The United States plans to complete trade agreements with several Southeast Asian countries within weeks or months, according to America’s top trade official, who met with regional leaders on Wednesday.
Jamieson Greer, the U.S. Trade Representative, spoke to economic ministers from the 10-country Association of Southeast Asian Nations during talks in Kuala Lumpur. The meeting comes as countries in the region worry about how American taxes on imports will hurt their economies.
Most Southeast Asian nations now face import taxes of 19% to 20% on goods they send to America. Laos and Myanmar must pay a much higher 40% rate, while Singapore gets a lower 10% tax on its products.
Greer told the ministers that discussions with individual countries about these import taxes are moving forward well. He said some deals could be finished “in the coming months or even weeks.”
“We believe that there are many areas where our interests align, and we can work together to achieve shared goals of bringing reciprocity and balance to the global trading system,” Greer said during the talks.
Two countries have already worked out new trade deals with Washington. Indonesia and Vietnam both got agreements that lower the taxes on their exports to America.
However, Vietnam still faces major problems with the 20% tax rate. The country sends more goods to America than almost any other nation – it ranks sixth worldwide. United Nations experts say Vietnam could lose $25 billion every year because of these new import taxes, making it the worst-hit country in Southeast Asia.
This was Greer’s first time meeting with the entire ASEAN group. Until now, each country has been talking separately with American officials about the import tax issue.
Asian countries are worried about higher tariffs on tech products
The Southeast Asian countries might start working together more closely on this problem. They are especially worried about possible higher taxes on computer chips and other technology products. These industries are important for countries like Thailand, Malaysia, and Vietnam.
President Donald Trump said last month he wants to put a 100% tax on computer chips from other countries. But companies that make these products in America or promise to build factories there would not have to pay this tax.
Southeast Asian countries built their economies around making products cheaply and selling them to wealthy Western nations, especially the United States. This approach has worked for decades and helped the region grow rapidly.
The region’s total economy is worth almost $4 trillion, making it the world’s fifth largest. More than 80% of what Southeast Asian countries sell to America consists of physical goods rather than services.
Southeast Asia now faces tough challenges
Many countries around the world have tried to copy Southeast Asia’s success. Nations in South Asia, Africa, and Latin America have all looked at how these countries attracted foreign companies and built export businesses.
The current situation represents the biggest economic challenge Southeast Asia has faced in many years. Countries like Cambodia, Vietnam, Thailand, and Indonesia are already seeing canceled orders, factory closures, and less investment from foreign companies.
The region has survived trade disputes before by adapting and changing how they do business. But experts say Trump’s import taxes are much more serious and could force these countries to completely change how their economies work.
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Source: https://www.cryptopolitan.com/southeast-asian-countries-us-trade-deal/