Trade disputes in ASEAN: optimizing overlooked dispute management mechanisms

Association of Southeast Asian Nations (ASEAN) was founded in 1967 to maintain peace and stability through the ‘ASEAN way’, a dialogue-based, non-confrontational, and consensus-driven approach. While effective in diffusing tensions, this approach often allowed disputes to fade without resolution. As ASEAN evolved into a rules-based organization, its passive approach to disputes has come under increasing pressure. This article argues that ASEAN does not lack economic disputes, but that the underutilization of its formal dispute settlement system is accommodated by low-profile, non-judicial tools embedded in ASEAN economic agreements, namely transparency obligations, the practice of raising specific trade concerns, and an internet-based problem-solving mechanism. Together, these mechanisms reflect a preventive rather than reactive approach. Their potential, however, is constrained by limited use, design flaws, and institutional limitations. Strengthening their clarity, coordination, and visibility could enhance ASEAN’s capacity for dispute management, complementing rather than replacing its formal dispute settlement framework.