A Vision Becomes Reality                            The four pillars of ASEAN integrationDr. Gunter Denk – www.sanet.eu   ...
ContentAbout ASEAN                       About ASEANASEAN Charta 2015The 4 Pillars of AEC   ASEAN Charta 2015Instruments o...
About ASEANAssociation of South-East Asian Nations                                          3
The ASEAN History                       ASEAN: A Story of Passion and Success                                     ASEAN wa...
10 Boutique CountriesASEAN                            Laos     Vietnam                Myanmar                GUNTER       ...
ASEAN – Different Living Standards                       Average income* and growth rate since 1982                       ...
ASEAN – Strong Together                                                        CHINA: 9‘600‘000 km²                       ...
ASEAN – A Great Future                                 Youngest Economic UnionAbout ASEAN                      and young p...
ASEAN Charta 2015                    9
ASEAN Charta 2015                       Dec 15th, 2008: “One Vision, one Identity, one Community”About ASEAN              ...
The 4 Pillars of AEC                       11
1. Single Market and Production Base                       The 5 core elements of a single market                         ...
2. Competitive Economic Region                                         Consumer Protection                                ...
3. Equitable economic development                             Small and Medium EnterprisesAbout ASEAN                     ...
4. Integration into the global economy                       Global Supply Chain                          ASEAN operates i...
Instruments of AEC                     16
Overview of Instruments of AEC                                            The Blueprint serves as a coherent master plan  ...
Goods Instruments of AEC                               ATIGA        Tariff Liberalization                           ASEAN ...
Services Instruments of AEC                                 AFAS         AFAS was signed 1995 to enhance cooperation      ...
Signing Dates of InstrumentsAbout ASEANASEAN Charta 2015                                   Nov. 2007 AEC Blueprint        ...
Just a Vision ?                  21
ASEAN: „Just a vision“?                       Still a way to go before                       making the vision come true!A...
Obstacles of AEC                                        Loose cooperation.                       National                 ...
There were other Successful Visions:About ASEANASEAN Charta 2015The 4 Pillars of AECInstruments of AEC     Thomas Jefferso...
Sanet (Thailand) Co. Ltd.2/1 Soi Rom Klao 25/2,Ladkrabang, Khlongsamprawet,Bangkok 10520T: +66 (2) 737 6420 (-4)F: +66 (2)...
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AEC (ASEAN Economic Community) Bangkok Entrepreneurs

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AEC: A Vision Becomes Reality
Presentation by Dr Gunter Denk.
Bangkok Entrepreneurs - February 2013 - Bangkok

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AEC (ASEAN Economic Community) Bangkok Entrepreneurs

  1. 1. A Vision Becomes Reality The four pillars of ASEAN integrationDr. Gunter Denk – www.sanet.eu 1
  2. 2. ContentAbout ASEAN About ASEANASEAN Charta 2015The 4 Pillars of AEC ASEAN Charta 2015Instruments of AECJust a Vision? The 4 Pillars of AEC Instruments of AEC Just a Vision?
