The document discusses the ASEAN Economic Community (AEC) which will be established in 2015. It provides background on ASEAN countries and outlines the goals of the AEC to create a single market and production base. This will involve removing tariffs and other trade barriers, and allowing the free flow of goods, services, investment, capital and skilled labor. The AEC is expected to benefit businesses through increased trade and investment opportunities, but will also increase competition which businesses will need to prepare for. Food industries may face both opportunities from a larger market and challenges from greater competition in the AEC.
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Population: 1.3 billion; Urbanization: 33%
Life expectancy: 68 years (average)
HDI ranking 131st/188
Per capita GNI (PPP) $5,663
% living on less than $1.90 a day (PPP) 21%
% of population under-nourished: 15%
Remittance inflow (net) +3.3% of GDP
Gini coefficient: 0.35
Palma Ratio: 1.5
Successful diversification into manufacturing
Globally competitive in many service industries
"• National Financial Services Operation hub
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• International Micro-finance hub
• International commodity trade hub
• Participation in global capital markets
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The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
1. 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
2. CONTENT
1. ASEAN -- background & key indicators --
2. Towards ASEAN Economic Community 2015
3. What will be the changes in AECs?
4. ASEAN with ASEAN Plus
5. What are benefits / impacts from AEC
6. Are you ready for AEC 2015?
7. Opportunities & Challenges for ASEAN Food
Industry in AEC
7. ASEAN COMMUNITY
One Vision
One Identity
One Community
AC : 2015
ASEAN
Security ASEAN
Community Economic
(ASC) Community
(AEC)
ASEAN
Social-Cultural AEC BLUEPRINT
Community & Strategic Schedule
(ASCC)
10. AEC GOALS
ASEAN Economic Community : AEC
1. 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 Development
3. 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
11. 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 for
Products in Sensitive List : import duties must be ≤ 5%
Products in Highly Sensitive List : more flexible tariff rates but must be
agreed upon by other member states.
Products : Rice & Sugar
Countries : Malaysia, Indonesia, Philippines
12. AEC Blueprint : Free Flow of Goods
Products in Sensitive List : import duties must be ≤ 5%
ASEAN–6 by 1 January 2010
Tariff rate
CLMV by 1 January 2015 To be reduced to
Thailand 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%
13. AEC Blueprint : Free Flow of Goods
Products in Highly Sensitive List
: more flexible tariff rates but must be agreed upon by other member
states.
Products : Rice & Sugar
Countries : Malaysia, Indonesia, Philippines
Malaysia Rice at 20% in 2010
Indonesia Rice at 25% in 2010 Sugar: from 40% to 5-10% in 2010
Philippines Sugar: 38% till 2011, from 2012 be reduced gradually to 5% in 2015
Rice: 40% till 2014, then be reduced to 35% in 2015
14. AEC Blueprint : Free Flow of Services
ICT, Health, Tourism,
Air Transport
Logistics sector 51%
other sectors 51%
16. 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
18. 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
19. FTA between ASEAN and Dialogue Partners-at present
ASEAN Plus 6
India
AC
China FTA AIFTA
Goods : 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
20. 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
India
ASEAN 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)
22. 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 services
Service 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
23. 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 market
Service 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.
25. 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 Sustainability
your products & services Emphasis on quality, design, standards etc
Thinking out of a box Do not overlook “ Unseen Opportunities”
26. 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 , ways
Human Resources of thinking etc of other ASEAN people
Maintain your “precious”
“How to retain them with us?”
personals
28. 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
29. 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
30. Thank You
One Vision
One Identity
One Community