ASEAN TO ENGAGE IN FRANK AND CONSTRUCTIVE DIALOGUE WITH US ON TARIFFS, SAYS IT WILL NOT RETALIATE

KUALA LUMPUR, April 10 (Bernama) -- ASEAN will engage in a frank and constructive dialogue with the United States (US) to address trade-related concerns after Washington imposed tariffs on 168 countries including all members of the Southeast Asian grouping.

However, on April 9, US President Donald Trump announced he had paused higher reciprocal tariffs for three months, except for China.

In a joint statement issued after a special ASEAN Economic Ministers (AEM) meeting today, the ministers declared that the grouping would not impose any retaliatory measures in response to the US tariffs announcement.

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The virtual meeting was chaired by Malaysia’s Minister of Investment, Trade and Industry, Tengku Datuk Seri Zafrul Abdul Aziz.

The tariffs announced on April 2 which roiled global markets and the recent suspension has caused immense uncertainty.

They said that the import levies would bring significant challenges to businesses, especially micro, small and medium enterprises (MSMEs) as well as to global trade dynamics.

“Open communication and collaboration will be crucial to ensuring a balanced and sustainable relationship,” the ministers said, taking into cognisance that the US is ASEAN’s largest source of foreign direct investments (FDI) in 2024 and the grouping’s second-largest trading partner.

As a Comprehensive Strategic Partner (CSP) of ASEAN, for more than four decades, the US has played a significant role in fostering ASEAN-centred regional architecture, AEM said.

The ministers said this promotes peace, stability, economic growth, investment, and trade in the region which has benefitted both America and the region, which is the fifth-largest economy in the world.

“We regard the US as a longstanding and valued economic partner of ASEAN,” the ministers said. They added that the tariffs would disrupt regional and global trade and investment flows, as well as supply chains, affecting businesses and consumers worldwide, including those of the US. 

It will also impact economic security and stability, affect livelihoods of millions of people in the region, and hinder economic progress in ASEAN, particularly less-developed economies, and the long-standing ASEAN-US economic and trade relationship. 

The ministers said the grouping remains committed to safeguarding ASEAN’s economic interests as well as maintaining strong and mutually beneficial trade relations with the US. 

The ministers also said they were ready to work together with the US under the ASEAN-US Trade and Investment Framework Agreement (TIFA) and Expanded Economic Engagement (E3) Workplan, to explore mutually acceptable solutions on issues of common interest. 

These include facilitating two-way trade and investment, deepening strategic trade partnerships, and enhancing supply chain connectivity and resilience through digital technology and innovation that can promote stronger regional cooperation. 

“ASEAN believes that an enhanced, robust and forward-looking ASEAN-US economic cooperation framework will contribute to the prosperity of our people and the broader global economy,” they said.

Such a framework would strengthen constructive engagement, foster regional supply chains and drive innovative initiatives to ensure a resilient, secure, stable, and mutually-beneficial economic relationship.

This cooperative spirit would particularly benefit high-value sectors, including digital services and knowledge-based industries, food, agriculture and forestry, green technology and renewable energy, advanced manufacturing and electronics, garment and footwear, travel goods, healthcare and biotechnology, and transport products and equipment. 

Rather than the uncertainty due to the tariffs, AEM said they supported a predictable, transparent, free, fair, inclusive, sustainable and rules-based multilateral trading system with the World Trade Organisation (WTO) which has played a critical role in fostering global economic growth. 

ASEAN supports the recent statements by Dr. Ngozi Okonjo-Iweala, Director-General of the WTO, which highlights that the US’s tariffs will have substantial implications for global trade and economic growth prospects, especially the Least Developed Countries (LDCs).

AEM said that ASEAN “encourages the WTO to serve as a forum for dialogue to help prevent escalating trade conflict and to utilise the WTO for constructive engagement and to seek cooperative solutions.”

The ministers also said that ASEAN would remain steadfast in deepening regional economic integration, capturing opportunities amidst global challenges and maintaining a predictable, transparent, non-discriminatory, fair, inclusive, and open regional economic environment which has underpinned growth in regional trade and development. 

“We will also strengthen and expand our economic links with ASEAN’s external partners, including our Dialogue Partners, and seek out opportunities for economic cooperation with new partners,” they said. “In this context, as a group, we will continue to discuss ways on how to further strengthen and boost intra-ASEAN trade and investment within the region. 

“Therefore, this will send a strong signal of our commitment and resolute to advancing regional economic integration.”

In response to the economic repercussions that may arise, AEM will continue to work together more closely, with greater unity and solidarity and remain committed to ASEAN’s rule-based trade. 

“This collective effort will enable ASEAN to cope with and overcome the global trade crisis, minimise the impact on our people, and continue to grow sustainably,” AEM said.

-- BERNAMA