The Philippines urged the World Trade Organization (WTO) to enable other rules-based mechanisms “to function including, allowing for majority decision-making subject to a certain floor threshold, instead of always requiring a consensus.”
On May 18, Asean Economic Ministers convened a face-to-face special meeting, the first time since Covid-19 lockdowns started two years ago, to tackle key trade concerns of Asean Member States (AMS).
The member states had extensive discussions on challenges encountered by the region and that of individual countries brought about by recent global issues such as the Covid-19 lockdowns in China and the conflict between Russia and Ukraine.
Among the pertinent issues raised by the Philippines was in relation to the WTO, which sought to allow rules-based mechanisms on majority decision-making “subject to a certain floor threshold, instead of always requiring a consensus.”
A Department of Trade and Industry (DTI) statement said its proposal, if implemented, “may assist in solving long-standing issues like the impasse on the selection process for the Appellate Body.”
During the special meeting among the Asean Economic Ministers, Trade Secretary Ramon Lopez emphasized that the Asean member states should focus on enhancing international cooperation, highlighting the strengthening of the rules-based multilateral trading system among others.
“We should focus on enhancing international cooperation, going beyond trade and pursuing other initiatives such as boosting investment, and strengthening the rules based multilateral trading system,” said Lopez.
“On the first, it is important that we [Asean] strengthen economic cooperation efforts and bring about real, and honest to goodness integration,” he pointed out.
The trade chief also stressed that the member states, “Need to ensure that there are no restrictions on trade so as to allow the unhampered flow of goods, especially essential food, fuel, medicines, and medical equipment.”
Lopez raised the matter in line with concerns among Asean member states on recent export bans implemented in the region such as on rice, coal and palm oil. He highlighted the Philippine policy during the pandemic where even the export of face masks was not banned.
“This led to good outcomes for the Philippines as manufacturing capacity for medical-grade, internationally-certified face masks expanded multiple times and equally important, it encouraged investment in a very critical melt-blown filter facility,” the DTI statement read.
The trade chief also acknowledged efforts by other countries that have eventually removed such measures and called for the remaining bans to be lifted.
“I thank Indonesia for lifting the export ban on coal and studying the issue on palm oil, including the possibility of lifting the export ban by as early as the end of the month. We are one Asean, one family. We must care and support each other as our economies and peoples become even more closely linked,” said Lopez.
The Asean Economic Ministers also agreed to deepen economic relations with external partners such as the United States and Europe.
Another relevant topic discussed was the Indo-Pacific Economic Framework (IPEF) of the US. It is the proposed vehicle for strengthened US economic engagement in the Indo-Pacific region, seeking to operationalize shared objectives around trade facilitation, standards for the digital economy and technology, supply chain resiliency, decarbonization and clean energy, infrastructure, worker standards, and other areas of shared interest.
The IPEF is set to be launched by the leaders of participating countries when US President Joe Biden visits the region next week.
According to the DTI, the objectives of the said initiative are worth pursuing especially since it addresses inclusive growth, supply chain resilience, and digital trade, among others, which are key elements in crafting new generation economic partnership.