ASEAN Economic Community (AEC) AEC Presentation by Daw Tin Tin... · ASEAN Economic Community (AEC)...

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Presented by Daw Tin Tin Htwe ( Retired Director ) National AFTA Unit Ministry of National Planning and Economic Development ASEAN Economic Community (AEC)

Transcript of ASEAN Economic Community (AEC) AEC Presentation by Daw Tin Tin... · ASEAN Economic Community (AEC)...

Page 1: ASEAN Economic Community (AEC) AEC Presentation by Daw Tin Tin... · ASEAN Economic Community (AEC) ... Myanmar in ASEAN –15 Years Old ASEAN - Outward looking with future plans.

Presented by Daw Tin Tin Htwe

( Retired Director )

National AFTA Unit

Ministry of National Planning

and Economic Development

ASEAN Economic Community

(AEC)

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Introduction

ASEAN - 45 Years Old

Myanmar in ASEAN – 15 Years Old

ASEAN - Outward looking with future plans.

- Established AFTA

- ASEAN Vision 2020 declared by

the Leaders in 1997

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Objectives of the ASEAN Vision 2020

-To create a stable, prosperous and highly

competitive ASEAN economic region in which

there is a free flow of goods, services,

investment and a freer flow of capital, equitable

economic development and reduced poverty

and socio –economic disparities in year 2020.

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Implementing Programme of ASEAN Vision - 2020

▼ Hanoi Plan of Action HPA (1998 – 2004)

▼ Vientiane Action Programme VAP (2004 – 2010)

▼ Initiative for ASEAN Integration-IAI (2002-2007)

▼ Roadmap for the Integration of ASEAN (RIA)

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Bali Concord II

- Declaration of Bali Concord II by ASEAN leaders

(Bali Summit in October 2003)

- AEC shall be the end goal of regional economic

integration by 2020

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In August 2006 at the AEM Meeting in Kuala Lumpur,

Ministers agreed to Develop

“ A single and coherent blueprint for advancing the

AEC by identifying the characteristic and elements of

the AEC by 2015 consistent with the Bali Concord II

with clear target and timeline for implementations of

various measures as well and pre-agreed flexibilities

to accommodate the interests of all ASEAN member

countries.”

ASEAN ECONOMIC COMMUNITY - AEC

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-At the 12th ASEAN Summit in Cebu, Leaders affirmed their

strong commitment for the establishment of an ASEAN

Community by 2015

-Cebu Declaration on the Establishment of ASEAN

Community by 2015 was signed.

- At the 12th ASEAN Summit in Singapore in Nov 2007, the

Leaders signed the Declaration on the AEC Blueprint.

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3 Pillars of ASEAN Community

- ASEAN Security Community - ASC

- ASEAN Economic Community - AEC

- ASEAN Socio – Cultural Community - ASCC

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Key Characteristics

(a) A single market and production base

(b) A highly competitive economic region

(c) A region of equitable economic

development

(d) A region fully integrated into the global

economy

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A single market and production base

• Free flow of goods,

• Free flow of services,

• Free flow of investment,

• Freer flow of capital,

• Free flow of skilled labour

Another 2 important components:

(1)Priority Integration Sectors

(2)Food, Agriculture and Forestry

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- ASEAN achieved in removal of tariffs.

- Not only zero tariffs, but needs to remove

NTBs.

- Trade Facilitation Measures:

- Integrating Customs Procedures

- Establishing ASEAN Single Window

- Enhancement of CEPT, ROO

- Harmonising Standard and Conformance

Procedures

- CEPT Agreement to become a

Comprehensive Agreement.

Free Flow of Goods

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- Myanmar to eliminate tariffs on products by

2015 with flexibilities for some sensitive

products by 2018

- Myanmar to eliminate duties on products in

the Priority Integration Sectors by 2012

Elimination of Tariffs

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- Myanmar to remove NTBs by 2015 with

flexibilities to 2018

Elimination of NTBs

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- Free flow of services is one of the elements inrealizing AEC, where there will be: substantiallyno restrictions to ASEAN services suppliers inproviding services, establishing companoesacross national borders within the region,subject to domestic regulations.

