After exiting from EU, Britain has reached out to ASEAN on its own to forge stronger bilateral economic relations and to bolster recovery efforts amid the COVID-19 pandemic.
The first UK-ASEAN Economic Dialogue was held on 26 August 2020 with Liz Truss, Secretary of State for International Trade, co-chaired the Dialogue with the 2020 Chair of the ASEAN Economic Community Minister Tran Tuan Anh of Vietnam.
The virtual economic dialogue was attended by economic ministers and officials from the ten ASEAN member states as well as the ASEAN Secretary General Dato Lim Jock Hoi.
“We share deep concern over the COVID-19 pandemic, which has affected the lives of people as well as economies around the world. Our thoughts are with all those who have lost loved ones and are suffering from the long-term effects of the pandemic. We recognize the heroic efforts of healthcare and essential workers around the world,” read the joint UK-ASEAN Economic Dialogue statement.
Both parties acknowledged that the pandemic has triggered an unprecedented global health and economic crisis. Mitigating its economic impact requires solidarity and collaboration.
They both committed to working together to sustain and deepen the close economic ties between ASEAN and the UK; mitigate the economic impact of COVID- 19; strengthen economic resilience; and pursue sustainable economic growth that keeps markets open and transparent.
They also expressed to keep the longstanding economic relationship between ASEAN and the UK. Since the inception of ASEAN over half a century ago, economic relationship has grown deeper and broader. Bilateral trade in goods and services stands close to £42bn. “We are determined to build on this partnership and explore opportunities for collaboration that support job creation and connectivity,” the statement added.
Both also reaffirmed their commitment to free trade within the international rules-based system, noting that this is vital to economic recovery and future growth.
“We share the desire to ensure that the WTO is forward looking, reformed, and fit to tackle 21st century trade challenges. We look forward to working together to make progress on these matters ahead of the 12th WTO Ministerial Conference,” it added.
As the pandemic disrupted supply chains, particularly for essential goods, including food, medicines, medical devices and equipment, and other related products, both parties recognized the Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic.
The plan calls for the strengthening of the supply chain connectivity, including diversification, is key to a resilient economic recovery that safeguards against future shocks. We will work together to strengthen ASEAN-UK supply chains by assessing the resilience of trade between ASEAN and UK firms and identifying ways to further strengthen these supply chains.
With that, both parties said that ensuring digital innovation is a central pillar of our recovery from COVID-19. The UK will deepen its digital partnership with ASEAN through its Digital Trade Network and by funding a new UK-ASEAN Digital Business Challenge, exploring how tech Micro, Small and Medium Enterprises (MSMEs) can deliver solutions to tough business challenges.
The parties also recognized the significant contribution of public-private sector partnership and to work closely with these private sector groups to facilitate trade between parties, within ASEAN and beyond.
The UK also committed to supporting ASEAN with a science-based clean recovery that will create employment in the industries of the future while addressing public health challenges. This includes providing technical assistance to develop green financial systems and energy efficiency across the region through the £15m Prosperity Fund ASEAN Low Carbon Energy Programme and £12m global Green Recovery Challenge Fund.
UK noted that the Masterplan on ASEAN Connectivity 2025 provides the ASEAN-led framework for much of cooperation. To this end, the £19m UK Prosperity Fund ASEAN Economic Reform Programme, launched with Secretary General Dato Lim Jock Hoi in London in January 2019, has a number of strands in line with the objectives in the Masterplan on ASEAN Connectivity 2025, particularly on digital innovation, seamless logistics and regulatory excellence. The UK will collaborate with ASEAN to deliver resilient and complex infrastructure projects that boost connectivity in the region.