Story perspectives

ASEAN Reevaluates Trade Rules Amid Low Intra-Regional Trade

4/21/2026

Summary

Story summary

The ASEAN Economic Community eliminated tariffs on trade by 2018.
Intra-ASEAN trade remains low at 20–30% of total trade, far below the European Union (EU)'s 55–60%.
Rules of origin (ROO) allow products to qualify as ASEAN-originating even when primarily sourced from outside the region.
Geopolitical pressures from the United States complicate the ROO framework, prompting a reevaluation to boost regional value creation and strengthen ASEAN's industrial base.

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Story summary

The ASEAN Economic Community eliminated tariffs on trade by 2018.
Intra-ASEAN trade remains low at 20–30% of total trade, far below the European Union (EU)'s 55–60%.
Rules of origin (ROO) allow products to qualify as ASEAN-originating even when primarily sourced from outside the region.
Geopolitical pressures from the United States complicate the ROO framework, prompting a reevaluation to boost regional value creation and strengthen ASEAN's industrial base.