Vientiane, September 20 (AseanAll) — The ASEAN Economic Ministers (AEM) – United States Trade Representative (AEM-USTR) Consultation was held on 20 September 2024 in Vientiane, Lao PDR.
The Consultation was cochaired by Malaithong KOMMASITH, Minister of Industry and Commerce of Lao PDR, and Ms. Sarah ELLERMAN, Assistant United States Trade Representative for Southeast Asia and the Pacific, representing Katherine Tai, United States Trade Representative, United States of America (U.S.). The Meeting welcomed the participation of Filipus Nino Pereira, Minister of Commerce and Industry, Democratic Republic of Timor-Leste as an observer.
The Meeting noted that according to ASEAN’s preliminary statistics, the total two-way merchandise trade reached USD 395.9 billion in 2023. The inflow of foreign direct investment (FDI) from the United States into ASEAN was at USD 74.3 billion in 2023. The United States remains ASEAN’s largest source of foreign direct investment and ASEAN’s second largest trading partner.
The Meeting exchanged views on regional and global economic challenges that could likely impact supply chain resiliency in the region, such as climate change, inflationary pressures, and heightened geopolitical tensions, among others. The Meeting reaffirmed its commitment to further enhance economic integration and cooperation, particularly in the areas of digital transformation and sustainability, to navigate these challenges and strengthen supply chain resiliency.
The Meeting welcomed the implementation of the 2023-2024 ASEAN-U.S. Trade and Investment Framework Arrangement (TIFA) and Expanded Economic Engagement (E3) Work Plan, which delivered good outcomes in the areas of digital economy, Micro, Small, and Medium Enterprises (MSMEs) development, trade facilitation, intellectual property rights, sustainability, good regulatory practices, labour, and agriculture. The Meeting continued to reaffirm its commitments for stronger economic ties through the endorsement of the 2024-2025 ASEAN-U.S. TIFA and E3 Work Plan, building on the success of the existing cooperation.
The Meeting expressed its appreciation to the U.S. for its ongoing support including through the Regional Development Cooperation Agreement (RDCA) which has been extended through 2029. The RDCA covers USAID’s technical assistance programmes, such as the “Inclusive Growth in ASEAN through Innovation, Trade, and E-Commerce (IGNITE)”, which concluded in the first quarter of 2024. The Meeting looked forward to the effective and tangible outcomes of the activities over the next five years including the recent sponsorship of the ASEAN Secretary General’s June 2024 Working Visit to the United States and support for a study to prepare for a New Generation of ASEAN Single Window.
The Meeting acknowledged the successful conclusion 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 noted the outcomes of the MC13 and WTO Members’ resolve to preserve and strengthen the ability of the multilateral trading system, with the WTO at its core, to provide meaningful impetus to respond to current trade challenges, take advantage of available opportunities, and ensure the WTO’s proper functioning. 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 stepping stone for Timor-Leste’s accession to ASEAN. The Meeting was also pleased to note that WTO Ministers reiterated the centrality of the development dimension in the work of the WTO.
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-United States economic relations. The Meeting also encouraged the Timor-Leste government to intensify efforts towards its accession to ASEAN.
The Meeting noted the US-ASEAN Business Council (USABC)’s recommendations and appreciated its proactive engagements with various ASEAN Sectoral Bodies and ASEAN Member States to strengthen the U.S.-ASEAN trade partnership. The Meeting acknowledged USABC’s support in promoting key trade initiatives, including the negotiations for ASEAN’s Digital Economy Framework Agreement (DEFA). The Meeting recognized the U.S. business community’s commitment to empower MSMEs in ASEAN through capacity building initiatives and collaboration with partners. The Meeting underscored the importance of fostering dialogue with the U.S. business community and encouraged USABC to coordinate with relevant Sectoral Bodies to further accelerate the region’s transition towards a more digitally-enabled, inclusive, sustainable, and resilient economy.
