Asean to leverage trade pact with US in talks with Greer as tariffs dent growth

Asean ministers will seek to leverage an existing trade and investment agreement with the US during their meeting with US Trade Representative Jamieson Greer in Malaysia on Wednesday, amid the adverse impact of Washington’s tariffs on regional economies.

The imposition of tariffs of between 10 and 40 per cent on the Association of Southeast Asian Nations by US President Donald Trump has led to regional economists cutting growth forecasts and businesses reconfiguring their supply chains.

Speaking at a media conference in Kuala Lumpur, Malaysia’s Trade Minister Tengku Zafrul Aziz said: “We will definitely talk about TIFA with the US. It is something we want to raise.” He was referring to a proposed discussion on the US-Asean Trade and Investment Framework Agreement between Asean economic ministers and Greer in the Malaysian capital on Wednesday afternoon.

Signed between Asean and the US in 2006, TIFA is part of a broader network of US-led agreements that aim to expand trade and resolve related disputes among member states, comprising mostly developing economies around the world. Asean and the US have held meetings over the years to discuss progress on TIFA, including in Laos in 2024.

Asean is expected to seek assurances from Greer that the US remains committed to free trade and regional security. For its part, Washington is likely to ask for commitments from Asean to curb transshipments of Chinese goods via the region to the US, which has been one of the key goals of Trump’s tariff policy.

Greer is also expected to lay the groundwork for Trump’s highly anticipated visit to Kuala Lumpur during the Asean summit next month.

The scheduled discussion with Greer comes a day after Asean ministers held a meeting among themselves to deepen regional economic integration.