InfoSAWIT, KUALA LUMPUR – Amid rising global protectionism, ASEAN is urged to take a firmer stance in advocating for equitable market access from major trading partners such as the European Union (EU) and China. This call comes from Dr. Noor Nirwandy Mat Noordin, a senior researcher at Universiti Teknologi MARA, who believes that Southeast Asia has tolerated harmful non-tariff trade barriers for too long, particularly in strategic sectors like palm oil, halal products, and minerals for electric vehicle batteries.
According to Noor Nirwandy, ASEAN countries that are major palm oil exporters continue to face serious challenges due to environmental standards used as a pretext to restrict market access. He highlighted the EU's Deforestation Regulation (EUDR) and the bloc's reluctance to recognize national sustainability standards such as the Malaysian Sustainable Palm Oil (MSPO) and Indonesian Sustainable Palm Oil (ISPO).
"This is clearly a double standard. The EU calls ASEAN a strategic partner but continues to impose policies that restrict palm oil exports under the guise of environmental concerns," he stated, as reported by InfoSAWIT from Bernama on Sunday, July 13, 2025. "If ASEAN wants fair treatment, it must act as a united front and promote its regional sustainability standards."
He also urged ASEAN to bring this issue to international forums such as the World Trade Organization (WTO) to demand recognition of the sustainability frameworks already in place in the region. "MSPO and ISPO are strong and credible standards. The EU's inconsistency in rejecting them indicates that the reasons used are more political than technical," he added.
Not only with the EU, Noor Nirwandy also pointed out the trade imbalance between ASEAN and China. While the region is a major market for Chinese exports, ASEAN continues to experience a trade deficit. He called for member countries to demand deeper and fairer market access, especially for high-value products like halal goods and raw materials for electric vehicle batteries.
"China benefits significantly from trade with ASEAN. It is time for countries in the region, particularly those with strengths like Malaysia, to use strategic commodities as leverage in negotiations," he asserted.
He reminded that while ASEAN promotes a neutral position in geopolitics, it does not mean the region should be passive in economic diplomacy. "Neutrality is our strength, but neutrality does not mean silence. We need assertive economic diplomacy that reflects ASEAN's importance in the global supply chain," he said.
Regarding the new tariff policy from the United States set to take effect on August 1, imposing a 25% duty on several Malaysian products, Noor Nirwandy views this as a warning signal that ASEAN must accelerate its economic integration. He mentioned the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as pathways that need to be strengthened to open broader market access and mitigate global tariff shocks.
"These trade frameworks can serve as buffers against the onslaught of protectionism. But ASEAN must also strengthen economic institutions under the ASEAN Economic Community (AEC)," he stated.
In conclusion, Noor Nirwandy emphasized the importance of building a stronger regional negotiation mechanism that goes beyond mere joint statements. "ASEAN needs self-led diplomacy that has a real impact. Whether it concerns EU palm oil regulations, market access to China, or trade barriers from the US—ASEAN must speak with one voice," he concluded. (T2)
