Here’s a summary of the key points from the provided text,focusing on the economic challenges facing ASEAN countries:
US Tariffs: The US has increased tariffs on Cambodian and Vietnamese goods - to 19% for Cambodia and 20% for Vietnam – significantly impacting their economies. Cambodia is particularly vulnerable as garments and textiles (making up 60% of its exports) are heavily affected.
Economic Livelihoods at Risk: These tariffs aren’t just trade policy; they directly threaten the livelihoods of millions of workers,especially women in the garment industry.
Potential for Diversion, but Uncertainty: While some countries (Vietnam for electronics, Thailand for automotive, Indonesia for garments/footwear) might benefit from trade diversion, overall uncertainty is hindering investment. Tariffs have long-lasting effects on supply chains.
Border disputes & Disruptions: Beyond tariffs, political disputes are creating instability.
Cambodia-Thailand: A border dispute led to suspended petrol imports, increased fuel prices, violent clashes, and a large-scale return of migrants (910,000) disrupting remittance flows.
Myanmar-Thailand: Border closures are disrupting trade, worker movement, and remittances.
Sulu-Celebes Seas: Maritime disputes between the Philippines, Malaysia, and Indonesia are escalating tensions.
Threat to Regional Stability: The combination of tariffs and border conflicts threatens the peace and economic growth that trade has historically supported in the region. ASEAN’s economic integration relies on open and predictable borders, which are currently being undermined.In essence, the article paints a picture of ASEAN facing a double whammy of economic challenges: external pressures from US tariffs and internal instability from political disputes.
