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THE 34™ MEETING OF THEASEAN ECONOMIC MINISTERS (AEM)
12 September 2002Bandar Seri Begawan, Brunei Darussalam
ANNEX 23
ROADMAP FOR INTEGRATION OF ASEAN
A Report to ASEAN Economic Ministers' MeetingBandar Seri Begawan, Brunei Darussalam, 12 September 2002
List of Matrices
Cooperation in Trade in Goods: AFTA .........................................................'............................2Cooperation in Trade in Services...............................................................................................5Cooperation in Investment......................................................................................................... 7Cooperation in Standards and Conformity Assessment........................................................... 16Cooperation in Customs........................................................................................................... 19Cooperation in e-ASEAN ........................................................................................................25Cooperation in Industry............................................................................................................32Cooperation in Small and Medium Enterprises .......................................................................34Cooperation in IntellecUial Property........................................................................................37Cooperation in Air Services Liberalization .............................................................................42Cooperation in Land Transport Infrastructure Integration.......................................................44Cooperation in Transport Facilitation of Goods ......................................................................45Cooperation in Trans-ASEAN Energy Network Development...............................................46
Page I
rRotttltnap for Integration of ASEAN Cooperation in Trade in Goods: A FT A
Cooperation in Trade in Goods: AFTA*
Recommendations
Free flow of goods in (heASEAN region by 2020
Finn commitment andstrong political will tofully realize an ASEANFree Trade Area (AFTA)
Maximize the number oflariff lines between 0-5%(ASEAN 4)
Starting dates:Vielnam - 2003
Laos and Myanmar-2005
Cambodia - 2007
Accelerate the realization ofthe AFTA by one year (withflexibility)
Ending dales:Vietnam - 2005
Laos and Myanmar-2007
Cambodia - 2009
Eliminate all import duties(all ASEAN MemberCountries)
ASEAN 6-2010
CLMV-2015(wilhflexibility up to/2018)
Pressure from domesticindustries and othergroups.
Proteclion of certaindomestic industry.
Requirement from nationaldevelopment perspectives
Set explicit benchmarks inmaximizing the number oftariff lines with 0-5% tariffs:
Commit to achieve 80%of the 1L with tariffs 0/0-5% by 2003 for Vietnam;2005 for Laos andMyanmar; ami 2007 forCambodia.
Advance the deadline forachieving 100% of tariff linesin the 1L with 0-5% tariffs,wilh flexibility: 2005 forVietnam; 2007 for Laos andMyanmar; and 2009 forCambodia.
Set a timetable in eliminatingail import duties:
ASEAN 6:2003- 60%2007- 80%2010-100%
Vietnam:2006 - 60%2010-80%2015- 100%(wilh flexibility up to/2018)
* Member Countries to confirm tlie targets after consultations with relevant government agencies have been conducted.
Page 2
Roadtnupfar Integration ofASEAN Cooperation in Trade in Goods: A FT A
Reconmitmdalions
Bythel7u lAFTACouncil Meeting inCambodia in 2003.
Laos and Myanmar:2008 - 60%2012-80%2015- 100%(with flexibility up to /2018)
Cambodia:2010-60%2015- 100%(with flexibility up to /2018)
Expand the coverage of theCEPT Inclusion List byshortening the GeneralException List (GE)
General Exception Listused to protect certaindomestic industries
Member Countries shouldensure that their GE Lists areconsistent with Article 9(B)of the CEPT Agreement.Products not consistent withArticle 9(B) should betransferred to the CEPTInclusion List.
Transparency in each of theMember Country's non-tariff measures (NTMs)
On-going exercise Increasing resort to non-tariff barriers to protectdomestic industries.
Lack of transparency onnon-tariff barriers.
Focus has been given totariff liberalization.
Bythel7 l hAFTACouncil Meeting inCambodia in 2003.
Notification and verificationof all existing non-tariffmeasures (NTMs) should besubmitted annually during theAFTA Council Meetings.
Encourage notification andcross-notification of non-tariff barriers.
Develop a database of non-tariff measures maintained byASEAN Member Countries
Page 3
fRoadmapfor Integration of AS EAN Cooperation in Trade in Goods: A FT A
ac| es Recommendations
Provide more certaintyand predictability for thebusiness community
Increase the utilization ofthe CEPT-AFTA Scheme
Progressive elimination ofall non-tariff barriers
Annual AFTACouncil Meetings
ASEAN6-20IO
CLMV-2015/2018
Conduct an in-depth surveyof non-tariff measures appliedon all products with prioritygiven to those in the CEPTInclusion List.
Identify which among thenon-tariff measures constitutebarriers to trade.
Standstill on the impositionof new non-tariff barriers.
Eliminate all non-tariffbarriers
Improve the CEPT Rules ofOrigin and to encourage theuse of the CEPT Form D.
By the \lw AFTACouncil Meeting inCambodia in 2003
Promote transparency toenhance trust among theIssuing Authorities andCustoms Officials
Lack of coordinationbetween National AFTAUnits, Issuing Authoritiesand Customs Officials
Lack of uniformity in thecalculation of localcontent.
Certain industries cannotcomply with the currentvalue-added criterion in theCEPT Rules of Origin.
Review the CEPT Rules ofOrigin and its OperationalProcedures.
Increase closer coordinationand establish a regulardialogue mechanism amongIssuing Authorities andCustoms Officials.
Page 4
Jtoatttnap for Integration ofASEAN Cooperation in Trade in Services
Cooperation in Trade in Services
Recommend a (ions
Free flow of trade inservices by year 2020
Commitment to removeall limitation on bothmarket access andnational treatment for allservices sectors
Achieve higher level ofprogressive liberalizationof trade in services foreach subsequent rounds ofnegotiations under AFAS
Adopt the 10-X principleto expedite theliberalization of trade inservices
Remove all limitationsfor cross border supplyand consumption abroadin the agreed commonsub-sectors, provided itis technically feasible, bythe end of the thirdround of negotiations
Achieve a higher level ofprogressive liberalizationfor commercial presenceand presence of naturalpersons in thesubsequent round ofservices negotiations
Slow progress of the tablingof offers
Human resources andfinancial constraints of somecountries to sendrepresentatives of appropriateauthority to negotiate
Lack of regulatoryframework to govern thedelivery of servicespertaining to the identifiedsectors and sub-sectors insome member countries
Uncertainty and lowawareness about (he impactand direction of liberalizationmeasures
Concern over the problem of.free-riders
Difficulty to achieve "none"for mode 4 in certain sectors,such as, construction
Member Countries havedifferent levels ofdevelopment on services
Insufficient and differentunderstanding of negotiatorsregarding the negotiatingapproach and its objectives
Develop and adopt alternativeapproaches to liberalization
Commitment lo ensure activeparticipation with appropriatelevel of authority
Endeavour to put theregulatory framework inplace, and seek assistancefrom other member countrieswhere necessary
Conduct a study on thebenefits of liberalizing tradein services for prioritizedsectors
Remove all impediments tofacilitate free flow of trade inservices in the region
Provide capacity building toenhance the competitivenessof services providers in theregion
Page 5
Roadiniij} for Integration of ASEAN Cooperation in Trade in Services
.Goals Critical Success Factors ; Problems/Obstacles Recommendations
Free flow ofprofessional servicesin tlie region by 2020
ASEAN professionalservices providers tomove freely in the regionto provide their services
Conclusion of MRAs ineach professional services
Conclude MRAs in theprioritized professionalservices in subsequentrounds of servicesnegotiations
Different standards andprocedures for accreditingprofessional qualifications inMember Countries
Progressive harmonization ofprofessional qualification andcertification regulations
Intensify exchange of viewamong association of servicessuppliers and professionalassociations
Exchange of views withrelevant experts from regionalgroupings and internationalorganizations such as CER,EU, NAFTA, UNCTAD,WTO and ILO
Paijc 6
Roarfinapfor Integration of ASEAN Cooperation in Investment
Cooperation in Investment
Goals Critical Success Factors Steps Timeframe Problems/Obstacles Recommendations
ASEAN Investment Area (AIA)INVESTMENTFACILITATION(To make the regiona more conduciveplace forinveslmen(s')
Commitment of MemberCountries to implement thefacil i tat ion activities
Simplification of InvestmentProcedures and Process
Set-up an enquiry point toenhance transparency by pro-vid ing updated investment-related laws, regulations,policies and procedures
Harmonised FDI data collec-tion and reporting amongASEAN Member Countriesby 2005
Simplification ofInvestment Proceduresand Processes
Transparency exercise
Harmonisation of theCollection andReporting of FDIStatistics in ASEAN
Implementation of theASEAN investmentPortal and Manage It2
On-going
On-going
On-going
On-going
Early 2003 andonwards
Some facilitation activitiesrequire commitment fromMember Countries in terms ofmanpower and fundingresources and providingrequired information on policychanges on a timely manner
Some activities require strongcoordination among variousministries
Some activities such as thePortal require major fundingparticularly on ITdevelopment
Funding support fordeveloping the softwareprogramme of the Portal andits further enhancement.
