ASEAN Strategic Plan & ActionPresentation Transcript
ASEAN Economic Community 2015 ASEAN Strategic Plan of Action – Direction and Action needed – SUPHAT SAQUANDEEKUL Executive Director, Bureau of ASEAN Affairs Department of Trade Negotiations Ministry of Commerce
CONTENT1. ASEAN -- background & key indicators --2. Towards ASEAN Economic Community 20153. What will be the changes in AECs?4. ASEAN with ASEAN Plus5. What are benefits / impacts from AEC6. Are you ready for AEC 2015?7. Opportunities & Challenges for ASEAN Food Industry in AEC
ASEAN– background & key indicators –
ASEAN (Association of South East Asian Nations)Established in 1967 CLMV CAMBODIA CAMBODIA ASEAN -6
Populations GDP GDP per Export FDI Country Country Country Country Country (million) (million$) Capita ($) (million$) (million$)1.Indonesia 231,4 1.Indonesia 546,527 1. Singapore 36,631 1.Singapore 269,832 1.Singapore 16,8092.Philippines 92,2 2.Thailand 264,230 2. Brunei 26,486 2. Malaysia 156,891 2. Vietnam 7,6003.Vietnam 86.0 3.Malaysia 191,618 3. Malaysia 6,822 3. Thailand 152,497 3. Thailand 4,9764.Thailand 66.9 4.Singapore 177,569 4. Thailand 3,951 4. Indonesia 116,510 4. Indonesia 4,8775.Myanmar 59.5 5.Philippines 161,357 5. Indonesia 2,364 5. Vietnam 56,691 5.Philippines 1,9486.Malaysia 28.3 6.Vietnam 96,317 6.Philippines 1,750 6 Philippines 38,335 6. Malaysia 1,3817.Cambodia 14.9 7.Myanmar 24.024 7. Vietnam 1,120 7. Brunei 7,169 7. Myanmar 5798.Singapore 6.1 8.Brunei 14,147 8. Lao PDR 910 8. Myanmar 6,341 8. Cambodia 5309.Lao PDR 5.0 9.Cambodia 10,368 9. Cambodia 693 9. Cambodia 4,986 9. Brunei 37010.Brunei 0.4 10.Lao PDR 5,742 10.Myanmar 419 10. Lao PDR 1,237 10. Lao PDR 319 GDP: Gross Domestic Productions / FDI : Foreign Direct Investment 5 Source: ASEAN Secretariat , Statistics of Year 2009
Towards AEC 2015
ASEAN COMMUNITY One Vision One Identity One Community AC : 2015 ASEAN Security ASEANCommunity Economic (ASC) Community (AEC) ASEAN Social-Cultural AEC BLUEPRINT Community & Strategic Schedule (ASCC)
What will be the changes in AEC ?
(Common Effective Preferential Tariff)
AEC GOALS ASEAN Economic Community : AEC1. Single Market & Production Base 2. Competitive Economic Region Free flow of goods e-ASEAN Free flow of services Taxation Competition Policy Free flow of investment Intellectual Property Free flow of skilled labor Year Consumer Protection Freer flow of capitals 2015 Infrastructure Development3. Equitable Economic Development 4. Integration into Global Economy Narrowing development gap Coherent approach toward external economic relations between ASEAN-6 & CLMV Enhanced Participation in global supply network Supporting development of SMEs FTA with Non-ASEAN Countries
AEC Blueprint : Free Flow of Goods 1 January 2010 ASEAN-6 reduced Import duty to 0% 1 January 2015 CLMV will reduce Import duty to 0%Except forProducts in Sensitive List : import duties must be ≤ 5%Products in Highly Sensitive List : more flexible tariff rates but must beagreed upon by other member states. Products : Rice & Sugar Countries : Malaysia, Indonesia, Philippines
AEC Blueprint : Free Flow of GoodsProducts in Sensitive List : import duties must be ≤ 5% ASEAN–6 by 1 January 2010 Tariff rate CLMV by 1 January 2015 To be reduced toThailand coffee, potato, copra, cut flowers 5% Brunei coffee, tea 5%Malaysia some animals, swine, poultry, eggs, some plants and fruits, tobacco 5%Philippines some animals, swine, poultry, tapioca, corn 5% Singapore and Indonesia none --Cambodia poultry, fish, some vegetables and fruits 5% some animals, meat of bovine, swine, poultry, some vegetables and Lao fruits, rice, tobacco 5%Myanmar bean, coffee, sugar, silk, cotton 5%Vietnam some animals, poultry, eggs, some plants, processed meat, sugar 5%
AEC Blueprint : Free Flow of GoodsProducts in Highly Sensitive List: more flexible tariff rates but must be agreed upon by other memberstates. Products : Rice & Sugar Countries : Malaysia, Indonesia, Philippines Malaysia Rice at 20% in 2010Indonesia Rice at 25% in 2010 Sugar: from 40% to 5-10% in 2010Philippines Sugar: 38% till 2011, from 2012 be reduced gradually to 5% in 2015 Rice: 40% till 2014, then be reduced to 35% in 2015
AEC Blueprint : Free Flow of Investment Investment : 1. Agriculture 2. Fisheries 3. Forestry 4. Mining 5. ManufacturingExtend non-discriminatory treatment to investors in ASEANRevise AIA ACIA (ASEAN Comprehensive Investment Agreement )ACIA covers liberalization, protection, facilitation, and promotion
AEC Blueprint : Free Flow of Skilled Labor MRAs enables the qualifications of services suppliers recognised by one ASEAN country to be mutually recognised by another ASEAN member
ASEAN and ASEAN Plus
