The Philippines is pushing for deeper cooperation between the Association of Southeast Asian Nations (ASEAN), New Zealand and Australia, amid global trade shifts.

Trade Undersecretary Allan Gepty said that while the global environment already evolved, ASEAN’s economic partnership with New Zealand and Australia continued to strengthen.

“Over the decades, our economies have evolved. The global trading environment has changed, and new challenges and opportunities have emerged,” Gepty said in his opening remarks at the ASEAN Economic Ministers-Closer Economic Relations (CER) Consultation held at the Philippine International Convention Center in Pasay City on Monday.

“Yet, ASEAN, Australia and New Zealand have continued to strengthen our economic partnership and adapt our cooperation to changing circumstances.”

The total two-way trade between ASEAN and Australia reached USD136.6 billion in 2025, based on Australia’s data.

Two-way trade between ASEAN and New Zealand, on the other hand, stood at USD17.3 billion in 2025, based on New Zealand’s data.

Foreign direct investment (FDI) inflows from Australia to ASEAN were recorded at USD1.4 billion, while FDI inflows from New Zealand to ASEAN amounted to USD 119,2 million in the same year, based on ASEAN’s preliminary statistics.

Gepty said this reflects stronger investment in the supply chain and opportunities for entrepreneurs, workers and communities across economies.

However, the global economic environment continues to evolve rapidly.

“Trade and investment patterns are shifting. Technology is reaching new markets. Our businesses are growing. Supply chains are being tested. At the same time, businesses, particularly MSMEs (micro, small and medium enterprises), are being asked to adapt more quickly and compete in a new digital and interdisciplinary environment,” he added.

Gepty cited the need to make sure that cooperation remains responsive to current challenges.

He added the CER provides an opportunity to strengthen the ASEAN-Australia-New Zealand Free Trade Area, a comprehensive trade and investment agreement that reduces tariffs and enhances certainty for businesses by providing stable and predictable conditions for investors.

“We should also advance our cooperation in areas where ASEAN, Australia and New Zealand can make a practical difference, facilitating digital trade and a digital economy, helping MSMEs participate more actively in regional and global value chains, strengthening supply chain resilience, and supporting sustainable and inclusive growth,” Gepty said.

“At the same time, as the global trading environment becomes more complex, our partnership can provide a platform for closer dialogue and coordination on emerging economic issues.”

In a joint statement, economic ministers from ASEAN, New Zealand, and Australia said that during the CER, they also discussed the importance of the Regional Trade for Development (RT4D) initiative in delivering tailored technical assistance to support ASEAN Member States in implementing the AANZFTA.

The ministers said the current phase of the RT4D initiative is scheduled to conclude in June 2028, with the substantial implementation of new and ongoing projects expected to be completed by December 2027.

Furthermore, the economic ministers highlighted the importance of the Aus4ASEAN Futures Initiative in advancing ASEAN’s digital economic integration. This includes support for the ASEAN Digital Economy Framework Agreement (DEFA), digital trade standards, tariff tools, and digital skills.

They also recognized the transformative impact of the digital economy on the region and welcomed the conclusion of negotiations on the ASEAN DEFA.

The meeting also underscored the importance of increasing regional cooperation to strengthen energy security and support regional economic resilience.

Additionally, the participants called for the urgent delivery of meaningful and comprehensive World Trade Organization (WTO) reforms to improve all of its functions, including the dispute settlement system, and to equip the organization with the tools necessary to address the realities of today’s global economy.

Economic ministers likewise welcomed Timor-Leste’s accession as the 11th Member State of ASEAN and looked forward to its closer engagement in ASEAN-Australia-New Zealand meetings and economic cooperation mechanisms. (PNA)