Member Countries need towork out a definite programmein s imp l i fy ing their proceduresand transparency
On-going work and endorsed bythe AIA Council. Implementthe deliverables and workprogramme of WGFDIS
Contents development
IT development
The ASEAN Secretariat couldestablish an IT division or unitto handle all IT-related work ofASEAN
1 The Fourth AIA Ministerial Council Meeting in September 2001 tasked the CC1 lo develop the ASEAN Investment Ini t ia t ive with ii two-year limcframe. The I n i t i a t i v e aims to (a) bu i ld apositive image, correct perception and enhance confidence on (lie region; (b) improve ASEAN investment environment so thai the region can compete effectively in at tract ing global FDI flow;(c) support greater economic integration between older and newer ASEAN member countries; and (d) promote greater intra-ASEAN direct investment and private sector development. Thei n i t i a t i v e includes among others the following type of activities: (a) facil i tation activities; (b) deepening of the AIA process; (c) promotion events in ASEAN which include high-impact events,outreach programme, bridging development gap events, investment seminars and symposia; (d) inbound investment missions; (c) outbound investment missions; (0 publications anddissemination; (g) industry specific events.2 The 5th AIA Council Meeting endorsed the CCI recommendation lo request the ASEAN Secretariat to set-up a separate investment wcbsile side-by-sidc wi th the official ASEAN website. Thefirst phase of the ASEAN investment wcbsile will include the following contents (a) hyperlinks to the wehsitcs of the ASEAN Investment Agencies; (b) FDI data set which were alreadyreleased and endorsed by past AIA Council Meetings; (c) investment publicat ions and (d) investment information on ASEAN Member Countries.
Page 7
fRoudniap for Integration of ASEAN Cooperation in investment
liS'illINVESTMENTPROMOTION (topromote theregion'sopportunities)
r"-*iv i^r' ft'* i to "^Sr^s^iSilS^n 31 ^f^ft^HISS^^SISft^Cooperation and participationof all Member Countries onjoint investment promotionefforts
^?"&^£t^j;i^;*V^W4%TvV^«iia iiw t -; i&^fpfi C tain tfvSftf •&"&>Sa<K^-R*' *^afeDS=^rS>&.^L©^S1ffll'lr^w€^%lSp^Joint InvestmentMissions:- CLMVto
otlierASEAN-6- Joint Investment
Outbound Missionto Major CapitalExporting Cities
• Joint investmentinbound Mission toCapital Cities ofASEAN
ASEAN Trade Fair(several investmentactivities are part of theASEAN Trade Fair)
Publications:- ASEAN Investment
Report- FDI Statistics- Facts and Figures
Compendium ofinvestment Policiesand Measures inASEAN (UpdateVersion)
See FootnoteJ
October 2002
On-going
Mid-2003
®If| l^ffilng'Q^lic!^/- ^Funding Constrainls
: JR^CQmmeridafiqns
Pending ihe guidance of theAIA Council in September2002 and (he endorsement ofIhe ASEAN InvestmentInitiative which contains someof these activities.
All ASEAN Countries areencouraged to participate at theASEAN Trade Fair
On-going work by the ASEANSecretariat
JThe timetable of the joint investment missions would depend on Ihe outcome of the ASEAN Competitiveness Study. At the 4ili AIA Council Meeting in September 2001, the AIA agreed that"there is no need to engage a PR firm to promote ASEAN but what is needed is that ASEAN countries would need to take necessary reforms and appropriate measures lo improve the credibi l i tyof the individual countries and their investment regimes".
PageS
Roadmup for Integration of ASEAN Cooperation in Investment
Databases:- FDI Statistics- ASEAN MNEs- Mergers and
Acquisitions- Industrial Estates,
Export ProcessingZones, Free TradeZones and Scienceand TechnologyParks
- ASEAN SupportingIndustry Database
Seminars- Seminar on
InvestmentOpportunities inElectrical andElectronics Sectorin ASEAN
- Seminar onInvestmentOpportunities inSupporting Industryin ASEAN
Joint AEM/AIACouncil/AFfA CouncilDialogue Forum withBusiness Sector fromUS, Japan, EU andASEAN
ASEAN InvestmentNetworking Programme
On-going but FDIdatabase structure
needs to be enhanced(annual update)
2003
2003(annual onwards)
2003(annual onwards)
l^llifffi^B^P' :$:y :;. - .; ^con^niendatiQns
On-going work by the ASEANSecretariat
Expansion of database toinclude data on countries thatASEAN have engaged asdialogue partners (i.e. China)
Request assistance from MIGA,UNCTAD, ADB, FIAS andothers
Page 9
Roadinapfor Integration nf ASEAN n
Coals
INVESTMENTLIBERALISATION(To achieve freeflow of investmentsby 20204}
Critical Success Factors •
Opening up oflnduslries andGranting of NationalTreatment
- . ; . - ' Steps
For ASEAN Investors:
Phasing out of the TELfor (he ManufacturingSector
Phasing out of Hie TELfor all oilier sectors(agriculture, fishery,forestry, mining) andservices incidental tomanufacturing,agriculture, fishery,forestry, and miningsectors.
Timefnune ,
For ASEANInvestors:
1 January 2003for BruneiDarussalam,Indonesia, Malaysia,Myanmar,Philippines,Singapore andThailand
I January 2010for Lao PDR,Cambodia and VietNam
1 January 2010for BruneiDarussalam,Cambodia, Indonesia,Malaysia,Philippines,Singapore, Thailand
1 January 2013 -forVicl Nam
1 January 2015for Lao PDR andMyanmar
Problems/Obstacles
The preparation of theTEL/SL varies from onecountry to another dependingon the level of development.As such, some TEL/SL arelonger than the others
Several sectors/ industries arcin the Sensitive List whichcould not be opened up al anylime although subject toreview in 2003
The constitutional laws ofsome Member Countriesprohibit the Member Countrieslo open-up several/some of(heir industries/ sectors
/"
/
Recommendations
Review the SL by 2003 and alsuch subsequent periodicintervals as maybe decided bythe A1A Council. MemberStales may undertake to do anyof the following as deem lit:- phase-in of flic Si into the
TEL;- phase-out of the SL;
niciinlain the SL
Investment measures in thesensitive lisl should bereviewed with the view loextending (hem on NT basis.
-i"1 A1A Council Meeting decision is lo shorten Ihc ending dale lo all investors by 10 years from 2020 for Ihe ASBAN-6 and by 5 years from 2020 for the ASIiAN-
age 10
Ind-'tfrtifioit of
Goals Critical Success Faclors •
The AIA Agreement ScheduleIII (LiberalisationProgramme) slates:"In respect of the Liberalisa-tion Programme, MemberSlates shall: unilatcrallyreduce and eliminate restrict-ive investment measures andreview their investmentregimes regularly towardsfurther liberalisation."
