Asean Econ. Community

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Basic data about the ASEAN member countries and the liberalization achieved and future challenge

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Asean Econ. Community

  1. 1. ASEAN ECONOMIC COMMUNITY Datuk Dr. Rebecca Fatima Sta Maria Secretary-General Ministry of International Trade and Industry ‘Driving Transformation, Powering Growth’
  2. 2. ASEAN – at a glance 2  Driving  Transforma.on,  Powering  Growth   Population 625 million - Youth 60% GDP USD2,398 billion GDP Growth 5.1% GDP per capita USD3,837 Total Trade USD2,511 billion - Intra-ASEAN USD608 billion - Ratio to GDP 104.7% Total FDI USD122.4 billion - Intra-ASEAN USD21.8 billion Tourist Arrivals 89.3 million - Intra-ASEAN 39.9 million
  3. 3. ASEAN: Growing through economic integration 334 606 1,898 2,395 GDP (US$ mil) 760 1,172 3,162 3,832 GDP per capita (US$) 317 519 593 625 Population (mil) 1990 2000 2010 2013 Source: ASEANStat, IMF, WB, UNCTAD 306 759 2,009 2,511 Total Trade (US$ bil) 144 167 511 609 Intra-ASEAN Trade (US$ bil) 13 23 100 122 FDI Inflows (US$ bil) Driving  Transforma.on,  Powering  Growth   3   1990 2000 2010 2013
  4. 4. 387.6 (16.2%) 860.8 (35.9%) 312.1 (13.0%) 297.9 (12.4%) 269.0 (11.2%) 171.2 (7.1%) 54.7 (2.3%) 16.1 (0.7%) 15.5 (0.6%) 10.3 (0.4%) Source: ASEANStat ASEAN GDP 2013 (US$ billion) The 6 biggest ASEAN Member States accounted for more than 95% of ASEAN GDP in 2013 860.8 (35.9%) Economies at different stages of development 4  
  5. 5. 888 1,037 1,548 1,909 2,707 3,460 5,679 10,421 39,679 55,183 ASEAN GDP PER CAPITA 2013 (US$) ASEAN Av GDP Per Capita was US $3,832 in 2013 Source: ASEANStat 5   Economies at different stages of development
  6. 6. 3rd largest market in the world Population in million JAPAN 128 EU 502 INDIA 1,195 CHINA 1,340 USA 310 ASEAN 625 7th largest economy in the world GDP 2013 in US$ trillion Brazil ASEAN United France Germany Japan China United States 16.8 9.2 4.9 3.7 2.8 2.7 2.4 2.2 Fast growing economy Real GDP Growth 2013 (%) 7.7 5.2 5.0 Japan United States India ASEAN China 7.7 5.2 5.0 2.2 1.6 … the whole is greater than the sum of its parts 6   Source: ASEANStat, IMF, WB
  7. 7. ASEAN’s Journey towards economic integration Driving  Transforma.on,  Powering  Growth   7   TIMELINE LIBERALISATION PROCESS 1977-1992 Preferential Trading Arrangement (PTA) – 25-50% Margin of Preference on 1000 tariff lines 1993 ASEAN Free Trade Area (AFTA) – key was the Agreement on Common Effective Preferential Tariff. Revised as ASEAN Trade In Goods Agreement in 2010 1995 ASEAN Framework Agreement on Services (AFAS) – Progressive Liberalisation 1998 ASEAN Investment Area (AIA) – Investment Liberalisation . Revised as the ASEAN Comprehensive Investment Agreement (ACIA) in 2009 2004-2010 ASEAN FTAs with Dialogue Partners (China, Japan, Korea, India, Australia & New Zealand) - RCEP with existing ASEAN’s FTA Partners under negotiations (target substantial completion by end of 2015) 1993 Sub – Regional Economic Growth Areas (IMGT, BIMP EAGA,SIJORI, AMBDC) 2008-2015 Integration through ASEAN Economic Community (AEC)
