Globalisation Weakens As Regionalism Rises : RW

COLOMBO (News 1st): As global trade dynamics undergo a seismic shift, former Sri Lankan President Ranil Wickremesinghe has called on nations bordering the Bay of Bengal to seize the moment and build a unified regional economic framework. 

Speaking at the Fifth Bay of Bengal Maritime Dialogue held in Colombo, Wickremesinghe emphasized the urgency of regional cooperation in the face of weakening globalisation and rising protectionism.

He pointed to the ripple effects of U.S. President Donald Trump’s reciprocal tariffs, which he said marked the unraveling of the global trade order established in the 1990s. “Globalisation will not disappear, but it will get weakened,” Wickremesinghe warned, urging countries in South and Southeast Asia to consider regionalism as a strategic alternative.

He posed a critical question to regional leaders: “Are we to build up a regionalism? Is it going to be BIMSTEC? Is it going to be ASEAN? Is it going to be BRI?” He argued that the Bay of Bengal could serve as the geographic and economic nucleus for a new regional trade framework.

He highlighted the economic potential of the region, projecting that by 2050:

India will become the world’s second-largest economy, growing from a $3 trillion to a $30 trillion GDP.

Indonesia is expected to rank fourth or fifth globally.

Bangladesh, Thailand, Malaysia, and Vietnam will also rank among the top 30 economies.

“This region will be home to some of the world’s most powerful economies. Are we to utilise this? Are we to leverage this to look at a trading arrangement in the Bay of Bengal?” he asked.

Wickremesinghe also cautioned that bilateral negotiations with the U.S. by countries like India, China, Japan, and Korea could dilute the strength of regional trade agreements. He urged BIMSTEC and ASEAN to advocate for smaller economies like Sri Lanka, Bangladesh, Laos, and Cambodia, which risk being sidelined in global trade talks.