Steps
PhasJng-oul of TEL forManufacturing,Agriculture, Fishery,Forestry, Mining andServices Incidental to
Manufacturing,Agriculture, Fishery,Forestry, and MiningSectors 5
Understand and identifyinvestmentimpediments in theregion
'-.<••''••; Tiniefranic
For All Investors:
2010for Brunei Darussa-lam, Indonesia, Ma-laysia, Philippines,Singapore and Thai-land (would shortenthe limcframe by 10years from 2020)
2015for Cambodia, LaoPDRand VielNam(would shorten thetimeframe by 5 yearsfrom 2020.
2020for Myanmar.2003 - conductworkshops and astudy to promotebelter understandingon these investmentimpediments andhow lo eliminatethem gradually
200-1 - taking steps lominimize investmentimpediments
Problems/Obstacles
Some investment impedimentsare policies to assist MemberCountries in (heir nationaldevelopment objectives
Member Countries havedifferent levels ofdevelopment and the gradualelimination of theseimpediments may vary from'country lo country
Recommendations
Studies and workshops tofacilitate better understandingon what are the investmentimpediments
Member Countries couldminimize these investmentimpediments by benchmarkingthrough best practices.
Request assistance from ADB,MICA, UNCTAD, FIAS, eic.
s The 5lh AIA Council Meeting agreed to apply the 10-X principle in accelerating the ending dates for opening up of industries and granting of national treatment to all investors for servicesincidental to manufacturing, agriculture, fishery, forestry, and mining sectors. Brunei Darussalam, Cambodia, Lao I'DK, Malaysia, Philippines, Singapore, Thailand, and Viel Nam agreed loinclude services incidcnlal [o manufacturing, agriculture, fishery, forestry and mining sectors under the accelerated ending dates for opening of industries mid grunting of national treatment lo allinvestors. Indonesia and Malaysia would need lime to further study this.
Page I I
Roatlmapfor Integration ofASEAN Cooperation in Investment
':^^M^^-:--. •/\,Z,f, '?-,£•' Kl-b .;.',- .. !. , :%. . . ': -l:;$J|!£i|. SBiiiMto^S••-,/>.:-••!'• •V* /'j''™5:-'3-*- - * • ; ' ' i ..-;"*'*•: S 'V*1 •VAoj
ffs^misp'fV%".-'¥j'r''-,\$fz>tfi>-, i'/T.;!'. r ..vi'!!s-. r'ft
iiiilfettffifttfr^fe%yliiS"'"v':S''ii'-'Kra:*'.''is!"*i.'»''3!. ' -'-"i •'
^lg|f^6em?/Qb^c}es y. .. •:"•'.•*• i* r, :-'. i •]",'•-.-• - '••• '.' '••
RecommendationsReview of the Implementation of the AIA Agreement and the Provisions of the Hanoi Plan of Action
Realisation of AIAthrough effectiveimplementation ofMember Countries'AIA Commitments
Review of the IndividualAction Plan of MemberCountries every two years
Development of adetailed commonformat for the IAPreview process
Detailed review of eachMember Country's IAPby CCI
Updating of the lAPsevery 2 years to reflectimplementationprogress ofcommitments.
2002detailed commonformat for the reviewprocess to bedeveloped.
2003CCI review of theIAP.
2003submission ofupdated IAP toreflect new plans andmeasures/ schedulesof MemberCountries.
mid 2004preliminary reviewby the CCI
mid 2005review of CCI andsubmission of policyrecommendations tothe AIA Council. .Submission ofupdated lAPs
The current format of the IAPcould be further developed.
Some Member Countries havesubmitted updated lAPs whilesome have not
CCI could review its currentformal and develop a moredetailed/ comprehensive format.
CCI needs to develop a formalfor the IAP review process.
Before 2003, CCI would haveto review the lAPs to monitorimplementation progress.
Some policy recommendationscould be prepared by CCI forthe consideration of the AIAMeeting in 2003. The results ofthe preliminary review could beused as one of the bases.
Deepening of the AIA ProcessEnhanceimplementation ofAIA Agreement
Enhanced provisions of AIAAgreement
Signing of the Protocol 2003 Some Member Countriescould not join in theacceleration of the endingdales.
Preparation of 2 types ofExclusion Lisis:
For ASEAN InvestorsFor non-ASEAN investors
Page 12
Roatlinupjor Integration ofASEAN Cooperation in Investment
AIAPlu/
Recommendations
Building relationsbetween ASEANand emergingcapital-exportingregions / countries(i.e. China and theAustralia-NewZealand CloserEconomic Relations(CER) oninvestment matters
Intensified investmentcooperation between ASEANand China, ASEAN and CER
Better understanding on Iheinvestment regimes of China/CER vis-a-vis ASEAN'sinvestment regimes
Conduct consultations/exchange of viewsbetween ASEAN andChina/ CER investmentofficials on theirinvestment regimes,developments andopportunities
Conduct of facilitationcooperation activitiesbetween ASEAN andthese emerging capital-exporting regimes (i.e.:workshops, seminar,consultation visit)
2003 onwards Cooperation of investmenlofficials from these tworegions
Commence the consultations /discussions as soon as possible
Buiiding-m of investmentcooperation programmebetween ASEAN and China /ASEAN and CER
Building relationsbetween ASEANand other regionalgroupings (i.e: EU, .MERCOSUR)
At the forthcomingASEAN Summit in laie2002, ASEAN will besigning wild China aFramework Agreementon ASEAN-China Eco-nomic Cooperation andwilli ttie CER, a docu-ment called "CloserEconomic Partnership(CEP)"
Programme for this willbe developed later.
7 The objective of this initiative is for ASEAN to go beyond the current objectives of the AIA Agreement through building investment relations with new emerging capital exportingcountries/region and other regional grouping lo promote greater FDI inflow to ASEAN.
