SOUTHEAST Asia must push for equal and reciprocal market access from major trading partners such as the European Union (EU) and China to safeguard regional economic interests amid a rising tide of global protectionism, a regional analyst has warned.
Dr Noor Nirwandy Mat Noordin, a senior fellow at the Centre for Media and Information Warfare Studies, Universiti Teknologi MARA, said the latest round of United States tariffs—set to impose a 25 per cent duty on selected Malaysian exports from 1 August—should serve as a wake-up call for ASEAN to act decisively as a unified bloc.
"Malaysia’s MSPO and Indonesia’s ISPO are already robust standards. (Therefore,) it is inconsistent for the EU to disregard them while demanding deeper engagement with ASEAN,” he said.
He criticised the EU’s restrictive measures, such as the EU Deforestation Regulation (EUDR) and its refusal to recognise Malaysia’s Sustainable Palm Oil (MSPO) and Indonesia’s Sustainable Palm Oil (ISPO) standards, despite labelling ASEAN a strategic partner.
“These are clear double standards. (Although) the EU recognises ASEAN as a strategic partner, it enforces restrictive policies on palm oil under environmental pretexts. If ASEAN wants fair treatment, it must move as a bloc and assert its own standards,” he told Bernama.
Noor Nirwandy called on ASEAN to escalate the issue to international bodies such as the World Trade Organization (WTO), advocating for mutual recognition of regional sustainability frameworks to ensure that palm oil exporters are not unfairly penalised.
On trade with China, he noted ASEAN’s persistent trade deficit and said member states must demand greater access to China's domestic market, particularly in high-value areas such as halal-certified products and minerals critical to electric vehicle (EV) battery production.
“China benefits enormously from ASEAN trade. It is time ASEAN countries, especially middle powers like Malaysia, use strategic exports as leverage to negotiate better terms,” he said.
Stressing ASEAN's position as a vital link in global supply chains, he said the bloc must maintain a neutral geopolitical stance while pursuing assertive trade diplomacy with all major partners, including the United States.
“ASEAN must not tilt too far in any one direction. Neutrality is our strength, but neutrality does not mean inaction. We need assertive economic diplomacy that reflects ASEAN’s importance in global supply chains,” he said.
He also suggested that the new US tariffs could accelerate regional economic strategies, such as full implementation of the Regional Comprehensive Economic Partnership (RCEP) and expanded participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
“These trade frameworks can help cushion the blow against tariff shocks and open up more diversified markets. ASEAN must press ahead with greater integration and stronger institutions under the ASEAN Economic Community (AEC),” he added.
Calling for ASEAN to move beyond symbolic gestures, Noor Nirwandy urged the development of robust bloc-level negotiation mechanisms to produce concrete outcomes.
“We need powerful ASEAN-led diplomacy, not just symbolic cooperation. Whether it is on EU regulations, Chinese market access or US trade barriers, ASEAN must act as one,” he said. - July 11, 2025
