Vientiane, September 19 (AseanAll)  — The Twentieth ASEAN Economic Ministers (AEM) – EU Trade Commissioner Consultation was held on 19 September 2024 in Vientiane,Laos. 

The Consultation was co-chaired by Malaithong KOMMASITH, Minister of Industry and Commerce of Lao PDR, and Ms. Maria Martin-Prat, Deputy-Director General, Directorate-General for Trade, European Commission, representing Valdis Dombrovskis, Executive Vice President for an Economy that Works for People and EU Trade Commissioner. The Meeting welcomed The participation of Filipus Nino Pereira, Minister of Commerce and Industry, Democratic Republic of Timor-Leste as an observer.

Based on ASEAN’s preliminary statistics, two-way merchandise trade between ASEAN and the EU stood at USD 279.7 billion in 2023 whilst foreign direct investment (FDI) inflow from the EU to ASEAN was recorded at USD 24.8 billion in the same year. These figures placed the EU as ASEAN’s third largest trading partner and also second largest source of foreign direct investment last year.

The Meeting exchanged views on regional and global economic challenges that could likely impact supply chain resilience in the region, such as climate change, industrial policies, inflationary pressures and heightened geopolitical tensions, among others. With regard to geopolitical tensions, the Meeting recalled paragraph 32 of the Joint Ministerial Statement of the 24th ASEAN-EU Ministerial Meeting of 2 February 2024. The Meeting underscored the importance of multilateralism, adherence to international law, and respect for sovereignty in contributing to global and regional peace, stability and prosperity and stressed the importance of deeper cooperation to navigate the challenging global environment. The Meeting reaffirmed both sides’ commitment to further enhance economic integration and cooperation, particularly in the areas of digital transformation and sustainability, to navigate these challenges and strengthen the supply chain resilience. 

The Meeting welcomed the progress of the implementation of the first year of the ASEAN-EU Trade and Investment Work Programme (TIWP) 2024-2025. The Meeting encouraged officials to maintain the positive momentum in ASEAN-EU economic cooperation on trade and investment, and to leverage on the existing economic cooperation projects to support the implementation of the ASEAN-EU TIWP 2024-2025. 

The Meeting welcomed the report of the ASEAN-EU Joint Working Group on Trade and Investment (JWG) Meeting and the recommendations contained therein on advancing ASEAN-EU cooperation on trade and investment. The Meeting looked forward to the implementation of the cooperation between ASEAN and the EU on digital trade to foster digital transformation in the region.

The Meeting welcomed the extension of the E-READI programme and noted the technical cooperation currently underway supported by the E-READI. The Meeting looked forward to the finalisation of the studies supported by E-READI.

The Meeting welcomed the EU-ASEAN Sustainable Connectivity Package - Trade (SCOPE Trade) and the EU-ASEAN Green Initiative. In this regard, the Meeting noted the EU-ASEAN Sustainable Connectivity Package – Trade (SCOPE Trade) focusing on three important trade-related pillars which drive economic connectivity in ASEAN and between ASEAN and the EU, i.e., trade policy environment, digital connectivity, sustainable and resilient value chains. The Meeting looked forward to the implementation of these Projects aimed to support ASEAN sectoral initiatives, including the Master Plan on ASEAN Connectivity 2025, the ASEAN Digital Masterplan 2025, the ongoing negotiations for an ASEAN Digital Economic Framework Agreement (DEFA), the ASEAN Strategy on Carbon Neutrality and the ASEAN Framework for Circular Economy, among others. 

The Meeting welcomed the outcome of the Thirteenth World Trade Organization (WTO) Ministerial Conference (MC13) held on 26 February – 2 March 2024 in Abu Dhabi, United Arab Emirates. The Meeting reaffirmed the MC13 deliverables including WTO Members’ commitment to WTO reform to strengthen the multilateral trading system, with the WTO at its core, to respond to current trade challenges. The Meeting took note of the WTO Members’ commitment to conduct discussions with a view to having a fully and well-functioning Dispute Settlement System accessible to all Members by 2024. The Meeting, in particular, welcomed the Ministerial Decision on the Accession of the Democratic Republic of Timor-Leste to the WTO Agreement. The Meeting acknowledged that Timor-Leste’s accession to the WTO is an important steppingstone for Timor-Leste’s accession to ASEAN. The Meeting was also pleased to note specific outcomes of the WTO MC13 that support the development dimension and the integration of developing countries, including least-developed countries (LDCs), into the multilateral trading system, the extension of the E-commerce Work Programme and the moratorium on customs duties on electronic transmissions as well as the acknowledgement of the need to further work on other remaining issues. 

The Meeting noted the relevant shared fundamental principles between the ASEAN Outlook on the Indo-Pacific (AOIP) and the EU Strategy for Cooperation in the Indo-Pacific of promoting an open, inclusive, transparent, and rules-based regional architecture in which ASEAN is central. The Meeting agreed to explore potential collaboration in the priority areas of the AOIP and the EU Strategy for Cooperation in the Indo-Pacific. 

The Meeting noted the recommendations made by the EU-ASEAN Business Council (EU-ABC), particularly in the areas of digital economy, sustainable development, including advancing a circular economy, and ASEAN economic integration. The Meeting acknowledged the importance of public-private engagement and expressed appreciation for EU-ABC’s continuous contribution to strengthening trade and investment ties between ASEAN and the EU.

The Meeting noted the progress in the implementation of the Roadmap for Timor-Leste’s Full Membership in ASEAN adopted at the 42nd ASEAN Summit. Encouraged by Timor-Leste’s commitment, the Meeting reaffirmed its support to continue providing capacity building and technical assistance to facilitate TimorLeste’s integration into the mainstream of ASEAN-EU economic relations. The Meeting also encouraged the Timor-Leste government to intensify efforts towards its accession to ASEAN.