4
RCEP, covering 30% of global GDP, is Asia’s strongest institutional shield against trade disruptions like Middle East conflicts affecting energy supplies. Practical reforms to this 15-member South-east Asian trade pact could enhance its effectiveness and regional benefits.
Key Points
• Middle East shipping disruptions severely impact Asia, which receives 84% of Hormuz Strait crude oil and 83% of LNG, driving up energy costs and inflation across the region.
• Asia lacks military solutions to such supply shocks, making institutional…