AEC: The National Agenda

Mrs. Srirat RastapanaDirector-General,

Department of Trade NegotiationsMinistry of Commerce

AEC Breakthrough: Opportunities and Challenges 201529 June 2012, Assumption University

CAMBODIA

ASEAN (Association of South East Asian Nations)

1997

1997

1967

1967

1967

1967

19671995

19841999

ASEAN Economic Community

(AEC)

ASEAN Socio-Cultural

Community (ASCC)

ASEAN Political-Security

Community(ASC)

ASEAN CommunityASEAN Community in 2015in 2015

……. Towards ASEAN Economic . Towards ASEAN Economic CommunityCommunity AEC

One Vision,

One Identity,

One Community

In November 2007, ASEAN Leaders signed the“ASEAN Charter”and “Declaration on the AEC Blueprint” to reaffirm the commitments towards the AEC by 2015.

In 2007, ASEAN Economic Ministers signed and approved the AEC Blueprint as an Integrated plan towards the AEC.

In 2007, ASEAN Leaders signed Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015.

In 2003, ASEAN Leaders signed Bali Concord II, declaring that “An ASEAN Community” shall be established by 2020.

Towards.......ASEAN Economic Community (AEC)ASEAN Economic Community (AEC)

1. A Single Market and Production Base 1. A Single Market and Production BaseFree flows of goodsFree flows of goodsFree flows of servicesFree flows of servicesFree flows of investmentFree flows of investment

Free flows of skilled laborsFree flows of skilled labors

Freer flows of capitalFreer flows of capital

AEC

ASEAN Economic Community: AEC

2. A Highly Competitive Economic Region 2. A Highly Competitive Economic Regione-ASEAN (e-commerce)e-ASEAN (e-commerce)TaxationTaxation

Intellectual Property RightsIntellectual Property RightsCompetition PolicyCompetition Policy

Infrastructure DevelopmentInfrastructure DevelopmentConsumer ProtectionConsumer Protection

3. A Region of Equitable Eco. Development 3. A Region of Equitable Eco. Development

Development of SMEsDevelopment of SMEs

Narrowing Development GapNarrowing Development Gap

4. A Region fully integrated into Global 4. A Region fully integrated into Global Arrangement of FTAs with non-ASEANArrangement of FTAs with non-ASEANInvolvement in global supply chainInvolvement in global supply chain

Year2015

ASEAN Free Trade Area(AFTA) ASEAN Trade in Goods Agreement (ATIGA)

Implemented in 1993, eliminating all tariffs in 2010 (ASEAN-6) and 2015 (CLMV)

ASEAN Framework Agreement on Services(AFAS)Implemented in 1995, gradually liberalization until 2015

ASEAN Investment Area(AIA) ASEAN Comprehensive Investment Agreement (ACIA)Implement in 1998, covering liberalization, protection, and promotion of investment

Development of Economic Cooperation in ASEANDevelopment of Economic Cooperation in ASEAN

GoodsGoods

ServicesServices

InvestmentInvestment

Agriculture, Forestry, Food Security, Industry, IPR, Infrastructure, ICT (e-ASEAN), Consumer Protection, Competition Policy, etc.

CooperationCooperation

Liberalization

Economic Cooperation

Establishment of ASEAN in Establishment of ASEAN in 19671967

Combined 10 markets into one0% import tariffs/elimination of all barriers to trade

Free flows of Services

What will happen in AEC in 2015 ……..

Free flows of Investment

Free flows of skilled labor

Goods

Services

Investment

Skilled Labor

Freer flows of capitalCapital

Year 2010Year 2010Year 1992Year 1992

Thailand’s major import markets (Year 1992 vs 2010)Thailand’s major import markets (Year 1992 vs 2010)

•Total imports 40,615.8 million US$

•Total imports of 182,406.5 million US$

12

ASEAN16.6%

Thailand & ASEANThailand & ASEAN

Note1.AFTA was established in 1992 and started implementing in 1993.2.Import tariffs of ASEAN 6 were 0% since 1 Jan.2010.

Potentials of Thailand in ASEAN Potentials of Thailand in ASEAN

Country

Population

(thousand )

CountryGDP(US$ mil.)

CountryGDP per Capita (US$)

Country

Total Trade(US$ mil.)

1. Indonesia 234,181 1. Indonesia 708,032 1.Singapore 43,929 1. Singapore 699,273

2. Vietnam 86,930 2. Thailand 318,709 2. Brunei 28,830 2. Thailand 377,719

3. Thailand 67,312 3. Malaysia 238,849 3. Malaysia 8,262 3 . Malaysia 364,531

4. Philippines 60,163 4. Singapore 223,015 4. Thailand 4,735 4. Indonesia 293,442

5. Myanmar 60,163 5. Philippines 189,326 5. Philippines 3,149 5. Vietnam 156,993

6. Malaysia 28,909 6. Vietnam 107,650 6. Indonesia 3,023 6. Philippines

109,660

7. Cambodia 15,269 7. Myanmar 35,646 7. Vietnam 1,238 7. Brunei 11,952

8. Laos 6,230 8. Brunei 11,952 8. Laos 1,045 8. Myanmar 11,798

9. Singapore 5,077 9. Cambodia 11,168 9. Cambodia 731 9. Cambodia 10,480

10. Brunei 415 10. Laos 6,508 10. Myanmar 592 10. Laos 6,938

Source : ASEAN Secretariat, 2010

Potentials of Thailand in ASEAN Potentials of Thailand in ASEAN ((cont’cont’))

Country

FDI inflow

(ml. US$)

Country

Change in FDI inflow

(%)

Country

Tourist Arrival

(thousand)

Country

Change in

tourist arrival

(%)

