ASEAN+3 rejects protectionism, commits to intra-regional trade

MANILA, Philippines — Member states of the Association of Southeast Asian Nations (ASEAN) and three of the biggest economies in Asia yesterday vowed to reject protectionism and committed to accelerate intra-regional trade and investments.

In a joint statement, following the 22nd ASEAN+3 Finance Ministers’ and Central Bank Governors’ Meeting in Nadi, Fiji yesterday, economic managers recognized the region’s strength amid a challenging global environment, but said it is not immune to the threats of protectionism.

The trade bloc groups the member countries of ASEAN, Japan, China and South Korea.

“Notwithstanding a more challenging global environment, the ASEAN+3 region continues to be a key driver of global economic growth. We expect the economic growth of the ASEAN+3 region to remain steadfast, despite headwinds from trade frictions, softer external demand and tighter global financial conditions,”ASEAN+3 ministers said in the statement.

The bloc committed to abide by a multilateral trading system and strengthen efforts to enhance intra-regional trade and investments.

 “We reaffirm our commitment to uphold the rules-based multilateral trading system and open regionalism, while resisting all forms of protectionism. We are committed to further enhancing regional efforts, including accelerating intra-regional trade and investment activities, as well as further deepening our domestic capital markets in order to build resilience,” said the economic managers.

 “Over the longer-run, we endeavor to prioritize policies that would facilitate the region’s transition to the next phase of economic development,” they added.

Finance ministers and central bank governors said that while trade protectionism poses a threat to the region, the impact would be partly mitigated by robust consumption and growing intra-regional trade.

“We continue to remain vigilant against the downside risks that may heighten the region’s vulnerability to shocks. Most regional economies are well-placed to recalibrate their monetary, fiscal and macroprudential policy mix to support growth against the anticipated headwinds while paying attention to financial stability,” said the joint statement.