The Malaysian PM has warned South East Asia that the trade war is not ‘storm passing’

Kuala Lumpur: Malaysian Prime Minister Anwar Ibrahim warned on Wednesday that the global trade was being armed as the foreign ministers of Southeast Asia held annual talks before the threat of American trade tariff. Concerns about us have shocked the Union of Southeast Asian nations, a 10-member block that includes some of the world’s most business-dependent economies. Eight ASEAN members are in countries that can see duties on their exports to touch the American sky on 1 August. Starting the meeting of the group’s foreign ministers, Anwar said that the world is now looking at an era where the “power unnatural theory” and “once used to generate development are now pressure, isolated and consumed.” Without mentioning America by name, he again urged ASEAN to work together to respond to trade threats. “Our harmony should not end on announcements,” he said, calling members to increase the intra-sky trade, invest in regional integration and reduce strategic dependence on external powers. “This is not a storm,” he said. “This is the new season of our time.” Trump first announced the tariff in April, but then delayed them for 90 days and allowed them to negotiate for deals. On Monday and Wednesday, he announced a new tariff with rates between 20 percent-40 percent in the list of countries, which would be effective on August 1 until new deals are killed. If any country retaliates, it also threatened to increase the tariff. Many ASEAN members have started bilateral talks with the US, but officials have said that they are planning to hold an ASEAN -American summit later this year to look for a common condition. So far, only Vietnam has acquired a deal, reducing its tariff from 46 percent to 20 percent. The lists threatened 36 percent tariff for Thailand and Cambodia, 32 percent for Indonesia, 25 percent for Malaysia and 20 percent for Brunei, 20 percent for the Philippines and 40 percent for Laos and war -torn Myanmar. Reacting to economic headwinds, Malaysia’s Central Bank on Wednesday cut its benchmark interest rate for the first time in five years. Separately, Trade Minister Zafarul Aziz said that Malaysia would continue tariff dialogue with the US, but would not compromise on issues affecting national interest and sovereignty. He referred to American requests on policy and laws in areas such as government procurement, halal certification, medical standards and digital tax without giving details. “It should be appropriate … If the deal does not benefit Malaysia, we should not have a deal,” he said. In addition to the trade fallout, the block faced internal challenges including the ongoing civil war in Myanmar and a border dispute between Thailand and Cambodia. The gathering in Malaysia will immediately be determined for Thursday and Friday after a series of important meetings with major trade partners of ASEAN including the US, China, Japan, Russia, India and the European Union. US State Secretary Marco Rubio, who canceled visits to Japan and South Korea last week, arrived for talks as part of his first visit to Asia since assuming office on Thursday. Others visiting foreign ministers include Wang Yi and Sergei Lavarov of Russia. Analysts said the dialogue would test ASEAN’s ability to claim ASEAN amidst increasing geo -political stress. The block expects to strengthen its commitment to a rule-based trade order, opposing the pressure to align especially with any one global power. Anwar said, “ASEAN should be among those who choose to stand for the rules, even when other people retreat,” Anwar said. Officials said that the premiere tariff would be available from Rubio to discuss the issue. Analysts stated that Rubio’s presence renewed American engagement in the region. It would be “a reminder to the region that Washington remains its most important economic and security partner,” said Collins Chong U Cate, a foreign affairs, strategy and a security analyst with a foreign affairs and security analyst. But he said that American support can now come up with clear expectations. He said, “Trump’s administration, still offering the strongest military preventive and market access, hope to stop exploiting this security umbrella, while financially caresses China,” he said.