AEC (ASEAN Economic Community) Bangkok Entrepreneurs
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1 Dr. Gunter Denk – www.sanet.eu A Vision Becomes Reality The four pillars of ASEAN integration
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AEC: A Vision Becomes Reality Presentation by Dr Gunter Denk. Bangkok Entrepreneurs - February 2013 - Bangkok
Transcript of AEC (ASEAN Economic Community) Bangkok Entrepreneurs
1
Dr. Gunter Denk – www.sanet.eu
A Vision Becomes Reality
The four pillars of ASEAN integration
Content
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
About ASEANAssociation of South-East Asian Nations
3
19671967 ASEAN was established by 5 Countries in Bangkok – Indonesia, Thailand, Malaysia, Singapore, Philippine
19991999 10 States completed. Brunei (1984), Vietnam (1995), Laos and Myanmar (1997) and Cambodia (1999) joined
20062006 The United Nations (UN) confirm ASEAN being a Union with “Observer Status” in the plenary meetings
20082008 On November 20th, 2007 all 10 states agree in the new Charta becoming effective in December 2012
20152015 ASEAN ECONOMIC COMMUNITY (AEC) should be widely realized
The ASEAN History
ASEAN: A Story of Passion and Success
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
ASEAN
GUNTER
581 Mio.
4,5 Mio. km²
1‘950 Bio. $
3‘300 $
Thailand
Brunei
Kambodscha
Indonesien
Laos
Malaysia
Myanmar
Philippinen
Singapur
Vietnam
10 Boutique Countries
ASEAN – Different Living Standards
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
Average income* and growth rate since 1982Brunei and Singapore: 52’000$4.2%Malaysia and Thailand: 12’000$6.9%Indonesia and Philippines: 4’000$ 5.1%CLMV: 2’000$ 7.2%
*based on purchasing-power-parity
20102008
20062004
20022000
19981996
19941992
19901988
1986 0
10000
20000
30000
40000
50000
60000
Singapore & Brunei
Malaysia & Thailand
Indonesia & Philippines
Combodia, Laos, Myanmar & Vietnam
Size Size CHINA: 9‘600‘000 km²ASEAN: 4‘480‘000 km²INDIEN: 3‘300‘000 km²
PeoplePeopleCHINA: 1.35 billionINDIEN: 1.22 billionASEAN: 0.62 billion
GDP*GDP*CHINA: 8.250 trillionASEAN: 2.300 trillionINDIEN: 1.950 trillion
GDP per capita*GDP per capita*
CHINA: 6’100 USDASEAN: 3’750 USDINDIEN: 1‘600 USD
ASEAN – Strong Together
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
*not based on purchasing-power-parity
Youngest Economic Union and young population
Variety of Cultures and good for SME
Central link between China and India
Strong Investment promotions
ASEAN – A Great Future
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
ASEAN Charta 2015
9
Co-operation in economies, free trade of Goods and services, competitiveness
POVERTY REDUCTION
Open travelling in business and as tourist, free flow of labor
HARMONIZING THE SOCIETIES
Joint defense of common interests; prevent drug related and other crimes
EXTERNAL AND INTERNAL SECURITY
Dec 15th, 2008: “One Vision, one Identity, one Community”
ASEAN Charta 2015
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
The 4 Pillars of AEC
11
The 5 core elements of a single market
1. Single Market and Production Base
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
12
Free Flow of Services:Providing services;
establishing companies
Free Flow of Investment:More FDI; confidence and protection;
transparency and support.
