In 2023, Jakarta, Indonesia, displayed an unmistakable reminder of ASEAN’s ambitions as the region rallied behind the slogan branding it as the “epicentrum of growth.” Indonesia’s chairmanship of ASEAN aligned this message with the region’s sustained economic performance. ASEAN’s GDP growth is projected to stabilize around 4% through the rest of the decade, surpassing the average rates of the G7 and the European Union while rivalling China’s trajectory. However, ASEAN remains a complex region rather than a singular, cohesive market. Despite decades of integration efforts aimed at creating a “single market,” intra-ASEAN trade accounts for only 20% of the bloc’s total trade volume. This figure pales in comparison to North America’s 40% and Europe’s 60%. Nonetheless, ASEAN’s integration strategy has always focused on outward engagement rather than an insular approach. Its long-term economic vision emphasizes integration as a pathway to global economic connectivity rather than merely internal trade expansion.
ASEAN’s integration into global value chains exemplifies this vision. Since 2000, the bloc has achieved a remarkable 480% increase in exports, elevating its share of global exports from 5.4% to 7.8%. Trade volumes now exceed 100% of ASEAN’s collective GDP, a significant achievement compared to 70% in Europe and 22% in North America. This underscores ASEAN’s position as a key player in globalization, leveraging its collective strength to navigate a challenging economic landscape. Yet, ASEAN faces formidable challenges. Its success depends heavily on the rules-based global trade system, which is increasingly under threat. As small and middle powers, ASEAN members recognize the value of collective action to avoid being passive observers in a world where economic policies are often weaponized for geopolitical purposes. To address these challenges, ASEAN must demonstrate leadership and foster stronger collaboration with like-minded partners such as Australia.
Australia has expressed a clear intent to deepen economic ties with Southeast Asia, aligning with ASEAN’s goals. Foreign Minister Penny Wong has emphasized the importance of “open, free, and predictable trading arrangements” vital to the prosperity of both Australia and Southeast Asia. The Australian government’s renewed focus on Southeast Asia is evident in the Moore report, which outlines strategies to enhance trade and investment in the region.
However, Australia’s engagement with ASEAN should transcend short-term commercial interests or the narrative of diversifying away from China. A more strategic approach is needed—one that integrates ASEAN’s ambitions to remove trade barriers and fosters regional economic cooperation. This dual-purpose strategy not only strengthens economic ties but also positions ASEAN as a central pillar of Australia’s broader diplomatic efforts.
Proactive involvement in ASEAN’s integration initiatives is critical. Australia can support region-wide frameworks like the ASEAN Economic Community and the Regional Comprehensive Economic Partnership (RCEP) to reduce trade and investment barriers. Moreover, reinforcing the World Trade Organization (WTO)-based trade system and unlocking financing for climate-focused technologies will enhance the region’s economic and environmental resilience. The urgency of this green agenda cannot be overstated. As the United States retreats from multilateral climate and economic governance, Australia and ASEAN must lead efforts to create a “Single Green Market.” Harmonizing regulations across borders to facilitate free trade in green technologies, goods, and financing is essential for making Southeast Asia’s growth sustainable. Such efforts will not only address climate change but also attract private investment, driving innovation and regional development.
Multilateral cooperation through ASEAN remains the most effective mechanism for addressing transnational challenges. Diplomatic engagement with national governments is necessary, but prioritizing ASEAN-led initiatives yields greater strategic benefits. Key platforms such as the ASEAN–Australia–New Zealand Free Trade Agreement (AANZFTA) and the RCEP economic cooperation pillar provide opportunities to advance shared goals.
The 2024 ASEAN–Australia Special Summit underscored the commitment to fostering an open, rules-based, and sustainable economic order. For Australia, meaningful collaboration with ASEAN is not just a policy objective but a strategic imperative. Swift action is required to turn these aspirations into tangible outcomes, reinforcing partnerships that uphold shared values and mutual prosperity in an increasingly uncertain global environment.
