21-10-2023 (KUALA LUMPUR) Malaysia’s Prime Minister, Anwar Ibrahim, has put forth a groundbreaking proposal for the establishment of a free trade agreement between the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC). Speaking at a summit involving both blocs on Friday, he highlighted that such an agreement would mark a significant milestone in the relationship between ASEAN and the Gulf states.
Prime Minister Anwar Ibrahim, in a speech delivered at the ASEAN-GCC Summit in Saudi Arabia on Friday, stressed the importance of this potential agreement. He asserted, “This agreement is crucial in advancing progressive, inclusive, and sustainable growth, especially as we recover from the Covid-19 pandemic and face geopolitical uncertainties.”
ASEAN, a regional alliance consisting of ten member countries with a combined population of over 600 million, has long been committed to fostering economic integration. The bloc’s economies, collectively valued at an impressive US$2.3 trillion (S$3.1 trillion), are set to benefit from increased trade, investment, and harmonized standards and customs procedures.
However, the journey towards establishing free trade deals within ASEAN has been marked by complexity, with certain member nations, reliant on exports, pursuing individual agreements to enhance their access to key markets.
It is worth noting that ASEAN is already a part of the Regional Comprehensive Economic Partnership (RCEP), which includes other major players such as China, Japan, South Korea, Australia, and New Zealand, further solidifying its role in the global economic landscape.
