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presents
                       by

            Ronnarong Phoolpipat
                (รณรงค์ พูลพิพัฒน์ )


Director of Strategy on Trade in Services Division
         Department of Trade Negotiations

         ronnarong@moc.go.th
Members       Accession

1) Thailand        1967

2) Malaysia        1967

3) Indonesia       1967

4) Philippines     1967

5) Singapore       1967

6) Brunei          1984

7) Vietnam         1995

8) Laos PDR        1997

9) Myanmar         1997

10) Cambodia       1999
Overview about ASEAN
ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with
the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding
Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and
Thailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28
July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April
1999, 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 of
Earth, with a population of approximately 600 million people, 8.8% of the
world population. In 2010, its combined nominal GDP had grown to USD $1.8
trillion. If ASEAN were a Single country, it would rank as the 9th largest
economy in the world and the 3rd largest in Asia in terms of nominal GDP.
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.
Presentation : Free Flow of Services Asean Economic Community
 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.
ASEAN Community   ASEAN Security
                  Community
                                    ASEAN

in year 2015          ASC
                                 Socio-Cultural
                                  Community
                                     (ASCC)


                       ASEAN Economic
                         Community
                           (AEC)




                     ASEAN COMMUNITY
                         Year 2015
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) 1998
The ASEAN Comprehensive Investment Agreement (ACIA)
Presentation : Free Flow of Services Asean Economic Community
Main objective of AEC


                      characteristic
            AEC                        Single Market and
                                        Production base


objective



     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
KEY CHARACTERIS AND ELEMENTS OF AEC

                                                  Region of equitable     Region Fully
Single 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
ASEAN Economic Community




               Liberalisation


  Free                   Free      Freer      Free
             Free
flow of                flow of    flow of   flow of
           flow of
goods                investment   capital   skilled
          services
                                            labour
   Business services
   Communications
   Construction
   Distribution
   Education
   Environmental services
   Finance
   Health-related & social services
   Tourism & travel-related services
   Recreation, culture, sport
   Transport
   Other services
Mode 1            Country A
                  Country A                          Country B
                          The service crosses the border
             Supplier A                                       Consumer B


                                             The consumer
Mode 2




                                              crosses the
            Supplier A      Consumer B                        Consumer B
                                                border


                          Supplier A established
Mode 3




                          a commercial presence                Consumer B
            Supplier A                           Supplier A
                               in country B


                     Service supplied through
Mode 4




                    presence of natural persons
         Supplier A                                 Supplier A Consumer B
                     of country A in territory of
                             country B
Types of Limitations to : MA
To remove limitations or
restrictions to the supply of    - Number of services suppliers
services of Foreign service      - Value of transactions or assets
suppliers
                                 - Total number of operations or outputs
               Market access     - Total number of natural persons
Mode 1         (MA)              - Type of legal entity
                                 - Foreign capital participation
Mode 2                          Example of measures inconsistent with National
                                Treatment Principle

Mode 3         National         - Nationality requirement
               Treatment        - Land code
               (NT )            - Minimum capital requirement
Mode 4                          - Taxation measures
                                - Licensing requirement
                                - Transfer of technology requirement
                                - Ratio of capital and loans requirement
- Blueprint the and Strategic Schedule that each
ASEAN Member Country shall abide by and
implement the AEC by 2015.
- ASEAN Framework Agreement on Services
(AFAS) is as the rule applies to measures by
Member Countries affecting trade in services,
embarking rounds of negotiations to open up
trade in services among Member Countries.
- Coordinating Committee on Services (CCS) is
the technical working group carries out
liberalization of services through negotiations.
All AFAS rules are consistent with GATS
Nearly all provisions missing from AFAS
        may be referred to GATS

The objective of AFAS is considered as a
         GATS plus principle.