Enhancing ASEAN External Economic Relations Existing FTA Future possible FTA Others Dialogue Partners ASEAN-Canada ASEAN-Russia ASEAN-EU ASEAN-US ASEAN-China FTA ASEAN-Korea FTA ASEAN-GCC ASEAN-Japan CEP ASEAN- India FTA ASEAN- MERCOSUR ASEAN- Australia- New Zealand FTA Bahrain, Kuwait, Oman, Qatar, Argentina, Brazil, Paraguay, Saudi Arabia, United Arab Emirates Uruguay, Venezuela
FTA between ASEAN and Dialogue Partners-at present ASEAN Plus 6 India AC China FTA AIFTAGoods : Since July 2005 ~Services : Since 2007 ~Investment : Signed on 13 Aug 09 AEC Goods : Signed on 13 Aug 09, Effective on 1 Jan 10 Services/Investment : under negotiations P AA A JCE NZ F TA Japan Goods / Services / Investment : Signed in 2008 AKFTA For Thailand effective on 2 June 09 Australia & New Zealand Goods / Services / Investment: ASEAN Plus3 Signed on 26 Feb 09, Effective on 1 Jan 10 Korea Goods / Services : ASEAN except Thailand since 2007 For Thailand Services : Signed on 26 Feb 09, Effective on 1 June 09 / Goods effective on 1 Oct 09 Investment all ASEAN :Signed on 2 June 09 Effective on 31 Oct. 09
Enhancing ASEAN FTA CEPEA (Comprehensive Economic Partnership in East Asia) (ASEAN +6) EAFTA (East Asia FTA) (ASEAN +3) China Japan AEC Australia New Zealand Korea IndiaASEAN 10 : Population: 590 ml. ( 9% of global population) GDP :1,499 billion US$ ( 2% of global GDP)EAFTA (ASEAN +3) : Population: 2,068 ml. ( 31% of global population) GDP :9,901 billion US$ ( 18% of global GDP)CEPEA (ASEAN +6) : Population: 3,268 ml. ( 50% of global population) GDP : 12,250 billion US$ ( 22% of global GDP)
What are benefits / impactsfrom AEC?
Who will benefit from AEC ? Stakeholders Impacts Larger economies of scale reduce production costs enhance competitiveness Manufacturer More choice of inputs/materials from other ASEAN at lower prices Greater demand for exports Exporter Strengthen business networks & partnerships across ASEAN Expanded markets for servicesService Provider Enhance competitiveness More choice of services experts Expanded markets for agricultural products both Farmer within and outside ASEAN Increase of income Greater choices and varieties of goods and services Consumer through increase in intra-regional trade
Who will be affected by AEC? Stakeholders Impacts Uncompetitive manufacturers with high cost of Manufacturer production may be defeated by other competitors in ASEAN. More intense competition High possibility of going out of market unless Exporter having measures for improving efficiency, quality, and innovation. More competitors in the marketService Provider Valuable human resources may be taken by other ASEAN. Will be competed with better quality goods at Farmer competitive prices Income might decrease Exposed to harm from low quality products Consumer unless measures for consumer protection are in place.
Are you ready for AEC 2015?
How to Draw Your Strengths from AEC ? Raw material / inputs from ASEAN at lower Cut down costs prices Improve efficiency & management Know your markets Study consumers’ behavior in AEC Increase your strength / reduce weakness Know yourself Try to turn “rivals” into “partners” & your rivals Become a part of ASEAN food supply chain Differentiate Creativity and Sustainabilityyour products & services Emphasis on quality, design, standards etc Thinking out of a box Do not overlook “ Unseen Opportunities”
How to Draw Your Strengths from AEC ? Search for suitable markets for your products & services Expand Business Whether joint venture or wholly owned in ASEAN enterprise ? Whether local employees or dispatch ones ?Ensure the readiness of Learn culture, attitude, social value , waysHuman Resources of thinking etc of other ASEAN peopleMaintain your “precious” “How to retain them with us?”personals
Opportunities & ChallengesFor Food Industry in AEC
Opportunities for Food Industry in AEC Larger market increased demand for food Greater access to the ASEAN (& Asian) market Economy of scale reduce cost of productions enhanced competitiveness More choices to import raw materials/semi-final products from other ASEAN at lower prices Creation of ASEAN production networks through partnerships with ASEAN food producers Complete or partly relocation of manufacturing base to CLMV Solving professional/skilled-labor shortage problem in the region
Challenges for Food Industry in AEC Increased competition in trade, investment and resources Risk to exposure to low-quality products & services from other ASEAN & ASEAN Plus countries Encouragement on improvement of products and services R&D and Innovation Encouragement of administrative reforms in pace with rapidly changing environment in ASEAN Higher competition in professional/skilled labor market