Page 13
rRoudmapfor Integration ofASEAN Cooperation in Investment
'-• '.' t-ttKl f SKj' Recommendations
Cooperation on Capacity Building and the Bridging of Development GapCLMV Investment Officialstasked to implement (heprovisions and commitmentsunder the AIA Agreement areequipped in their policyformulation responsibilities
Enhance theImplementation ofthe AIA Agreement
Capacity Building:Policy Development
Capacity Building:InstitutionalDevelopment
Capacity Building:Training and HRD
Capacity Building:Bridging InformationGap and InvestmentOutreach Programme
The detailedprogramme appears asAnnex A
2003-2005 Availability of FundingSupport
Unilateral contribution, fromMember Countries (ASEAN-6),through their Foreign AffairsMinistries, in terms of fundingsupport / technical assistancefor the implementation of theprogramme
Funding Support lias to beobtained in order to organise theworkshops
Request assistance from FIAS,ADB, M1GA, UNCTAD andothers
Page 14
Roaitmap far integration of ASEAN Cooperation in Investment
ANNEX A
".« k'-^.qT^^i&tf !V^ a' '"*:' -Capacity Building: Policy Developmenl Identification and Elimination of Investment Impedimenta
Policy Consideration on Best Practices in Investment Promotion and FacilitationPolicy Development on Transparency, Investment Dispute Prevention and ManagementPolicy Consideration on Simplification of Investment Procedures, Processes and Regulations, and FD\ FacilitationMeasures
Capacity Building: Institutional Development Study on Enhancing Institutional Development for the Investment Agencies of the CLMV CountriesCLMV Countries' Attachment Programme to Other ASEAN Investment AgenciesAttachment Programme for CLMV Countries' FDI Data Compilers/Statisticians to other ASEAN CountriesImproving and Upgrading of FDI Data Collection and Reporting System in CLMV Countries
Capacity Building: Training and HRD Training on Communication Skills and Public Relations StrategyWorkshop on Image Building, Branding and MessagingUnderstanding Implications of Investment Liberalisation on DevelopmentTraining on FDI Data Management and Quality Report GenerationAnnual Joint Training Programme for CLMV Countries on International and Regional Investment Issues (2003-2005)
Capacity Building: Bridging Information Gapand Investment Outreach Programme
Development of Substantive and Significant Investment Websites of CLMV CountriesDevelopment of Databases and Information Contents on CLMV Countries (Database on Investment Policies. Rules andProcedures; Database on Business Cost; Database on Supporting Industries and Component Manufacturers; Databaseof Investment Project Profiles and Opportunities in the CLMV Countries)Joint Investment Missions of CLMV Countries to Other Major ASEAN Capitals• Kuala Lumpur• Singapore• Bangkok• Manila• Jakarta
Page 15
fRoadmup for Integration of ASEAN Cooperation in Standards and Conformity Assessment
Cooperation in Standards and Conformity Assessment
.^h^g9*l»;;f;:--i^=;Faster conclusion andimplementation of MRAs
igriMeri^SSIK'•.','••' ''.:'\:f.i.-f'..v,' '~ft- ••': C-"'i';-i:( 'Vl-"<:|-,v:,'-V ;,?S >
Commitment of membercountries
Commitment frommember countries andproper co-ordinationbetween line ministries
Siipgil^ililMt;'. . M?!' %.w> £w^**&?&<?&%if#f?ff?;®Faster Implementation ofASEAN EE MRA
- Accept lest reports andcertificates by at least 3countries which meet therequirements agreed byEPWG
- Accept test reports andcertificates by all 10countries which meet therequirements agreed byEPWG
Faster conclusion andimplementation ofAgreement of the ASEANHarmonized RegulatoryScheme
- finalization of agreementof the ASEANHarmonized CosmeticsRegulatory Scheme
- Signing of the agreementof the ASEAN HarmonizedCosmetics RegulatoryScheme
Consideration of possibleMRAs for Pharmaceutical
" "IN" " " ' " " " " ! ..' '- ' ' ' "' - , "- -.;tiM:i^/5r|mtf*FriafYi(v -n • •. SMf&JlHffrflffli! = j = .;«f%^i.i.,'™v •v,-.:.;; ;•:-,>,
2003
2004
2002
2002
2003
f r Problfmi/Obs tacles
Technical Infrastructure insome countries are notready
Cosmetics registration isunder purview of Ministryof Health, it may lake timefor internal co-ordination.
Technical infrastructure tobe built up in somecountries.
Regulation in somecountries may nol be readyforMRAThis sector is highlyregulated and also underpurview of Ministry ofHealth
Lack of funding support loaddress technicalinfrastructure
RecommendationsEncourage member countrieswhich are not yet signatory toAPLAC orPACMLArespectively to appoint thosewithin ASEAN who arealready signatory
Training under AADCP / IAIand other assistanceprogramme with 5-year targetlo enhance confidence forrelevant members
ACCSQ/SEOM take moreproactive role in co-ordination
Training programme fromAADCP/IAi and others
Slrong support andencouragement fromACCSQ/SEOM
AADCP/IAI and oilierdialogue partners to assist thetraining
Page 16
RuuUmup for Integration ofASEAN Cooperation in Stantttit'tls unit Conformity Assessment
' : '""''-•••- —— •-•^••^., ik.fr :V.:3 .'..'.I
Expedite Harmonizationof standards and enhancetransparency of technicalregulations
««a r v^spry* K'-^^-ifW'^f^fe^ (S^*
Commitment of membercountries
Identify new sectors forMRAs
Complete harmonization for20 priority product groupsComplete harmonization forsafely and BMC standardsContinue harmonization innew areas of most importantto ASEAN
Effectively co-operate ininternational standardisationdevelopment
2003 onwards
2003
2004
2003 onward
2003 onward
.^^§jijii^5^(|iiB^J'Different areas of prioritiesfor different countries
Different areas of interestand time and resourceconsuming
Different areas of interest
He^qrijjrierjdatipnsComprehensive Survey beconducted
Encourage participation ofregulators in these newsectors
Formation of respectiveproduct/sector workinggroups to look into moredetails
Comprehensive survey toidentify new areas forharmonization with prioritygiven to areas of mostcommon interest andregulated
Develop and implement 5-year alignment programme,including co-operation ondevelopment in internationalstandardisationTo focus on those with mostcommon interest throughsurvey on membership inTechnical Committees in ISOand IEC and identify the leadfor eacli area/TC of commoninterest to co-ordinate co-operation
Page 17
rRoiiilntap for Integration ofASEAN Cooperation in Simulants ami Conformity Assessment
Enhance transparency oftechnical regulations insectors of most importance toASEAN
Recominemlat juris2002-2007 Different areas of interest
Different regulators areinvolved
To focus on those with mosicommon interest through acomprehensive survey on thepriority areas of most interest
Involve all relevant regulatorsto the work from beginning
Publish directory of technicalregulation in the priorityareas
Enhance TeclmicalInfrastructure to facilitatethe implementation ofMRAs and StandardsHarmonization
Enhance capacity building inthe areas of standards,metrology and conformityassessment towardsinternationally acceptedrequirements
2003 -2007 Different levels ofdevelopment and differentareas of interest.
Time and resourceconsuming
Identify gaps and areas of co-operation through survey,including a possibility ofusing the test lab andcertification bodies which aremembers to the relevantregional and internationalMLAs by those countries,which are not yet a memberto these MLAs
Identify lead/co-ordinator foreach component e.g.standards, metrology, productcertification etc.
Institute a co-operationmechanism and set specifictargets for each componentand implement AADCP/IAIand others
Page 18
Roadmup for Integration ofASEAN Cooperation in Customs
Cooperation in Customs
• • . ' • /r.- ''' '"..-' ""! !]1 !;1' •' .;!>' '''I'-' • rifiy|i|||§ |i| ; ';-Sl;&^ ;1"^ ,:^1.-'"!-'v;;-:i!:, >;';';'-!;L.:' '3>!( IBif^-'V Problems/Obstacle-!, RecommendationsHarmonization of the Tariff Nomenclature (deadline: 2000)
(Date of implementation in accordance to the Special Meeting on the AHTN (July 2003 at the latest)A common methodologyof nomenclatureclassification for Intra-ASEAN Trading
Implementation ofrecommendations byrelated internationalorganizations (WCO, UNbodies)
Commitments of MemberCountries towards tariffnomenclatureharmonization
Commitments of MemberCustoms Administrations
Cross-sectoral cooperationamong national authoritiesfor implementation anddispute settlement
Amendments to nationallegislations with regard tolegal obligations of the H.SConvention and theProtocol on AHTN
Drafting regulations andguidelines
Organizing theclassification structure
Organizing the disputesettlement
2002-2003
September 2002to June 2003
May 2002lo May 2003
May 2002to May 2003
Stronger politicalwillingness is required
Lack of technicalpreparation
Deviation from theestablished criteria ofclassification amendments
Strengthening the political willregarding the implementation ofAFTA
Research and study on measuresto make up losses fromliberalizing fiscal policies
Training on classification
Establishment of Pre-arrivalClassification
Stricter adherence to the ASEANcriteria on additions to anddeletions from the Nomenclature
Harmonization of Customs Procedure and Formalities (deadline: 2003)Progressive simplificationand harmonization ofCustoms procedures andformalities in line with theRevised KyotoConvention andinternationalrecommendations
Commitments of MemberCountries to harmonizeformalities related directlyand indirectly to CustomsDossier (including Cus-toms Declaration Form forIntra-ASEAN trade)
Commitment of relevantauthorities to harmonizedocuments for Customsclearance
ECCM discussions onCustoms Form and relateddocuments
Amendments to the nationallegislation
Harmonization of essentialinformation parameters ofdocuments related toCustoms dossier
Implementation ofharmonized procedures &formalities
2002-2003
December 2002 toDecember 2003
December 2003 toDecember 2004
2005-2006
Stronger politicalwillingness
Lack of technicalpreparation
Needs of training ofCustoms officers
Needs to define theappropriate role of theCustoms in harmonizingprocedures andformalities
Implementation of Customstechniques, such as Risk Man-agement, Selectivity, intelligenceCollection & Analysis
Regional Training onBenchmarking Methodologyand development ofclearance indicators forexpeditious dearance-2003
- Regional workshop on theRevised Kyoto Conventionand risk management-2003
Establishing Pre-arrivalClearance in conformity withnational legislation
Page 19
rRoadmap for Integration ofASEAN Cooperation in Customs
V^^fSft; tf^ff".. t- ASiiil
Pro blems/O bst a ?)es Recommendations
Gradual adoption of the RevisedKyoto Convention
Undertake (he pilotbenchmarking exercise andconduct national workshops- 2004
Establishing the working groupfor the harmonization ofCustoms procedures andformalities
Trainings for Customs officers
Study of the inter-relationbetween information related toIhe Customs and information formanagement purposes by oilieragencies for minimum datarequirements and simplification.