  3. 3. About ASEANAssociation of South-East Asian Nations 3
  4. 4. The ASEAN History ASEAN: A Story of Passion and Success ASEAN was established by 5 Countries in Bangkok – 1967 Indonesia, Thailand, Malaysia, Singapore, PhilippineAbout ASEANASEAN Charta 2015 10 States completed. Brunei (1984), Vietnam (1995), 1999 Laos and Myanmar (1997) and Cambodia (1999) joinedThe 4 Pillars of AEC The United Nations (UN) confirm ASEAN being a UnionInstruments of AEC 2006 with “Observer Status” in the plenary meetingsJust a Vision? On November 20th, 2007 all 10 states agree in the new 2008 Charta becoming effective in December 2012 ASEAN ECONOMIC COMMUNITY (AEC) should be 2015 widely realized
  5. 5. 10 Boutique CountriesASEAN Laos Vietnam Myanmar GUNTER Kambodscha Philippinen Thailand Singapur Brunei 581 Mio. 4,5 Mio. km² 1‘950 Bio. $ Malaysia Indonesien 3‘300 $
  6. 6. ASEAN – Different Living Standards Average income* and growth rate since 1982 Brunei and Singapore: 52’000$ 4.2%About ASEAN Malaysia and Thailand: 12’000$ 6.9%ASEAN Charta 2015 Indonesia and Philippines: 4’000$ 5.1%The 4 Pillars of AEC CLMV: 2’000$ 7.2%Instruments of AECJust a Vision? 60000 50000 Singapore & Brunei 40000 30000 Malaysia & Thailand 20000 Indonesia & Philippines 10000 Combodia, Laos, Myanmar & 0 Vietnam *based on purchasing-power-parity
  7. 7. ASEAN – Strong Together CHINA: 9‘600‘000 km² Size ASEAN: 4‘480‘000 km²About ASEAN INDIEN: 3‘300‘000 km²ASEAN Charta 2015 CHINA: 1.35 billionThe 4 Pillars of AEC People INDIEN: 1.22 billionInstruments of AEC ASEAN: 0.62 billionJust a Vision? CHINA: 8.250 trillion GDP* ASEAN: 2.300 trillion INDIEN: 1.950 trillion CHINA: 6’100 USD GDP per ASEAN: 3’750 USD capita* INDIEN: 1‘600 USD *not based on purchasing-power-parity
  8. 8. ASEAN – A Great Future Youngest Economic UnionAbout ASEAN and young populationASEAN Charta 2015The 4 Pillars of AEC Variety of Cultures and good for SMEInstruments of AECJust a Vision? Central link between China and India Strong Investment promotions
  9. 9. ASEAN Charta 2015 9
  10. 10. ASEAN Charta 2015 Dec 15th, 2008: “One Vision, one Identity, one Community”About ASEAN POVERTY REDUCTIONASEAN Charta 2015 Co-operation in economies, free trade ofThe 4 Pillars of AEC Goods and services, competitivenessInstruments of AEC HARMONIZING THE SOCIETIESJust a Vision? Open travelling in business and as tourist, free flow of labor EXTERNAL AND INTERNAL SECURITY Joint defense of common interests; prevent drug related and other crimes
  11. 11. The 4 Pillars of AEC 11
  12. 12. 1. Single Market and Production Base The 5 core elements of a single market Free Flow of Goods:About ASEAN Tariff removal; trade simplification; customs IntegrationASEAN Charta 2015The 4 Pillars of AEC Free Flow of Services: Providing services;Instruments of AEC establishing companiesJust a Vision? Free Flow of Investment: More FDI; confidence and protection; transparency and support. Freer Flow of Capital: Rules for money transfer; greater capital mobility Free Flow of Skilled Labor Simplify Visa procedures; transparent requirements; mutual recognition 12
  13. 13. 2. Competitive Economic Region Consumer Protection Information exchange of banned products;About ASEAN increase awareness of consumer rightsASEAN Charta 2015The 4 Pillars of AEC Intellectual Property Rights Build an innovative and competitive region;Instruments of AEC New institutions and initiativesJust a Vision? Infrastructure Development Transport facilitation & liberalization; secure, accessible and sustainable energy Competition Policy Introduce national competition institutions & laws. Foster a culture of fair competition. Substantive and procedural competition law 13
  14. 14. 3. Equitable economic development Small and Medium EnterprisesAbout ASEAN • SMEs are the backbone of ASEANASEAN Charta 2015 • 50% to 85% of domestic employment • 30% to 53% of the GDPThe 4 Pillars of AEC • Long-run and sustainable economic growthInstruments of AEC • Enhance competiveness and resilience of SMEsJust a Vision? ASEAN Integration & narrowing Development Gap • Fasten economic integration of less developed members • Coherence and support among members • Physical transport and communication infrastructure networks 14
