asean: a community of opportunities toward the asean 2015 ... · akp mochtan – asean update ......

ASEAN: A Community of Opportunities Toward the ASEAN 2015 Community & Beyond

AKP Mochtan, PhD ASEAN Deputy Secretary-General

AKP Mochtan – ASEAN Update Seminar


THE 25th ASEAN & RELATED SUMMITS

1. 25th ASEAN Summit

2. 17th ASEAN-China Summit

3. 12th ASEAN-India Summit

4. 17th ASEAN-Japan Summit

5. 6th ASEAN-UN Summit

6. 2nd ASEAN-US Summit

7. 17th ASEAN Plus Three Summit

8. 9th East Asia Summit

9. ASEAN-Australia 40th Anniversary

Commemorative Summit


Chairman’s

Statement

“…We looked forward to the celebration of the establishment of the ASEAN Community in 31st

December 2015 through meaningful activities that will

provide greater opportunities for ASEAN citizens from all sectors of society to understand ASEAN

better and experience its community building endeavors

and the benefits that it delivers…”

2015 Year of the ASEAN

Community

ASEAN Leaders to Double Efforts Towards ASEAN Community 2015 JAKARTA, 18 November 2014 – In a post-

summit briefing conducted at the ASEAN

Secretariat in Jakarta today, H.E. Dr. AKP

Mochtan, Deputy Secretary-General of

ASEAN for Community and Corporate

Affairs, spoke on behalf of the ASEAN

Secretary-General H.E. Le Luong Minh. He

reported that good progress has been made

with the overall implementation rate of

approximately 88% across the three pillars of

ASEAN Community. "The Leaders reviewed

the process of ASEAN Community building

and committed to redoubling efforts towards

the realization of the ASEAN Community by

2015," said DSG Mochtan.

ASEAN News – 18 November 2014

10 MEMBER STATES

• Indonesia (8 August 1967)

• Malaysia (8 August 1967)

• Philippines (8 August 1967)

• Singapore (8 August 1967)

• Thailand (8 August 1967)

• Brunei Darussalam (7 Jan 1984)

• Viet Nam (28 July 1995)

• Lao PDR (23 July 1997)

• Myanmar (23 July 1997)

• Cambodia (30 April 1999)

ASEAN: Association of South East Asian Nations

The ASEAN Journey to Community Building

2015 ASEAN Community

2007 Cebu Declaration

2003 Bali Concord II

1997 ASEAN Vision 2020

1967 Bangkok Declaration

ASEAN – A Rising Economy

• Combined GDP US$2.4

trillion

• Huge market with 625+

million population

• Free trade agreements

with major regional

economies

• Highly connected

physically,

institutionally and

among the Peoples


ASEAN - GDP Growth

Real GDP Growth for the ASEAN region is forecasted at 4.7% in 2014 and expected to pick up to 5.4% in 2015 as economic conditions such as exports and investment improve in the larger ASEAN economies.

4.7%

1.8%

7.8%

4.9%

5.8% 5.1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

2008 2009 2010 2011 2012 2013

If ASEAN were a single country, it would be the seventh-largest economy in the world, with a combined GDP of $2.4 trillion in 2013.

ASEAN is projected to rank as the fourth-largest economy by 2050.

McKinsey & Co – May 2014

ASEAN - A Rising Economy


COUNTRIES GDP

1. United States 2. China 3. Japan 4. Germany 5. France 6. United Kingdom 7. Brazil 8. Russian Federation 9. Italy 10. India

Indonesia (16) World

16,800,000 9,240,270 4,901,530 3,634,823

2,734,949 2,521,381 2,245,673 2,096,777 2,071,307 1,876,797

868,346

74,909,811

World Development Indicators database, World Bank, 22 September 2014

ASEAN USD 2.4 trillion

Gross Domestic Product 2013


The ASEAN Community –

What will ASEAN realize on 31 December 2015?

