CHAPTER 4 (Part II) ASEAN: POLITICAL, ECONOMIC & SOCIAL DEVELOPMENTS
Preview:
Citation preview
- Slide 1
- CHAPTER 4 (Part II) ASEAN: POLITICAL, ECONOMIC & SOCIAL
DEVELOPMENTS
- Slide 2
- 4.2 Economic Developments ASEAN Declaration (1967); ASEAN
Economic Ministers (AEM) 1975; Declaration of ASEAN Concord (1976);
ASEAN Free Trade Area (1992); BIMP-EAGA Growth Area (1994) ASEAN
Vision 2020 (1997); Hanoi Plan of Action (1999); ASEAN Economic
Community (2003).
- Slide 3
- ASEAN Declaration (1967) Refer to the objectives: Accelerate
economic growth; Active collaboration & mutual assistance;
Collaborate for greater utilization of agriculture &
industries, expansion of trade
- Slide 4
- ASEAN Economic Ministers (AEM) 1975 Established in 1975 &
meets annually. 40 AEM Meetings (as of 2008). 1 st AEM Meeting held
in Jakarta: Accelerate cooperation in supply & production of
staple food. Also apply to energy.
- Slide 5
- 2 nd AEM Meeting (KL, 1976): Shift from broad generalities to
hard details. Adopt a multilateral economic cooperation. Identify
rice and crude oil for preferential trading arrangements. 3 rd AEM
Meeting (Philippines, 1977): Expand dialogue btwn ASEAN &
developed countries. Approved the Draft Agreement on the
establishment of ASEAN Preferential Trading Arrangements.
- Slide 6
- Declaration of ASEAN Concord (1976) Cooperation on Basic
Commodities (Food & Energy): Accord priority to the supply of
the individual countrys needs in critical situations & priority
to the acquisition of export from member countries. Intensify
cooperation in the production of basic commodities
- Slide 7
- Industrial Cooperation: Cooperate to establish large-scale
industrial plants to meet regional requirements of essential
commodities. Priority to projects which utilize available materials
in the member states, contribute to increase in food production,
increase foreign exchange earnings & create employment.
- Slide 8
- Cooperation in Trade: Promote development & growth of new
production & trade & improve trade structures.
Establishment of PTA. Expansion of trade through cooperation on
basic commodities & ASEAN industrial projects. Accelerate joint
efforts to improve access to markets outside ASEAN through
elimination of barriers. Cooperation in technology & production
methods.
- Slide 9
- Joint Approach to International Commodity Problems & Other
World Economic Problems: Joint approach on reform in international
trading system, international monetary system & transfer of
real resources toward a New International Economic Order.
Stabilization & increase of export earnings.
- Slide 10
- Machinery for Economic Cooperation: Hold regular ministerial
meetings on economic matters in order to: Formulate recommendations
to strengthen economic cooperation; Review implementation of ASEAN
projects on economic cooperation; Exchange views towards
harmonizing regional development; Other relevant functions.
- Slide 11
- ASEAN Free Trade Area (1992) Idea started in 1990 during the 22
nd AEM meeting: Apply a common effective preferential tariff on
selected industrial products which initially included cement,
fertilizer & pulp. 23 rd AEM (1991): agreed to form a regional
free trade area within 15 years.
- Slide 12
- 4 th ASEAN Summit (1992): Signed the Singapore Declaration,
Framework Agreement on Enhancing ASEAN Economic Cooperation &
Agreement on the Common Effective Preferential Tariff Scheme for
ASEAN. 1 January 1993: AFTA officially starts. Objectives: To
increase ASEAN's competitive edge as a production base geared for
the world market. Liberalization of trade in the region through the
elimination of intra-regional tariffs and the elimination of
non-tariff barriers.
- Slide 13
- Common Effective Preferential Tariff: Main mechanism to achieve
AFTA. A cooperative arrangement to reduce intra- regional tariff
from 0-5% among member countries over a period of time: 2002
(Brunei Darussalam, Indonesia, Malaysia, the Philippines,
Singapore, and Thailand); 2006 (Vietnam); 2008 (Lao PDR and
Myanmar); 2010 (Cambodia).
- Slide 14
- Four categories of products listed under AFTA: Inclusion list:
Products offered for tariff reduction/elimination; All manufactured
& processed agricultural products. ASEAN 6: maximum of 5% in
2003; 60% eliminated at the end of 2003 & complete elimination
by 2010. ASEAN-VLMC: reduce tariffs according to their respective
time frame; remove all tariffs by 2015 (2018 for sensitive
products).
- Slide 15
- Temporary exclusion list: Products for which member countries
seek temporary exclusion from tariff reduction. Sensitive &
highly sensitive list: Products given a longer time frame for
transfer into the inclusion list. Includes unprocessed agricultural
products. Sensitive products: transfer by 12/2003 & reduce
tariff btwn 0-5% by 2010. Highly sensitive products: transfer by
2005 & tariff rate to be decided by 2010.
- Slide 16
- General exception list: Products that are permanently exempted
from tariff reduction/elimination. Reasons: protect national
security, human, animal & plant life health. Includes articles
of historic, artistic & archeological value.
