ASEAN leaders push for RCEP to shield region from protectionism

Leaders of the Association of Southeast Asian Nations (ASEAN) emphasized the importance of having a free trade agreement (FTA) among the 10-member states and the six dialogue-partner countries to shield the region from potential protectionist policies.

In the final ASEAN Chairman’s Statement released on Sunday, leaders agreed to cooperate towards the "swift" conclusion of the Regional Comprehensive Economic Partnership (RCEP) negotiations.

"We emphasized that the sluggish economic environment and trends towards protectionism increases the need to achieve a modern, comprehensive, high-quality and mutually beneficial RCEP Agreement, which has the potential to boost global economic growth, deepen regional economic integration and facilitate equitable economic development for all RCEP Participating Countries (RPCs)," the statement read.

US President Donald Trump has been reported to have indicated his administration would lean towards protectionism, and bringing back business to America, the world's largest economy.

The RCEP, which was launched in November 2012, aims to create a free trade agreement among 10 ASEAN members and its dialogue partners.

ASEAN counts Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam as members. Dialogue partners China, India, Japan, South Korea, Australia and New Zealand have existing FTAs with the regional bloc.

The original deadline for RCEP negotiations was set in 2015, but was extended to 2016, only nothing was finalized.

ASEAN leaders have instructed their respective ministers and negotiators to "redouble efforts building on the good momentum achieved thus far and reiterated our call to uphold ASEAN Centrality in finding resolutions to outstanding issues toward balanced outcomes."

"We reiterated our commitment to work together in a cooperative manner in line with the Guiding Principles and Objectives for Negotiating the RCEP towards the swift conclusion of the RCEP negotiations," the chairman's statement said.

Trade Secretary and ASEAN Economic Ministers chair Ramon Lopez Ramon Lopez told GMA News Online the RCEP discussions are now at the technical working group level.

"(We) are trying to reach conclusion on the parameters or principles," Lopez said.

The parameters cover the products and services with lower or zero tariff rates that will be placed under the partnership deal once the RCEP is in place.

The Trade chief earlier said he expected the ASEAN economic ministers to conclude talks on RCEP during this year's ASEAN Summit.

RCEP will link ASEAN—a market of more than 625 million people—to its dialogue partners and create an even bigger market of 1.3 billion.

Other FTAs

ASEAN leaders also welcomed other trade liberalization developments in the region with their dialogue partners.

"We welcomed the efforts made to enhance our ASEAN Plus One Free Trade Agreements. We noted the good progress in the negotiations of the ASEAN-Hong Kong, China FTA towards the targeted conclusion within the year," the statement said.

"We also welcomed the launch of formal region-to-region talks on a framework setting out the parameters of a future Free Trade Agreement between ASEAN and the European Union," it added.

The statement noted that Southeast Asian leaders welcomed the progress made in the realization of ASEAN roll-on, roll-off shipping network, particularly the maiden voyage of the sea linkage route between Davao–General Santos–Bitung, Indonesia.

The route will be launched Sunday, April 30, at the Kudos Port in Davao City, and is among the economic priority deliverables under the Philippines’ ASEAN Chairmanship.

"The initiative would enhance the connectivity of archipelagic ASEAN and further facilitate trade and tourism, as well as provide greater impetus to the implementation of multimodal transport in the ASEAN region,” the statement said.

ASEAN leaders further welcomed a stronger regional economic cooperation with their dialogue partners through the renewed ASEAN-Japan 10-year Strategic Economic Partnership Roadmap, the implementation of US-ASEAN Connect, the 2016-2020 Work Plan implementing the ASEAN-Canada Joint Declaration on Trade and Investment, the Post-2015 ASEAN-Russia Trade and Investment Cooperation Work Program and the 2017-2018 ASEAN-EU Trade and Investment Work Program. — VDS, GMA News