In a move to brace their economic fortresses against the stormy seas of global unpredictability, ASEAN ministers have pledged to join hands with their prime trading allies. According to Commerce Minister Pichai Naripthaphan, they are determined to bolster economic collaborations amidst tribulations like the looming US tariffs.
Yesterday, a lively teleconference buzzed with discussions, uniting ASEAN economic ministers with their counterparts from China, Japan, Australia, and New Zealand. This virtual conclave coincided with a vibrant ASEAN Economic Community Council meeting nestled in the bustling heart of Kuala Lumpur.
The ministers, with a fierce gaze on the future, underscored the critical necessity for ASEAN and its partners to bolster a multilateral trading system. A system rooted in the principles of predictability, transparency, and freedom dovetails perfectly with the core framework provided by the World Trade Organization. It’s like setting the sails for a fair and inclusive trade journey, promising sustainability for all.
Against this backdrop, reverberating calls for ASEAN and its partners to deepen their trade and investment bonds were heard. Minister Pichai emphasized leveraging existing economic agreements as lifeboats against economic uncertainties, to cushion the impact on trade, investment, and regional economies. Thailand and ASEAN are poised to lean into their collaborative strengths, ready to milk their trade agreements for all their worth.
Homing in on China, ASEAN’s relationship is set for a grand upgrade through the ASEAN-China Free Trade Agreement. The ministers are energetically working toward an enhanced version, eagerly anticipating signatures before the year’s end. This upgrade promises a treasure trove of opportunities in cutting-edge sectors such as the digital economy, a burgeoning green economy, and improved supply chain connectivity.
Furthermore, in strategic moves with Japan, Thailand has pitched expanding collaboration in the semiconductor sector. This plan aims to position the ASEAN bloc as a key cog in the manufacturing wheel, ultimately integrating into Japan’s supply chain.
Meanwhile, deliberations with Australia and New Zealand, ASEAN’s sixth and tenth largest trading partners, centered on quickening the pace for implementing the reimagined ASEAN-Australia-New Zealand Free Trade Agreement. The focus here dances around modern themes like the circular economy, green initiatives, blue economy, renewable energy, and the ever-booming e-commerce.
The latest trade stats unveil an exciting narrative. In 2024, China retained its title as ASEAN’s top trading partner, with a substantial trade surplus, clocking in at a whopping US$770.94 billion—a solid 10% uptick compared to the previous year, constituting a hefty 19% of ASEAN’s global trade pie. ASEAN’s exports to China gracefully hit $290.8 billion, showcasing a modest 1.2% bump, while imports from China showed a robust leap of 17.2%, towering at $480 billion.
Next on the leaderboard, Japan shines as ASEAN’s third-largest trading partner, with a bilateral trade spectacle reaching $235.1 billion. ASEAN exported $119.6 billion to Japan, closely hugging the $115.4 billion it imported.
As for the Land Down Under and the Kiwis, trade with Australia hit $94.4 billion, sliced into $51.9 billion in exports and $42.4 billion in imports. Meanwhile, trade with New Zealand reached a respectable $11.9 billion, marked by $7.1 billion in exports against $4.7 billion in imports.
As ASEAN and its companions continue to navigate these tumultuous economic waters, their united front promises not just resilience but renewed prosperity in the ever-evolving saga of global trade.
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