Presented by Daw Tin Tin Htwe
( Retired Director )
National AFTA Unit
Ministry of National Planning
and Economic Development
ASEAN Economic Community
(AEC)
Introduction
ASEAN - 45 Years Old
Myanmar in ASEAN – 15 Years Old
ASEAN - Outward looking with future plans.
- Established AFTA
- ASEAN Vision 2020 declared by
the Leaders in 1997
Objectives of the ASEAN Vision 2020
-To create a stable, prosperous and highly
competitive ASEAN economic region in which
there is a free flow of goods, services,
investment and a freer flow of capital, equitable
economic development and reduced poverty
and socio –economic disparities in year 2020.
Implementing Programme of ASEAN Vision - 2020
▼ Hanoi Plan of Action HPA (1998 – 2004)
▼ Vientiane Action Programme VAP (2004 – 2010)
▼ Initiative for ASEAN Integration-IAI (2002-2007)
▼ Roadmap for the Integration of ASEAN (RIA)
Bali Concord II
- Declaration of Bali Concord II by ASEAN leaders
(Bali Summit in October 2003)
- AEC shall be the end goal of regional economic
integration by 2020
In August 2006 at the AEM Meeting in Kuala Lumpur,
Ministers agreed to Develop
“ A single and coherent blueprint for advancing the
AEC by identifying the characteristic and elements of
the AEC by 2015 consistent with the Bali Concord II
with clear target and timeline for implementations of
various measures as well and pre-agreed flexibilities
to accommodate the interests of all ASEAN member
countries.”
ASEAN ECONOMIC COMMUNITY - AEC
-At the 12th ASEAN Summit in Cebu, Leaders affirmed their
strong commitment for the establishment of an ASEAN
Community by 2015
-Cebu Declaration on the Establishment of ASEAN
Community by 2015 was signed.
- At the 12th ASEAN Summit in Singapore in Nov 2007, the
Leaders signed the Declaration on the AEC Blueprint.
3 Pillars of ASEAN Community
- ASEAN Security Community - ASC
- ASEAN Economic Community - AEC
- ASEAN Socio – Cultural Community - ASCC
Key Characteristics
(a) A single market and production base
(b) A highly competitive economic region
(c) A region of equitable economic
development
(d) A region fully integrated into the global
economy
A single market and production base
• Free flow of goods,
• Free flow of services,
• Free flow of investment,
• Freer flow of capital,
• Free flow of skilled labour
Another 2 important components:
(1)Priority Integration Sectors
(2)Food, Agriculture and Forestry
- ASEAN achieved in removal of tariffs.
- Not only zero tariffs, but needs to remove
NTBs.
- Trade Facilitation Measures:
- Integrating Customs Procedures
- Establishing ASEAN Single Window
- Enhancement of CEPT, ROO
- Harmonising Standard and Conformance
Procedures
- CEPT Agreement to become a
Comprehensive Agreement.
Free Flow of Goods
- Myanmar to eliminate tariffs on products by
2015 with flexibilities for some sensitive
products by 2018
- Myanmar to eliminate duties on products in
the Priority Integration Sectors by 2012
Elimination of Tariffs
- Myanmar to remove NTBs by 2015 with
flexibilities to 2018
Elimination of NTBs
- Free flow of services is one of the elements inrealizing AEC, where there will be: substantiallyno restrictions to ASEAN services suppliers inproviding services, establishing companoesacross national borders within the region,subject to domestic regulations.
- 4 Priority Services Sectors, air transport, e-ASEAN, Healthcare and Tourism to removesubstantially all restrictions by 2010; Logisticsservices by 2013.
Free Flow of Services
- Remove substantially all restrictions ontrade in services for all other services sectorby 2015.
- In Financial Services Sector, liberalizethrough ASEAN Minus X Formula.
- ASEAN is working towards recognition ofprofessional qualifications with the view tofacilitate their movement within the region.
