Financial leaders to thwart protectionism
Finance Minister Hong Nam-ki, right, and Bank of Korea Governor Lee Ju-yeol, second from right, pose for a photo with their Chinese and Japanese counterparts at the 19th trilateral Finance Ministers and Central Bank Governors' Meeting in Nadi, Fiji, May 2 (local time). Courtesy of Bank of Korea
By Lee Kyung-min
Finance ministers and central bank governors of Korea, China and Japan reiterated their firm commitment to fighting trade protectionism, a collective opinion that recognizes the challenging global trade environment, notably the ongoing U.S.-China trade dispute.
“We will remain vigilant against the downside risks, and reaffirm our commitment to resisting all forms of protectionism, upholding an open and rule-based multilateral trade and investment system, and accelerating intra-regional trade and investment activities,” the leaders said in a joint statement at the 19th trilateral Finance Ministers and Central Bank Governors' Meeting in Nadi, Fiji, May 2 (local time).
Finance Minister Hong Nam-ki and Bank of Korea Governor Lee Ju-yeol attended the meeting to exchange views on the latest developments in the global economy and regional financial cooperation.
The trilateral meeting was held on the sidelines of the Association of Southeast Asian Nations (ASEAN) plus China, Japan and South Korea Finance Ministers and Central Bank Governors conference.
Chinese Finance Minister Liu Kun, Japanese Finance Minister Taro Aso, People's Bank of China (PBOC) Vice Governor Chen Yulu and Bank of Japan Governor Haruhiko Kuroda were also there.
They discussed recent global and regional economic developments, and potential risk factors in the global financial market.
“We recognize that the ASEAN+3 region continues to be a key driver of global economic growth and expect the region to remain steadfast, despite a more challenging global environment with trade frictions, softer external demand and tighter global financial conditions,” they said.
They also vowed to boost cooperation to achieve inclusive growth.
“We agreed to further enhance communication and coordination between China, Japan and Korea to contribute to strong, sustainable, balanced and inclusive growth.”
A closer, strategic integration will be pursued to maintain financial stability, and foster economic growth.
“We will also work with all ASEAN+3 members to further improve procedures and institutional arrangements to enhance the effectiveness and efficiency of the ASEAN+3 Finance Process to better cope with future challenges.”
They praised the Chiang Mai Initiative Multilateralization (CMIM), an agreement launched in 2010, following the Asian financial crisis as an alternative to establishing an Asian Monetary Fund.
Under the International Monetary Fund (IMF)-linked initiative, an estimated $240 billion fund is held jointly by the members in their central bank reserves.
It is designed to support members to help with financial risks through bilateral currency swap agreements including an arrangement of quotas and individual contributions.
The next trilateral meeting will be held in Incheon in 2020.