presentation : free flow of services asean economic community
DESCRIPTION
Presentation : Free Flow of Services Asean Economic Community on 31 May 2011TRANSCRIPT
presents
by
Ronnarong Phoolpipat(รณรงค์ พูลพิพัฒน์)
Director of Strategy on Trade in Services Division
Department of Trade Negotiations
Members Accession
1) Thailand 1967
2) Malaysia 1967
3) Indonesia 1967
4) Philippines 1967
5) Singapore 1967
6) Brunei 1984
7) Vietnam 1995
8) Laos PDR 1997
9) Myanmar 1997
10) Cambodia 1999
Overview about ASEANASEAN, was established on 8 August 1967 in Bangkok, Thailand, with
the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding
Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and
Thailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28
July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April
1999, making up what is today the ten Member States of ASEAN.
ASEAN covers an area of 4.46 million km2, 3% of the total land a area of Earth, with a population of approximately 600 million people, 8.8% of the world population. In 2010, its combined nominal GDP had grown to USD $1.8 trillion. If ASEAN were a Single country, it would rank as the 9th largest economy in the world and the 3rd largest in Asia in terms of nominal GDP.
ASEAN Community The ASEAN Vision 2020, adopted by the ASEAN Leaders.,
At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established.
At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015.
The ASEAN Community is comprised of three pillars, namely the ASEAN Political-Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community. Each pillar has its own Blueprint, and, together with the Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work Plan Phase II (2009-2015), they form the Roadmap for and ASEAN Community 2009-2015.
The ASEAN Charter is a constitution for ASEAN.
The Charter came into force in December 2008
The ASEAN Charter serves as a firm foundation in achieving the ASEAN Community by providing legal status and institutional framework for ASEAN.
The ASEAN Charter has become a legally binding agreement among the 10 ASEAN Member States.
AMSs committed to build regional cooperation and integration by establishing an ASEAN community comprising the ASEAN Security Community, ASEAN Economic Community and ASEAN Socio-Cultural Community.
ASEAN Community in year 2015
ASEAN Security
Community
ASC
ASEAN Economic
Community
(AEC)
ASEAN COMMUNITYYear 2015
ASEAN
Socio-Cultural
Community(ASCC)
Economic : Major Trade Agreements
ASEAN Free Trade Area (AFTA) 1993The ASEAN Trade in Goods Agreement (ATIGA)
ASEAN Framework Agreement on Services (AFAS) 1995
ASEAN Investment Area (AIA) 1998The ASEAN Comprehensive Investment Agreement (ACIA)
ASEAN
Economic
Integrations
Main objective of AEC
AEC
Free flow of goods
services, investment,
and skilled labour
Freer flow of capital
Single Market and
Production base
To create a stable,
prosperous and highly
competitive ASEAN
economic region as
outlined in
Bali Concord II
characteristic
objective
Single Market and
production base
High competitive
economic region
Region of equitable
economic
development
Region Fully
Integrated into
global economy
- Free flow of goods
- Free flow of services
- Free flow of
investment
- Free flow of capital
- Free flow of skilled
labour
- Competition policy
- Consumer
protection
- Intellectual property
rights
- Infrastructure
development
- Energy cooperation
- Taxation
- E-commerce
- SME development
- Initiative for ASEAN Integration
- Coherent
approach
towards external
economic relations
- Enhanced
participation
in global supply networks
KEY CHARACTERIS AND ELEMENTS OF AEC
ASEAN Economic Community
Liberalisation
Free
flow of
goods
Freer
flow of
capital
Free
flow of
services
Free
flow of
investment
Free
flow of
skilled
labour
Business services Communications Construction Distribution Education Environmental services Finance Health-related & social services Tourism & travel-related services Recreation, culture, sport Transport Other services
Country A
Supplier A Consumer B
The service crosses the border
Supplier A Consumer B Consumer B
The consumer
crosses the
border
Supplier A Consumer B
Supplier A established
a commercial presence
in country B
Consumer B
Service supplied through
presence of natural persons
of country A in territory of
country B
Mo
de 1
Mo
de 2
Mo
de 3
Mo
de 4
Country A Country B
Supplier A
Supplier A
Supplier A
To remove limitations or restrictions to the supply of services of Foreign service suppliers
Mode 1
Mode 2
Mode 3
Mode 4
Types of Limitations to : MA
- Number of services suppliers
- Value of transactions or assets
- Total number of operations or outputs
- Total number of natural persons
- Type of legal entity
- Foreign capital participation
Market access
(MA)
National
Treatment(NT )
Example of measures inconsistent with National Treatment Principle
- Nationality requirement
- Land code
- Minimum capital requirement
- Taxation measures
- Licensing requirement
- Transfer of technology requirement
- Ratio of capital and loans requirement
- Blueprint the and Strategic Schedule that each ASEAN Member Country shall abide by and implement the AEC by 2015.
- ASEAN Framework Agreement on Services (AFAS) is as the rule applies to measures by Member Countries affecting trade in services, embarking rounds of negotiations to open up trade in services among Member Countries.
- Coordinating Committee on Services (CCS) is the technical working group carries out liberalization of services through negotiations.
All AFAS rules are consistent with GATS
Nearly all provisions missing from AFAS may be referred to GATS
The objective of AFAS is considered as a GATS plus principle.
Package of Schedule of Commitments under AFAS is similar to GATS
Schedule.
- ASEAN integration in services is generally carried out through liberalisation process negotiated under CCS - The outcome of negotiation reports to the AEM through the SEOM.-There are 6 Sectoral working groups under the CCS.
- The liberalisation of air transport, financial and services incidental to non-services are undertaken by ASEAN sectoral bodies such as ATWG, WC-FSL and CCI respectively.- CCS established Ad-hoc Expert Group on MRA under its Business Services SWG.
There will be substantially no restrictions to ASEAN services suppliers in providing services and in establishing companies across national borders within the region
The main action is to remove substantially all restrictions on trade in services for the priority services sectors (air transport, e-ASEAN, healthcare and tourism) by 2010, Logistics services by 2013 and all other services sectors by 2015
Package7th Package 8th Package 9th Package 10th
Equity
participation
-Equity
Participation
-Remaining
-MA limitations
- NT limitations
-Equity
Participation
-Remaining
-MA limitations
-NT limitations
-Mode 4
limitations
- Equity
Participation
- Remaining
MA limitation
2008 2010
49% 70%7
0
2008 2010 2015
49% 51%
PIS
Non-
PIS70%
70%
LOGISTICS
2013
2008 : 51%
2010 : 70%
2013 : 70% (LOGISTICS)
OTHER SECTORS
2008 : 49%
2010 : 51%
2015 : 70%
PRIORITY SECTORS
8 sub-sectors = total 128 sub-sectors
20 sub-sectors = total 120 sub-sectors
15 sub-sectors = total 80 sub-sectors
2015
2014
2012
2010
20 sub-sectors = total 100 sub-sectors
ASEAN
Framework
Agreement on
services
(AFAS)
Coordinating Committee
on Services (CCS)
MRAs
Free Flow of
Services
in
AEC Blueprint
Opening of Services market among ASEAN member States (AMS)1. Removal of restrictions on Trade in Services for service suppliers2. Liberalized sectors to be bound within a Schedule of commitment3. Reservation of some remained limitations in a Schedule4. Submission of a Schedule to ASEAN Secretarial (ASEC)5. ASEC and AMS assess the Schedule of commitment 6. Conclusion and preparation for signature and implementation
SEOM/AEM
Year 1967 – 2015 and beyond
