Free Trade Agreements: Securing Asia’s Economic Prosperity

Asia’s economic rise has been significantly driven by free trade agreements (FTAs) like the RCEP and CPTPP. These agreements have opened markets, boosted investment, and strengthened regional integration, with ASEAN playing a vital role in maintaining economic collaboration and stability.

Mohd Faiz Abdullah, Chairman of the Institute of Strategic and International Studies, highlights the importance of FTAs in shaping Asia’s prosperity. “Through its active participation in FTAs, Asia has secured a strategic edge in globalisation,” Abdullah states. He underscores that these agreements have lifted millions out of poverty and transformed Asia into a global economic powerhouse.

Despite these successes, Abdullah warns of challenges such as protectionism, trade wars, and the potential decoupling of major powers like the US and China. He stresses that disruptions to supply chains could destabilise the region, emphasising the need for ASEAN to champion rules-based trade, regional cooperation, and inclusive growth.

By addressing these challenges strategically, ASEAN can ensure Asia remains resilient and continues to thrive as a global economic leader. FTAs will remain essential tools in navigating these uncertain times and securing a prosperous future for the region.

Article by Mohd Faiz Abdullah for East Asia Forum. Read more here.