KEEPING global and regional supply chains open for trade facilitation amid the pandemic is key to economic recovery in the Association of Southeast Asian Nations (Asean) region, the Department of Trade and Industry (DTI) said.
Trade Secretary Ramon M. Lopez told his fellow trade ministers during the 6th Belt and Road Summit on Wednesday that the Philippines prioritizes the continuous movement of goods and services amid the restrictions due to the pandemic.
“For the Philippines, it is important, therefore, to support initiatives that keep markets open and ensure the unhampered flow of essential goods and services by reducing unnecessary trade measures,” he explained.
The DTI chief said that ensuring trade flow will further strengthen the multilateral cooperation of the regional bloc.
Citing the Philippines, Lopez pointed out that the government did not place export restrictions for essential goods, including personal protective equipment and medical devices.
“It could be useful for those part of the Belt and Road Initiative to consider a similar arrangement with Asean to show our stakeholders our collective effort to ensure that supply chains remain open regardless of the pandemic and that essential goods remain available to our peoples,” he said.
An initiative supporting the DTI’s sentiment is the Asean’s memorandum of understanding on the implementation of non-tariff measures on essential goods, Lopez said.
“It calls for Asean member-countries to refrain from introducing or maintaining trade-restrictive measures on essential goods, which is instrumental to sustain a resilient supply chain while ensuring the trade in essential goods continue to be unhampered to meet the needs of Asean businesses as well as its citizens,” he explained.
Asean Secretary-General Lim Jock Hoi agreed that a regional effort is needed to overcome the Covid-19 challenges. He said that the regional bloc is “determined to stay on course for the regional integration efforts, keep markets open for trade and investment and ensure that our supply chains remain connected.”
In fact, Lim said that the region is currently crafting a framework for supply chain efficiency and resilience, which is anchored in digital technology.
“There is no doubt that digitalization of supply chain can create and integrate an ecosystem and become a key driver in achieving a more sustainable economic growth,” he said.
Trade agreement
THE Asean official pointed out that member-countries should maximize the Regional Comprehensive Economic Partnership (RCEP) as they seek a path to recovery.
For his part, Lopez said they continue to encourage the business sector to take advantage of the RCEP and other free trade agreements (FTA). He explained that it both boosts trade and investments, allowing even the micro, small and medium enterprises to participate in the global value chain.
“Through this stable and predictable business environment, participating countries can encourage more investments as investors are assured that trade rules will follow what is committed under the agreement and would not be subject to voluntary changes that can negatively affect their businesses,” Lopez said.
One of the biggest venues for economic cooperation, RCEP was signed by 10 Asean member-states and five Asean free trade agreement partners—Australia, China, Japan, Korea and New Zealand—in November last year.
The RCEP region accounts for 29 percent or $25.8 trillion of the global gross domestic product, 30 percent of the world’s population and 25 percent ($12.7 trillion) of global trade in goods and services, DTI noted.