1.Singapore 35,520 1. Malaysia 525.8 1. Malaysia 24,577 1 . Vietnam 33.9

2. Indonesia 12,737 2. Indonesia 161.2 2. Thailand 15,936 2 . Laos 25.1

3. Malaysia 8,643 3. Singapore 132.5 3. Singapore 10,511 3 . Cambodia 16.0

4. Vietnam 8,000 4. Brunei 70.3 4. Vietnam 5,050 4 . Thailand 12.6

5. Thailand 5,778 5. Cambodia 45.2 5. Vietnam 4,735 5 . Indonesia 10.7

6. Philippines 1,713 6. Thailand 16.1 6. Philippines 3,292 6 .Philippines

9.1

7. Cambodia 783 7. Vietnam 5.3 7. Laos 2,513 7 . Singapore 8.6

8. Brunei 629 8. Laos (12.5) 8. Cambodia 2,508 8 . Malaysia 3.9

9. Myanmar 579 9. Philippines (12.7) 9. Myanmar 792 9 . Myanmar 3.8

10. Laos 279 10. Myanmar (40.7) 10. Brunei 112 10 . Brunei (29.2)

Source : ASEAN Secretariat, 2010

---- AEC: The National Agenda -------- AEC: The National Agenda ----

Building blocs in the world

US14 FTAs – 20 countries ; SG, NAFTA, AUS, Central –South America, ROK, Columbia, PanamaNego - 4 countries ; TPP (BR, ML, VN, NZ)

NAFTA NAFTA

ANDEANANDEAN

EU FTAs – 28 countries ; ROK, EFTA, MX , Middle East, Nego – 23 countries ; SG, ML, India, China

China 10 FTAs – 22 countries ; SG, NZ, Chile, Peru, HKNego – 18 countries ; AUS, GCC, SACU

Japan 13 FTAs – 16 countries ; India, ASEAN (except CLM)Nego – 8 countries ; ROK, AUS, GCC

South Korea 8 FTAs – 44 countries ; SG, India, EU, US, EFTANego – 39 countries ; AUS, NZ, GCC

New Zealand8 FTAs – 12 countries ; SG, TH, ML, China, AUSNego – 9 countries ; ROK, India, US, GCC

Australia6 FTAs – 13 countries ; SG, TH, NZ, US, ChileNego – 13 countries ; ROK, China, Japan, India, GCC

India 6 FTAs - 16 countries ; SG, TH, ML, Sri Lanka, ROKNego – 55 countries ; China, Japan, EU, EFTA, GCC

BIMSTEC BIMSTEC

APECAPECGCC GCC

EFTA EFTA

TPP Trans-Pacific Strategic Economic Partnership

(US, AUS, NZ, Chile, Peru, SG, ML, BR, VN)

BRICS (Brazil, Russia,

India, China, South Africa)

US$ 33,173 Mil.(8.8%)

Thailand’s trade with selected trade partners

US$ 72,916 Mil.(19.3%)

US$ 138,883 Mil.(36.7%)

US$ 74,696 Mil.(19.7%)

China, Japan, Korea,India,Australia, New ZealandASEAN

9 MemberAEC

85%In 2011, share in total trade

accounted for 320 US$ bn

Integration into the global economyIntegration into the global economySource: Asian Development Bank

AEC

ACFTAChina

AJCEP

Japan

AKFTA

Korea

AIFTA

India

Goods : signed 29 Nov 04, effective on 1 Jan 05

Service : signed 14 Jan 07, effective on 1 Aug 07

Investment : signed 15 Aug 09, effective April 10

Goods/Service/Investment : Thailand signed 11 April 08

For Thailand, effective on 2 Jun 09

Goods : Other ASEAN members signed on 28 Aug 06.

Service : Other ASEAN members signed on 21 Nov 07.

(Thailand : Service signed on 27 Feb 09, effective on 1 Jun 09 Goods: signed on 27 Feb 09, effective on 1

Aug 09) Investment : all members signed on 2 Jun 09,

effective on 31Oct 09

Goods/Service/Investment : signed 26 Feb 09

Effective on 1 Jan 10 (Thailand ratified the Agreement on 12 Mar 10.)

New Zealand

Australia

AANZFTA

Goods : signed 13 Aug 09, effective on 1 Jan 10

Service/Investment : under negotiation

5 FTAs b/w ASEAN and Dialogue Partners5 FTAs b/w ASEAN and Dialogue Partners – – At PresentAt Present

ASEAN-Australia- New Zealand FTA

ASEAN-Korea FTA

ASEAN-Japan CEP

ASEAN-Canada

ASEAN-China FTA

ASEAN-Russia

ASEAN-EU FTA

ASEAN-Pakistan

ASEAN-India FTA

ASEAN-US TIFA

Global Engagement is KeyGlobal Engagement is Key

RCEP

Next Station >> RCEP

International Trade and Investment International Trade and Investment StrategiesStrategies Strategy 1Strategy 1: Internationalization of Thai Business: Internationalization of Thai Business

The National Agenda: The National Agenda: New Age of Thai Economy in AECNew Age of Thai Economy in AEC

Strategy 2Strategy 2: Strengthening of domestic economy through the : Strengthening of domestic economy through the dynamics dynamics of global economy of global economy

1. Moving forward the new standardization / upgrading standards of goods and services / supporting MRAs arrangements

2. Identifying proactive strategies for the trade-integrated sectors, with a focus on core competitiveness

3. Undertaking strategic plan for the development and support of sectoral service businesses, that is in relation to the National Economic and Social Development Plan

4. Developing fundamental elements enhancing Thailand’s competitiveness.

•

Strategy 3Strategy 3: :

Communication among related sectors &Communication among related sectors &Establishment of effective mechanism moving forward Establishment of effective mechanism moving forward integrated-manner policiesintegrated-manner policies

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