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Subject

South-east Asia's push for trade agreements.

Significance

Late last month, an Indonesian delegation led by Trade Minister Enggartiasto Lukita began a week of negotiations in Washington to lobby against the withdrawal of trade preferences for Indonesian exports to the United States. Meanwhile, South-east Asian states are involved in two major trade agreements: the 11-member Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the 16-state Regional Comprehensive Economic Partnership (RCEP).

Impacts

US trade reprisals against Indonesia could weaken Jakarta’s support for Washington’s diplomatic pressure on North Korea.

The US-China tariff escalation could prompt partners to redirect some of their trade, boosting trade between Taiwan and South-east Asia.

ASEAN Economic Community integration will be slow despite progress in RCEP and the CPTPP.

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