PRESS STATEMENT OF SECRETARY RAMON M. LOPEZ
ON THE 25th ASEAN ECONOMIC MINISTERS MEETING RETREAT
APRIL 22-23, PHUKET THAILAND
ASEAN Economic Ministers (AEM) made headway in six priority issues during the 25th AEM Meeting Retreat on 22 to 23 April in Thailand. In the meeting, we tackled the following issues:
(1) ASEAN Priority Economic Deliverables in 2019;
(2) Criteria and Approach to Guide ASEAN’s Strategic Economic Engagements
(3) Monitoring and Evaluation Framework of the ASEAN Economic Community;
(4) Implementation of ASEAN Trade in Goods Agreement (ATIGA);
(5) Regional Comprehensive Economic Partnership Agreement (RCEP); and
(6) Suggested reforms for the World Trade Organization (WTO).
ASEAN Priority Economic Deliverables in 2019
The ASEAN community supported this year’s ASEAN Chair, Thailand, in its priority economic deliverables, namely future–orientation, enhanced connectivity, and sustainability in all dimensions. Progress in these deliverables ranges from digital integration in the 4th Industrial Revolution (4IR) to trade facilitation and connectivity. These priorities were chosen to prepare ASEAN businesses for the advent of new technologies and equip the workforce with appropriate skills to cope with the challenges of said new developments.
Criteria and Approach to Guide ASEAN’s Strategic Economic Engagement
We discussed setting criteria to guide ASEAN Ministers on the forms and level of cooperation with other countries or economic regions. This will include economic significance, degree of convergence on new Free Trade Agreements (FTA), and resource requirement, among others.
Monitoring and Evaluation Framework of ASEAN Economic Community and Implementation of ATIGA
AEM highlighted the need to review and eliminate unnecessary non-tariff barriers (NTBs) implemented by some ASEAN Member States. NTBs make it more difficult and costly to trade. As a representative of the Philippines, I cited that NTBs affect both agricultural (horticultural products, bananas, tobacco, fishery products, meat, young coconut, seeds, poultry, and swine feeds) and industrial goods (electronics, pharmaceutical products, cosmetics, apparel, and footwear). Some of these Philippine products have difficulties entering some markets because of high tariffs and strict import requirements imposed.
RCEP
On RCEP, AEM reaffirmed its commitment to realize the ASEAN Leaders mandate to conclude the agreement this year. We encouraged the trade negotiating parties to exercise utmost flexibility in the forthcoming sessions, taking into account constitutional and legal limitations. All pending issues must be settled by June if we are to meet the targeted November deadline for RCEP conclusion. Just the same, the agreement should be balanced and mutually beneficial and balanced trade agreement to establish free and fair trade in the region.
Suggested reforms for the WTO
We noted that the WTO is facing issues on rulemaking, transparency and monitoring, and dispute settlement. Specifically, AEM is unified in recognizing the need to fill the vacancies in the WTO’s Appellate Body, which hears appeals from disputes among WTO members. The supposedly seven-member body currently has three members, two of whom will vacate their posts this year. Since the pillar of the multilateral trading system is on the dispute settlement mechanism, we underscored the need to immediately start the process of filling up the vacancies.♦
Date of release: 25 April 2019