Cambodia Indonesia
Laos Malaysia
ASEAN Attraction
Population of approximately 600 million people (8.8% of the worlds population); In 2010, ASEANs combined nominal GDP had grown to US$1.8 trillion; If ASEAN were a single entity, it would rank as the ninth largest economy in the world.
ASEAN Attraction
large market with robust growth rate above the world
average. rich natural resources, a major player in the world or Asia-Pacific in a number of food crops, high value crops, wood, rubber, oil & gas, fisheries. ASEAN countries have successfully positioned themselves in the more attractive industries in the world (Mckinsey) ASEAN economies of varying development stages present opportunities for complementary regional production networks. It has world class dynamic firms.
Automotive E-ASEAN
Rubber
Fisheries
Agro-based
Textiles
Logistics Healthcare
Tourism
Wood-based
electronics & relatively strong in healthcare products & automotive industries (Austria).
Intra-industry intra-ASEAN trade linkages are
weak or at best mild in agri-based, fisheries, rubber-based & wood-based industries (Austria).
Elimination of Tariffs
ASEAN Trade in Goods Agreement (ATIGA)
achieving the elimination of tariff on trade among the ASEAN Member States (AMSs). At least 99 percent of tariff lines are 0 percent in ASEAN-6, with an average CEPT rate of 0.5 percent in 2011. Nearly 99 percent of all tariffs in the newer AMSs are already in the 0-5 percent range, with the average CEPT rate by 2011 of only around 2.6 percent
eliminate non-tariff barriers (NTBs) has proven to be much more difficult. Because they are varied, rather complex, and not very transparent, the way the NTMs are implemented can make them significant non-tariff trade barriers. Because virtually all NTMs have objectives other than protection, the challenge is to pick out those NTMs that have much greater probability of being used as a trade protection instrument and minimizing their trade barrier effects. ASEAN used a voluntary approach to eliminate NTBs, wherein AMSs would offer NTBs to be eliminated. Malaysia and Thailand offered a few for elimination; however, no other AMSs offered.
changes in global production processes so as to: facilitate trade and investment among ASEAN Member Countries; promote a regional production network; encourage development of SMEs and the narrowing of development gaps; and promote the increased usage of the AFTA CEPT Scheme (AEC Blueprint).
All the ASEAN + 1 FTAs (ACFTA, AKFTA and AJCEP,
AANZFTA and AIFTA) adopt the general 40 percent local/regional value added (RVA) rule, with full cumulation. They also provide for alternative rule using Change in Tariff Classification (CTC) for certain products.
functioning single production base in the ASEAN region. ASEAN aims to establish a working ASEAN Single Window (ASW) in the whole region, arguably the earliest regional single window in the world. There is a huge gap in the degree of customs modernization between Singapore, which is one of the worlds best, and Myanmar and Laos where much remains to be done to satisfy the criteria of a modern and efficient customs. Consequently, there is large difference in the number of days to import or export among AMSs.
and Brunei Darussalam) have live implementation of their NSWs already, with an on-going gradual expansion of government agencies to be linked to NSWs, and two others (Singapore and Malaysia) on advanced stages of development. The last three (Lao PDR, Myanmar and Cambodia) are still in the early stages of NSW implementation.
The AMSs trade facilitation initiatives appear to be bearing
fruit already even if they are still very much underway. There has been reduction in the number of days to import and export in some countries especially in Thailand.
assessments are a serious deterrent to a more integrated ASEAN economic community. The key challenge for standards and conformance in the ASEAN is how to craft a regime in the region that minimizes the trade barrier effect of national standards, conformity assessment procedures, and technical regulations on the one hand while at the same time enhances the competitiveness of producers in the region on the other hand. The general approach in the ASEAN as embodied in the AEC Blueprint is a combination of harmonization, transparency and capacity building focusing on the twelve (12) priority integration sectors.
Two-Pronged Strategy
Two-pronged ASEAN integration strategy:
(1) Government-led:
Harmonization of policy & regulatory environment & streamlining of procedures Cooperation in capacity building, information sharing, logistics & infrastructure, R & D.
Industry by industry regional complementation, upgrading & integration strategy & program in the context of East Asia integration.
regional level on technical analysis and coordination on the details of regional industrial complementation, cooperation and integration
regional complementation, integration and cooperation programs at the national and local levels.
NEEDED: institutionalized private sector,
government and academe collaborative mechanism at the regional and national levels
Accelerate regional standards harmonization, certification & Mutual Recognition Agreements *Clear targets & schedule for harmonization of standards *Strengthen certification capability & deepen MRAs
chain
Regional resource pooling & cooperation on scarce mission
critical resources for industrial upgrading such as scientists and highly skilled technical manpower
Deepen capital market development & maintain robust
sector participation & consultation on, the ASEAN industry by industry regional complementation, upgrading & integration plans & programs.
Negotiate concertedly for improved market access & fair
and outputs
Secure trading environment
measures
enterprises
Poor administration of FTAs (e.g. ROO compliance, transshipment violations, standards compliance, etc.)
Thank you!