Urges co-creation of resilient regional supply chains
PRESIDENT Ferdinand Marcos Jr. on Tuesday called for stronger trade relations between the Association of Southeast Asian Nations (Asean) and the Gulf Cooperation Council (GCC), citing the need to move beyond current limited and traditional trade patterns.
The Philippines will take its turn to lead the Asean as chair next year.
During the 2nd Asean–GCC Summit in Kuala Lumpur in Malaysia, the president said the two regional blocs could “co-create resilient supply chains, sustainable energy solutions, and innovation-driven ecosystems.”
“We are two dynamic regions, rich in natural and human capital, bound by shared aspirations for prosperity and sustainable development,” the president said.
“While there is strong potential, it is also clear that our current trade patterns remain limited in scope and concentrated in a narrow band of sectors,” he said.
“To unlock the full promise of our partnership, we must go beyond traditional trade and leverage our complementary strengths,” Marcos added.
Established in 1967, the 10-member Asean bloc aims to promote economic and security cooperation among its members. It counts Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam as members.
GCC is a regional organization composed of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The council aims to deepen and strengthen existing ties, connections, and cooperation among Arab nations.
Rapid digital economy growth
He described Asean region as a “rapidly growing digital economy with a youthful, tech-savvy population.”
The possible areas of collaboration between the Asean and GCC are halal trade, e-commerce and digital trade, the president said.
Combining Asean’s diverse halal food industry and GCC’s established halal consumer base and certification systems, would result in a “seamless, trusted halal value chain,” he said.
“Establishing a more mutually recognized halal certification regime will enhance trust, reduce regulatory friction, and create a powerful export platform for our MSMEs (micro, small and medium enterprises) and our youthful producers,” he added.
A Digital Economy Framework Agreement is also now in the works, which is supposed to increase engagement between Asean and GCC in advancing interoperable digital standards, same-tech collaboration, emerging technologies, and cross-border e-commerce platforms.
“This is particularly timely as global trade increasingly shifts online and new trade corridors are being shaped by the new technologies,” Marcos said.
Important region
“The GCC is an important region for the Philippines on the aspect of labor mobility,” he said.
With more than 2.7 million citizens from Asean member states, including the more than 2 million overseas Filipino workers who live and work in GCC countries, the president noted it is important for the two regional blocs to have people-to-people engagement.
He said the overseas workers contribute significantly not only to the economies of their host countries but also to those in the Philippines and the wider Asean region.
As such, there is a need to provide more upskilling opportunities and ensure the protection and promotion of the workers’ rights and their welfare, Marcos said.
Support climate financing
Marcos reiterated his call for the rich nations to support climate financing as “climate change remains one of the most defining challenges of our time.”
“Both our regions are climate-vulnerable. Our populations face significant climate-related risks, such as sea level rise, rising temperatures, desertification, and loss of biodiversity, amongst others,” the president said.
As host of the Fund for Responding to Loss and Damage, or FRLD, “the Philippines would like to encourage contributions to that fund,” he added.
As the current host nation for FRLD, the Philippines intends to accelerate the unhindered access of developing nations to climate finance.
This access is expected to help them develop and implement transformative and science-based strategies and initiatives for climate change adaptation, mitigation, and disaster risk management, towards ensuring sustainable and inclusive growth for all.
Greater political will
Prior to the Asean-GCC meeting, the president presided over the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) Summit.
During the summit, Marcos called for greater political will among the BIMP-EAGA member countries.
The Philippines chairs the BIMP-EAGA this year, and is affirming its shared vision towards a prosperous BIMP-EAGA.
“The path ahead calls for even greater synergy, innovation and political will. I am confident that through our cooperation, we can continue to transform these aspirations that we have held into lasting impacts for our people,” he said.
The BIMP-EAGA was formed in 1994 to boost growth in trade, investments, and tourism by way of new intra-regional shipping routes and air links, as well as power interconnection projects.
Elevating strategic partnership
During separate meetings on the sidelines of the 46th Asean Summit on Monday, the Philippines vowed to strengthen its trade and investment ties, as well as cooperation with Vietnam, Laos and Thailand.
In his meeting with Vietnamese Prime Minister Pham Minh Chinh, Marcos discussed the elevation of their countries’ partnership into a “comprehensive strategic partnership,” the Presidential Communications Office (PCO) said.
They also talked about expanding economic and trade cooperation and strengthening collaboration in agriculture and food security, as well as enhancing people-to-people exchanges in education, tourism, and cultural engagement.
Marcos in his meeting with Lao People’s Democratic Republic (PDR) Prime Minister Sonexay Siphandone tackled defense, economic, and education cooperation between Manila and Vientiane.
The prime minister acknowledged the contribution of OFWs in their country, particularly in architecture and language training.
In his first meeting with Thai Prime Minister Paetongtarn Shinawatra, Marcos talked of working together for stronger trade, wider agricultural cooperation, and closer cooperation to combat transnational crime between the Philippines and Thailand.
