This is a promising area for the next decade

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This is a promising area for the next decade 12.11.2019 11:44


In the capital of Indonesia at the end of October, a round table was held at the Secretariat of the Association of Southeast Asian Nations (ASEAN) on the theme: "ASEAN-SCO: Trade and Investment Potential." During the round table, the participants discussed the prospects for cooperation between the SCO and ASEAN member states in the trade and investment sphere.

“If we talk about the development of various zones of economic communications, then this is a promising zone for the next decade,” is the assessment of the integration of the SCO and ASEAN member countries by Vladimir Lepekhin, Director General of the EAEU Institute.

“Two years ago, the formation of the trans-Pacific free trade zone actually stopped, but with the advent of Trump, the configuration of the global alignment began to change. Accordingly, this affected the trans-Pacific and transatlantic zones”, the expert emphasized.

Lepekhin also noted that “with the formation of the SCO, a large conglomeration of eastern states was formed: continental, in the form of the SCO, and oceanic, in the form of ASEAN”.

Speaking about the role of Russia in the SCO and ASEAN, Lepekhin notes:

“In Southeast Asia, the role of Russia is not as obvious as in the SCO. Nevertheless, Russia is also a Pacific power, and it is of great importance, which will grow in terms of transit and movement to ASEAN countries, and to other markets, in particular, to the markets of Europe”.

“Russia, on the one hand, raises the ASEAN’s geopolitical status; on the other hand, it creates additional opportunities for countries in terms of geopolitical and geo-economic choice. We must not forget that the Russian market is quite capacious and attractive for many countries”, the expert added.

Speaking about trade and investment, the expert noted that the problem of trade is to find markets for excess products.

“The trade problem is overproduction. Hence the sharp increase in the problem of sales of goods. To produce is not a problem, import is not a problem, the problem is always in export. There is a struggle for this“, he said.

In conclusion, Lepekhin commented on the past Russia-Africa Summit, and the importance of Russia as a trading partner for the countries of Africa and Southeast Asia:

“From the point of view of Russia's contractibility, the specifics of economic interaction, when Russia acts on an equal footing, it is the preferred partner. Therefore, many countries in Southeast Asia, as well as African countries, look at Russia as a promising partner”, the expert concluded.