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Asean leaders are set to discuss how to prevent trade barriers at their summit in Thailand later this month in response to a growing fear of rising protectionism. While the main agenda for the Asean summit is how to move ahead with the plan to strengthen the regional grouping, the discussions will also focus on whether some countries will choose to increase trade barriers to protect their local industries at a time of lower demand for exports.

"Protectionism will be a key agenda item among Asean leaders' discussions, because each country is concerned about a slowdown in trade growth," said Trade Negotiations Department director-general Chutima Bunyapraphasara.

With emerging non-tariff barriers causing slowdowns in export growth, Asean members will call on all countries, particularly developed nations, to stop imposing them. Asean members fear that protectionism will eventually dampen world economic growth amid the widespread financial turmoil.

The possible rise of trade protectionism should be addressed during the Asean meeting because it will not only disrupt the effort to enhance the regional grouping, but also retard the economic prospects of member countries. After all, the regional free trade agreement within Asean has proved to be a success in driving the economies of member countries. The Asean Free Trade Area, enacted in the early 1990s, promoted regional economies by attracting foreign direct investment into the region.

The economic grouping created economies of scale to boost competitiveness amidst the rise of China and India. The success of the policy has made the region an attractive investment destination. Multinational companies came here because they could utilise the existing production network of the region. For instance, auto-makers can produce different parts for vehicles in different Asean countries, according to the strength of each country. A multinational company can, for instance, produce edible palm oil in Malaysia, where the local palm-oil industry is strong, and produce shampoo in Thailand, and export these products region-wide while taking advantage of the duty-free zone.

Asean's economic cooperation is an impressive story; so much so that non-Asean countries such as Australia and New Zealand have decided to enter into partnerships with Asean to further boost the region-wide economy. The Asean economic agreement is expanding to cover the three economic giants of Northeast Asia - China, Japan and South Korea - and India.

However, the global economic crisis has led to fears of the emergence of trade barriers. The US administration's plan to expand the "Buy American" provision in its stimulus package has received a negative reaction from many countries, which view such a provision as a form of protectionism.

Asean Secretary-General Surin Pitsuwan said Asean stood a better chance than others of surviving the economic crisis. The regional economy is closely integrated and is less dependent on the US economy. Besides, the region has high savings, which should be a valuable source of funding for future investments.

However, if the world turns inward and towards protectionism, Asean's economy will suffer because the region relies mostly on exports.

Chutima said that Asean would make a statement urging all countries, especially developed ones, to refrain from using barriers as the global economy worsens. If countries focus on creating barriers, then the economic downturn will be prolonged. Besides, escalating trade conflicts are likely to lead to a confrontational atmosphere in the international arena.

While urging others to refrain from protectionism, Asean countries should show the will to end barriers within the region and to achieve an Asean Economic Community by 2015. If Asean countries strictly adhere to their plan, they will be an example to the world that economic cooperation is the solution to the current crisis.