Jakarta, 4 December 2025: ERIA, with the support of Nishimura & Asahi Law Office, hosted a policy dialogue titled ’Navigating Sustainability in Trade: ASEAN’s Institutional and Strategic Pathways.’ Held at the ERIA Office, the event brought together senior policymakers, trade negotiators, economic and legal experts, and business leaders to examine how sustainability imperatives are reshaping trade governance amidst an increasingly fragmented global landscape, and to discuss ASEAN’s strategic responses to these emerging challenges.

As multilateral efforts under the World Trade Organization (WTO) continue to face significant challenges, governments are increasingly relying on bilateral, regional, and unilateral frameworks to integrate climate and sustainability considerations into trade policy. The dialogue provided a timely platform for ASEAN stakeholders to assess these evolving dynamics, share national experiences, and explore institutional pathways to support inclusive and climate-resilient economic transitions.

Opening Remarks

ERIA President Tetsuya Watanabe opened the dialogue by emphasising that sustainability can no longer be treated as an afterthought and must instead be embedded as a core pillar of ASEAN’s economic and trade strategy.

In a video message, H.E. Dyah Roro Esti Widya Putri, Indonesia’s Vice Minister of Trade, underscored the importance of aligning sustainability commitments with ASEAN’s diverse development realities. She highlighted the establishment of the ASEAN Geoeconomic Task Force (AGTF) as a key response to rising geoeconomic risks, calling for collaborative and development-friendly approaches to sustainable trade governance.

Session 1: Reframing Trade and Sustainability Beyond the WTO

Moderator: Dr Aladdin D. Rillo (ERIA)

Speakers: Ms Elyse Kneller (Nishimura & Asahi), Dr Donna Gultom (Presidential Special Envoy for International Trade and Multilateral Cooperation, Indonesia), Dr Dionisius Narjoko (ERIA)

This session examined how shifting geopolitical and geoeconomic conditions are redefining trade governance beyond the WTO framework. Discussions highlighted the European Union’s evolving external engagement through club-based dialogues, sustainability-oriented partnerships, and new co-operation instruments. Drawing on these developments, speakers reflected on their strategic implications for ASEAN, including the need to expand engagement channels and strengthen intra-regional harmonisation and implementation. The panel also discussed the work of the AGTF, underscoring the importance of collective ASEAN action in responding to intersecting climate and trade pressures.

Session 2: The Evolution and Challenges of Sustainability Provisions in ASEAN FTAs and RTAs

Moderator: Mr Salvador Buban (ERIA)

Speakers: Mr Danang Prasta Danial (Ministry of Trade, Indonesia), Mr Werapong A. Prapha (Democrat Party, Thailand), Ms Denise Cheska Enriquez (Department of Trade and Industry, Philippines)

Focusing on bilateral and regional free trade agreements (FTAs and RTAs), this session explored how ASEAN Member States have incorporated sustainability-related provisions into trade frameworks. Speakers shared insights from ongoing and concluded negotiations, including experiences with partners such as the EU and Japan. Discussions highlighted institutional and political challenges – described by Mr Prapha as the ‘trilemma’ of trade, sustainability, and development – and stressed the need for policy approaches that balance competitiveness with inclusivity. The session also emphasised the importance of regional co-ordination, stakeholder engagement, and capacity building, particularly as ASEAN prepares for future leadership transitions, including the Philippines’ 2026 ASEAN Chairship.

Session 3: Unilateral Sustainability Measures and ASEAN Response Strategies

Moderator: Mr Yoshitaka Watanabe (ERIA)

Speakers: Mr Kazumochi Kometani and Mr Hibiki Kimura (Nishimura & Asahi), Ms Latifahaida Abdul Latif (ASEAN Secretariat), Mr Dharsono Hartono (KADIN Indonesia)

This session examined ASEAN’s strategic responses to the growing use of unilateral trade-related sustainability measures, notably those introduced by the European Union, such as the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR). From legal, institutional, and business perspectives, speakers analysed the implications of these measures for the region and called for ASEAN to adopt a proactive, rather than reactive, approach. The discussion highlighted the need to align regional standards, enhance institutional co-ordination, and support firms – particularly micro, small, and medium-sized enterprises (MSMEs) – in adapting to a rapidly evolving trade environment.

Closing Reflections

The dialogue concluded with reflections by Mr Kojiro Fuji (Nishimura & Asahi) and Prof. Nobuhiro Aizawa (ERIA), who called on ASEAN to play a more assertive role in shaping global trade norms, while remaining grounded in the region’s unique development contexts and long-term strategic aspirations.