The Philippines is pressing Southeast Asian economies to keep markets open as geopolitical tensions in the Middle East threaten to rattle global supply chains and push up energy costs.
Speaking ahead of the ASEAN Economic Ministers Retreat on March 13, Trade Undersecretary Allan Gepty said the Association of Southeast Asian Nations (ASEAN) must resist the instinct to impose export bans or other restrictive measures that could fracture regional trade.
“During conflicts, some economies move to secure their own food and energy supply,” Gepty said. “But as much as possible, we have to refrain from adopting measures that restrict trade.”
The call comes as fears mount that a prolonged Middle East conflict could disrupt oil flows and drive up global commodity prices, a risk that would quickly spill into Southeast Asia’s trade-dependent economies.
ASEAN economic ministers are expected to underscore the need for coordinated responses to prevent supply chain disruptions, particularly in critical sectors such as energy and food. Gepty warned that unilateral policies, including export restrictions and non-tariff barriers, could undermine decades of regional economic integration.
“For ASEAN, we cannot afford to have separate approaches in addressing this conflict,” he said.
The Philippines faces a particularly acute vulnerability: energy dependence. The country imports most of its crude oil and still relies heavily on coal to power its electricity grid.
Any shock to global energy markets could trigger a cascade of price increases across the economy.
“If there will be challenges in the price or supply of crude oil and coal, there will be a chain reaction,” Gepty said.
Higher energy costs would likely feed into transport, manufacturing and agriculture — ultimately pushing up the prices of staple goods such as rice and other prime commodities.
Manila is now pushing stronger regional cooperation on energy and food security, arguing that collective action will be essential to shield ASEAN’s fast-growing economies from global shocks and prevent supply disruptions from turning into full-blown inflation crises.
