(March 13): The Association of Southeast Asian Nations (Asean) said it will reinforce supply chains and keep trade flowing to ensure the region can weather the impact of the Middle East war on food, fuel and vital supplies.
“To mitigate the economic impact of the global and regional developments, including the situation in the Middle East, we remain committed to keeping the Asean market open for trade and investment, by maintaining a transparent and predictable regional economic architecture,” Asean economic ministers said in a joint statement during their meeting in Manila on Friday.
The bloc expressed concern about heightened volatility in global energy markets and the disruption of key maritime and supply chain routes. Freight, insurance and logistical costs are on the rise and will contribute to inflationary pressures on energy, food and other essential goods, it said.
“It will also impact economic security and stability, the livelihoods of millions of people in the region, and hinder economic progress in Asean,” the ministers said, adding that responses need to consider especially the needs of more vulnerable economies.
Earlier, the host country urged Asean to position itself as a safe haven for investment amid worsening global volatility.
“Let us ensure that Asean remains a region where investment is met with certainty and where cooperation creates genuine opportunity for our people,” Philippine Trade Secretary Cristina Roque said as the region’s economic ministers kicked off their meeting.
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Energy and financial markets worldwide have been upended with the Iran war in its second week. Southeast Asian nations, which are mostly reliant on imports for oil, are at risk of shortages, an inflation shock and currency volatility.
“Geopolitical tensions are no longer distant headlines. They are immediate economic shocks, they manifest in volatile energy markets, disrupted shipping lanes and shifting investor confidence,” Roque said. “Asean resilience is no longer aspiration, it is our primary shield.”
The Philippines is hosting the Asean Summit and related meetings this year. The Asean is a bloc of 11 nations, including some of the fastest-growing in the Asia-Pacific region, with a combined population of more than 600 million.
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