- 4 Priority Services Sectors, air transport, e-ASEAN, Healthcare and Tourism to removesubstantially all restrictions by 2010; Logisticsservices by 2013.

Free Flow of Services

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- Remove substantially all restrictions ontrade in services for all other services sectorby 2015.

- In Financial Services Sector, liberalizethrough ASEAN Minus X Formula.

- ASEAN is working towards recognition ofprofessional qualifications with the view tofacilitate their movement within the region.

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- Investment Protection

- Provide enhanced protection to all investors

and their investments to be covered under

the comprehensive agreement.

- Facilitation and Cooperation

- a more transparent, consistent and

predictable investment rules, regulations

policies and procedures.

Free Flow of Investment

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- Promotion and Awareness

- Promote ASEAN as an integrated investment

area and production network.

- Liberalization

- Progressive Liberalization of ASEAN Member

Countries’ investment regime to achieve free

and open investment by 2015.

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- Strengthening ASEAN Capital Market

Development and Integration

Achieve greater harmonization in capital market

standards in ASEAN in the areas of offering

rules for debt securities, disclosure requirements

and distribution rules.

Facilitate MRAs for cross recognition of

qualification and education and experience of

market professionals.

Free Flow of Capital

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- Allowing Greater Capital Mobility

Ensuring an orderly capital account liberalization

consistent with member countries’ national agenda

and readiness of the economy.

- Remove/relax restrictions to facilitate the flows of

payments and transfers for current account transactions.

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- To facilitate entry for the movement ofnatural persons engaged in trade ingoods, services and investments, ASEANis working to:

- Facilitate the issuance of visas andemployment passes for ASEANprofessionals and skilled labor.

- ASEAN is working towards harmonizationand standardization to facilitate theirmovements by 2015.

Free Flow of Skilled labour

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- 12 priority integration sectors were

identified for accelerated economic

integration.

Priority Integration Sectors

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- Enhance intra and extra–ASEAN trade andlong-term competitiveness of ASEAN’s food,agriculture and forest products/ commodities.

- Develop and apply fisheries quality managementsystem.

- Establish Good Agriculture / AquaculturePractices (GAP), Good Animal HusbandryPractices (GAHP), Good Hygiene Practices(GHP), Good Manufacturing Practices (GMP)and Hazard Analysis Critical Control Point(HACCP) based system for agriculture and foodproduct by 2015.

Food, Agriculture and Forestry

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- Harmonize Sanitary and PhytosanitaryMeasures (SPS)

- Harmonize maximum Residue Limits (MRLs)

- Harmonize guidelines for the use of chemicals inaquaculture and measures to use of harmfulchemicals.

- Promote cooperation, joint approaches andtechnology transfer among ASEAN memberCountries and international, regionalorganizations and private sector.

- Promote ASEAN Agricultural Cooperatives.

- Fulfill the purpose of agricultural cooperatives forthe benefit of farmers in the region.

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- Competition Policy

- Main objective is to foster a culture of fair competition.

- Institutions and laws related to competition policy have recently been established in some ASEAN Member Countries.

(only four: Indonesia, Singapore, Thailand and Vietnam have their own competition law and competition regulatory bodies.)

- Currently no official ASEAN body for cooperative work for CPL.

Competitive Economic Region

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- Consumer protection measures arealready being developed in tandem withthe proposed economic measures toaddress the already emerging consumerprotection.

- To strengthen consumer protection inASEAN through the establishment of theASEAN Coordinating Committee onConsumer Protection (ACCCP).

Consumer protection

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- A powerful stimulus to:

- Cultural, intellectual and artistic creativity and their commercialism

- Efficient adoption and adaptation of more advanced technologies

- IP policy can influence both the volume and quality of external trade and investment and transfer of

advanced proprietary technologies.

- Regional cooperation in IPR has been guided by the ASEAN IPR Action Plan 2004-2010

Intellectual Property Rights (IPR)

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- Transport Cooperation

- An efficient, secure and integrated transportnetwork in ASEAN is vital

- Regional efforts have made to enhancetransport facilitation and logistics services,promote multimodal transport infrastructurelinkages and connectivity, facilitate transportand tourism integration and further liberalisethe air and maritime transport sectors.

