An upgrade to the Southeast Asian bloc’s key trade agreement holds huge potential for businesses that can keep up with a changing regulatory environment.
There’s no doubt Southeast Asia has been the lucky winner in the realignment of global supply chains. But when digging deeper, it’s clear this recent influx of foreign investment and international businesses has little to do with luck.
At a time when many governments are putting up barriers, Asean’s commitment to open trade has helped increase the region’s total exports by nearly 40% in the four years leading to 2022, reaching US$1.96 trillion.
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This effort is supported by a number of important and growing free trade deals, including the Regional Comprehensive Economic Partnership, which came into effect in 2022, covering the 10 Asean members plus Australia, New Zealand, Japan, South Korea and China.
This effort is supported by a number of important and growing free trade deals, including the Regional Comprehensive Economic Partnership, which came into effect in 2022, covering the 10 Asean members plus Australia, New Zealand, Japan, South Korea and China.
Businesses in Asean can also look to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and bilateral treaties, such as the EU-Vietnam free trade agreement (FTA), to increase access to new markets and create opportunities in the region. We’re seeing increasing awareness of these agreements among our clients, who are keen to understand how they can benefit their growth.
Alongside an expanding network of bilateral and regional FTAs, closer integration within the Asean bloc is increasing its appeal to international businesses and those seeking expansion.
By Krisda Phatcharoen is head of wholesale banking with HSBC Thailand.
Source: Bangkok Post
