Presentation : Free Flow of Services Asean Economic Community


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Presentation : Free Flow of Services Asean Economic Community on 31 May 2011

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Presentation : Free Flow of Services Asean Economic Community

  1. 1. presents by Ronnarong Phoolpipat (รณรงค์ พูลพิพัฒน์ )Director of Strategy on Trade in Services Division Department of Trade Negotiations
  2. 2. Members Accession1) Thailand 19672) Malaysia 19673) Indonesia 19674) Philippines 19675) Singapore 19676) Brunei 19847) Vietnam 19958) Laos PDR 19979) Myanmar 199710) Cambodia 1999
  3. 3. Overview about ASEANASEAN, was established on 8 August 1967 in Bangkok, Thailand, withthe signing of the ASEAN Declaration (Bangkok Declaration) by the FoundingFathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore andThailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April1999, making up what is today the ten Member States of ASEAN.ASEAN covers an area of 4.46 million km2, 3% of the total land a area ofEarth, with a population of approximately 600 million people, 8.8% of theworld population. In 2010, its combined nominal GDP had grown to USD $1.8trillion. If ASEAN were a Single country, it would rank as the 9th largesteconomy in the world and the 3rd largest in Asia in terms of nominal GDP.
  4. 4. ASEAN Community The ASEAN Vision 2020, adopted by the ASEAN Leaders., At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established. At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015. The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. Each pillar has its own Blueprint, and, together with the Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for and ASEAN Community 2009-2015.
  5. 5.  The ASEAN Charter is a constitution for ASEAN. The Charter came into force in December 2008 The ASEAN Charter serves as a firm foundation in achieving the ASEAN Community by providing legal status and institutional framework for ASEAN. The ASEAN Charter has become a legally binding agreement among the 10 ASEAN Member States. AMSs committed to build regional cooperation and integration by establishing an ASEAN community comprising the ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community.
  6. 6. ASEAN Community ASEAN Security Community ASEANin year 2015 ASC Socio-Cultural Community (ASCC) ASEAN Economic Community (AEC) ASEAN COMMUNITY Year 2015
  7. 7. Economic : Major Trade Agreements ASEAN Free Trade Area (AFTA) 1993 The ASEAN Trade in Goods Agreement (ATIGA) ASEAN ASEAN Framework Agreement on Services (AFAS) 1995 Economic Integrations ASEAN Investment Area (AIA) 1998The ASEAN Comprehensive Investment Agreement (ACIA)
  8. 8. Main objective of AEC characteristic AEC Single Market and Production baseobjective To create a stable, Free flow of goods prosperous and highly services, investment, competitive ASEAN and skilled labour economic region as outlined in Bali Concord II Freer flow of capital
  9. 9. KEY CHARACTERIS AND ELEMENTS OF AEC Region of equitable Region FullySingle Market and High competitive economic Integrated into production base economic region development global economy - Competition policy- Free flow of goods - Consumer - Coherent- Free flow of services protection approach- Free flow of - Intellectual property towards external investment - SME development rights economic relations- Free flow of capital - Initiative for - Infrastructure ASEAN Integration - Enhanced- Free flow of skilled development participation labour - Energy cooperation in global supply - Taxation networks - E-commerce
  10. 10. ASEAN Economic Community Liberalisation Free Free Freer Free Freeflow of flow of flow of flow of flow ofgoods investment capital skilled services labour
  11. 11.  Business services Communications Construction Distribution Education Environmental services Finance Health-related & social services Tourism & travel-related services Recreation, culture, sport Transport Other services
  12. 12. Mode 1 Country A Country A Country B The service crosses the border Supplier A Consumer B The consumerMode 2 crosses the Supplier A Consumer B Consumer B border Supplier A establishedMode 3 a commercial presence Consumer B Supplier A Supplier A in country B Service supplied throughMode 4 presence of natural persons Supplier A Supplier A Consumer B of country A in territory of country B
  13. 13. Types of Limitations to : MATo remove limitations orrestrictions to the supply of - Number of services suppliersservices of Foreign service - Value of transactions or assetssuppliers - Total number of operations or outputs Market access - Total number of natural personsMode 1 (MA) - Type of legal entity - Foreign capital participationMode 2 Example of measures inconsistent with National Treatment PrincipleMode 3 National - Nationality requirement Treatment - Land code (NT ) - Minimum capital requirementMode 4 - Taxation measures - Licensing requirement - Transfer of technology requirement - Ratio of capital and loans requirement
  14. 14. - Blueprint the and Strategic Schedule that eachASEAN Member Country shall abide by andimplement the AEC by 2015.- ASEAN Framework Agreement on Services(AFAS) is as the rule applies to measures byMember Countries affecting trade in services,embarking rounds of negotiations to open uptrade in services among Member Countries.- Coordinating Committee on Services (CCS) isthe technical working group carries outliberalization of services through negotiations.
  15. 15. All AFAS rules are consistent with GATSNearly all provisions missing from AFAS may be referred to GATSThe objective of AFAS is considered as a GATS plus principle. Package of Schedule of Commitments under AFAS is similar to GATS Schedule.
  16. 16. - ASEAN integration in services is generally carried outthrough liberalisation process negotiated under CCS- The outcome of negotiation reports to the AEM throughthe SEOM.-There are 6 Sectoral working groups under the CCS.- The liberalisation of air transport, financial andservices incidental to non-services are undertaken byASEAN sectoral bodies such as ATWG, WC-FSL and CCIrespectively.- CCS established Ad-hoc Expert Group on MRA under itsBusiness Services SWG.
  17. 17. There will be substantially no restrictions toASEAN services suppliers in providing servicesand in establishing companies across nationalborders within the region The main action is to remove substantially allrestrictions on trade in services for the priorityservices sectors (air transport, e-ASEAN,healthcare and tourism) by 2010, Logisticsservices by 2013 and all other services sectors by2015
  18. 18. Package7th Package 8th Package 9th Package 10th -EquityEquity - Equity -Equity Participationparticipation Participation Participation -Remaining - Remaining -Remaining -MA limitations MA limitation -MA limitations -NT limitations - NT limitations -Mode 4 limitations
  19. 19. 70%PIS 49% 70% LOGISTICS 2008 2010 2013Non- 70 49% 51% 70%PIS 2008 2010 2015
  20. 20. PRIORITY SECTORS OTHER SECTORS 2008 : 51% 2008 : 49% 2010 : 70% 2010 : 51% 2013 : 70% 2015 : 70% (LOGISTICS)
  21. 21. 2015 8 sub-sectors = total 128 sub-sectors2014 20 sub-sectors = total 120 sub-sectors2012 20 sub-sectors = total 100 sub-sectors2010 15 sub-sectors = total 80 sub-sectors
  22. 22. ASEAN Free Flow of Framework SEOM/AEM Services Agreement on in services AEC Blueprint (AFAS) Coordinating Committee on Services (CCS)Opening of Services market among ASEAN memberStates (AMS) MRAs1. Removal of restrictions on Trade in Services for service suppliers2. Liberalized sectors to be bound within a Schedule of commitment3. Reservation of some remained limitations in a Schedule4. Submission of a Schedule to ASEAN Secretarial (ASEC)5. ASEC and AMS assess the Schedule of commitment6. Conclusion and preparation for signature and implementation
  23. 23. Year 1967 – 2015 and beyond
  24. 24. More information :Mr. Ronnarong