SINGAPORE: With globalisation coming under pressure and free trade links becoming dismantled, the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) should be “doubling down” on their common approach to cooperation, Minister for Foreign Affairs Vivian Balakrishnan said on Wednesday (Apr 29).
“Why? Because we believe that EU, Southeast Asia, we are all still trade dependent. We all still believe in multilateralism. We still believe in the rule of law, and … that alignment creates quite (a) natural partnership,” said the minister at the European Chamber of Commerce Singapore’s annual general meeting at Amara Singapore.
“Because the rest of the world is being disrupted, globalisation is under pressure, free trade is being dismantled – it calls for even more, a doubling down of this common collective approach between the EU and Southeast Asia,” he said.
To this end, Dr Balakrishnan said Singapore recognises that Europe plays an important role in a multipolar world and advocates for greater engagement between the EU and Southeast Asia.
He noted that the EU already has a free trade agreement with Singapore and Vietnam, and has settled negotiations with Indonesia.
“Actually, what I would like, would be to accelerate an EU-ASEAN free trade agreement,” he said.
Earlier discussions of a regional pact between the two blocs initially failed to make inroads, but have since resumed with the EU striking bilateral deals with individual ASEAN members while negotiations continue.
Beyond a free trade pact with ASEAN, Dr Balakrishnan said Singapore would also like to push for a dialogue, partnership or “something even more ambitious” between the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
The CPTPP is a free trade agreement with 12 economies: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United Kingdom and Vietnam.
SINGAPORE’S PLAYBOOK DURING CRISIS
Responding to a question about the outlook for Singapore during a fireside chat with EuroCham Singapore president Jens Rubbert, Dr Balakrishnan said that Singapore wants to maintain its reputation as a trusted business hub amid global trade and geopolitical tensions.
Singapore wishes to get through the current crisis with its “reputation enhanced” so that it can benefit from the economic opportunities in Southeast Asia, he said.
The region has a young population and can invest in infrastructure, connectivity and energy.
“If we actually fully invest in our indigenous energy sources – not just fossil fuels, but also renewables, geothermal, wind, solar, and even as perhaps breakthroughs occur in nuclear energy, ASEAN can be an energy exporter,” he said.
Southeast Asia could also be a source of food if productivity in this area increases, said Dr Balakrishnan.
“(The) point is, ASEAN has got potential,” he said, adding that the future is in artificial intelligence, renewable energy and biotechnology.
Singapore “will not panic”, engage in trade restrictions or confiscate critical supplies and resources that flow through the city, he said.
“What we’re trying to do is to maintain our reputation for trust, reliability, for being a good place to establish your regional business presence, your cockpit into Southeast Asia and even beyond Asia, into the Pacific,” said Dr Balakrishnan.
“It’s not going to kill us, we will get through this, and hopefully get through with our reputation enhanced. That, in a sense, is our playbook for dealing with this crisis.”
IMPORTANCE OF GLOBALISATION, COMPETITION
As for why globalisation is under siege, Dr Balakrishnan said this is in part a result of political failure.
Leaders have failed to convince voters that globalisation generates jobs and profit, and free trade has been blamed by those who have lost their jobs or felt their wages stagnate.
As such, European businesses need to find ways to make the case with European governments, politicians and voters that free trade and globalisation bring benefits to people.
“You do need to demonstrate value and that this is the right thing to do,” he said.
Asked about areas for European countries to improve, Dr Balakrishnan said he wanted to avoid being critical, but that people who live in Europe have spoken about how important it is for that region to stand on its own two feet, to be able to defend itself and to be more business-friendly.
He said the future lies in new technologies, innovative and competitive business models, and rules and regulations which are facilitative for economies of scale and speed of deployment.
“You still need the European Commission, but perhaps focused on speed and integration, pro-competition, pro-innovation,” he said.
https://www.channelnewsasia.com/singapore/free-trade-asean-eu-globalisation-vivian-balakrishnan-6089156
