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Malaysia’s Anwar Pushes ASEAN-Gulf Council Free-Trade Deal

Malaysian Prime Minister Anwar Ibrahim made the suggestion at a the first-ever summit of the two regional blocs in Saudi Arabia on Friday


Anwar, in black cap, speaks with a senior Saudi official at the summit on Friday October 20, 2023. Reuters photo.

 

Malaysia has suggested setting up a free-trade agreement between ASEAN – the Association of Southeast Asian Nations – and the Gulf Cooperation Council (GCC).

Malaysia Prime Minister Anwar Ibrahim voiced the idea at the first-ever summit between the two regional trading blocs in Riyadh on Friday.

Anwar said such an agreement would be the first of its kind between ASEAN and Gulf states in Saudi Arabia.

“This agreement is crucial in advancing progressive, inclusive and sustainable growth especially as we recover from the Covid-19 pandemic and face geopolitical uncertainties,” he said in a speech at the summit.

 

ALSO SEE: Rising US Yields Spur Major Outflow From Asian Bonds in Sept

 

The Gulf Cooperation Council is a political and economic alliance of six countries in the Middle East – Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.

The maiden GCC-ASEAN summit brought together leaders and representatives from 17 Gulf and Southeast Asian nations to inaugurate a 2024-2028 joint action plan.

 

The 17 Gulf and ASEAN leaders pose for a group photo in Riyadh (Saudi Press Agency).

 

Saudi Crown Prince Mohammed bin Salman bin Abdulaziz said the action plan “charts a clear roadmap for collective efforts to enhance cooperation and partnership in various domains, serving mutual interests.”

Local media outlet Asharq Al-Awsat said experts and researchers commented that the summit “accelerated common economic and developmental convergence” between countries in both groups.

It said the GCC-ASEAN summit comes three months after a similar gathering between GCC nations and Central Asian countries in Jeddah.

 

New Thai, Cambodian and East Timor leaders at summit

ASEAN, which is made up of 10 nations – Indonesia, Singapore, Malaysia, Thailand, Myanmar, Cambodia, Laos, Vietnam, Brunei and The Philippines – is now a market of more than 660 million people.

The Southeast Asian bloc is expected to include Timor Leste (East Timor) as its 11th member state in 2025, once the tiny nation has achieved milestones set out by ASEAN, its President José Ramos-Horta has said.

Ramos-Horta attended the summit in Riyadh on Friday along with the 10 ASEAN leaders. The new prime ministers of Thailand (Srettha Thavisin) and Cambodia (Hun Manet) were also there.

ASEAN has for years been seeking greater integrate of its economies, worth a combined $2.3 trillion, through trade, investment and harmonised standards and customs procedures.

However, efforts to establish free-trade deals have been protracted, as some members with export-reliant economies go it alone in seeking better access to their key markets.

ASEAN is also part of the Regional Cooperation Economic Partnership (RCEP) along with China, Japan, South Korea, Australia and New Zealand.

 

  • Reuters with additional reporting and editing by Jim Pollard

 

ALSO SEE:

 

China’s Li Qiang Urges ASEAN Nations to ‘Avoid a New Cold War’

 

Indonesia Ratifies RCEP Trade Deal, Pact With South Korea

 

China, Asean Agree to Deepen Economic Integration: Xinhua

 

India plays it safe by avoiding RCEP

 

Huge Asian trade pact signed by leaders in virtual summit

 

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.