The United Kingdom and the Association of Southeast Asian Nations (ASEAN) are jointly crafting the new ASEAN-UK Economic Integration Programme. The UK government's allocation of £25 million over five years to back ASEAN's economic integration was revealed during the recent Third ASEAN Economic Ministers (AEM)-UK Meeting in London.

Advancement of joint ministerial declaration

The gathering commended the advancement of the work plan for executing the joint ministerial declaration for future economic cooperation. Since its adoption the previous year, 26 activities across 11 priority sectors involving 26 ASEAN sectoral bodies have been initiated, with an additional 60 activities slated for the coming years.

Robust trade growth

In nominal terms, UK-ASEAN trade flows escalated by over 20% from 2021 to 2022, illustrating a post-pandemic rebound. Overall UK trade with ASEAN surged by 21.4%, climbing from £38.3 billion in 2021 to £46.5 billion in 2022.

UK's investment standing

In 2022, the United Kingdom held the seventh position among foreign investors in ASEAN. The outward foreign direct investment (FDI) from the UK to ASEAN in 2021 was at least £25.1 billion, as stated in a joint post-meeting release.

Addressing global challenges

The discussion delved into regional and global predicaments, including the pandemic's multi-dimensional impact, climate change, financial market volatility, inflation, and geopolitical tensions. These factors could potentially influence economic and trade ties between the UK and ASEAN.

Commitment to multilateral trade system

The assembly reiterated its dedication to a rule-based, equitable, and open multilateral trading system anchored by the World Trade Organisation (WTO). Strengthening the WTO's efficacy and pursuing reforms for a fully operational dispute settlement mechanism were underscored as priorities.