- Slide 17
- 2000200120022003 Brunei1.261.170.96 Cambodia10.40 8.937.96
Indonesia4.774.363.732.16 Laos7.076.586.155.66
Malaysia2.852.592.452.07 Myanmar4.383.323.313.19
Philippines4.974.174.073.77 Singapore0.00 Thailand6.075.595.174.63
Vietnam7.09 N/A ASEAN3.743.543.172.63 Table 1: Average AFTA/CEPT
Tariff Rates by Country (%)
- Slide 18
- Sub-regional Growth Areas BIMP-EAGA: Launched in 1994; Address
social & economic development of less developed & remote
territories; Immediate objective: encourage increased trade,
investments and tourism in the sub-region. Long-term goal: change
the economy of BIMP- EAGA from resource extraction to higher order
processing and non-resource activities.
- Slide 19
- BIMP-EAGA Roadmap to Development: Under the Vientiane Action
Plan (2004-2010); Time frame: 2006-2010; Target: Increase intra-and
extra-trade among EAGA focus areas by 10% by 2010; Increase
investments in the sub-region by 10% by 2010; Increase tourism
movement in the EAGA sub- region by 20% by 2010.
- Slide 20
- BIMP-EAGA Roadmap to Development: Strategic objectives: Promote
intra & extra-EAGA trade, investments and tourism in selected
priority sectors; Coordinate the management of natural resources
for sustainable development of the sub-region; Coordinate the
planning and implementation of infrastructure support to economic
integration; Strengthen the BIMP-EAGA institutional structures and
mechanisms for effective implementation of the EAGA roadmap and
action plan.
- Slide 21
- ASEAN-Mekong Basin Development Cooperation: Basic Framework of
ASEAN-Mekong Basin Development Cooperation (KL, 1996); Objectives:
Enhance economically sound and sustainable development of the
Mekong Basin Encourage a process of dialogue and common project
identification towards a firm economic partnerships for mutual
benefit Strengthen the interconnections and economic linkages
between the ASEAN member countries and the Mekong countries.
- Slide 22
- ASEAN Vision 2020 (1997) Maintain regional macroeconomic and
financial stability. Advance economic integration &
cooperation: Fully implement the ASEAN Free Trade Area and
accelerate liberalization of trade in services; Realize the ASEAN
Investment Area by 2010 and free flow of investments by 2020;
- Slide 23
- ASEAN Vision 2020 (1997) Intensify and expand sub-regional
cooperation in existing and new sub-regional growth areas;
Consolidate and expand extra-ASEAN regional linkages for mutual
benefit cooperate to strengthen the multilateral trading system;
Reinforce the role of the business sector as the engine of
growth.
- Slide 24
- Promote a modern and competitive small and medium enterprises
(SME) sector in ASEAN; Accelerate the free flow of professional and
other services in the region; Promote financial sector
liberalization and closer cooperation in money and capital market,
tax, insurance and customs matters; Accelerate the development of
science and technology;
- Slide 25
- Establish interconnecting arrangements in the field of energy
and utilities for electricity, natural gas and water; Enhance food
security and international competitiveness of food, agricultural
and forest products; Integrated and harmonized trans-ASEAN
transportation network and harnessing technology advances in
telecommunication and information technology; Enhance human
resource development in all sectors of the economy.
- Slide 26
- ASEAN Investment Area (AIA) Framework Agreement on the AIA
(Philippines, 1998): Objectives: Establish a competitive ASEAN
investment area with more liberal & transparent investment
environment in order to: Substantially increase flow of investment
into ASEAN; Jointly promote ASEAN as an attractive investment area;
Strengthen & increase competitiveness of ASEANs economic
sectors; Progressively reduce/eliminate investment barriers.
- Slide 27
- Hanoi Plan of Action (1999) Established to help realize the
goals of ASEAN Vision 2020. 6-year time frame (1999 2004).
1)Strengthen macro-economic & financial cooperation. 2)Enhance
greater economic integration.
- Slide 28
- ASEAN Economic Community (2003) One of the elements of the
ASEAN Community under the Bali Concord II 2003. The realization of
the end-goal of economic integration as outlined in the ASEAN
Vision 2020: To create a stable, prosperous and highly competitive
ASEAN economic region. A free flow of goods, services, investment
and freer flow of capital, equitable economic development and
reduced poverty and socio- economic disparities in year 2015.
- Slide 29
- Four key characteristics of AEC: Single market and production
base; A highly competitive economic region; A region of equitable
economic development; A region fully integrated into the global
economy.
- Slide 30
- ASEAN members has agreed on the following: 1.Institute new
mechanisms and measures to strengthen the implementation of its
existing economic initiatives such as AFTA, ASEAN Framework
Agreement on Services (AFAS) & AIA. 2.accelerate regional
integration in the priority sectors air travel, agro-based
products, automotives, e- commerce, electronics, fisheries,
healthcare, rubber- based products, textiles & apparels,
tourism and wood- based products. 3.facilitate movement of business
persons, skilled labor and talents. 4.Strengthen the institutional
mechanisms of ASEAN including improvement of ASEAN Dispute
Settlement Mechanism.