• SINGLE MARKET,

SINGLE PRODUCTION

BASE

• COMPETITIVE

• EQUITABLE

• INTEGRATED INTO THE GLOBAL ECONOMY


SINGLE MARKET–SINGLE PRODUCTION BASE

Free flow of Goods

Free flow of

Services

Free flow of

Investment

Freer flow of Capital

Free flow of Labor


Trade in Goods

• Liberalization of Tariff

14

ASEAN-6 99.65% tariff lines eliminated

CLMV almost 98% tariff lines reduced

to 0-5%

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&docid=RlNwocO2XXCpNM&tbnid=LCXTJb4jqTHpEM:&ved=0CAUQjRw&url=http://www.hotelkrishnaniwas.com/tariff.html&ei=hZasUq3NE86FrAeMo4DQCw&bvm=bv.57967247,d.bmk&psig=AFQjCNH3fuLJOEY4i9D47rxaVBvvzGKHiA&ust=1387128682793129


Facilitation of Trade

Customs Standards ROO

15 15

ASEAN Single Window ASW Pilot Project Customs Transit System

Single regulatory regime/framework agreement (cosmetics, EEE, medical devices, traditional medicines) Harmonization of standards MRAs (pharmaceutical, EE)

RVC 40%

or

Change in tariff classification

Self-Certification


Export, Import & Total Trade

Total ASEAN merchandise trade stood at US$2,5 trillion in 2013.

Intra-ASEAN trade accounted for the highest share of both ASEAN’s total exports

(26%) and total imports (22.4%). 16

376.2 511.0 598.4 602.0 608.6

1,160.7

1,498.1 1,790.1

1,874.4 1,902.9

-19.0%

30.7%

18.9%

3.7% 1.4%

-30%

-20%

-10%

0%

10%

20%

30%

40%

0

500

1000

1500

2000

2500

3000

2009 2010 2011 2012 2013

USD

Bill

ion

Intra-ASEAN Trade Trade with Rest of World Total Trade Growth

Source: ASEAN Integration Monitoring Office (AIMO)


Trade in Services

17

Movement of Natural Persons (MNP) Agreement

9th Package of Commitments

The final 10th Package by 2015

Negotiation of the ASEAN Trade in Services Agreement (ATISA) by 2015

ASEAN FRAMEWORK AGREEMENT ON TRADE IN SERVICES (AFAS)


Facilitating movement of professionals:

• ASEAN Qualification Reference Framework (AQRF)

• Mutual Recognition Arrangements (MRAs) in 8 fields:

Engineering

Architecture

Accountancy

Surveying

Nursing

Medical practitioners

Dental practitioners

Tourism Professionals


ACIA signed in 2009

Protocol to amend ACIA signed in August 2014

Progressive liberalization of restrictions by 2015

ASEAN Comprehensive Investment

Agreement (ACIA)


FDI into ASEAN

Total FDI inflows to ASEAN rose to US$122.4 billion in 2013 from US$114.3 billion in the previous year. The EU is the top source of FDI to ASEAN, followed by Japan at 18.7% and intra-ASEAN at 17.4%. In 2013, the majority of the FDI inflows to ASEAN went to the services sector, and about a third to manufacturing.

49.7 47.9

100.4 97.5

114.3 122.4

-41.5%

-3.6%

109.4%

-2.8% 17.2%

7.1%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

0

20

40

60

80

100

120

140

2008 2009 2010 2011 2012 2013

USD

Bill

ion

FDI Inflows Growth


21

▪ Kick-off Workshop on Sector

Studies for the AEGC

▪ Advice on Drafting

Competition Laws and

Implementing Regulations for

the AEGC

▪ Guidelines on Developing Core

Competencies

▪ Competition Regulatory Experts

Secondment

▪ Building Competition Law

Enforcement Capability

▪ AEGC Website

▪ Phase II Regional Competition

Advocacy

▪ In-Country Workshop in CLM to

Raise Awareness and/ Study on

Economic Benefits and Possible

Challenges of CPL

▪ Workshop on Promoting

Business Compliance for CPL in

ASEAN

▪ ASEAN Competition Conference

▪ Development of a Regional

Cooperation Framework on

Enforcement, Information-

Sharing, and Technical

Assistance Relative to CPL

Strengthening Regulatory Environment

in ASEAN

Institutional-Building and Enforcement

of CPL

Strategy and Tools for Regional Competition

Advocacy

Cross-Cutting Regional Initiatives

5 AMS have Competition Law (CPL) and Competition Authorities in place

COMPETITIVE ECONOMIC REGION


COMPETITIVE ECONOMY

ASEAN Connectivity Critical to enhance

ASEAN competitiveness.


