ASEAN Businesses Urge Trump To Provide Clarity In Trade Policies

KUALA LUMPUR, March 14 (Bernama) -- The Association of South-East Asian Nations' (Asean) businesses have urged US President Donald Trump to provide more clarity and certainty in US trade policies for the benefit of mutual growth in the US and Asean. CIMB Asean Research Institute (CARI) Chairman, Dr Munir Majid, said the businesses required certainty to operate and thrive, especially when the Asean Economic Community was at a nascent state with teething issues. He said the US has withdrawn from the Trans-Pacific Partnership, leaving the remaining 11 members in the pact, of which four are Asean members, to reevaluate the trade deal which they started to negotiate in 2008. "US trade ties with China and other partners are still largely undefined. We urge Trump to continue engage with Asean to forge mutually-beneficial trade ties ties," he said in a statement released in conjunction with Asean Roundtable Series Tuesday. The roundtable discussed 'Dealing with a Changing World Order: What will Trump's Economic and Foreign Policies mean for Asean?". In 2015, the US was Asean's fourth largest trading partner, with trade between the two recorded at US$212 billion (US$1 = RM4.45). Nearly a third of all US investments in Asia went to Asean, more than US investments in China, India and Japan combined. CARI Chief Economist, Dr Arup Raha, said if Trump followed through with his campaign rhethorics and imposed tariffs of between 25 per cent and 45 per cent on Chinese exports, it would be a game-changer for the global economy. He said such tariffs would disrupt supply chains that had been functioning for many years and the effects would be felt over Asean. Arup said the tariffs would also lead to a further rise in the US dollar and weaken the renminbi, both which would have a negative impact on Asian currencies. Over the medium term, potential growth would suffer as efficiency gains from trade were lost, he said. "The countries that will feel the most pain are the ones that rely on open international markets to sell their products, and that included almost all of Asean," he said. The roundtable was jointly organised by CARI and Asean Business Club. Also present were US-Asean Business Council Senior Vice President and Regional Managing Director, Micheal W. Michalak, and Institute for Democracy and Economic Affairs Founding President, Tunku Zain Al-'Abidin Tuanku Muhriz. -- BERNAMA