Commentary: Free Trade In Asia: Bogged Down Again

Back in the boom years, the winds of free trade seemed set to blow down tariff walls across Asia. True, the 1997-98 economic crisis "threw a monkey wrench" into regional free trade, as U.S. Trade Representative Charlene Barshefsky puts it. But even then, liberalization seemed inevitable.

Now, however, free traders fret that the process is getting bogged down again. At the Asia Pacific Economic Cooperation forum that just concluded in Brunei, the region's leaders, especially those from Southeast Asia, were noticeably reticent about free trade. That's in large part because much of the region continues to suffer the lingering effects of the crisis. Not only that, imported oil is at a decade-long high, even as prices for the region's electronics exports are falling. Moreover, foreign direct investment is down an average of 62% across Southeast Asia. No wonder free trade is a low priority in many Asian capitals.