Managing economic statecraft via multilateral agreements: the roles of ASEAN member states in shaping Regional Comprehensive Economic Partnership

Abstract

Economic statecraft (ES) has been playing an increased role in affecting the international relations. While armed conflicts decline, states have been weaponising trade, investment, and other economic ties to gain leverage over their counterparts. In the contemporary world, ES is not only used to galvanise countries’ influence in specific issue areas but also part of their grand strategy to achieve broad power-maximisation goals. Despite a proliferation of ES literatures in recent years, extant research tended to focus on great powers’ ES, leaving small states’ ES under-examined. Also, previous studies usually looked into how countries unilaterally employ ES. Hence, insufficient attention has been paid to how regional states work together to collectively alter multilateral frameworks to advance their ES. Against this backdrop, this paper investigates small nations’ roles in the development of multilateral cooperative frameworks. Using the ES lens, it explores how these countries leverage these schemes to push forward their collective ES. The main argument is that regional states worked together to craft the terms of multilateral economic agreements to galvanise their clout over certain governance areas. I validate this argument by using the case of Regional Comprehensive Economic Partnership (RCEP). This study makes contributions to the research pertaining to ES, small states’ strategies, and economic regionalism. It also yields practical implications for policymakers involved in fostering international economic governance.