Freer Flow of Capital: Rules for money transfer;
greater capital mobility
Free Flow of Skilled LaborSimplify Visa procedures; transparent
requirements; mutual recognition
Free Flow of Goods:Tariff removal; trade simplification;
customs Integration
2. Competitive Economic Region
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
13
Intellectual Property RightsBuild an innovative and competitive
region;New institutions and initiatives
Infrastructure DevelopmentTransport facilitation & liberalization;secure, accessible and sustainable
energy Competition Policy
Introduce national competition institutions & laws. Foster a culture of
fair competition.Substantive and procedural
competition law
Consumer ProtectionInformation exchange of banned products;
increase awareness of consumer rights
3. Equitable economic development
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
14
• SMEs are the backbone of ASEAN• 50% to 85% of domestic employment• 30% to 53% of the GDP
• Long-run and sustainable economic growth• Enhance competiveness and resilience of SMEs
Small and Medium Enterprises
• Fasten economic integration of less developed members• Coherence and support among members• Physical transport and communication infrastructure
networks
ASEAN Integration & narrowing Development Gap
4. Integration into the global economy
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
15
Global Supply Chain
Action
ASEAN operates in an increasingly global environmentInterdependent markets and globalized industriesMake ASEAN a more dynamic and stronger segment of the global supply chain
New policies consider external rules and regulationsCoordinate FTAs with ASEAN internal commitmentsAdoption of international best practices and standards in production and distribution
Look beyond the borders of AEC
Instruments of AEC
16
Overview of Instruments of AEC
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
17
AECBlueprint
ATIGATrade in Goods
Agreement
ATRASEAN TradeRepository
ASWASEAN Single
Window
AFASFramework Agreement on Services
MNPMovementof Natural Persons
MRAsMutual
Recognition Arrangements
ACIAComprehensive
Investment Agreement
The Blueprint serves as a coherent master plan guiding the AEC. It contains the 4 Pillars and a timeframe to implement the targets.
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
18
ATRASEAN TradeRepository
ASWASEAN Single
Window
Goods Instruments of AEC
ATIGAASEAN Trade in
Goods Agreement
Tariff LiberalizationRules of OriginNon-Tariff Measures ( ATR)Trade Facilitation ( ASW)
Will contain Trade related InformationWill be accessible OnlineASEAN Secretariat shall list Non-Tariff Measures which have illegal Barrier effect.
The ASW, will enhance trade facilitation and facilitate the movement of goods in the region by electronic exchange of cargo clearance documents among Member States.
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
19
Services Instruments of AEC
Qualifications of services suppliers to be mutually recognized by other Member States. Engineering, architectural, nursing, surveying,medical & dental practitioners and tourism.
AFASASEAN
Framework Agreement on
Services
MNPMovement of
Natural Persons
MRAsMutual
Recognition Arrangements
AFAS was signed 1995 to enhance cooperation in services, eliminate barriers, liberalize beyond GATS of WTO.
8 Packages of commitments under AFAS
Signed in Nov. 2012
Grant temporary stays for professionals
Promote quick and transparent processes
Feb. 2009 Signed
2007 2008 2009 2010 2011 2012 2013 2014201
5
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
20
Signing Dates of Instruments
Nov. 2007 AEC Blueprint
Feb. 2009
Dec.1995 AFAS
Mar. 2012 ACIA in Force
8 Packages until 2010Dec. 2012
AEC
MNP
AEC
Mai. 2010 ATIGA in ForceASW when?
Just a Vision ?
21
„Selfishness“„Selfishness“Selfishness ist part of human beings. Short-term advantage seam more important then long-term visions
HistoryHistory Traditional conflicts hard to forget
EconomyEconomy Richest ASEAN states 100 x more rich then poorest
AdministrationsAdministrations
Different political principles and different handling of corruption
Technical StandardsTechnical Standards Joint standards need time to define the rules
ASEAN: „Just a vision“?
Still a way to go before making the vision come true!
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
National InterestsNational Interests
Loose cooperation. Governments represent their country. ASEAN comes second.
Non Tariff BarriersNon Tariff Barriers
Most tariffs have been abolished. Governments try to protect local industries with other barriers.
Administrative SkillsAdministrative Skills
The skills in administration vary greatly.Some custom authorities are narrow-minded and complain about the smallest mistakes (color, spelling, signature, size).
PowerlessPowerlessASEAN has no sanctioning power if members violate rules.Secretariat raise awareness with Scorecard. Agreements are not direct law; hence, not enforceable.
Technical Standardizing
Technical Standardizing
Mutual Recognition Agreements only covers few areas.ASEAN Single Window cannot be implemented in lesser developed countries.
Obstacles of AEC
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
There were other Successful Visions:
About ASEAN
ASEAN Charta 2015
The 4 Pillars of AEC
Instruments of AEC
Just a Vision?
Thomas Jefferson (1776):
“All Men are Born Equal”
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