisms, urging ASEAN to build more robust economic institutions and move beyond joint statements and rhetoric to deliver concrete trade outcomes. He stressed the need for powerful ASEAN-led diplomacy to address EU regulations, Chinese market access, and US trade barriers, stating that ASEAN must act as one.