- Investment Protection
- Provide enhanced protection to all investors
and their investments to be covered under
the comprehensive agreement.
- Facilitation and Cooperation
- a more transparent, consistent and
predictable investment rules, regulations
policies and procedures.
Free Flow of Investment
- Promotion and Awareness
- Promote ASEAN as an integrated investment
area and production network.
- Liberalization
- Progressive Liberalization of ASEAN Member
Countries’ investment regime to achieve free
and open investment by 2015.
- Strengthening ASEAN Capital Market
Development and Integration
Achieve greater harmonization in capital market
standards in ASEAN in the areas of offering
rules for debt securities, disclosure requirements
and distribution rules.
Facilitate MRAs for cross recognition of
qualification and education and experience of
market professionals.
Free Flow of Capital
- Allowing Greater Capital Mobility
Ensuring an orderly capital account liberalization
consistent with member countries’ national agenda
and readiness of the economy.
- Remove/relax restrictions to facilitate the flows of
payments and transfers for current account transactions.
- To facilitate entry for the movement ofnatural persons engaged in trade ingoods, services and investments, ASEANis working to:
- Facilitate the issuance of visas andemployment passes for ASEANprofessionals and skilled labor.
- ASEAN is working towards harmonizationand standardization to facilitate theirmovements by 2015.
Free Flow of Skilled labour
- 12 priority integration sectors were
identified for accelerated economic
integration.
Priority Integration Sectors
- Enhance intra and extra–ASEAN trade andlong-term competitiveness of ASEAN’s food,agriculture and forest products/ commodities.
- Develop and apply fisheries quality managementsystem.
- Establish Good Agriculture / AquaculturePractices (GAP), Good Animal HusbandryPractices (GAHP), Good Hygiene Practices(GHP), Good Manufacturing Practices (GMP)and Hazard Analysis Critical Control Point(HACCP) based system for agriculture and foodproduct by 2015.
Food, Agriculture and Forestry
- Harmonize Sanitary and PhytosanitaryMeasures (SPS)
- Harmonize maximum Residue Limits (MRLs)
- Harmonize guidelines for the use of chemicals inaquaculture and measures to use of harmfulchemicals.
- Promote cooperation, joint approaches andtechnology transfer among ASEAN memberCountries and international, regionalorganizations and private sector.
- Promote ASEAN Agricultural Cooperatives.
- Fulfill the purpose of agricultural cooperatives forthe benefit of farmers in the region.
- Competition Policy
- Main objective is to foster a culture of fair competition.
- Institutions and laws related to competition policy have recently been established in some ASEAN Member Countries.
(only four: Indonesia, Singapore, Thailand and Vietnam have their own competition law and competition regulatory bodies.)
- Currently no official ASEAN body for cooperative work for CPL.
Competitive Economic Region
- Consumer protection measures arealready being developed in tandem withthe proposed economic measures toaddress the already emerging consumerprotection.
- To strengthen consumer protection inASEAN through the establishment of theASEAN Coordinating Committee onConsumer Protection (ACCCP).
Consumer protection
- A powerful stimulus to:
- Cultural, intellectual and artistic creativity and their commercialism
- Efficient adoption and adaptation of more advanced technologies
- IP policy can influence both the volume and quality of external trade and investment and transfer of
advanced proprietary technologies.
- Regional cooperation in IPR has been guided by the ASEAN IPR Action Plan 2004-2010
Intellectual Property Rights (IPR)
- Transport Cooperation
- An efficient, secure and integrated transportnetwork in ASEAN is vital
- Regional efforts have made to enhancetransport facilitation and logistics services,promote multimodal transport infrastructurelinkages and connectivity, facilitate transportand tourism integration and further liberalisethe air and maritime transport sectors.
- ASEAN Transport Action Plan (ATAP) 2005-2010 covers maritime, land and air transport,and transport facilitation.
