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Asia told to maintain economic openness

Asian countries should maintain their commitment to promoting economic openness amid a rising tide of protectionism and unilateralism that threatens to disrupt global trade and stability

Marguerite Afra Sapiie (The Jakarta Post)
Tokyo
Wed, June 13, 2018

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Asia told to maintain economic openness

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sian countries should maintain their commitment to promoting economic openness amid a rising tide of protectionism and unilateralism that threatens to disrupt global trade and stability.

Speaking in Tokyo on Tuesday at the 24th Conference on the Future of Asia, Vice President Kalla expressed concern about how common values pursued by nations, including democratization and economic openness, were currently fading away.

In recent years, he said, alternative views that started from “inward looking and self-centered values” had challenged the principle of openness that promoted collaboration among nations and thus thrust the sense of togetherness into disarray.

Kalla cited as examples of the United States’ withdrawal from the Trans-Pacific Partnership (TPP) and its protectionist approach of initiating trade wars with other countries, both moves that Kalla said would eliminate decades of effort toward establishing a global commitment.

“Economic openness needs to be promoted further among Asian countries,” Kalla said in his keynote speech. “Leaders should come up with a consensus to not embrace the protectionist mindset for Asia.”

This year’s two-day Future of Asia conference, organized by Nikkei, carried the theme of “Keeping Asia Open — How to achieve prosperity and stability” and featured dozens of leaders from countries and organizations, as well as experts, as speakers.

Leaders of some Southeast Asian countries, including Malaysian Prime Minister Mahathir Mohammad and Lao Prime Minister Thongloun Sisoulith, as well as ministers from other countries including South Korea and New Zealand, attended the annual event.

The conference took place amid concerns over trade disputes between the US and its trading partners that analysts fear could lead to a bigger global trade war.

Even without the US, Kalla emphasized that the TPP’s other members must continue their partnership and maintain a commitment to the existing free trade agreement in order to help promote economic stability.

He also urged that the Regional Comprehensive Economic Partnership (RCEP), which is still in negotiations, be immediately finalized, while expecting that the ASEAN Free Trade Agreement (AFTA) could progress in accordance with the initial schedule.

“Free trade should also mean fair trade; one should not exploit other countries for the benefit of oneself since it will not be sustainable,” he said.

Kalla, who had attended the event for the eighth time, asserted that the promotion of economic stability, along with global political stability, was key to ensuring inclusive economic growth among nations, which could only be achieved through international collaboration.

“Global political stability could be realized by avoiding any unilateral approach by any nations. We need to work together so as to prevent Asia from becoming a theater of power projection,” he said. “The use of Asian currencies for regional trade should be encouraged in order to minimize being too reliant on the greenback.”

During a cocktail reception on Monday evening, Japanese Prime Minister Shinzo Abe said that there were three ways to invest in the future of Asia, including education, promoting exchanges among people and “actively setting people and things into motion”.

“That is to enhance ‘connectivity’, as is usually talked about, referring to promoting investments in infrastructure like railroads and ports,” Abe said.

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