ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) The ASEAN region has a population of about 500 million, a total of 4.

5 million square kilometres, a combined gross domestic product of almost USD 700 billion, and a total trade of about USD 850 billion. Objectives of ASEAN - Promote the economic, social and cultural development of the region through cooperative programs - Safeguard the political and economic stability of the region against the power rivalries - Serve as a forum for the resolution of intra-regional differences Overview of the ASEAN - Established on aug 8 1967 in Bangkok Thailand - 5 member countries united a joint effort to promote economic cooperation and the welfare of the people in the region - Brunei Darussalam joined on 8 January 1984 - Lao PDR and Myanmar joined on july 23 1997 - Cambodia joined on april 30 1999 Birth of the ASEAN FTA ( AFTA ) - ASEAN heads government formally agreed to establish an ASEAN summit in Singapore in 1992 o Objectives Increase the ASEANs competitive edge as a production base geared for the world market Attract foreign market investments into the region Expand intra-ASEAN trade MEMBERS OF AFTA SIX ORIGINAL SIGNATORIES - Brunei Darussalam - Indonesia - Malaysia - Philippines - Singapore - Thailand FOUR NEW MEMBERS OF AFTA - Vietnam (1995) - Laos (1997) - Myanmar (1997) - Cambodia (1999) The common effective preferential scheme CEPT scheme - The main mechanism for the realization of AFTA - Cooperative arrangement to o Reduce intra-regional tariffs on all manufactured products o Remove QRs and NTBs over 15 year period commencing 01 January 2003 - Inclusion of unprocessed agricultural products - Elimination of the TEL Other measures - Elimination of quantitative restrictions (quotas) - Elimination of tariff barriers (e.g. licensing requirements) - Exception to foreign exchange restrictions relating to payments General exception

Permanently excluded from the free trade area for reasons of protection of national security, public morals, human, animal or plant life and health and articles of artistic, historic and archaeological value. Eligibility of concessions - The product is in the IL both the importing and exporting countries - The tariffs on the product of both the importing and exporting countries fall within the same tariff band, i.e., above 20% or 20% and below - The product has a program of tariff reduction approved by the AFTA council - The product is an ASEAN product i.e., satisfies the 40% local content requirement - Certificate of origin (FORM D) Bold economic measures - Acceleration of implementation of AFTA - Deepening of tariff reduction to 0% - Accelerated transfer of TEL and SL products into the IL - Shortening of GE list Deepening to zero - Cept rates on minimum 60% of products in the individual ILs of 6 original signatories would b reduced to 0% by 2003 - Target dates to achieve FTA would be 2010 for 6 older members and 2015 for new members Roadmap for ASEAN integration - Elimination of all import duties by the 10 ASEAN member countries: - ASEAN 6 2003 60% 2007 80% 2010 100% - VIETNAM 2006 60% 2010 80% 2015 100% o With flexibility up to 2018 Roadmap for ASEAN integration - Laos and Myanmar o 2008 60% o 2012 80% o 2015 100% w/ flexibility up to 2018 - Cambodia o 2010 60% o 2015 100% w/ flexibility up to 2018 Safeguard provision of the CEPT agreement ( article 6 ) - If, as a result of the implementation of CEPT, the import of a particular product is increasing to an extent that it causes injury to sectors or industries producing like or competitive products, the importing member state may suspend preferences provisionally as an emergency measure - A member state taking such emergency action shall give immediate notice to the AFTA council through the ASEAN secretariat, and such action may be subject to consultations between concerned member states Cept rates of duty vis--vis mfn rates of duty - CEPT among ASEAN member states but the level of tariffs vis--vis non ASEAN countries shall continue to be determined individually - If MFN rates of duty become lower than the CEPT rates, the lower MFN rate of duty shall apply Other asean initiatives - ASEAN industrial cooperation scheme ( AICO ) - E-ASEAN framework agreement - ASEAN integration system of preferences ( AISP ) - Priority integration sectors ( PIS)