  15. 15. 4. Integration into the global economy Global Supply Chain ASEAN operates in an increasingly global environmentAbout ASEAN Interdependent markets and globalized industries Make ASEAN a more dynamic and stronger segment of theASEAN Charta 2015 global supply chainThe 4 Pillars of AEC ActionInstruments of AEC New policies consider external rules and regulationsJust a Vision? Coordinate FTAs with ASEAN internal commitments Adoption of international best practices and standards in production and distribution Look beyond the borders of AEC 15
  16. 16. Instruments of AEC 16
  17. 17. Overview of Instruments of AEC The Blueprint serves as a coherent master plan AEC Blueprint guiding the AEC. It contains the 4 Pillars and a timeframe to implement the targets.About ASEANASEAN Charta 2015 AFAS ACIA ATIGAThe 4 Pillars of AEC Trade in Goods Framework Comprehensive Agreement on Investment AgreementInstruments of AEC Services AgreementJust a Vision? MNP ATR Movement ASEAN Trade of Natural Repository Persons MRAs ASW Mutual ASEAN Single Recognition Window Arrangements 17
  18. 18. Goods Instruments of AEC ATIGA Tariff Liberalization ASEAN Trade in Rules of Origin Goods Agreement Non-Tariff Measures ( ATR)About ASEAN Trade Facilitation ( ASW)ASEAN Charta 2015The 4 Pillars of AEC ATR Will contain Trade related Information ASEAN Trade Will be accessible OnlineInstruments of AEC Repository ASEAN Secretariat shall list Non-Tariff MeasuresJust a Vision? which have illegal Barrier effect. ASW The ASW, will enhance trade facilitation and ASEAN Single facilitate the movement of goods in the region by Window electronic exchange of cargo clearance documents among Member States. 18
  19. 19. Services Instruments of AEC AFAS AFAS was signed 1995 to enhance cooperation ASEAN Framework in services, eliminate barriers, liberalize beyond Agreement on GATS of WTO. ServicesAbout ASEAN 8 Packages of commitments under AFASASEAN Charta 2015The 4 Pillars of AEC MNP Signed in Nov. 2012Instruments of AEC Movement of Natural Persons Grant temporary stays for professionalsJust a Vision? Promote quick and transparent processes MRAs Qualifications of services suppliers to be Mutual Recognition mutually recognized by other Member States. Arrangements Engineering, architectural, nursing, surveying, medical & dental practitioners and tourism. 19
  20. 20. Signing Dates of InstrumentsAbout ASEANASEAN Charta 2015 Nov. 2007 AEC Blueprint AECThe 4 Pillars of AEC Feb. 2009 Mai. 2010 ATIGA in ForceInstruments of AEC ASW when?Just a Vision? Dec.1995 AFAS 8 Packages until 2010 Dec. 2012 MNP Feb. 2009 Signed Mar. 2012 ACIA in Force 2007 2008 2009 2010 2011 2012 2013 2014 2015 20
  21. 21. Just a Vision ? 21
  22. 22. ASEAN: „Just a vision“? Still a way to go before making the vision come true!About ASEANASEAN Charta 2015 Selfishness ist part of human beings. Short-termThe 4 Pillars of AEC „Selfishness“ advantage seam more important then long-term visionsInstruments of AEC History Traditional conflicts hard to forgetJust a Vision? Economy Richest ASEAN states 100 x more rich then poorest Administrations Different political principles and different handling of corruption Technical Joint standards need time to define the rules Standards
  23. 23. Obstacles of AEC Loose cooperation. National Governments represent their country.About ASEAN Interests ASEAN comes second.ASEAN Charta 2015 Most tariffs have been abolished. Non TariffThe 4 Pillars of AEC Governments try to protect local Barriers industries with other barriers.Instruments of AEC The skills in administration vary greatly.Just a Vision? Administrative Some custom authorities are narrow-minded and complain Skills about the smallest mistakes (color, spelling, signature, size). ASEAN has no sanctioning power if members violate rules. Powerless Secretariat raise awareness with Scorecard. Agreements are not direct law; hence, not enforceable. Mutual Recognition Agreements only covers few areas. Technical ASEAN Single Window cannot be implemented in lesser Standardizing developed countries.
  24. 24. There were other Successful Visions:About ASEANASEAN Charta 2015The 4 Pillars of AECInstruments of AEC Thomas Jefferson (1776):Just a Vision? “All Men are Born Equal”
  25. 25. Sanet (Thailand) Co. Ltd.2/1 Soi Rom Klao 25/2,Ladkrabang, Khlongsamprawet,Bangkok 10520T: +66 (2) 737 6420 (-4)F: +66 (2) 737 6425E: Email: info@sanet.co.thWeb: www.sanet.eu
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