THE Department of Trade and Industry (DTI) said it called on fellow members of the Association of Southeast Asian Nations (ASEAN) to maintain open trade flows and turn away from protectionism inspired by the disruptions roiling global markets.
“Any proposal or initiatives that would derail, disrupt the flow of trade, deserves a lot of circumspection and analysis,” Trade Undersecretary Allan B. Gepty said during a briefing accompanying the ASEAN Economic Community Council in Cebu on Wednesday.
“It’s very important that we stick to the rules-based trading system,” he said.
Indonesian Finance Minister Purbaya Yudhi Sadewa recently brought up the possibility of imposing tolls on ships transiting the Malacca Strait, Reuters reported.
Mr. Sadewa, however, clarified last week that Indonesia has no plans to impose such a levy.
“It’s very important that we have to keep always the market open for trade and investment and avoid any unnecessary restrictions in (regional) trade,” Mr. Gepty said.
The Malacca Strait, a 900-kilometer waterway between Sumatra and Peninsular Malaysia which connects the Indian Ocean and the South China Sea, is used by cargo ships carrying about 25% of global trade and 35% of seaborne oil.
The Philippines chairs ASEAN this year. The bloc is convening for high-level dialogues in Manila and Cebu focused on food and energy security.
The region’s priority economic deliverables this year, include plans to link up power grids; finalize a free trade agreement with Canada; and strengthen investment in regenerative agriculture, digital economy, and digital payments.
The 11-member ASEAN is composed of the Philippines, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam, and Timor-Leste. — Beatriz Marie D. Cruz