- ATIGA The asean industrial cooperation scheme ( AICO ) - An industrial cooperation program to promote joint manufacturing industrial activities between ASEAN- based countries - Superseded the ASEAN industrial joint ventures (AUV) and brand-to-brand complementation schenmes (BBC) - Entered into force on 01 November 1996 AICO arrangement - A cooperative arrangement consisting of a minimum of 2 participating companies from 2 different ASEAN countries which seek to cooperate in the manufacture of AICO products must involve: o Physical movement of products o Resource sharing/pooling o Industrial complementation o Industrial cooperation Product coverage - All products except those falling within the general exceptions list of the AFTA-CEPT - Product approval is at the 6-8-digit Harmonized system (HS) level - Product should meet the rules of origin of the CEPT scheme Eligibility criteria To form an AICO arrangement prospective companies must: - Be incorporated and operating in any ASEAN country - Have a minimum 30% national equity - Undertake resource sharing, industrial complementation or other industrial cooperation activities acceptable to the participating countries Privileges - Preferential tariff rates of 0-5% - Local content accreditation, if applicable - Other non-tariff incentives provided by participating countries AICO product categories - Intermediate product product used w/in the AICO arrangement as an input to the AICO final product - Raw material used as input to AICO intermediate product or as direct input to AICO final product Conditions for waiver of 30% national equity requirement - New product or new and untried design/formula/method/process/system of production - Linkages to small and medium enterprises - Export commitment - Engaged in high value manufacturing activities - Located in designed zones or priority areas - ASEAN cumulative equity ASEAN integration system of preferences ( AISP ) scheme for CLMV countries - Preferential tariffs are offered to the newer members by the older members on voluntary and bilateral basis starting on 01 january 2002 - AISP is implemented based on products proposed by the CLMV countries. Indonesia, Malaysia, the Philippines and Thailand have issued their legal enactments to implement the AISP e-ASEAN framework agreement - Signed during 4th ASEAN informal summit 22-25 november 2000, Singapore Preamble:

DESIROUS that people should benefit from the opportunities from ICT and electronic commerce, gain access to these new technologies, and facilitate cross border trade and electronic transactions; o Covers 15 articles of cooperation ASEAN framework agreement for the integration of priority sectors OBJECTIVES: - To identify measures to be implemented - To enable the progressive, expeditious and systematic integration of these sectors in ASEAN - The framework agreement was signed by leaders on 29 november 2004 in Vientiane, laos. The amendment to the agreement was signed by the ASEAN economic ministers in Cebu on 08 december 2006 o 11 sectors Agro based products Air travel Automotive E-ASEAN Electronics Fisheries Healthcare Rubber based products Textiles and apparel Tourism Wood based products Logistics ( 2006 Article 4 trade in goods - Eliminate all CEPT tariffs covered by the individual ASEAN sectorial integration protocols - Except those listed in accompanying negative lists to the protocols, which in total for each member state shall not exceed 15% of the total product list, by: o A.01 january 2007 for ASEAN-6 o B.01 january 20120 for CLMV Article 8 customs procedures Member state shall implement the following measures, in accordance with the timelines indicated: a. extend the application of the ASEAN harmonized tariff nomenclature ( AHTN ) for extra- ASEAN trade on and ongoing basis. b. simplify, improve and harmonize customs declaration forms by 31 december 2005 c. Ensure full implementation of the Green lane system at entry points of all membe states by 31 december 2004 Overview of the ASEAN vision 2020 - Adopted by the ASEAN leaders on the 30th anniversary of ASEAN, agreed on shared vision of ASEAN as: o Outward looking o Living in peace, stability and prosperity o Bonded together in partnership in dynamic development o In a community of caring societies Bali concord - 07 october 2003 agreement signed in Bali, Indonesia - The same place where bali concord I was signed 27 years ago by the ASEAN founding members - Goals are the same : peace, prosperity and regional identity building but the circumstances are different from intra-regional preoccupation to active interface with an increasingly globalizing world

Declaration: An ASEAN community shall be established comprising three pillars, namely: o Political and security cooperation o Economic cooperation o Socio-cultural cooperation For the purpose of ensuring durable peace stability and shared prosperity in the region; ASEAN trade in goods agreement ( ATIGA ) Signed by the AEM during the 14th ASEAN summit held in cha-am, Thailand on 26 feb 2009 What is ATIGA ? It is an improvement over the current ASEAN FTA- CEPT ( AFTA CEPT ) scheme. Objective: To achieve free flow of goods in ASEAN as one of the principal means to establish a single market and production base for the deeper market and production base for the deeper economic integration of the region towards the realization of the AEC ( ASEAN Economic Community ) by 2015 What are the elements of ATIGA ? - Consolidation of all goods- related intra-ASEAN obligations, commitments, and initiatives - Comprehensive coverage - Transparency of the Trade Liberalization Processes - Rules of Origin - Trade Facilitation - Continual Progress and Ensuring a Current Agreement Reduction or elimination of import duties Member states shall eliminate import duties on all products traded between member states by 2015, with flexibility to 2018, for CMLV Executive order no. 850 ( EO 850 ) Took effect on 01 january 2010 elimination tariff rates on the remaining products in the inclusion list in year 2010 under the CEPT scheme for the asean free trade area ( AFTA )/ASEAN trade in goods agreements ( ATIGA ) Brunei Darussalam Indonesia Malaysia the Philippines East ASEAN Growth Area ( BIMP EAGA ) Land area covers 1,536,877 square kilometres Population as of july 1996, EAGAs population 45 million Goal increase TRADE, INVESTMENTS, and TOURISM in the region Geography the sub-region has exceptional resources, encompassing two of the worlds largest rainforests, and bio diverse marine systems in the South China Sea, Celebes sea and Sulu sea -long history of participation in the global economy stretching back to the SILK ROUTE and SPICE TRADE between Europe, China, and other parts of Asia. EAGA supplies the export markets of ASEAN, North and South Asia and the Middle Eeast. Coverage: Brunei Darussalam East and West Kalimantan Central Kalimantan South Kalimantan North Sulawesi Southeast Sulawesi Maluku