Infrastructure Development
- To implement the ASEAN Framework
Agreement on the Facilitation of Goods in
Transit by 2007
- To implement the ASEAN Framework
Agreement on Multimodal Transport by 2010
- Finalisation of the ASEAN Framework
Agreement on the Facilitation of Inter- State
Transport by 2008 and to implement beginning
2010.
- Priority to complete the Singapore-Kuming Rail Link (SKRL) and the ASEAN Highway Network (AHN) Projects
Land Transport
- To adopt the general principles and framework
for an ASEAN Single Shipping Market and
develop and implement the ASEAN Single
Aviation Market
Maritime and Air Transport
- Efforts have made to facilitate interconnectivity
and technical interoperability among ICT
systems.
- Develop high-speed inter-connections among all
National Information Infrastructures (NII).
Information Infrastructure
- Expedite the development of the ASEAN
Power Grid (APG) and the Trans- ASEAN
Gas Pipeline (TAGP).
- APG involves 14 electricity interconnection
project and TAGP involves seven gas
interconnection projects.
Energy Cooperation
- Enhance trade and investment and strengthen
cooperation and capacity in geological and
mineral sector for sustainable mineral
development in ASEAN region.
Mining Cooperation
- As ASEAN accelerates its economic integrationefforts, greater investment will be neededparticularly in the development of regionalinfrastructure.
- Promote greater participation of private sectorsand international organisations in financingregional infrastructure developments
- Remove or relax impediments to cross-borderinvestment in financing of regional infrastructureprojects.
Financing of Infrastructure Projects
- Complete the network of bilateral agreement on
avoidance of double taxation among all member
countries by 2020, to the extent possible.
Taxation
- To lay the policy and legal infrastructure for
electronic commerce and enable on-line trade in
goods (e-commerce) within ASEAN Framework
Agreement and based on common reference
frameworks.
E-Commerce
- SME Development
- The ASEAN Policy Blueprint for SME Development
(APBSD) 2004-2014 outlines the framework for SME
development in the ASEAN region.
Objectives:
(a) Accelerate the pace of SME development
(b) Enhance the competitiveness and dynism of ASEAN
SMEs.
(c) Strengthen the resilience of ASEAN SMEs
(d) Increase the contribution of SMEs.
Equitable Economic Development
- ASEAN Member Countries have different levels
of development
- Technical and development cooperation are
provided to less developed ASEAN Member
Countries for deeper and broader integration.
- IAI launched in 2000 to narrow the development
gap not only within ASEAN but between ASEAN
and other parts of the world as well.
Initiative for ASEAN Integration (IAI)
IAI covers the following priority areas:
(1) Infrastructure
(2) Human Resource Development (HRD)
(3) Information and Communications Technologies (ICT)
(4) Capacity building for regional economic integration
(5) Energy
(6) Investment Climate
(7) Tourism
(8) Poverty reduction
(9) Improvement in the quality of life.
- To make ASEAN a more dynamic and stronger
segment of the global supply chain and to
ensure that the internal market remains
attractive for foreign investment, it is crucial for
ASEAN to look beyond the borders of AEC
- Coherent approach towards External Economic
Relations
- Enhanced participation in global supply
networks.
Integration into the Global Economy
- A Strategic schedule that includes key milestones
for a comprehensive and deeper economic will be
attached to this Blueprint
- Consultations have been made with relevant bodies/
stakeholders
- Relevant ASEAN sectoral bodies will coordinate the
implementation of the above programmes and
measures.
Implementation
For successful implementation,
- Necessary institutions/mechanisms, resources, capacity
and political will be accorded to community building process.
- Relevant Sectoral Ministerial bodies shall be responsible for the
implementation of the Blueprint and monitoring of commitments
- ASEAN Economic Ministers (AEM) as Minister- in- charge of
Economic integration in the Council of ASEAN Economic
Community
Implementation Mechanism
- Research and capacity building
support is to be mobilised from various
facilities communications
- a good communications programme is
reguired to create greater public
awareness of the AEC
Resources
Review
- The AEC Blueprint shall be reviewed
periodically