ASEAN Economic Community and Trade Facilitation

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ASEAN Economic Community and Trade Facilitation

• NEAT Working Group on Trade and Investment
  Facilitation
• China Foreign Affairs University
• 25 June 2010

Pitirat OSOTSAPA Trade and Facilitation
Division ASEAN Secretariat
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OUTLINE

• ASEAN in the World ASEAN in world trade, our
  trading partners, intra- and extra-ASEAN trade
• ASEAN Economic Community ASEAN economic
  integration, what we are trying to achieve, what
  are the issues
• Trade Facilitation in ASEAN our current focus,
  what we aim to do, benefits to ASEAN and our
  trading partners and investors
• ASEAN Connectivity upcoming agenda, improving
  physical and institutional linkages
• Conclusion

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1. ASEAN in the WorldShare of World GDP
Source AEC Chartbook 2009
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ASEAN Economic Outlook
Source ASEAN Surveillance Report, April 2010
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1. ASEAN in the WorldTrend of ASEAN Trade and
top trading partners
Source AEC Chartbook 2009
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1. ASEAN in the WorldTop traded products

• Top Exports
• Electronic integrated circuits microassemblies
  (9)
• Petroleum products (7)
• Automatic data processing machines (5)
• Crude oil (4)
• Petroleum gases and gaseous hydrocarbons (4)

• Top Imports
• Electronic integrated circuits microassemblies
  (9)
• Petroleum products (9)
• Crude oil (7)
• Office machines parts and accessories (3)
• Electric parts for telephony (2)

Source ASEAN Trade Database 2009
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Why Integration?

• Recognise the need to not only build resilience
  to cushion ASEAN from the adverse impact of any
  internal and/or external shocks but also
  sustainable growth.
• Ensuring ASEAN Centrality in evolving regional
  architecture

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2. ASEAN Economic CommunityDeclining CEPT tariff
supports intra-ASEAN trade
Source AEC Chartbook 2009
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Ford in ASEAN
Vehicle and Parts Complementation
Source Ford
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2. ASEAN Economic Community

• ASEAN Economic Community Blueprint
• Creation of AEC by 2015
• - single market and production base
• - competitive economic region
• - equitable economic development
• - integrated into the global economy
• Single Market and Production Base
• - goods, services, skilled labor,
  capital
• - trade liberalization and facilitation
• - ATIGA, AFAS, ACIA

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2. ASEAN Economic CommunitySingle Market and
Production Base

• ASEAN Trade in Goods Agreement (ATIGA)
• Free flow of goods tariff liberalization,
  non-tariff barriers (NTBs) elimination, rules of
  origin, trade facilitation, customs, standards
  and conformance, and sanitary and phytosanitary
  measures.
• Consolidates and streamline various provisions
  on trade in goods into a single reference
  document
• Full tariff reduction schedule to 2015 for each
  ASEAN Member State, spelling out the tariff rates
  to be applied for each year over the next 5 years

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3. Trade Facilitation

• Focus of ASEAN economic integration
• Guided by the ATIGA
• - relevant chapters
• - Trade Facilitation Work Programme
• - Trade Facilitation Framework and
  Indicators
• Priority areas are
• - Elimination of Non-Tariff Barriers
• - Customs
• - Standards and conformance
• - Transparency

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3. Trade Facilitation

• ASEAN Trade Facilitation questionnaire
• - to assess the export/import conditions
  on the ground
• - opportunity for economic operators to
  highlight
• issues of importance
• 2. ASEAN Trade Repository (ATR)
• - there is currently no single website
  where trade
• information and regulations of all
  ASEAN Member states
• can be found
• - ATR to fully address this issue by 2015
• - tariff rates and code, rules of origin,
  technical regulations etc.

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3. Trade Facilitation

• 3. Rules of origin
• - Original ASEAN ROOs RVC 40
• - Today RVC 40 or Change in Tariff
  Classification
• - Co-equal methods wider options for
  traders to
• comply
• 4. ASEAN Single Window
• - a common platform for regulatory
  agencies
• - save time for exporters
• - still in early stage of development

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4. ASEAN CONNECTIVITY

• A holistic way of looking at inter-linkages in
  ASEAN
• Development of an ASEAN Master Plan on
• Connectivity
• Report to be finalised by October 2010
• - Physical Connectivity
• - Institutional Connectivity
• - People-to-people Connectivity

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4. ASEAN CONNECTIVITY

• Transport
• Maritime Transport Services
• Adoption of Roadmap towards an Integrated and
  Competitive Maritime Transport in ASEAN
• Air Freight Services
• ASEAN Multilateral Agreement on the Full
  Liberalisation of Air Freight Services and the
  ASEAN Multilateral Agreement on Air Services
• ASEAN Open Sky Policy
• Transport Facilitation
• ASEAN Framework Agreement on the Facilitation of
  Inter-State Transport
• Roadmap for Integration of Logistics Services
  Sector

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Conclusions

• ASEAN economic integration continues AEC
• Single market and production base
• Focus on trade facilitation
• Benefits to investors and traders
• ASEAN centrality in evolving regional
  architecture

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• THANK YOU!

One Vision One Identity One Community
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STARBUCKS in ASEAN
90 stores
133 stores
117 stores
65 stores
76 stores
Source Starbucks website
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Foreign Direct Investors in 2008
Source ASEAN Secretariat Database