  8. 8. 8  Driving  Transforma.on,  Powering  Growth   ASEAN Economic Community ASEAN Socio-Cultural Community ASEAN Political- Security Community •  Rules-based Community of Shared Values and Norms •  Good Governance •  Human Rights •  Adherence to the Principles of Democracy •  Single Market and Production Base •  Competitive Economic Region •  Equitable Economic Development •  Linkages to Global Economy •  Education and Human Resource Development •  Science and ICT •  Entrepreneurship •  Poverty Alleviation & Social Safety Net •  Health •  Natural Disasters & Environment •  ASEAN’s Cultural Heritage and Regional Identity The 3 Pillars of the ASEAN Community
  9. 9. ASEAN Economic Community (AEC) 9  Driving  Transforma.on,  Powering  Growth   •  FTAs •  Global Supply Networks •  SME Development •  Initiative for ASEAN Integration •  Competition Policy •  Consumer Protection •  IPR, Taxation •  e-Commerce •  Infrastructure •  Free flow of goods •  Free flow of services •  Free flow of investment •  Freer flow of capital •  Freer flow of skilled labour Single Market & Production Base   Competitive Economic Region   Linkages with Global Economy   Equitable Economic Development  
  10. 10. AEC is a work in progress…working to make it easier to do business Driving  Transforma.on,  Powering  Growth   10  
  11. 11. Elimination of import duties for intra-ASEAN trade: q  ASEAN-6: 99.65% duties eliminated (1 January 2010) q  C L M V 9 3 % d u t i e s eliminated (1 January 2015; 7% by 2018) 11   Elimination of duties: Tip of the iceberg Driving  Transforma.on,  Powering  Growth  
  12. 12. Guiding Principle: Progressive liberalisation 12  Driving  Transforma.on,  Powering  Growth  
  13. 13. 13  Driving  Transforma.on,  Powering  Growth   q  Removal of equity restrictions on services and investments in ASEAN; q  Removal of other forms of impediments, such as limiting the number of services providers, etc.; q  Tr a d e a n d i n v e s t m e n t facilitation through removing cumbersome procedures, rules and regulations; and q  Facilitating the mobility of skilled people. The rest of the iceberg…
  14. 14. Now to step-up work on Non-Tariff Barriers (NTBs) 14  Driving  Transforma.on,  Powering  Growth   Examples of NTBs in ASEAN: §  Import quotas §  Restrictions on import/distribution licensing agreements §  Product regulatory standards Measures to address NTBs: §  Adoption of regional and national level of NTM Work Programme §  Structure to resolve NTM cases faced by businesses §  Establishment of an interagency body at the national level in each Member State to strengthen coordination of domestic efforts to address NTM/NTBs.
  15. 15. 15  Driving  Transforma.on,  Powering  Growth   Trade in services: What has been achieved? AFAS  Packages Date  of  signing 1st  Package   15  Dec  1997,  Kuala  Lumpur,  Malaysia 2nd  Package 16  December  1998,  Ha  Noi,  Viet  Nam 3rd  Package 31  December  2001  (Ad-­‐Referendum  Signing); 4th  Package 3  September  2004,  Jakarta,  Indonesia 5th  Package 8  December  2006,  Cebu,  the  Philippines 6th  Package 19  November  2007,  Singapore 7th  Package 26  February  2009,  Cha-­‐am,  Thailand 8th  Package 28  October  2010,  Ha  Noi,  Viet  Nam 9th  Package 26  August  2014,  Nay  Pyi  Taw,  Myanmar §  Final AFAS Package: 2015
  16. 16. 16  Driving  Transforma.on,  Powering  Growth   Facilitating Movement of Professionals and Talent ASEAN Movement of Natural Persons Agreement (MNP) outlines the immigration formalities for the temporary entry or temporary stay of natural persons: ü  limited to business visitors, intra-corporate transferees, and contractual service suppliers; ü  does not cover permanent entry and unskilled labour.
