History of ASEAN ASEAN Community Year 2015 1997 1997 1967 1967 1995 1995 ASEAN ASEAN 1999 Economic Economic AEC Blueprint AEC Blueprint 1967 1967 1984 1984 Security Security Community 1967 Community (AEC) (ASC) 1967 Established on 8 August 1967 in Bangkok The Signing of ASEAN Declaration (Bangkok Declaration) ASEAN One Vision One Vision Socio ‐ One Identity The Founding Members : Indonesia, Malaysia, Philippines, Singapore, Thailand cultural One Community 1984 - Brunei Darussalam joined in. 1984 Brunei Darussalam joined in Community Community (ASCC) CLMV: 1995 - Vietnam / 1997 – Lao PDR and Myanmar /1999 – Cambodia 1 2 AEC Blueprint AEC Blueprint Free flow of Goods Free flow of Goods Characteristics and Elements of AEC Ch i i d El f AEC Gradually reduce tariff since 1992 Single Market and Highly competitive Equitable economic Fully integrated into ASEAN ‐ 6: 0% tariff for imports from ASEAN production base economic region development global economy 1 Jan 2010 ‐ Free flow of goods ‐ Competition Policy ‐ SME development ‐ Coherent Approach CLMV: 0% tariff for imports from ASEAN CLMV: 0% tariff for imports from ASEAN towards External towards External 1 Jan 2015 1 J 2015 ‐ Free flow of services F fl f i ‐ Consumer C ‐ Initiative for ASEAN I i i i f ASEAN Economic Relations Integration (IAI) Protection ‐ Free flow of ‐ Enhanced investment ‐ Intellectual property Except Goods in Sensitive List : Tariff < 5% Except Goods in Sensitive List : Tariff < 5% participation in global participation in global rights (IPR) rights (IPR) ‐ Freer flow of capital supply networks ‐ Infrastructure ‐ Free flow of skilled Goods in Highly Sensitive List i.e. Rice, sugar Development labour g y , g ‐ Taxation T ti (Indonesia, Malaysia, Philippines) ‐ E ‐ Commerce : Tariff > 5% : Tariff > 5% 4 3
ASEAN Framework Agreement on WTO Trade in Services Classification WTO Trade in Services Classification Services 12 Sectors cover 160 sub ‐ sectors Business ( Professionals, Computer, R&D, Real Estate, Rent/Lease,) 1. Free flow of Services Free flow of Services 2. Communication (Postal, Courier, Telecommunication, Audiovisual) 3. Construction (Buildings, Civil Engineering, Installation & Assembly, Finishing) 4 4. Distribution (Commission Agents Wholesale Retailing Franchising) Distribution (Commission Agents, Wholesale, Retailing, Franchising) 2015 5. Education (Primary, Secondary, Higher, Adult) 127 sub-sectors (+ 7) 6. Environmental (Sewage, Refuse Disposal, Sanitation) 7. Financial Services (Insurance, Banking and other Financial Services) 2014 8. Health Related and Social (Hospital, Other Human Health services, Social) 120 sub-sectors (+ 20) 9. Tourism and Travel Related (Hotels & Restaurants, Travel Agencies & Tour ( , g Operators, Tourist Guides) 2012 10. Recreational, Cultural, Sporting (Entertainment, News Agency, Libraries, 100 sub-sectors (+ 20) ( ) archives, museums, and other cultural services, Sporting and other recreational archives, museums, and other cultural services, Sporting and other recreational services) 2010 11. Transport (Maritime, Internal Waterways, Air, Space, Rail, Road, Pipeline, 80 sub-sectors (+ 15) Services Auxiliary to all modes of transport) Services Auxiliary to all modes of transport) 12. Other Services 5 6 Country A Country A Country B Foreign Equity Participation g q y p under AFAS Mode 1 The service crosses the border Supplier A Consumer B M 2008 2010 2012 2015 The consumer 2 Mode 2 4 Priority Services Sectors 51% 70% 70% 70% crosses the Consumer B Consumer B Supplier A border ( Air Transport; Tourism; Healthcare; Supplier A established a Telecommunication, and e 3 commercial presence in p Consumer B Consumer B Mode S Supplier A li A Computer Services) country B Logistics g 49% 51% 70% 70% Service supplied through Other Services 49% 51% 51% 70% Mode 4 presence of natural persons of Consumer B country A in territory of country M B 7 8
