[UPDATED] Asean: Retaliatory trade moves risk worsening global fragmentation

New Straits Times

5 days ago

KUALA LUMPUR: Asean has underscored that unilateral and retaliatory trade actions are counterproductive and risk exacerbating global economic fragmentation.
In a joint statement following the 46th Asean Summit, the bloc said it had instructed relevant officials to monitor the potential risk of trade diversion and engage with partners through established platforms for constructive solutions.
The statement comes amid the United States' (US) imposition of unilateral tariffs on Asean members.
"Asean underscores that unilateral and retaliatory trade actions are counterproductive and risk exacerbating global economic fragmentation, especially when these actions create indirect impacts on Asean.
"We also remain committed to a peaceful and constructive resolution with our partners through consultative dialogue, mutual respect, and adherence to international law, in line with the fundamental principles under the Treaty of Amity and Cooperation in Southeast Asia.
"To this end, we reaffirm Asean's commitment to regional unity, economic stability and practical cooperation in navigating external challenges," it said.
It said member states were committed to maintaining open and secure trade flows, and working with partners to strengthen supply chain resilience and promote sustainable development.
It reaffirmed the bloc's unwavering commitment to upholding the multilateral trading system, highlighting the importance of a predictable, transparent, inclusive, free, fair, sustainable and rules-based framework, with the World Trade Organisation (WTO) at its core.
"We are ready to engage constructively with WTO members to advance necessary reforms and ensure that the global trading system remains predictable, transparent, non-discriminatory, open, and capable of addressing contemporary challenges," it said.
It said member states were also determined to leverage the full benefit of regional economic integration to reinforce resilience and act collectively in the face of external disruptions, including unilateral trade measures that threaten the integrity and stability of the global trading system.
"Asean stands ready to lead with unity, ambition, and a firm belief in a rules-based multilateral trading system."
As the Asean Economic Community (AEC) Blueprint 2025 enters its final phase, Asean reaffirmed its commitment to delivering and advancing a bold and forward-looking Asean Community Vision 2045.
The bloc also reaffirmed Asean's unity and centrality as key to regional peace, stability and prosperity.
Asean leaders said they would undertake timely and targeted domestic measures to mitigate the impact of high tariffs, including safeguards to support the region's industries and workers, particularly those most vulnerable to trade disruptions.
"At the same time, we will work collectively to ensure that Asean is well prepared to embrace future transformative change that drives innovation, fosters resilience, and enhances regional competitiveness.
"In doing so, we are determined to ensure that no one is left behind in our journey towards a more inclusive, sustainable and digitally empowered Asean."