KUALA LUMPUR (April 18): Economist Professor Datuk Dr Woo Wing Thye has proposed a united Asean response to US tariffs, and a trade pact among countries friendly with both the US and China, amid rising trade tensions.

Speaking at a strategic response forum organised by the Centre of Regional Strategic Studies (CROSS) and Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), Woo said that dealing with US tariffs individually brings limited benefits, while a united Asean response would be more effective.

He warned that acting alone could lead to one country benefiting at the expense of others.

Instead, a joint approach would create shared benefits, and he urged Malaysia, as Asean Chair, to lead this more cooperative trade strategy.

Woo also proposed forming a group of "buffer states" — countries friendly with both the US and China — to create a free trade bloc based on World Trade Organization (WTO) rules. He calls this idea "open regionalism".

The proposed initiative, called the Atlantic-Pacific Sustainable Development Goals Partnership (APSP), would be open to all countries but led by those that maintain independence from major powers, such as Malaysia, Thailand, South Korea, Japan, and European Union nations.

Woo suggested Asean, Japan, and South Korea align existing trade deals like the Regional Comprehensive Economic Partnership (RCEP), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and Indo-Pacific Framework for Prosperity (IPEF) under this new partnership.

He also proposed creating a non-partisan peace group at the United Nations made up of buffer states to act as neutral parties between the US and China.

A key part of his APSP trade pact idea includes a development agency to help less developed countries achieve net zero emissions, protect biodiversity, and boost economic growth through technical and financial support.

This is meant to counter the economic influence of both the US and China.

Woo said the initiative is open to all, but the US is unlikely to join soon due to its past reluctance to follow global rules.

He was an adviser to the US Treasury Secretary Robert Rubin from 1997 to 1998 and is now a professor at UC Davis, Liaoning University, and Sunway University.