 Package of Schedule of Commitments
    under AFAS is similar to GATS
              Schedule.
- ASEAN integration in services is generally carried out
through liberalisation process negotiated under CCS
- The outcome of negotiation reports to the AEM through
the SEOM.
-There are 6 Sectoral working groups under the CCS.

- The liberalisation of air transport, financial and
services incidental to non-services are undertaken by
ASEAN sectoral bodies such as ATWG, WC-FSL and CCI
respectively.
- CCS established Ad-hoc Expert Group on MRA under its
Business Services SWG.
There will be substantially no restrictions to
ASEAN services suppliers in providing services
and in establishing companies across national
borders within the region

 The main action is to remove substantially all
restrictions on trade in services for the priority
services sectors (air transport, e-ASEAN,
healthcare and tourism) by 2010, Logistics
services by 2013 and all other services sectors by
2015
Package7th      Package 8th     Package 9th        Package 10th




                                                   -Equity
Equity          - Equity        -Equity
                                                   Participation
participation   Participation   Participation
                                                   -Remaining
                 - Remaining    -Remaining
                                                   -MA limitations
                MA limitation   -MA limitations
                                                   -NT limitations
                                - NT limitations
                                                   -Mode 4
                                                   limitations
70%
PIS    49%    70%    LOGISTICS




       2008   2010    2013




Non-



                       70
        49%    51%   70%
PIS
       2008   2010    2015
PRIORITY SECTORS   OTHER SECTORS

   2008 :   51%    2008   :   49%

  2010 :    70%    2010   :   51%

   2013 :   70%    2015   :   70%
   (LOGISTICS)
2015
                                  8 sub-sectors = total 128 sub-sectors


2014
                        20 sub-sectors = total 120 sub-sectors


2012
                20 sub-sectors = total 100 sub-sectors

2010
       15 sub-sectors = total 80 sub-sectors
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 member
States (AMS)
                                                                               MRAs
1.   Removal of restrictions on Trade in Services for service suppliers
2.   Liberalized sectors to be bound within a Schedule of commitment
3.   Reservation of some remained limitations in a Schedule
4.   Submission of a Schedule to ASEAN Secretarial (ASEC)
5.   ASEC and AMS assess the Schedule of commitment
6.   Conclusion and preparation for signature and implementation
Year 1967 – 2015
 and beyond
More information :
Mr. Ronnarong Phoolpipat
0815651139

ronnarong@moc.go.th

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Presentation : Free Flow of Services Asean Economic Community

