ASEAN Agrees to Avoid ‘Unnecessary’ Trade Barriers as Iran Crisis Stings
Jakarta. ASEAN nations have reminded one another not to impose unnecessary trade barriers as they navigate the economic strain caused by the prolonged US–Israel war against Iran.
During a teleconference on Thursday, ASEAN economic ministers addressed the implications of the current conflict, preferring the term ‘the situation in the Middle East’ to ‘war'.
However, they acknowledged that the recent developments are “increasingly affecting” ASEAN peoples and businesses, including small businesses, and raised concern that the fighting would deal a significant blow to the region’s overall economic growth. The members stated that they would understand if one of them had to impose emergency measures to protect their small businesses and vulnerable sectors.
“These measures should be targeted, proportionate, transparent, temporary, and should not create unnecessary barriers to trade,” the 15-point joint statement published after the meeting reads.
Any upcoming policy must also be consistent with the rules set by ASEAN and the World Trade Organization (WTO). The 11-strong economic bloc also promised to “refrain from introducing unnecessary non-tariff measures and other trade-distortive measures” on food, energy, other essential goods, as well as their associated inputs during the crisis.
ASEAN repeated calls for freedom of navigation as some of its vessels are unable to exit the Strait of Hormuz, the vital oil chokepoint off Iran’s coast, which Tehran has effectively blocked throughout the war.
Indonesia’s chief economic minister Airlangga Hartarto told the forum that the group needed to take advantage of the ASEAN Single Window, a regionwide digital platform that allows the electronic exchange of trade-related documents.
“Efforts [to build the supply chain] must be backed with trade facilitation, including by making the best use of the ASEAN Single Window, to ensure a smooth flow of goods and safeguard the region’s competitiveness,” Airlangga said.
Amid commitments to seamless trade, the Indonesian government earlier in the day introduced import restrictions on some agricultural commodities.
Feed wheat, mung beans, and pears, among others, are now subject to tougher administrative requirements, as they must earn a government-issued technical recommendation and permit.
Trade Minister Budi Santoso said that the move aimed to “protect prices for domestic producers”.
The Asian Development Bank (ADB) projects that ASEAN will expand by 4.6% in 2026 and 2027. Its growth outlook for Indonesia reaches 5.2%, also for both years.
ASEAN chair, the Philippines, has invited President Prabowo Subianto to the upcoming Cebu leaders’ summit next week to discuss economic stability and energy security.
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