Increased integration into the global economy of the economies that comprise the Association of Southeast Asian Nations (ASEAN) has made the region a more accessible market for trading goods than either the European Union or the United States, according to a new report.
The Global Enabling Trade Report 2016 published by the World Economic Forum and the Global Alliance for Trade Facilitation said ASEAN’s progress as an economic power comes at a time when the U.S. and EU are becoming less open.
The report features the Enabling Trade Index (ETI), which assesses the performance of 136 economies in the areas of domestic and foreign market access, border administration, transport and digital infrastructure, transport services, and operating environment.
“However, ASEAN’s progress in other areas measured by the index is less pronounced. As a result, the best economies for enabling trade tend to be in Northern and Western Europe, with the notable exception of Singapore and Hong Kong SAR, in first and third places, respectively,” said the report.
The top 10 economies at enabling trade across borders are Singapore in first place, the Netherlands, Hong Kong, Luxembourg, Sweden, Finland, Austria, UK, Germany, and Belgium.
In addition to Singapore and Hong Kong, East Asia and the Pacific’s other highest performers are Japan (16th, up five) and New Zealand (18th, down four). Many of the countries in the region improve their score, including China (61st, up two). Among the advanced economies in the region, South Korea climbs seven notches to 27th.
Among ASEAN members, those in the Mekong region exhibit particular dynamism, with all four countries improving their positioning: Thailand (63rd, up nine), Vietnam (73rd, up 14), Lao PDR (93rd, up seven), and Cambodia (98th, up four).
In the rest of the ASEAN bloc, Malaysia is in 37th place (up 1), Indonesia 70th (up 4), Brunei Darussalam 72nd (down 2), and the Philippines 82nd (down 1).
Of all the regions, Europe and North America remain the highest performers in enabling trade, although both have witnessed a slowdown in integration since 2014. Most improvements in Europe have been among the newer EU entrants (Lithuania, up eight places to 29th), EFTA (European Free Trade Association) countries, and the Balkans (Serbia, up 18 places to 64th). Among advanced economies, Switzerland and the United States are the countries with the worst access to domestic and foreign markets, respectively.
“Free trade remains the most powerful driver of global economic development and social progress. The challenge for leaders today is to confront protectionism but they also have a duty to make trade a source for more inclusive growth,” said Klaus Schwab, founder and executive chairman of the World Economic Forum.
Produced every two years, the Global Enabling Trade Report is a benchmark for leaders looking to boost growth and development through trade.
Photo: Gunawan Kartapranata
