ASEAN counting on FTA enhancements to keep supply chains resilient in wartime

THE ASSOCIATION of Southeast Asian Nations (ASEAN) will strengthen and accelerate free trade agreements (FTAs) with partners like China, South Korea and Canada to ensure the steady flow of goods in response to the threat posed by Middle East war to energy and food security.

At an online briefing on Thursday, Trade Secretary Ma. Cristina A. Roque said ASEAN Economic Ministers will focus on upgrading the ASEAN Trade in Goods Agreement, the ASEAN-China FTA Upgrade 3.0, the ASEAN-Korea FTA, the ASEAN-Canada FTA, and other FTAs.

“We need to strengthen these FTAs, because we need to at least keep the preferential targets, she said. “So, when we move our products or we trade within ASEAN, we get the preferential tariffs within ASEAN.”

Ms. Roque said that all ASEAN member-states agreed to avoid trade-restrictive measures, including export bans on essential goods, to keep the flow of goods going.

She also noted that the bloc is advancing the ratification of the ASEAN Petroleum Security Agreement (APSA).

“APSA is being pursued to enable coordinated emergency fuel sharing and collective responses to supply disruption,” Ms. Roque said.

ASEAN is also pushing “with greater urgency” the ASEAN Power Grid, she said, noting that the implementation of the memorandum of understanding is one of bloc’s priority economic deliverables this year.

“Strengthening energy connectivity will allow ASEAN to share resources more efficiently and build resilience against external energy shocks,” Ms. Roque said.

The bloc also agreed to safeguard energy supply to hospitals, emergency systems, and critical care facilities during times of crisis, she said.

ASEAN will also strengthen food security and supply chain coordination to maintain reliable access to food across the region, Ms. Roque added.

ASEAN is composed of the Philippines, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam, and Timor-Leste.

Ms. Roque said the region’s joint statement will be submitted to the upcoming ASEAN Summit as input to the region’s collective response. The forum, which will be chaired by President Ferdinand R. Marcos, Jr., will be held in May in Cebu.

“As Chair, the Philippines remains committed to ensuring our response remains practical, coordinated, and focused on what matters most: people,” she said. — Beatriz Marie D. Cruz