Customs Valuation (deadline: 2000)Implementation andenforcement of WTOCustoms ValuationAgreement
Undertaking works relatedto the maintenance anddevelopment of theWCVA accordingly to thelevel of development ofMember Countries
Commitments of membercountries in harmonizingmain components ofCustoms Valuation
Commitments of CustomsAdministrations andrelevant nationalauthorities of Members
Higher level of Transpa-rency on proceduresrelated to duty & taxesassessment
Development of ACVG inthe interest of uniformity,common interpretations andbest practices
Implementation of recom-mendations of the ACVG
Accommodations tonational legislations ofMembers
2002-2003
Up toDecember 2003
2003-2004
Stronger politicalwillingness is required
Lack of technicalpreparation for thecomplete application ofthe Agreement
Lack of readiness in termsof Customs structures aswell as those ofgovernmental agencies
Commitments of Members to theimplementation of the ACVG
Establishing the working groupfor the implementation ofCustoms Valuation and PCA. itwould deal also withClassification and Non-Preferential Rules of Origin
Study and research on Non-Preferential Rules of Origin
Page 20
Roatltnap for Integration ofASEAN Cooperation in Customs
- ... T,', . V < C , ; , ; F . )( •,,•..;*;• .',!'!• -:• ''.'•!',''
'-GriiliifSu^i'MI^Pvi' 3/^S| .ff^^^i^,p^^,^J' W^^^ '™^!»=JJIS^^^PI^^
Drafting regulations andguidelines for theimplementation
Setting up the valuationorganizational structurewithin the Customsadministration in line withinternationalrecommendations
Setting up mechanisms andstructure for the appeal anddispute settlement
Progressive harmonization
2003-2004
2004-2005
2003-2004
2004-2005
]|||i|biirti 5|t s •';'.
Needs of (raining ofCustoms officers
Recommendations
Training on Non-PieferentialRules of Origin
Establishment of the ValuationDatabase for Customs purposesaccordingly to expressed needsof related Member Countries
Capacity Building- Development of the training
module by 2003- Regional Training for. Trainers 2003
Post-Clearance Audit (deadline: 2003)Full implementation ofPCA for TradeFacilitation in the region
Adoption ofinternationally recognizedbest practices inaccordance to the level ofdevelopment and domesticpolicies
Commitments of membercountries to harmonizepractices related to PCA
Commitments of CustomsAdministrations andrelevant nationalauthorities to adoptinternational practices
Drafting requiredregulations and domesticlegal framework
Harmonizing relatedprocedures and formalitiesat regional level
Setting up PCAorganizational structurewithin CustomsAdministration andStrengthening the currentPCA organizationalstructure
Implementation by allMembers
2002-2003
2003-2005
2002-2003
2002-2003
Definition of the Workingscope of the PCA withinnational legal structureand domestic practices
Mismatch of the nationallegislation in response toneeds of businesses interms of transparency andefficiency
See the second recommendationunder Recommendations forCustoms Valuation on the estab-lishment of the Working Group
Adoption of international recom-mendations and best practices
Capacity building for Customsofficers- Development of PCA Manual
-2003- Developing Training
Modules - 2003PCA Training for trainers -2004
- Training of Customs officersat the level of Customs ojfices- 2004
Page 21
rRoadntapfor Integration of ASEAN Cooperation in Customs
$;f^ stacles RecommendationsEstablishment of the PCA fortrade facilitation as (he primarypurpose
Customs Automation (proposed deadline by the ASEAN Secretariat: 2008)Contribution to TradeFacilitation throughheading toward E-Customs
Enliancement of Customsstatistical data related tointernational trade andinvestment
Introduction of updatedInformation Technologyinto Customs AutomatedSystem
Commitments of membercountries to adoptInformation Technologyin the Customs
Commitments of CustomsAdministrations andrelevant nationalauthorities
Roadmap of ITdevelopment
Harmonizing regionallycore information parameterson the basis of EDIplatform and/or of the mostupdated technology
Implementation andevaluation
Exchange of CustomsStatistical Data
2002
2002 &First half of 2003
2003 - 2004
2003-2004
Lack of physicalInfrastructure
Readiness to fullyembrace the CustomsAutomation
Lack of legal backgroundand legislation
Simplification andharmonization of Customs DataParameters in accordance tointernational recommendations
Study on WCO Data Set Version1.0 and its adoption to ASEANCountries in accordance toidentified national priority
Adoption of updated technologyheading towards XMLsapplications
Restructuring Customsoperations taking advantage oftechnological progress
Training on Unified BusinessModeling
Establishment of e-Cusloms ande-Government in Customs
Cooperation with the privatesector would be useful andrequired
Page 22
Koatitnapfor Integration of AS £ AN Cooperation in Customs
RecommendationsTechnical Assistance to CLMV (tentative deadline: 2008)
Narrowing thedevelopment gap
Introduction ofinternational best practicesand reforms into theCustoms of CLMV
Commitments of CLMVto the reform process withassistance of six otherMembers
Commitments of CustomsAdministrations andrelevant nationalauthorities to adoptinternational best practicesand standards
Enhancement of thecapacity building andworking environments inCLMV Customs
Implementation of fiveprojects already identifiedby CLMV
2002-2008 Lack of financial supportand resources
Lack of preparation ofhuman resources andstructure for more radicalreforms
Implementation of regionalapproach while taking intoaccount respective priorities andstrategies of development
Resource mobilization for aspeedy implementation
Development of HumanResources for CLMV toundertake the reform process ofASHAN
Contribution in any form ofCustoms Administrations ofCLMV would strengthen theownership of this project
Enhancing the capacity offrontline officers is essential
Customs Reform and Modernization (deadline: 2003)2nQ half of 2002
2003
2003 - 2005
2006
2007
Enhancement of theCustoms Structures inresponse to changingenvironments, particularlythe quality of Customsservice to the public
Achieving higher level offunctional and technicalcapacity to Customsofficers
Commitments of membercountries to adopt changesfor higher efficiency andtransparency of Customsstructures
Commitments of CustomsAdministrations andrelevant nationalauthorities
Enhancement of theCustoms Integrity
Regional Workshop
Endorsement of the Plan ofAction
Implementation
Evaluation andrecommendations forfurther enhancement
Enhancement
Resistance to changes
Uncertainty over theeffectiveness andefficiency
Adopting the Good PublicGovernance in the Customs
Enhancement of CustomsIntegrity in accordance tointernational recommendations
Introducing the Integrity tofrontline officers
Equipping Customs officers withsophisticated knowledge,required for (heir completion offunctions
Page 23
rRoaiintap for Integration ofASEAN Cooperation in Customs
|t||p|i|ii|| Sj&fobi^in^5jjstacl^i' -':•j.oV ••;•: :v;..;S^ ••*'•*'', •' . ^••*- \.-, . : ,; *; ! Recommendations :... . ._, -:_ .1 < ..,_ ' . . . . . . ; . ' - ' • ' : . ' • - '
Promotion of the Participatory ofall Customs staff to the process
