ASEAN economic ministers agree to strengthen FTAs, ratify petrol security deal

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'In times of uncertainty, predictability is stability, and stability begins with keeping goods moving across borders,' says Department of Trade and Industry Secretary Cristina Roque

MANILA, Philippines – The economic ministers of the Association of Southeast Asian Nations (ASEAN) agreed to strengthen existing free trade agreements (FTAs) and ratify a regional petrol security deal amid the ongoing conflict in the Middle East.

In a press conference on Thursday, April 30, Trade Secretary Cristina Roque said ASEAN member states agreed to strengthen and accelerate several FTAs to reduce trade bottlenecks. These include the following deals:

• ASEAN Trade in Goods Agreement
• ASEAN-China Free Trade Agreement 3.0
• ASEAN-Korea Free Trade Agreement
• ASEAN-Canada Free Trade Agreement

“In times of uncertainty, predictability is stability, and stability begins with keeping goods moving across borders,” she said.

Among the priorities of the ASEAN economic ministers include the ratification of the ASEAN Petroleum Security Agreement (APSA). This deal establishes a fuel-sharing scheme for crude oil and petroleum products among the bloc’s member states during times of crises and supply disruptions.

Roque also said the regional bloc agreed to avoid restrictive trade measures, including export bans on essential goods. She explained that strengthening these FTAs is vital since it allows the Philippines to maintain preferential tariff rates with the rest of the bloc.

“So when we move our products or we trade within ASEAN, our tariffs, we get the preferential tariffs within ASEAN,” she said.

To ensure energy security in the region, Roque said that ASEAN will move “with greater urgency” on the ASEAN power grid, which aims to connect the grids of all 11 member states.

The Philippine trade chief explained that strengthening energy connectivity between the countries will allow the regional bloc to share resources more effectively and boost its resilience against external energy shocks such as the Middle East conflict.

ASEAN’s economic chiefs also agreed to safeguard their energy supply for essential services such as healthcare, emergency systems, and critical care facilities.

The joint statement will be submitted at the upcoming ASEAN Summit in Cebu on May 7 to 8, as input to the region’s collective response to the Middle East conflict. – Rappler.com