- ASEAN Transport Action Plan (ATAP) 2005-2010 covers maritime, land and air transport,and transport facilitation.

Infrastructure Development

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- To implement the ASEAN Framework

Agreement on the Facilitation of Goods in

Transit by 2007

- To implement the ASEAN Framework

Agreement on Multimodal Transport by 2010

- Finalisation of the ASEAN Framework

Agreement on the Facilitation of Inter- State

Transport by 2008 and to implement beginning

2010.

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- Priority to complete the Singapore-Kuming Rail Link (SKRL) and the ASEAN Highway Network (AHN) Projects

Land Transport

- To adopt the general principles and framework

for an ASEAN Single Shipping Market and

develop and implement the ASEAN Single

Aviation Market

Maritime and Air Transport

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- Efforts have made to facilitate interconnectivity

and technical interoperability among ICT

systems.

- Develop high-speed inter-connections among all

National Information Infrastructures (NII).

Information Infrastructure

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- Expedite the development of the ASEAN

Power Grid (APG) and the Trans- ASEAN

Gas Pipeline (TAGP).

- APG involves 14 electricity interconnection

project and TAGP involves seven gas

interconnection projects.

Energy Cooperation

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- Enhance trade and investment and strengthen

cooperation and capacity in geological and

mineral sector for sustainable mineral

development in ASEAN region.

Mining Cooperation

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- As ASEAN accelerates its economic integrationefforts, greater investment will be neededparticularly in the development of regionalinfrastructure.

- Promote greater participation of private sectorsand international organisations in financingregional infrastructure developments

- Remove or relax impediments to cross-borderinvestment in financing of regional infrastructureprojects.

Financing of Infrastructure Projects

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- Complete the network of bilateral agreement on

avoidance of double taxation among all member

countries by 2020, to the extent possible.

Taxation

- To lay the policy and legal infrastructure for

electronic commerce and enable on-line trade in

goods (e-commerce) within ASEAN Framework

Agreement and based on common reference

frameworks.

E-Commerce

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- SME Development

- The ASEAN Policy Blueprint for SME Development

(APBSD) 2004-2014 outlines the framework for SME

development in the ASEAN region.

Objectives:

(a) Accelerate the pace of SME development

(b) Enhance the competitiveness and dynism of ASEAN

SMEs.

(c) Strengthen the resilience of ASEAN SMEs

(d) Increase the contribution of SMEs.

Equitable Economic Development

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- ASEAN Member Countries have different levels

of development

- Technical and development cooperation are

provided to less developed ASEAN Member

Countries for deeper and broader integration.

- IAI launched in 2000 to narrow the development

gap not only within ASEAN but between ASEAN

and other parts of the world as well.

Initiative for ASEAN Integration (IAI)

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IAI covers the following priority areas:

(1) Infrastructure

(2) Human Resource Development (HRD)

(3) Information and Communications Technologies (ICT)

(4) Capacity building for regional economic integration

(5) Energy

(6) Investment Climate

(7) Tourism

(8) Poverty reduction

(9) Improvement in the quality of life.

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- To make ASEAN a more dynamic and stronger

segment of the global supply chain and to

ensure that the internal market remains

attractive for foreign investment, it is crucial for

ASEAN to look beyond the borders of AEC

- Coherent approach towards External Economic

Relations

- Enhanced participation in global supply

networks.

Integration into the Global Economy

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- A Strategic schedule that includes key milestones

for a comprehensive and deeper economic will be

attached to this Blueprint

- Consultations have been made with relevant bodies/

stakeholders

- Relevant ASEAN sectoral bodies will coordinate the

implementation of the above programmes and

measures.

Implementation

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For successful implementation,

- Necessary institutions/mechanisms, resources, capacity

and political will be accorded to community building process.

- Relevant Sectoral Ministerial bodies shall be responsible for the

implementation of the Blueprint and monitoring of commitments

- ASEAN Economic Ministers (AEM) as Minister- in- charge of

Economic integration in the Council of ASEAN Economic

Community

Implementation Mechanism

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- Research and capacity building

support is to be mobilised from various

facilities communications

- a good communications programme is

reguired to create greater public

awareness of the AEC

Resources

Review

- The AEC Blueprint shall be reviewed

periodically

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