Regional Guidelines on Mutual Assistance (deadline: 2003)Ensuring the properapplication of Customslaws within the Customscompetence, and subjectto their national laws
Commitments of membercountries to work onmutual assistance
Commitments of CustomsAdministrations andrelevant nationalauthorities to the effectivemutual assistance withadequate regulations,functional mechanisms
Preparation and discussionon:- Content;- Mechanisms
Progressive Adoption of theModel Law on MutualAssistance of the WCO
Consultation with relevantauthorities
Initial Implementation
Implementation
2002-2003
2002-2003
2003 -2004
2004 -2005
2006
National legislation anddomestic resistance
Insufficient trust andconfidence among relatedagencies of theGovernment
Lack of legal backgroundat national level for theeffective mutualassistance
Particular efforts required foramending existing nationallegislation and regulations
Establishment of mechanisms forexchange of information amongCustoms Administrations
Reviewing and updating dieASEAN Customs Guidelines onMutual Assistance to combatFrauds and Smuggling
Study of possibilities foreffective mutual assistance withwell-defined mechanisms
Page 24
Road/nap for Integration of ASEAN Cooperation in e-ASEAN
Cooperation in e-ASEAN' ' i^(;'£¥fi::-'te^'3^i&;&i't'-^ftsilrfSIM^R^-iift ^"p^tflPf^S "!'?^rlp^S1-nrf^ ^f^^-^ii^-^^lrW^^S^fil^MI* ^p'^Ti^efram'e^'^'Xl 'SiSiffiMfiw^ V P nhl' m«/fSh«ifl 1- ????'S?M>??**"^ ' • ;".- .:b"" ' ' "-'••• '•' • | *• - ' T - '
f,ecoflirneii(i^iori|
ASEAN Information Infrastructure (All)To develop ASEANInformation Infrastructure(AH)
To develop All regionalbackbone and Regionalinternet exchanges &gateways
To develop ASEANcontent such ascooperation in digitallibraries and tourismportals
Ability to secureparticipation of relevantexperts
Commitment of membercountries
Cooperation betweenASEAN+3 Countries
Develop common reference frameworkfor e-Commerce and e-Govemmenttechnical architectures, so as to ensureinteroperability of information systemsand networks- Drafting of technical architectures
(jointly by MY. SG, TH)- Adoption of technical architectures
byEAWG- Trial implementation of technical
architectures on key applications(within countries that are ready)
- Trial implementation on keyapplications (across countries thatare ready)
Develop bandwidth map for eachcountry
Study common requirements for highcapacity information processing andhigh speed communications for thenext 2.5 and 10 years
Develop alternative All networkdesigns and investment proposal
Develop region-wide web applicationsand services including:- Distance education & learning- Healthcare- Environmental monitoring (ASEAN
+3 Satellite Image Archive for En-vironmental Study: under AEM+3)
Ql 2002 - Q3 2002
Q4 2002
Ql 2003 - Q4 2003
Ql 2004 - Q4 2004
3Q 2001
4Q2001
3Q 2001
4Q 2002
2001-2005
Limited resources -financial and tosome extent,technical expertise
Ongoing implementation,G1SDA (Thailand) willbe a coordinator
Page 25
r rRoutttnap for Integration ofASEAN Cooperation in e-ASEAN
Problems/Obstacles RecommendationsCollaboration in Basic R&DInvestment
conducting the pilotstudy to seek scope offuture cooperationamong the Members.
To develop infrastructurerecommendations for theCLMV
To develop ConvergencePolicy Framework
Develop recommendations for CLMVbased on the e-Readiness Study andWorld Best Practices
Develop innovative pilot programs toroll out rural/community accessnetwork
Develop Convergence PolicyFramework
4Q 2001-4Q 2002
e-CommerceTo put in place nationalcyberlaws and policiesbased on internationalnorms
To facilitate establishmentof mutual recognition ofdigital signatureframework
To establish electronicpayment standardsframework and policyframework
To adopt measures to .protect IPR arising frome-commerce
Establisliment of therelevant laws, policies andcommon referenceframework to supportB2B eCommerce
Ability to secureparticipation of expertsfrom the relevant sectors(both public and private)in the development work.
Develop high impact work program,focusing on the facilitation of B2DeCommerce and the establishment oftradelinks, On-going activities to beconsolidated to focus on B2BeCommerce.
Common reference frameworks oflegal infrastructure needed tofacilitate B2B e-Commerce
- Adoption of common referenceframeworks by EA WG
- Drafting of legislation by countries,based on common referenceframeworks
- Study on cross-border harmoniza-tion of electronic transactions andelectronic signatures legal frame-works (under AADCP)
- Feasibility study ofe-trade linksbetween countries that are ready(starting with SG and MY) ____
Ql 2002 - Q4 2002
Ql 2003
Q2 2003 - Q2 2004
Q2 2003 - Q2 2005
Q4 2001 - Q4 2002
Limited resources -financial and tosome extent,technical expertise
Page 26
Koatlmap for Integration ofASEAN Cooperation in e-ASEAN
PC9 blems/G bsl a cle$ Recommendations
To lake measures topromote personal dataprotection and consumerprivacy
To develop security policyframework
To develop implement-able framework andguidelines for cross bordertaxation and GST on e-commerce transactions
Trial implementation ofe-tradelinks between SG and MY
Ql 2003 - Q4 2003
Liberalization of ICT Products, Services, & InvestmentICT Products:To eliminate duties andnon-tariff barriers in 3tranches: ASEAN-6/CLMV:
ICT Services:To achieve higher levelsofliberalization of tradein services throughsuccessive rounds ofnegotiations under AFASto realize free flow ofservices
Come up with the product lists - ITA1.
Monitor developments in multilateralfora (e.g. WTO) and regional fora (e.g.APEC) on trade liberalisation andfacilitation of ICT goods.
Identify the scope of ICT services forliberalisation under the AFASframework.
Develop a work program on ICTservices liberalisation for the secondand subsequent rounds of negotiation.
Schedule commitments on ICT servicesfor liberalisation for second round ofnegotiation.
Elimination w.e.f1 Jan 2003/81 Jan 2004/9
I Jan 2005/10
Page 27
Roatlmapfor Integration of ASEAN Cooperation in e-ASEAN
'•lliilllflllInvestments:To open immediately itsICT products to invest-ments by ASEANinvestors
The CCI to develop work programmeson the liberalisation of ICT servicesand investments.
Pr ublems/Obstacles Recommendations
Facilitation of ICT Products, Services, & InvestmentTo conclude MRAcovering ICT products,where applicable, and toalign national standards torelevant internationalstandards
To accelerate worktowards implementationof the ASEAN SectoralMRA for telecommuni-cations equipment
To harmonize tariffnomenclature for ICTproducts through imple-mentation of the AHTN
To harmonize customsvaluation for ICT productsthrough the implementa-tion of the WTOValuation Agreement
To accelerate worktowards agreements onmutual recognition ofqualification standards
Identify sectoral MRAs to benegotiated
MRA for telecommunicationsequipment to be endorsed / signed.
Implementation of ASEANHarmonised Tariff Nomenclature(AHTN)
Implementation of the WTO ValuationAgreement
Encourage Asian countries establish acommon system of standards forobjectively evaluating IT skills, inparticular, IT engineers, so as to comeup with mutual recognitionarrangement for IT skills.