Irian Jaya in Indonesia Sabah and Sarawak states and the Federal Territory Island of Mindanao and Palawan BIMP EAGA is eyed as a major location in ASEAN of high value added agro-industry, natural resource-based manufacturing, and high-grade tourism as well as non-resource-based industries. Selected urban centers: Brunei Darussalam Bandar Seri Begawan Indonesia - Kalimantan: Balikpapan, Banjarmasin, Pontianak, Samarinda - Sulawsi:Bitung, Makassar, Manado, Pare-Pare - Maluku:Ternate - Irian Jaya:Jabapura Manokwari Malaysia - Sabah: kota Kinabalu, lahad Datu, Sandakan, Tawau - Sarawak: Bintulu, Kuching, Miri, Sibu Labuan Philippiens - Mindanao: Davao city, Gen. Santos, Zamboanga City, Cotabato City - Palawan: Puerto Princesa History: October 1992 president Fidel Ramos discussed the EAGA concept with EAST ASEAN heads of state in Brunei Darussalam; January 1993 President Ramos again discussed EAGA with PM Mahathir during his state visit to Malaysia. May 1993 Government and Private Sector missions started., Sulawesi, Indonesia and Sarawak, Malaysia September 1993 President Ramos route back to the Philippines from his state visit to Indonesia took him to davao via manado then president Suharto publicly endorses EAGA. October 1993 discussed by EM during ASEAN EM meeting in Singapore, and one month later the sultan of Brunei confirms participation March 1994 launching of EAGA Inaugural BIMP EAGA senior officials and ministers meeting in Davao city\ January 12, 2007 3rd Brunei Darussalam-Indonesia-Malaysia-Philippines-EASE ASEAN GROWTH AREA SUMMIT ( 3rd BIMP EAGA Summit ) Cebu City, Philippines. Objectives: BIMP EAGA cooperation aims to increase trade, tourism and investments with and outside the sub-region by: - Facilitating the free movement of people, goods, and services - Making the best use of common infrastructure and natural resources - Taking the fullest advantage of economic complementation EAGA roadmap ( 2006 2010 ) - To hasten through regional cooperation, the development of the economy of Brunei and sub-regions of the three other countries EAGA institutons 1. senior officials meeting and ministers meeting ( SOMM ) 2. BIMP EAGA facilitation center ( BIMP FC ) 3. Working groups 4. BIMP EAGA business council ( BEBC )

Senior officials meeting and ministers meeting ( SOMM ) Working groups: - Formulate action plans for priority sector and assist in implementing flagship programs and projects. The working groups focus on : air linkages, sea linkages, construction, telecommunications/ICT agro-industry, fisheries, forestry and environment, energy, joint tourism development, capital formation and financial services and CIQS ( customs immigration, quarantine and security ). - The working groups are grouped into four clusters that coordinate and integrate their activities BIMP EAGA council ( BEBC ) - Private sector participates in the working groups by providing inputs form policy formulation, helping to prioritize projects, and implementing cross-border economic projects. - Serves as an umbrella organiation for the private sector in the sub region and ejoys 5th country status in EAGA cooperation. - Serves as the main consultative forum and platform for EAGA cooperation - Meets once a year - A national secretariat for each member-country coordinates in-country and sub-regional activities BIMP-EAGA Facilitation center ( BIMP FC ) - Established in 2003 to ensure coordination among various organizations engaged in the BIMP EAGA initiative, and support implementation of activities consonant with the BIMP EAGA development roadmap. Working group clusters Transport and infrastructure development Working groups air linkages, sea linkages, C/CM, Telecoms/ICT, HRD Lead country - Brunei Darussalam Natural Resource Development Working groups agro-industry, fisheries, cooperation, forestry environment, Energy, HRD Lead country Indonesia Joint Tourism Development Working groups Joint tourism, Development, HRD Lead country Malaysia SME Development Working groups capital formation, customs, immigration and quarantine ( CIQS ), HRD Lead country Philippines BIMP EAGA Institutional structure In country (1)minister, (2)senior official, (3) national secretariat, (4)in-country stakeholders Sub-regional (1)ministers meeting, (2)senior officials meeting, (3) BIMP FC, (4) Working group clusters of (4) Private sector (1)ministers meeting, (2) BEBC, (3)BEBC Secretariat, (4)Focal organization.