  • 1. presents by Ronnarong Phoolpipat (รณรงค์ พูลพิพัฒน์ ) Director of Strategy on Trade in Services Division Department of Trade Negotiations ronnarong@moc.go.th
  • 2. Members Accession 1) Thailand 1967 2) Malaysia 1967 3) Indonesia 1967 4) Philippines 1967 5) Singapore 1967 6) Brunei 1984 7) Vietnam 1995 8) Laos PDR 1997 9) Myanmar 1997 10) Cambodia 1999
  • 3. Overview about ASEAN ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, 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 of Earth, with a population of approximately 600 million people, 8.8% of the world population. In 2010, its combined nominal GDP had grown to USD $1.8 trillion. If ASEAN were a Single country, it would rank as the 9th largest economy in the world and the 3rd largest in Asia in terms of nominal GDP.
  • 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.
  • 6.  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.
  • 7. ASEAN Community ASEAN Security Community ASEAN in year 2015 ASC Socio-Cultural Community (ASCC) ASEAN Economic Community (AEC) ASEAN COMMUNITY Year 2015
  • 8. 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) 1998 The ASEAN Comprehensive Investment Agreement (ACIA)
  • 10. Main objective of AEC characteristic AEC Single Market and Production base objective 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
  • 11. KEY CHARACTERIS AND ELEMENTS OF AEC Region of equitable Region Fully Single 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
  • 12. ASEAN Economic Community Liberalisation Free Free Freer Free Free flow of flow of flow of flow of flow of goods investment capital skilled services labour
  • 13. Business services  Communications  Construction  Distribution  Education  Environmental services  Finance  Health-related & social services  Tourism & travel-related services  Recreation, culture, sport  Transport  Other services
  • 14. Mode 1 Country A Country A Country B The service crosses the border Supplier A Consumer B The consumer Mode 2 crosses the Supplier A Consumer B Consumer B border Supplier A established Mode 3 a commercial presence Consumer B Supplier A Supplier A in country B Service supplied through Mode 4 presence of natural persons Supplier A Supplier A Consumer B of country A in territory of country B
  • 15. Types of Limitations to : MA To remove limitations or restrictions to the supply of - Number of services suppliers services of Foreign service - Value of transactions or assets suppliers - Total number of operations or outputs Market access - Total number of natural persons Mode 1 (MA) - Type of legal entity - Foreign capital participation Mode 2 Example of measures inconsistent with National Treatment Principle Mode 3 National - Nationality requirement Treatment - Land code (NT ) - Minimum capital requirement Mode 4 - Taxation measures - Licensing requirement - Transfer of technology requirement - Ratio of capital and loans requirement
  • 16. - Blueprint the and Strategic Schedule that each ASEAN Member Country shall abide by and implement the AEC by 2015. - ASEAN Framework Agreement on Services (AFAS) is as the rule applies to measures by Member Countries affecting trade in services, embarking rounds of negotiations to open up trade in services among Member Countries. - Coordinating Committee on Services (CCS) is the technical working group carries out liberalization of services through negotiations.
  • 17. All AFAS rules are consistent with GATS Nearly all provisions missing from AFAS may be referred to GATS The objective of AFAS is considered as a GATS plus principle. Package of Schedule of Commitments under AFAS is similar to GATS Schedule.
  • 18. - ASEAN integration in services is generally carried out through liberalisation process negotiated under CCS - The outcome of negotiation reports to the AEM through the SEOM. -There are 6 Sectoral working groups under the CCS. - The liberalisation of air transport, financial and services incidental to non-services are undertaken by ASEAN sectoral bodies such as ATWG, WC-FSL and CCI respectively. - CCS established Ad-hoc Expert Group on MRA under its Business Services SWG.
  • 19. There will be substantially no restrictions to ASEAN services suppliers in providing services and in establishing companies across national borders within the region The main action is to remove substantially all restrictions on trade in services for the priority services sectors (air transport, e-ASEAN, healthcare and tourism) by 2010, Logistics services by 2013 and all other services sectors by 2015
  • 20. Package7th Package 8th Package 9th Package 10th -Equity Equity - Equity -Equity Participation participation Participation Participation -Remaining - Remaining -Remaining -MA limitations MA limitation -MA limitations -NT limitations - NT limitations -Mode 4 limitations
  • 21. 70% PIS 49% 70% LOGISTICS 2008 2010 2013 Non- 70 49% 51% 70% PIS 2008 2010 2015
  • 22. PRIORITY SECTORS OTHER SECTORS 2008 : 51% 2008 : 49% 2010 : 70% 2010 : 51% 2013 : 70% 2015 : 70% (LOGISTICS)
  • 23. 2015 8 sub-sectors = total 128 sub-sectors 2014 20 sub-sectors = total 120 sub-sectors 2012 20 sub-sectors = total 100 sub-sectors 2010 15 sub-sectors = total 80 sub-sectors
  • 24. 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 member States (AMS) MRAs 1. Removal of restrictions on Trade in Services for service suppliers 2. Liberalized sectors to be bound within a Schedule of commitment 3. Reservation of some remained limitations in a Schedule 4. Submission of a Schedule to ASEAN Secretarial (ASEC) 5. ASEC and AMS assess the Schedule of commitment 6. Conclusion and preparation for signature and implementation
  • 25. Year 1967 – 2015 and beyond
  • 26. More information : Mr. Ronnarong Phoolpipat 0815651139 ronnarong@moc.go.th