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SEAN and China have agreed to utilize a bilateral currency swap arrangement to facilitate the direct use of renminbi and other local ASEAN currencies for trading, so that trade between them did not depend on a third country’s currency (the US dollar).

“We are discussing the possibility of increasing the effectiveness of what has already been agreed upon by some members of ASEAN with the government of China in utilizing a bilateral currency swap,” Indonesian Deputy Trade Minister Mahendra Siregar said after the ASEAN-China session at the annual ASEAN Economic Ministerial Meeting and Related Meetings in Manado, North Sulawesi, on Friday.

This step is a response to the global situation and with regard to the stability of the overall global currency. “It would in a way reduce currency fluctuation that otherwise would be created by importers or exporters of two sides,” Mahendra said.

The two sides have also agreed to accelerate the cooperation framework and utilize the positive momentum of strong trade between the two sides in 2010 and the first semester this year. “The two sides agreed to finish the cooperation framework as soon as possible.”

Total exports and imports between ASEAN and China reached US$230 billion in 2010, and have increase 25 percent in the first half of this year. This makes China ASEAN’s largest trading partner.

China and ASEAN strive to sustain the momentum of high growth, and survive the uncertainty in the global economy, although trade may not be at its strongest due to the current global economic situation.

“However, both sides have to do the utmost to sustain the momentum of a high increase of trade,” Mahendra remarked.

Chinese Trade Minister Chen Deming, in his remarks at the meeting, called on US and European governments, China’s top two trading partners, to act responsibly and get their fiscal houses in order, a report from Reuters says.

“We support stabilizing measures taken by relevant countries, but we hope these countries will take measures to control their government debt proportion and take bigger responsibilities,” Chen said.

The two sides also encouraged businessmen in ASEAN and China to be more active in business interest and improve facilitation.

Meanwhile, Trade Minister Mari Elka Pangestu said that ASEAN+3 (China, Japan and Korea) agreed to strengthen communication and coordination to face the current global economic turmoil. The association and the three countries were also of the same opinion on the importance of accelerating regional economic integration.

“During the meeting, China, Japan and Korea shared their experiences of the current crisis’s impact on their countries. We [ASEAN] also shared our experiences,” she told reporters. “We now have the urgency to accelerate the regional economic integration process.”