By Wang JIA JUN
File photo: ASEAN member flags at the ASEAN Secretariat in Jakarta, December 12, 2010. Photo: Gunawan Kartapranata / Wikimedia Commons, CC BY-SA 3.0. Original image; displayed at web size.
Japan and the Association of Southeast Asian Nations (ASEAN) agreed Sunday to begin work on revising their Economic Partnership Agreement (EPA), as economic ministers from Japan and ASEAN member states met in Manila, the Philippines.
The two sides will launch a joint study to examine possible revisions to the existing agreement. The Japan-ASEAN EPA took effect in 2008 and was revised in 2019 to cover areas including trade in services and investment.
A Japanese government negotiating official said the two sides agreed that another review is necessary in light of changes in the global economy, including supply chain disruptions caused by the COVID-19 pandemic and the rapid development of artificial intelligence (AI) and digital technologies.
The joint study is expected to examine areas that could be updated under the agreement, including supply chain resilience, investment, services and emerging technologies. The move reflects efforts by Japan and ASEAN to strengthen economic ties amid growing uncertainty in the global economy.
The ministers also discussed measures to secure oil supplies during emergencies. Japan reiterated its support for ASEAN countries in developing and strengthening their oil stockpiling systems to prepare for potential disruptions and volatility in global energy markets.
Japanese Economy, Trade and Industry Minister Ryosei Akazawa said in his remarks that, amid growing uncertainty around the world, now is the time for Japan and ASEAN to work together and turn challenges into opportunities.
Philippine Trade and Industry Secretary Maria Cristina Roque, whose country holds the ASEAN chair this year, also stressed the importance of closer cooperation, saying that collaboration is becoming increasingly important as the international environment changes.
Japan and ASEAN have maintained close trade and investment ties for decades, with Southeast Asia playing an important role in Japanese companies’ regional supply chains and overseas operations. The planned review of the EPA is expected to provide an opportunity for both sides to further strengthen their economic relationship and adapt existing rules to a changing global economy.
The specific areas and contents of the EPA revisions will be determined through the joint study and subsequent negotiations.
Originally published by Wang JIA JUN in Asia Horizon Review on Medium.