Countries should use WTO platform to resolve trade issues, problems: Anwar

Prime Minister Anwar Ibrahim strongly believes that trading countries should use the World Trade Organisation (WTO) platform to resolve trade issues and problems, including tariffs.

Anwar said this was Asean’s position whereby the pursuit of free trade should be done through mechanisms such as the Geneva-based global trade body and not unilaterally.

“If there are some adjustments or corrections to be made, we (Asean) can always make it,” he said, alluding to the fact that even thorny issues like tariffs could be deliberated upon through the WTO mechanism.

Nevertheless, “we (Asean), without exception express displeasure and disagreement with the unilateral decision by the United States” to impose the tariffs, he said.

“Countries should not resort to megaphone diplomacy,” the prime minister said in obvious reference to the US in response to questions by reporters at the 12th Asean Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) in Kuala Lumpur today.

Anwar, who is also the finance minister, stressed that the solution should be to engage more effectively together as Asean to persuade the US which is an economic superpower.

Malaysia is the current Asean chair.

“Now, prior to that we have got this sort of a (90-day) reprieve (which is a) temporary one. So, what we need to do is enhance trade, investments and collaboration in digital and energy sectors.

“There is a need to impress upon all countries including the US to respect rules-based order,” he said.

Strong economic fundamentals

Anwar, while delivering the closing remarks at the AFMGM, stressed the importance for Asean member states to ensure the economic fundamentals remain strong despite the sweeping US tariffs.

“At the same time, our position in Asean is to ensure that our relations, particularly with China, other than Japan, South Korea, and the neighbouring countries, remain strong and formidable. Why? Because we protect our domestic economy.

“The understanding of the macroeconomy, the financial situation, the currency, combined with the governor and finance minister, they are the peak, the pillar in any country. With your strength, you can strongly influence,” he said.

At the same time, the prime minister also touched on one of the priority economic deliverables (PEDs) being pushed forward at the 12th edition meeting, which is digital connectivity which is part of the digital economy.

The other two PEDs that the host also put on the tables are sustainable financing and inclusive development.

“And I think we (Asean) should come to specifics (engagement) in terms of digital connectivity, energy transition, cross-border trade as well as (to ease) customs (processes), utilising the capacity of industrial sectors where there is no point in our smaller economies competing and undercutting each other,” said Anwar.

Special leaders’ meeting

Malaysia is also working to set a date for the Special Leaders’ Meeting to discuss Asean’s way forward in addressing and mitigating potential disruptions to regional trade caused by the tariffs imposed by the US.

Anwar was responding to a question from the media on the Special Asean Leaders’ Meeting, which was announced by Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz, who chaired the Asean Economic Ministers’ (AEM) virtual meeting earlier today.

He said this after closing the AFMGM chaired by Finance Minister II Amir Hamzah Azizan.

To another question on whether Asean would file a complaint with the WTO over the decision by the US to impose unilateral tariffs on 168 countries, which also included the 10 Asean member states, Anwar said: “We are discussing it.”

- Bernama

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