The Messy Truth: Australia’s Reputation in Southeast Asia

A spicy commentary published by the Lowy Institute—a prominent Sydney-based think tank—recalibrates the relationship between Australia and Southeast Asia. “Shared prosperity” and “deepening engagement” may mean something quite different in Canberra, than Hanoi or Kuala Lumpur. Bilateral grievances center on immigration policies and business standards. The author argues that Australia runs the risk of becoming irrelevant to these dynamic economies.

There is a countervailing view. An article published simultaneously in the Australian Financial Review spotlights comments by Australian Trade and Tourism Minister Don Farrell. “We have to inject new energy into regionalism and boost our already significant regional trading architecture to strengthen our resilience to shocks and economic coercion.” Jargon aside, Farrell advocates in part for more intensive commercial dialogue in Southeast Asia. Do Australian businesses have the cultural fluency to meet that challenge?

With a GDP close to $1.8 trillion, the Australian economy towers over many individual Southeast Asian nations. The sum is more meaningful than the parts, though. The combined heft of all Association of Southeast Asian Nations is near $3.9 trillion, making ASEAN the fifth largest economy in the world. For Australia, these linkages become indispensable to its economic outlook.

The debate on the impact of soft diplomacy ignites from the international teardown in Washington. The United States falls outside the list of Australia’s largest export destinations; America may loom symbolically larger-than-reality in the trade dialogue. Combined exports to Singapore and Thailand, for instance, are more prominent than those to the United States. Still, the impact of tariff penalties and the end of the de minimis ruling for small shipments sting, with Australians looking for a salve elsewhere. ■

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Image Credit: PX Media at Adobe Stock.