ASEAN Ministers Strengthen FTAs, Ratify Petrol Security Deal

ASEAN Economic Ministers Agree on Trade and Energy Measures

The economic ministers of the Association of Southeast Asian Nations (ASEAN) agreed on Thursday, April 30, to strengthen existing free trade agreements and ratify a regional petrol security deal amid the ongoing conflict in the Middle East, according to statements made by Philippines Trade Secretary Cristina Roque.

Strengthened Free Trade Agreements

ASEAN member states agreed to strengthen and accelerate several FTAs to reduce trade bottlenecks, according to Roque. The agreements targeted for strengthening include:

• ASEAN Trade in Goods Agreement
• ASEAN-China Free Trade Agreement 3.0
• ASEAN-Korea Free Trade Agreement
• ASEAN-Canada Free Trade Agreement

"In times of uncertainty, predictability is stability, and stability begins with keeping goods moving across borders," Roque said during a press conference.

Roque explained that strengthening these FTAs is vital since it allows member states to maintain preferential tariff rates within the bloc. "When we move our products or we trade within ASEAN, our tariffs, we get the preferential tariffs within ASEAN," she said.

Trade Secretary Cristina Roque speaks during a press conference on the ASEAN economic ministers' meeting on Thursday, April 30

Petroleum Security and Trade Restrictions

Among the priorities of the ASEAN economic ministers is the ratification of the ASEAN Petroleum Security Agreement (APSA). This agreement establishes a fuel-sharing scheme for crude oil and petroleum products among the bloc's member states during times of crises and supply disruptions.

Roque also said the regional bloc agreed to avoid restrictive trade measures, including export bans on essential goods.

Energy Connectivity and Regional Resilience

To ensure energy security in the region, Roque said that ASEAN will move "with greater urgency" on the ASEAN power grid, which aims to connect the grids of all 11 member states. Strengthening energy connectivity between the countries will allow the regional bloc to share resources more effectively and boost its resilience against external energy shocks such as the Middle East conflict, according to Roque.

ASEAN's economic chiefs also agreed to safeguard their energy supply for essential services such as healthcare, emergency systems, and critical care facilities.

Upcoming ASEAN Summit

The joint statement from the economic ministers will be submitted at the upcoming ASEAN Summit in Cebu on May 7 to 8, as input to the region's collective response to the Middle East conflict.