Mutual Recognition Arrangement (MRA) ASEAN Mutual Recognition on Tourism Professionals T i P f i l Agreements Travel Services Hotel Services • Engineer 2005 Engineer 2005 9 job titles in 2 sub-sectors 23 job titles in 4 areas • Nurse 2006 • Architect 2007 A hit t 2007 • Medical Practitioner 2009 • Dental Practitioner 2009 • Surveyor (Framework Arrangement for the Surveyor (Framework Arrangement for the Mutual Recognition of Surveying Qualifications) 2007 • Accountant (Mutual Recognition Arrangement Framework on Accountancy Services) 2009 Framework on Accountancy Services) 2009 10 9 Free flow of Investment • Manufacturing • Liberalization • Liberalization • Agriculture – National Treatment • Fishery Fishery – Reduce/remove limitation on investment Reduce/remove limitation on investment • Protection • Forestry – Expropriation Expropriation • Mining and quarrying – Compensation in cases of strife – Transfer of money • Services incidental to manufacturing Services incidental to manufacturing, – Investor VS State dispute agriculture, fishery, forestry, mining and • Promotion quarrying quarrying • Facilitation 11 12
ASEAN+1 & ASEAN++ FTAs Next Station >> RCEP Next Station >> RCEP Development of 5 ASEAN+1 FTAs (Australia ‐ NZ, China, India, Japan, Korea) Development of 5 ASEAN+1 FTAs (A t li NZ Chi I di J K ) Status of ASEAN Plus FTAs • ASEAN+China ‐ goods, services and investment agreements implemented in 1 January 2005, 1 July 2007 and April 2010 respectively. Global Engagement is Key Global Engagement is Key • ASEAN+Korea ‐ goods and services and investment agreements implemented in 1 October 2009, 1 June 2009 and 31 October 2009 respectively. ASEAN ‐ Russia ASEAN ‐ Canada • ASEAN+Japan ‐ comprehensive agreement implemented 2 June 2009 ASEAN ‐ China FTA • ASEAN+India ‐ Goods implemented 1 January 2010; still to conclude services and ASEAN ‐ EU FTA ASEAN ‐ US TIFA investment. ASEAN ‐ Korea FTA • ASEAN+Australia+New Zealand ASEAN ‐ Japan CEP comprehensive agreement implemented 1 January 2010 . RCEP RCEP ASEAN Pakistan ASEAN ‐ Pakistan Level of Liberalization in ASEAN+1 FTAs ASEAN ‐ India FTA Tariff : 6 AMSs achieved 90% (average) 4 AMSs remain 80 ‐ 90% (average) ( g ) Present ASEAN FTAs+1 ASEAN and 6 FTA partners launched the Negotiation of Regional Comprehensive Economic Partnership (RCEP) (ASEAN +6 FTA) at the ASEAN Summit on 20 November Economic Partnership (RCEP) (ASEAN +6 FTA) at the ASEAN Summit on 20 November ASEAN Dialogue Partners ASEAN ‐ Australia ‐ New 2012. Zealand FTA 13 14 Connectivity in ASEAN ASEAN Economic Community ASEAN E i C it ASEAN ASEAN Economic Economic Community Community F Free Flows of Fl f M U E h MoU on Exchange of Traffic f T ffi Rights among Thailand-Lao PDR-China and the 4 th Bridge ATIGA ATIGA AFTA CEPT AFTA - CEPT across Mekong River Goods Goods AFAS AFAS Services Development of Border Trade High-Speed Train Thailand-Lao-Chi Singapore-Kunming Railway Link ACIA ACIA AIA AIA Investment Investment Development of Dawai Deep- Seaport and Industrial Estate Skilled Labour Motorway Hatyai-Sadao 15 16
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