Is Dr Mahathir's 1990 vision still relevant? The EAEC in a Trump-tariffed world
The relevance of the East Asia Economic Caucus (EAEC) in response to increased tariffs by the United States
THE East Asia Economic Caucus (EAEC) was a visionary proposal put forward by former Malaysian Prime Minister Tun Dr Mahathir Mohamad in 1990.
His vision was to establish an exclusive regional economic group primarily comprising East and Southeast Asian countries, with the notable absence of Western powers such as the United States and Australia.
However, the EAEC, despite its potential, never fully materialised in its original form. This was due to a complex interplay of geopolitical tensions, including opposition from the United States and a lack of strong support from Japan and South Korea.
The question that arises after 35 years is, how relevant is the EAEC today?
Particularly in light of the sudden increase in tariffs by the administration of US President Donald Trump on countries in the Asia-Pacific region, including its allies such as Japan (24 per cent) and South Korea (25 per cent) which host US military bases.
Even within Japan, opposition lawmaker Shinji Oguma of the Constitutional Democratic Party voiced sharp criticism of Trump's tariffs, labeling them as 'American Extortionists'.
Although its establishment was unsuccessful, the concept of cooperation between the Southeast Asian and East Asian regions, which became the primary focus of the EAEC, is very relevant.
Today, Asean+3 (China, Japan, South Korea) is often considered a continuation of the EAEC idea because it is a platform to foster economic and political cooperation in the Asia-Pacific.
Like the EAEC, Asean+3 has adopted a similar consensus-based approach, not confrontation. In addition, the Regional Comprehensive Economic Partnership (RCEP) is also an economic cooperation movement that includes Asean, China, Japan, South Korea, Australia, and New Zealand; RCEP expresses the EAEC's goal of East Asia-centric trade cooperation—albeit with a broader scope because it involves Australia and New Zealand.
The EAEC is rooted in regional economic autonomy—reducing dependence on Western powers, especially the US. In today's multipolar world, especially amid US-China tensions, many Asian countries seek balanced diplomacy and economic independence, making the EAEC idea increasingly relevant.
This pursuit of balanced diplomacy and economic independence can provide a sense of reassurance and confidence in the face of geopolitical tensions.
Furthermore, since the Trump administration announced tariff increases on April 2, countries in the Asia-Pacific region have come together to increase economic cooperation and mutual resilience.
Some countries in Southeast Asia, such as Indonesia (32 per cent), Thailand (36 per cent), Vietnam (46 per cent) and Laos (48 per cent), have been hit with steep tariff increases. Although the Trump administration has announced a 90-day moratorium on tariff increases to allow negotiations, a longer-term strategy is needed.
Thus, efforts are being made to enhance trade cooperation between Asia-Pacific countries.
They have no choice but to reduce their dependence on trade with the US. Rising US tariffs and the fragmentation of supply chains have pushed Asia-Pacific countries to seek regional independence.
The original idea of the EAEC to exclude Western powers is in line with the current debate about "de-dollarisation" and reducing dependence on the US financial system.
In addition, with the rise of China's economy, although the original idea of the EAEC was more focused on Asean and Japan, China's economic dominance in the region today gives the EAEC concept a new flavour, especially with the Belt and Road Initiative and regional financial system.
Therefore, it has made the atmosphere very different from 30 years ago when the EAEC was proposed because the rise of China's economy has allowed member countries to cooperate with China and not just rely on Japan alone.
As the Chairman of Asean 2025, it is time for Malaysia to revive the EAEC concept, such as trade cooperation among Asean member states with East Asia, and adapt it to current developments.
This revival could bring about significant economic benefits and foster a sense of unity and resilience among member states.
It should be emphasised that this does not mean what is being proposed as an anti-US or pro-China bloc.
On the contrary, it aligns with the Asean Outlook on the Indo-Pacific (AOIP), which emphasises neutrality, reflecting the AEC's desire for a free East Asian economic space based on consensus and non-confrontation.
It should not be part of a bloc of confrontation between great powers.
As the Chairman of Asean 2025, it is time for Malaysia to revive the EAEC concept, such as trade cooperation among Aseanmember states with East Asia, and adapt it to current developments.
It should be emphasised that this does not mean what is being proposed as an anti-US or pro-China bloc.
On the contrary, it aligns with the Asean Outlook on the Indo-Pacific (AOIP), which emphasises neutrality.
This alignment with the AOIP can foster a sense of agreement and unity among member states, reflecting the AEC's desire for a free East Asian economic space based on consensus and non-confrontation. It should not be part of a bloc of confrontation between great powers.
Roy Anthony Rogers is an Associate Professor with the Department of Strategic and International Studies, Universiti Malaya. He is currently the Deputy Executive Director of the Asia Europe Institute (AEI). The opinions expressed in this article belong solely to the author and do not necessarily represent the views of Sinar Daily.
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