The 8th East Asia Summit Economic Ministers’ Meeting (EAS-EMM) was recently virtually attended by 10 ASEAN members and eight other countries such as India, the USA, and China. The key focus of the summit was to stress upon strengthening the regional supply chains and make them resilient amidst the heightened challenges posed by the Covid-19 pandemic for economic growth. Japan has recently proposed the Supply Chain Resilience Initiative (SCRI) with India and Australia as the key-partners.
Highlights from the Joint Statement
The joint statement issued at the end of the EAS-EMM highlighted some critical points. The necessity of implementing any trade-restrictive emergency measures should solely be for addressing the impact of Covid-19. These measures should meet the conditions of being targeted, proportionate, transparent, temporary, and consistent with World Trade Organisation (WTO) rules. This ensures there are no unnecessary barriers created to disrupt the global and regional supply chains.
Support was displayed for essential reforms in the WTO with a pledge to continue working together for maintaining a free, fair, non-discriminatory, predictable, and stable trading environment. There were discussions about facilitating the movement of people across borders without affecting the individual country’s efforts to contain the virus spread and stabilise trade and investment.
The commitment towards facilitating supply chain connectivity involving goods such as medical supplies, medicines including vaccines, food, commodities, and other essential services was also made. The opportunity of leveraging the digital economy to overcome the challenges posed by restricted movement was also discussed.
India’s Stand
During the EAS-EMM, India emphasized its Atmanirbhar Bharat Abhiyan. This campaign majorly focuses on enhancing the growth, skills, and capabilities of Indian industries. The aim is to make them more resilient and less vulnerable to economic shocks along with integrating these industries with the global supply chains.
Significance of the Meeting
The EAS-EMM is a crucial response to the current pandemic, which has not only affected health but also resulted in economic contractions, disruptions to trade, and investments. The International Monetary Fund (IMF) predicted a 4.9% contraction for the 2020 global Gross Domestic Product (GDP), indicating that the Covid-19 outbreak has led the global economy into its worst recession since the 1930s Great Depression. Furthermore, the WTO also warned in April about the potential crash in global trade volume growth by 13-32% this year.
Understanding the East Asia Summit
Established in 2005, the East Asia Summit serves as a forum for regional leaders to have strategic dialogues and cooperation on the key political, security, and economic challenges within the Indo-Pacific region. The concept of this East Asia Grouping was initially promoted in 1991 by the then Malaysian Prime Minister, Mahathir bin Mohamad. India is one of the founding members of the East Asia Summit.
Membership of the East Asia Summit
The East Asia Summit is composed of ten member states from ASEAN: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Along with these, eight other countries – Australia, China, Japan, India, New Zealand, the Republic of Korea, Russia, and the USA – are members as well. However, since it’s an ASEAN-centred forum, the chair position can only be held by an ASEAN member.