2000 -Q4 2001
2000 -Q3 2001
2002
2002-2005
Page 28
Kouttmapfor Integration ofASEAN Cooperation in e-ASEAN
j:mim®m^. . - -•- . -- ' . . - . Ji-'.'v^.tji*'^ ^f-iV.^i-; —— Ij-Aj-1- .- _______ _ _____ __ . . _ __________________________________
.. -x ir-;7r-:--vii¥'S^4<W.&:%3;'5i1i: $Critical Success1 Factors ,• 'lr?v * »**s™;r5?JSP *?P* * ™" ****'•'• ^SSjSpfrfiM^v^' PfQ **! ems/p jj§(acles RecommendationsCapacity Building and e-Society
To build an e-ASEANcommunity by promotingawareness, generalknowledge andappreciation of ICT,particularly the internet
To develop a capacitybuilding programme onthe basis of an evaluationof the e-Readiness ofASEAN countries
To develop a regionalHRD programmecovering schools, thecommunity and the workplace, so as to increaseICT literacy and expandthe base of ICT workers inthe region
Funding fromparticipating countries.
As a seed project, "x"number of schools couldbe identified in eachASEAN country toparticipate in a project
Cooperation fromDialogue Partners
Jointly organize promotional activitiessuch as road shows, showcase, ICTseminars and exhibitions, production ofe-ASEAN brochure, pamphlet forgeneral public, and disseminate e-ASEAN information through electronicmeans.
Bring up the result of e-ReadinessStudy to develop capacity buildingprogramme
Workshop on Measurement ofDigital Economy
Develop high impact work program,focusing on schoolNet, Asia Incubatorand Workforce Development Program.- Encourage schools and universities
to implement distance learning viaInternet*
2003-2005
Q3 - 2002
2003-2006
Q 1-2002Q2-2002
Create awarenessprogrammes for bothprivate and public policymaker.
Emphasize organizing anICT Week/Month inorder to promoteawareness in CLMV.
Brochure to be providedby ASEAN Sec.
Singapore and Thailandwould hold the workshopto clarify the utilizationof e-Readiness.
Thailand hosted the e-ASEAN Informal meetingon SchoolNet bestpractice and e-ASEANSchoolNet Forum on 8March and 6-7 June2002.
Thailand hosted the Asiae-Learning InitiativeForum on 5 June, 2002,Bangkok
Page 29
fRoad/nap for Integration of ASEAN Cooperation in e-ASEAN
•^,^-'#:^^sM'^&'^- '-' ' l ':'.''' V-' '."'iWirrV,' * i* i ", 'i" :f -• :' - '.-',': ^ •
To work towardsestablishing e-Society by:- fostering development
of a knowledge-basesociety
- Narrowing tlie digitaldivideEnhancing competi-tiveness workforce
- Facilitating freer flowof knowledge workers
- Usage of ICT toenhance the spirit ofASEAN community
iiffliil|i||ij
Tax incentives for MNCsoperating in ASEAN
Policies to stimulate R&Din the private sector inpartnership withuniversities and publicinstitutions.
Networks for training andR&D between ICTindustry and ICTeducational institutions.
- Establish an incubator to assistSMEs and Entrepreneurs (AsiaIncubator 2003 under AEM+3)
- Encourage development oflCTmanpower at all levels of education
Provide continuing ICT education andtraining opportunities to the workingpopulation including trainers andinstructors, to ensure constant upgradeof skills and enhance competitivenessof UieASEAN Country.
Encourage JOT research anddevelopment in universities, institutionsand private sector through funding,recognition and awards to buildexpertise and skills within Ihe country.
Research and Development ofMultilingual Machine Translation(MT): A Cross Language WebNavigation System for Asian Countries(under AEM+3)
l?npjhiSf gjnfe i •£ . £lil^fMtJIf Ifff Wi '2001-2003
Q2 2002 - Q4 2009
2003-2005
PiffS^S!0 tS^Limited resourcefinancial
Limited resourcefinancial
Recommendation!.Seek financial supportfrom Korea (Japan hasalready supported theproject) and discuss theaction plan as soon aspossible.
Thailand with theconsultation of EAWG'sChairman is consideringto arrange "ASEANNetday"
Seek financial supportfrom Japan and Korea.
e-GovernmentTo take steps to provide awide range of governmentservices and transactionson-line by usage of 1CTapplications to facilitatelinkages between publicand private sector and topromote transparency.
Capacity building directed at customsAdministration,
Develop system for governmentelectronic bidding and procurement,health services, tax payment
Provide online license/registrationprocesses:
Q2 2001 - Q4 2004
Page 30
Road/nap for integration of ASEAN Cooperation in a-ASEAN
Keco ni mead a tionsBirth, death, marriage certificate/registrationDriver's and business licensesCar and land registration
To work towards enhan-cing inter-governmentalcooperation by promotingthe use of electronicmeans in their procure-ment of goods andservices
Facilitating freer flow ofgoods, information, andpeople within ASEAN.
Develop ASEAN Visa ApplicationForms OnlineDevelop ASEAN e-PassportCustom ModernisationSmart Card Project
Q2 2001-Q4 2001
Q2 2001Q3 2001-Q4 2002Q3 2001-Q4 2002
Page 31
f rRoadmapfor Integration of ASEAN Cooperation in Industry
Cooperation in Industry- 1- '•'/ iv- xts^^^^^W-''*'--,,^ .'VifsfcgM &»m^
•. ' -~ jVjjllF *t '""i'ts 'h'. i * ' V »'-~' '• - • •
Enhanced ASEAN'scompetitiveness as afavourable manufacturinglocation to serve theregional and globalmarkets
•^r-y^^^^i^mv^^my^f^." • '•"••if InQl'KlififiAGC.'M aitf f\t*e *> VJ fl'Jp-w pfffljf $f? w r-Member Countries mustbe committed tocoordinate and alignnational industrial policyto increase industrialcomplementation in theregion
The private sector to seevalue in participating inthe AICO Scheme
The promotion of (heAICO Scheme to or bycompanies operating inCLMV countries
Setting new AICO Rate*
Provision of more incentivesand special features toimprove the attractiveness ofthe AICO Scheme
Undertaking morepromotional activities onA ICO Scheme- joint AICO promotion
workshops with CEPTworkshop of CoordinatingCommittee onImplementation of CEPTScheme for AFTA (CCCA)
- joint A ICO promotionworkshops with activitiesundertaken byASEANCoordination Committeeof Investment (CCl)
- Member countries toconduct more nationalA/CO Workshop
Conduct follow-up actions onthe new areas of IndustrialCooperation as may beidentified by ASEANcompetitiveness study
t%s$j$&^!!$gm®w*Mf$
End 2002
2003
2002-2004
2003 - 2004
">vf | |je^5?p| ?i§s •AICO Scheme is privatesector driven. Privatesector must be encouragedto form more AICOarrangements
Long delays in AICOapproval process
Balance of traderequirements
Companies operating inASEAN-6 not very keen toform AICO arrangementswith companies in CLMVcountries
Companies operating inCLMV countries at thispresent are not primarilyexport-oriented
Recpmniendations
Continue promoting AICOScheme
Continue to improve theAICO Scheme features
More expeditious AICOapproval process
New AICO Scheme
The ASEAN competitivenessstudy can serve as a take offpoint in identifying theinherent strengths andweaknesses of each ASEANcountry that the othermembers can complement/supplement; as well as thenew areas of IndustrialCooperation
Page 32
Koattmapfor Integration of AS EAN Cooperation in Industry
Enhanced industriallinkages in ASEAN
Increased intra- industrytrade :
Organization of an ASEANBusiness/Industry Fair as avenue for business/industrymatching.Conduct a survey on productsand parts produced in CLMVcountries that could be part ofAICO Arrangements withcompanies from the ASEAN-6
Identification of NTB
Dissemination of informationto member countries
Identification of steps toeliminate NTB
2003
2002-2003
2003-2004
y§^^^^K RecommendationsiV •' ?~- \' -'• , '* ~-"' - * ">• ' •£"* -t '-' *.f:?-\' •
Continue consultation withindustry clubs/private sectors
The survey results could beused to promote matchmaking CLMV companiesand ASEAN-6
Provision of training toCLMV companies in thepreparation of the AICOapplication form
Note:- The 33rd WGIC Meeting noted the decisions of the AEM Retreat in July 2002 and 4/33 SEOM, but could not reach agreement on the timeframe of its implementation. 'DieMeeting noted the following positions of member countries:- Brunei Dantssalam, Cambodia, Indonesia, Lao PDR, Philippines and Singapore agreed to implement the zero percent AICO rate in 2003.- Malaysia agreed to work towards setting a new AICO rate and the date of its implementation, subject to a clear mandate of the AEM.
