Asean will not retaliate with tariffs, urges US & China to 'address their differences'

While Asean will not impose any retaliatory measures in response to the U.S. tariffs, it still hopes for constructive dialogue with the U.S. to address concerns and explore cooperation.

The 10-member trade bloc also urged the U.S. and China to "address their differences through constructive engagement and dialogue".

In the meantime, member states will discuss ways to strengthen and boost intra-Asean trade and investment.

"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," the bloc said in an Apr. 10 joint statement.

The statement was put out after a special Asean meeting on Apr. 10, and accompanied a same-day press release by Singapore's Ministry of Trade and Industry (MTI).

Predictable, transparent, non-discriminatory

Attended by economic ministers from the 10 Asean member states, including Deputy Prime Minister Gan Kim Yong, the meeting was convened to discuss the impact of Trump's recent tariff announcement on the region.

Member states agreed to establish a regional taskforce to follow through on potential strategies to safeguard Asean's trade and investment interests.

It also reaffirmed its commitment to a "predictable, transparent, non-discriminatory, and open regional economic environment".

Calling the situation a "trade war", Gan said the current situation bears a profound impact on Singapore and the entire Asean region.

As Singapore continues to pursue constructive dialogue with the U.S., it will "continue to work closely with Asean member states to double down on regional economic integration", he said.

Frank and constructive dialogue

In its joint statement, Asean said it regards the U.S. as a "longstanding and valued economic partner of Asean".

It added that it remains ready to work together with the U.S. to explore "mutually acceptable solutions on issues of common interest".

The trade bloc also reaffirmed its support for a global trading system with the World Trade Organisation at its core, and called for the WTO  to step in as a forum for dialogue.

Previously, PM Lawrence Wong acknowledged in parliament the importance of the WTO system, once anchored by the U.S., which "ushered in decades of global growth and stability".

While this system is indeed in need of reform, the U.S. is not pursuing reform, but "rejecting the very system it created", he said.

"The U.S. may have decided to turn protectionist. But the rest of the world does not have to follow the same path," he added.

"We will forge closer links with like-minded partners who share our commitment to open and free trade... we will identify other partners to join us and work around this.

To ensure resilience and maintain critical parts of the multilateral system, while laying the foundations for a possible new and different global system that can be achievable later."

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Top image from Asean's website and Gan Kim Yong/Facebook