Experts are urging Thailand to use its position as Asean chair to push for further economic integration within the region and reduce the negative impacts of the US-China trade war by speeding up the Regional Comprehensive Economic Partnership (RCEP) negotiations.
The RCEP, led by China, is the largest proposed multilateral free trade deal in history, involving 16 countries including India and the 10 Asean members.
"Each country in Asean still wants to protect their own interests, so we will not see a unified market or single production base as we see in Europe in the near future. To further integrate the Asean region, in the short term, we need a mega-trade pact like RCEP," said Deunden Nikomborirak, research director at the Thailand Development Research Institute.
Ms Deunden was speaking at a forum titled "Thailand's role as ASEAN Chair: How to strengthen partnerships and leave no one behind" hosted by the Thailand Chevening Alumni Association on Thursday.
She said being a part of RCEP will allow Asean members to benefit from free trade and mitigate the risks of the trade war hitting their exports.
"Thailand, as Asean chair, has the potential to push for the speedy conclusion of RCEP negotiations, which have been going on for seven years, because we have a good relationship with China, Japan and South Korea," she said.
The key challenge for Thailand in negotiating the RCEP agreement will be to bind China and India, the two world powers that have conflicting interests, to the deal, Ms Deunden added.
Speaking at the same forum, Prinn Panitchapakdi, CEO of CLSA Securities (Thailand) Ltd and a member of the Stock Exchange of Thailand's (SET) board of governors, said Asean countries need to unify as one entity in negotiating the RCEP agreement with world powers.
"Asean is big enough to negotiate on our own terms. Our combined gross domestic product (GDP) stands at US$2.53 trillion, with total trade at $2.82 trillion in a region populated by 631 million people," he said.
However, he added, even if the RCEP is concluded by the end of this year, the positive impacts on trade and investment may not be seen until 2020.
"The benefits to exporters in Thailand may not be seen until 2020 when the trade pact is likely to kick in. The results of what the Thai government manages to achieve as Asean chair may only be visible in the next two to three years," Mr Prinn said.
Suchatvee Suwansawat, president of King Mongkut's Institute of Technology Ladkrabang, said Thailand must keep dialogue on issues such as RCEP on the table during its chairmanship to ensure that the region remains as one entity and that cooperation in the region continues to progress gradually.
"Our handling of the RCEP will show whether Asean is still relevant in the geopolitical field as a region. It will also improve Thailand's image internationally for being able to reconcile opposing interests of various superpowers into a single mega-trade pact," he said.