  17. 17. 17  Driving  Transforma.on,  Powering  Growth   §  MRA – Agreement to facilitate movement of ASEAN professionals across the region. §  ASEAN has concluded 7 MRAs; in various stages of operationalization: NO. MRA DATE  OF  SIGNING 1. MRA  for  Engineering  Services 9  Dec  2005 2. MRA  for  Nursing  Services 8  Dec  2006 3. MRA  for  Architectural  Services 19  Nov  2007 4. Framework  MRA  for  Surveying  Qualifica[ons     19  Nov  2007 5. MRA  for  Medical  Prac[[oners  Services     26  Feb  2009 6. MRA  for  Dental  Prac[[oners  Services 26  Feb  2009 7. MRA  for  Accountancy  Services 26  Aug  2014 Mutual Recognition Agreements (MRA)
  18. 18. 18  Driving  Transforma.on,  Powering  Growth   Evolution of Investment Liberalisation and Protection in ASEAN 1987 Agreement for Promotion and Protection of Investments (IGA) 1998 ASEAN Investment Area Agreement (AIA) 2009 ASEAN Comprehensive Investment Agreement (ACIA)
  19. 19. 19  Driving  Transforma.on,  Powering  Growth   Investment: What has been Achieved? §  ASEAN Comprehensive Investment Agreement (ACIA) signed in February 2009 Providing for investment liberalization, protection, promotion and facilitation. §  ACIA will: •  benefit investors and their investments based in ASEAN; •  maintains and accords preferential treatment among ASEAN Member States; and •  preserves commitments made under the Framework Agreement on the ASEAN Investment Area (AIA) and the ASEAN Investment Guarantee Agreement (IGA).
  20. 20. 20  Driving  Transforma.on,  Powering  Growth   §  Intellectual Property Rights (IPR): o  strengthening domestic IP systems to deliver timely, quality and accessible IP services through a strong IP regime; and o  acceding to core international agreements. §  Competition Policy: National competition law in all Member States §  Consumer Protection: Focus on ensure consumer legislation in all Member States, consumer access to information, information exchange mechanism for recalled/banned products and consumer redress mechanism. Other Areas Covered under the AEC
  21. 21. 21  Driving  Transforma.on,  Powering  Growth   §  Taxation: Network of bilateral agreements to address issues on double-taxation. §  SME Development: SME Master Plan, SME Development Council (Public and Private Sector representatives) and information exchange on best practices. §  Narrowing the Development Gap: Initiative for ASEAN Integration (IAI) and capacity-building programs. Other Areas Covered under the AEC
  22. 22. 22  Driving  Transforma.on,  Powering  Growth   Cooperation in Other Economic Sectors: Strengthening Connectivity ►  Development of rail/road/highways/port networks. ►  Regional power transmission grid & Trans-ASEAN gas pipeline. ►  ICT – Broadband corridors. ►  Transport Agreements/Protocols, e.g. §  ASEAN Framework Agreement on Multimodal Transport (AFAMT) §  ASEAN Framework Agreement on Facilitation of Goods in Transit (AFAFGIT) §  ASEAN Framework Agreement on the Facilitation of Inter- State Transport (AFAFIST) §  Open Skies Policy §  Single Shipping Market
  23. 23. 23  Driving  Transforma.on,  Powering  Growth   Post-2015 Economic Vision: consolidation and going beyond… •  incorporate unfinished commitments •  Framework of the ASEAN Economic Community 2025: covers 5 main sections: o  Integrated and Highly Cohesive Economy; o  Competitive, Innovative and Dynamic ASEAN; o  Resilient, Inclusive and People Centered ASEAN o  Enhanced Sectoral Integration and Cooperation; and o  Global ASEAN.
  24. 24. Thank You allasean@miti.gov.my Block 10, Government Offices Complex, Jalan Duta, 50622 Kuala Lumpur, Malaysia Tel: 603-8000 8000 | Fax: 603-6201 2337 Email: webmiti@miti.gov.my | Website: www.miti.gov.my

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