BANGKOK -- Asia's developing economies should deepen trade relations with export markets to prepare for tougher trade restrictions, the World Bank advised on Tuesday as it sees limits emerging to the benefits reaped by the likes of Vietnam and Thailand from supply chain shifts.
"East Asia's development model -- relying on open global markets and labor-intensive production -- is being challenged by trade tensions and new technologies," said Aaditya Mattoo, the World Bank's chief economist for East Asia and the Pacific, at the launch of the development agency's biannual regional economic update for developing East Asia and the Pacific. "The best response is to deepen trade agreements and to equip people with the skills and mobility to take advantage of the new technologies."