ASEAN Open Skies Policy leads to

remarkable development of the ASEAN aviation

Capacity of ASEAN airlines almost tripled, from 94

million seats in 2003 to 268 million seats in 2013

Capacity to absorb international arrivals also

tripled, from 33 million to 99 million in the same

period


NARROWING DEVELOPMENT GAP Progressing together through cooperation in development

EQUITABLE ECONOMIC REGION

24

Cambodia, Lao PDR, Myanmar, Viet Nam or CLMV assisted in implementing their commitments ensuring that benefits of ASEAN integration are equitably shared.

A S&D/Positive-bias approach: Growing the ASEAN cake and increasing the share going to the CLMV countries.

Publication on “Narrowing the Development Gap in ASEAN: Drivers and Policy Options (2013)

Mid-term Review of the IAI Work Plan II (2009-2015) Completed

ASEAN Economic Community

ASEAN Socio-cultural

Community

ASEAN Political-Security

Community

Initiative for ASEAN Integration


Development of SMEs Strategic Action Plan for SME Development

(2010-2015)

SME Service Center Web Portal, with Regional,

Sub-regional Linkages

SME Guidebook Towards AEC 2015

ASEAN Benchmark for SME Credit Rating

Methodology

ASEAN Business Incubation Network (ABINet)

The ASEAN Business Awards, focusing on

Young and Innovative SMEs, in collaboration

with ASEAN Business Advisory Council

(ASEAN-BAC)

EQUITABLE ECONOMIC REGION


INTEGRATION INTO GLOBAL ECONOMY


Integration of the ASEAN economy into the global economy

continues by enhancing ASEAN+1 FTAs, and establishment of

RCEP and ASEAN-HK FTA

AFTA 1992

ACFTA 2005

AKFTA 2007

AJCEP 2008

AIFTA 2010

AANZFTA 2010

AHKFTA 2014*

RCEP negotiations are on ongoing, five rounds completed (June 2014) RCEP Ministerial Meeting was held twice (2nd Meeting in August 2014) where the Ministers reaffirmed concluding negotiations by end-2015


RCEP

Entry Into Force Population/ Market Size

ACFTA (China) 2005 1,368,160,000

AKFTA (Korea) 2007 50,424,000

AJCEP (Japan) 2008 127,080,000

AANZFTA (ANZ) 2010 23,680,700 4,544,510

AIFTA (India) 2010 1,263,200,000

World 7,200,000,000


• Gap between rich and poor AMSs remains very

large and AMSs have a mixed record on income inequality.

• Many regional initiatives were not able to be incorporated into national plans. Less developed Members face resource constraints to implement some regional commitments.


• Different levels of legal

framework and lack of

institutional capacity

hindered effective and

timely implementation of

regional commitments.

• Lack of engagements with

private sector


Nay Pyi Taw Declaration on the ASEAN

Community's Post 2015 Vision

• Continue to consolidate the ASEAN

Community and deepen ASEAN integration

• Promote ASEAN as a rules-based

community bound by shared principles,

values and norms

• Promote ASEAN as a people-oriented,

people-centred community through active

engagement with all relevant stakeholders

• Promote inclusive, sustained and

equitable economic growth

consistent with the UN's post-2015

development agenda

• Enhance ASEAN centrality in the

evolving regional architecture

• Raise ASEAN's profile and

enhance its relevance in the global

community

• Enhance ASEAN's institutional

capacity by strengthening the

ASEAN Secretariat and increasing

effectiveness of ASEAN Organs



CONCLUSION

“…Community building is a work in progress

that needs to be constantly nurtured rather

than only roadmaps to be laid down and static

goals to be met…”

Chairman’s Statement

ASEAN 25th Summit

12 November 204

Thank You www.asean.org

asean: a community of opportunities toward the asean 2015 ... · akp mochtan – asean update ......

Documents