GT Voice: Asia’s free trade progress counters protectionism, benefits economy
Date：2025-06-27 08:51:42 Click：38次
South Korea's industry ministry said on Wednesday that the country and China have kicked off a fresh round of follow-up negotiations aimed at expanding their free trade agreement (FTA) to include services and investment, the Yonhap News Agency reported. These negotiations, which are reportedly set to continue until Friday, represent a segment of a broader effort to advance free trade in Asia, especially at a time when protectionism is gaining momentum in certain countries.
In stark contrast to the rising tide of protectionism in international trade, the push for free trade within Asia is gaining speed. For instance, in May, economic and trade ministers from China and ASEAN convened a special meeting via video link, where they announced the full conclusion of negotiations for version 3.0 of the China-ASEAN Free Trade Area (CAFTA). This latest iteration of CAFTA is a robust endorsement of free trade and open cooperation, and it is expected to enhance both the momentum and stability of the regional economy.
For decades, Asia has stood out as one of the most dynamic and promising regions for growth on the global stage, partly due to its strategy of opening up and actively integrating into the world economy. In January, The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) unveiled its Asia-Pacific Trade and Investment Briefs 2024/25, highlighting the sustained momentum in trade growth.
According to the report, the region's share of global nominal exports and imports continued to grow in 2024. Notably, intra-regional trade continues to play an important role, accounting for nearly 60 percent of the region's total exports. This ongoing shift in trade patterns reflects adjustments in regional supply chains due to multiple factors, including structural transformations.
The structural transformation underway in Asia spans multiple dimensions. First, from a consumer perspective, the ongoing development of Asian economies is unlocking substantial potential for consumer markets. This progression is catalyzing the rise of a dynamic consumer sector within Asia itself. A report released by Roland Berger in November 2024 underscored the swift expansion of Asian consumer spending, which represents more than one-quarter of the global market.
Second, in terms of the industrial chain, the resilience of Asia's regional supply chains has seen further reinforcement. For example, according to a report by the Xinhua News Agency, trade in intermediate goods within the Regional Comprehensive Economic Partnership (RCEP) area grew from about 64.5 percent of the total in 2021 to about 65 percent in 2022. Despite a global downturn in trade in 2023, the proportion of intermediate goods trade within the RCEP region increased to about 66 percent, signifying a more integrated industrial framework in the region.
The interplay of various factors is propelling the ongoing development of intra-regional trade in Asia. It is both essential and mutually beneficial for China, South Korea, and other Asian nations to deepen their commitment to free trade through the enhancement and upgrading of FTA arrangements. These steps are crucial in promoting trade within the region.
While the US market continues to exert significant influence on Asian economies, the integration of trade networks within Asia appears to be an irreversible trend. The advancement of FTA arrangements is accelerating this process.
Undoubtedly, US tariff policies are presenting challenges and pressures to the trade sectors of Asian economies. In response to these challenges, some Asian economies have adopted an effective strategy - advancing free trade, building more resilient regional trade networks, and reducing the cost of intra-regional trade transactions. This approach not only enhances their internal dynamics to withstand external risks but also serves as a valuable example and catalyst for the global economy in countering protectionism.
Some economists believe that despite the increased uncertainty about global economic growth, Asia will remain a major engine for the world economy. A report released by the Boao Forum for Asia said that the weighted real GDP growth rate of Asia is projected to reach 4.5 percent in 2025, an increase from 4.4 percent in 2024, according to Xinhua.
In the face of external trade protectionism, Asia's efforts to promote free trade are expected to bolster the region's economic resilience and potential. This could offer valuable insights and serve as a positive influence for the global economy, which is navigating the uncertainties brought about by protectionist policies of certain countries.
