ASEAN economic ministers commit to open trade amid Middle East crisis

The Association of Southeast Asian Nations (ASEAN) Economic Ministers (AEM) on Friday expressed commitment to keep the bloc’s market open to stabilize the region’s economy amid the global disruption caused by the Middle East conflict.

In a joint statement, following the AEM Retreat in Taguig City, Southeast Asia’s economic chief “expressed deep concern over the continued tensions in the Middle East.”

“The escalating conflict has generated broader economic repercussions beyond the region, particularly through heightened volatility in global energy markets and disruption of key maritime and supply chain routes, bringing about uncertainty and significant challenges to the economy, businesses and global trading dynamics,” the AEM said. 

“Such disruptions are leading to higher freight, insurance, and logistics costs and contribute to inflationary pressures on energy, food, and other essential goods. A prolonged period of geopolitical instability could pose sustained challenges to the global economic outlook, which has already been battered by multiple headwinds in recent years. It will also impact economic security and stability, the livelihoods of millions of people in the region, and hinder economic progress in ASEAN,” the AEM said.

To mitigate the economic impact of the ongoing global and regional developments, such as the Middle East crisis, the bloc’s economic ministers said they “committed to keeping the ASEAN market open for trade and investment, by maintaining a transparent and predictable regional economic architecture.”

“We will continue to work closely with industry stakeholders and external and development partners to strengthen and sustain business and investors’ confidence in ASEAN, while further reinforcing regional supply chains through the implementation of relevant and binding ASEAN Agreements,” the AEM said.

The region’s economic chief also echoed ASEAN Foreign Ministers’ call for the de-escalation of conflict in the Middle East through diplomatic and peaceful means, including the cessation of hostilities, the exercise of maximum restraint, and the pursuit of dialogue by all parties concerned. 

The AEM, nevertheless, said that long-term regional economic predictability and investor confidence, “which are inextricably linked to the consistent application of international law and the swift resolution of humanitarian crises, remain the foundation for a stable global trading architecture.” —LDF, GMA Integrated News