EXCLUSIVE: IMF Official Calls for Expanding Asian Trade Pacts

Washington, Oct. 23 (Jiji Press)–Asian nations should deepen economic integration by expanding their regional trade agreements to spur growth, Thomas Helbling, deputy director of the International Monetary Fund’s Asia and Pacific Department, said. Helbling, speaking in a recent interview with Jiji Press, specifically called for expanding the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, and the Regional Comprehensive Economic Partnership, or RCEP. The comments come as the region is vulnerable to the impact of U.S. President Donald Trump’s trade policies and trade tensions between the United States and China. Helbling warned that Trump’s steep tariffs will cause “a deceleration in growth in the region overall.” He called for efforts to maintain the openness of the multilateral trade framework and resolve trade disputes. Referring to the regional trade pacts, Helbling said the CPTPP is a “decent agreement, but membership is still limited across Asia.” RCEP is “relatively new. It’s not as deep,” he said. Both the CPTPP and RCEP “will lead to gains, but I think more could be done by working on further developing the agreements and expanding membership,” Helbling said. Helbling said that Asia boasts “a high level of trade integration comparable to other economic zones” in terms of intermediate goods thanks to the development of supply chains. The region, however, faces “much less integration” in the final goods sector, he said. He highlighted the need to further enhance free trade, including setting common standards on non-tariff barriers and regional investments, and to welcome more countries into the trade agreements. “There’s really scope for more trade liberalization and developing the region more as an engine of growth,” Helbling said. ENDD [Copyright The Jiji Press, Ltd.]