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View all search resultsASEAN and East Asia’s response to a fragmenting global economy (2 of 2)
Cross-pillar coordination within ASEAN and acceleration of all integration initiatives should become the main agenda, while at the same reviving ASEAN’s role in the greater Asia region, and Indo-Pacific.
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A vehicle rides past stacks of cargo containers on July 7, 2025, at the Jakarta International Container Terminal at the Tanjung Priok Port in North Jakarta (AFP/Bay Ismoyo)
F
ragmentation risk extends far beyond ASEAN. The bloc’s economic trajectory is deeply intertwined with East Asian powerhouses, China, Japan and Korea, as well as Australia and New Zealand. Regional surveillance by institutions such as ASEAN+3 Macroeconomic Research Office and the International Monetary Fund identifies uncertainty surrounding United States trade policy as a primary risk to ASEAN+3 growth heading into 2026, even as domestic demand remains resilient.
We therefore need a cohesive East Asian response that keeps markets open.
Here, the Regional Comprehensive Economic Partnership (RCEP) plays a critical role. It is not just a trade agreement, it is a strategic platform that links ASEAN with its northeast Asia counterpart.
The fifth RCEP Leaders’ Summit in Kuala Lumpur reaffirmed that the agreement should stabilize the regional trading system and support supply chains. The Leaders’ Statement sent clear important three messages that, if implemented and promoted even further, can make RCEP a powerful strategic platform for ASEAN and its partners in the region.
The first message reaffirmed World Trade Organization principles and commitment to keep the RCEP market open, transparent, fair and rules-based. This is a direct signal against ad-hoc and discriminatory measures that may fuel economic fragmentation.
Second, leaders agreed to accelerate full implementation of RCEP provisions and to refrain from measures inconsistent with RCEP obligations. In this context, the leaders also request for the preparation of general review of the agreement scheduled for 2027. During this general review, members are expected to look at how RCEP could become an effective platform to deal with new emerging issues.
Third, leaders signaled institutional upgrades. These include establishing a permanent RCEP Secretariat to replace the current small support unit, so that important efforts such monitoring and capacity building can become routine tasks rather than sporadic activities. Indonesia publicly offered to host the secretariat in Jakarta, a move that can align RCEP with other initiatives convened under ASEAN.
