Southeast Asian nations alongside China, Japan, and South Korea reaffirmed their commitment to multilateralism and warned against rising protectionism amid heightened global trade tensions, according to a joint statement from a recent meeting of finance ministers and central bankers in Italy.

The 28th Asean+3 Finance Ministers’ and Central Bank Governors’ Meeting took place in Milan on May 4, co-hosted by People’s Bank of China governor Pan Gongsheng, Chinese finance minister Lan Fo’an, and a number of high-level Malaysian officials. Leaders of international organizations, including the Asian Development Bank and the International Monetary Fund, also attended the event.

This comes as the region’s economic outlook, following growth of more than 4 percent in the past two years, is being threatened by heightened uncertainties, the nations said in a joint statement. This escalation in trade protectionism may also result in tighter global financial conditions, slower growth in major trading partners, and reduced investment flows.

Besides the commitment to multilateralism, the key economies in Asia reiterated their support for “a rules-based, non-discriminatory, free, fair, open, inclusive, equitable, and transparent multilateral trading system.”

The countries involved also pledged to enhance macroeconomic policy dialogue, promote financial cooperation, and “ensure stable and unimpeded industrial and supply chains,” with an aim to jointly safeguard regional economic and financial stability.

Calling for cemented regional unity and cooperation to ride heightened uncertainties, the Asian nations promised to maintain exchange rate flexibility as a buffer.

China vowed to stick to opening up its market and work with Southeast Asian countries, Japan, and South Korea to maintain the region’s stability and certainty, said Lan.

Earlier, Lan had said that China has a “relatively large” room for increasing debts and ample fiscal policy tools to navigate the external shocks, according to an article published in a party magazine Qiushi last week.

STAFF REPORTER

Asian nations vow to uphold multilateralism amid trade tensions