Thailand proposed that the AICO rate be set at 0-3% as she was of the view that it would still be better than the final CEPTiate. Thailand however qualified that shewould agree with the zero percent AICO rate beginning 2003 if there is a clear mandate of the AEM.
- Myanmar was of the view that the 0-5% AICO rate should be retained.- Vietnam agreed that the AICO rate would be set at zero percent when the final CEPT rate would be achieved.
The 33ld WGIC Meeting also explored the possibility having two time frames, one for ASEAN-6 in 2003 and one for ASEAN-4 al a later date. The Meeting agreed to studythe implications of this arrangement on the CLMV countries.
The 33(ti WGIC Meeting noted the views of member countries and agreed upon a clear mandate of the AEM, to implement the zero percent AICO rate in the year 2003.
Page 33
fRoudinapfor Integration of ASEAN Cooperation in Small ami Medium Enterprises
Cooperation in Small and Medium Enterprises^ 'CJ- ' f -j; ,"^^ -* . ;]!;^fflSiCJ^WSPS!The development of amodern, dynamic,competitive and efficientSME sector withinASEAN
^^-yt^^^awst^iiia^p-^
Conducive policyframework and supportiveenvironment for SMEsector development andintegration.
Better synergies.understanding and jointactivities betweenGovernment and privatesector institutions as wellas non-government bodieswith an interest in SMEs
Map out the framework, anddrafting and adopting SMEsupport policies in all membercountries
Improving access of SMEs tomarketing, finance,information technology, andother business supportservices
Set-up, interlink and maintainNational SME websites withinASEAN
Disseminate information in amulti-media format on (1) themulti-faceted opportunitiesand challenges facing SMEs ;and (2) the available facilitiesand services in support ofSME development
Hold regular meetings anddialogues on national SMEpolicies, issues, needs andproblems between public andprivate sectors and SME-related non-governmentalbodies.
!9i^^5$'%ft^S$ify&
fiiPilfPPB2003
2002
2003
2004
2004
!:ff^Pr^bJems/0bstacie's i'^-'. -;-^;j:' f:'J "1 *-.**L. -i* ' -i : .^. ; ?• , 3> ^r";? "-^ -./._ ; • _
Need to collect data andinformation
Expert to provide input
Fund to establish businessnetworking among SMEs
Full support of hostgovernment
Require financial supportand expertise to managethe site
Fund to finance the project
Financial support to fundexpenses to participate injoint events
Rc'cummendations
Provision of technicalassistance to membercountries that do not haveSME-based policy framework
Mobilization of domestic anddonor resources to carry outnecessary steps
On-going search for regularfinancial support from donors
Strengthen the centraapproach (cluster of SMEs)through setting up a pilotproject on development ofbusiness networking amongSMEs
Fund from domestic anddonors
Appoint companies withcapability to develop thematerial
Fund from domestic anddonor
Government organization totake the lead
Page 34
Roadmajtfor Integration ofASEAN Cooperation in Small and Medium Enterprises
Enhanced SMEscapabilities andcompetitiveness in variouspriority industries andsectors
Promote networking amongregional and sub regionalbodies - government, privateand NGO - with an interest onSME development andintegration
Identification of commonneeds for capacity andcompetitiveness buildingamong ASEAN SMEs
Identify priority sectors
Providing trainingprogrammes (e.g. onentrepreneurship and basicbusiness skills) on a regionalor subregional basis
Availability of affordable.consultancy, advisory,training and other businesssupport services for SMEsfrom non-governmentproviders
Improve SME access to fundthrough the setting up of,national and regionalfinancial, export and creditguarantee schemes run bygovernment and/or privateinstitutions
2005
2003
2003
2003
2005
yiJ|||||ifiS||l ;Supporting infrastructureto organize and participatein regular events atregional levels.
Fund to finance jointactivities
Expertise and data onpriority sector
Research findings oncommon needs
Funds to finance theprogramme
Need to identifyorganization
Fund to pay for theservices
Commitment of allmember countries
Mechanism forparticipation
RecommendationsTo use ICT and internetmedium to reduce costs ofparticipation e.g. videoconferencing and groupdiscussion
Identify Research Institutionand Organization that havecooperation and expertise
Develop programmes
Mobilization of domestic anddonor resources to carry outnecessary steps and activitiesas noted
Develop programmes
Mobilization of domestic anddonor resources to carry outnecessary steps and activitiesas noted
Use existing institution inmember countries
Policy discussion amongmember countries on thefeasibility to set up regionalorganization
Page 35
Roadmapfor Integration ofASEAN Cooperation in Small anil Medium Enterprises
Recommendations' *• " ; ' •*-,., '}? I -, . -, ;(; . ?tt;-' •'' '
Forging, widening anddeepening trade andinvestment linkages andnetworks among ASEANSMBs as well as betweenASEAN and non-ASEANenterprises
Convene regular tradeexpositions and businessmatch-making meetingsamong ASEAN SMEs as wellas between them and non-ASEAN enterprises
Joint projects
Provide training specificallyfor the formation anddeepening of SME linkagesand networking - with SMEsserving as subcontractors orservice providers in cross-border supply chains
2003
2004
Require regular monitoringand follow-up
Need to establish follow upmechanism
Appoint leadcountry/shepherd
internet linkages
To identify sectors ofcommon interest
Identification of interestedSMEs
National SME organization toinitiate critical linkage
Page 36
Kua Jm ap for Integration of ASEAN Cooperation in Intellectual Property
Cooperation in Intellectual Property
ASEAN Regional IPIdentity
ASEAN TrademarkSystem
ASEAN Design System
•'-' /$"*" i ii"1 'ii'o1' ^®^ M5S4B*i|&jj<!
Harmonized IP laws andprocedures
Single filing andregistration for protectionthroughout ASEAN
Increased filing ofapplications
Common domestic trademarkapplication form
Compilation of similaritiesand differences intrademark application
- Drafting of CommonTrademark DomesticApplication Form as guidefor members to modifydomestic formConsideration ofsuitability of regional orinternational system
Agreement to move towardconsideration of an ASEANDesign System
Compilation of table ofsimilarities and differences ofdesign system throughoutASEAN
If decision made to proceed byregional route, study ofproposals, discussions;preparation of frameworkagreements and regulations forthe ASEAN Designs System
Completed
2000 ~ early 2002(completed)
2002 - 2003
end 2003
t£Needing politicalcommitment
Time-consumingharmonization process
Requiring greaterknowledge and appreciationoflP issues and implications
./•£ • Jle^jnniejjd^tiongProvision of technicalassistance to membercountries that do not yethave IP policy framework
Mobilization of domesticand donor resources to carryout necessary steps as noted
Page 37
r rRouilniapfor Integration ofASEAN Cooperation in Intellectual Properly
gis/p bsjacl es Recommend a (|on^ASEAN Classification ofEthnic Goods andServices
Wide usage of (heclassification as a guide
Collection of list of ethnicgoods and services fromASEAN Member Countries
Classification of the ethnicgoods and services submitted
On going -completed by
end 2002
ASEAN IP Month/Event Increased focus on IPprotection
Organisation ofASEAN IPevent in every ASEANmember countries
On going
ASEAN Palenls Database Sharing of bibliographicdata and abstract
Preparation and gathering ofbibliographic data and abstract
Inclusion of these info inASEANPAT Database
Acquisition of infrastructure
Maintenance and updating ofdatabase
On going
To be consideredbased on EC input
On going
On going
Lack of financial resources
Lack of consultativemeetings, interactions ortechnical cooperationprograms/initiatives amongmembers regarding thestrategic use andapplications of IT on IPsystems
Mobilization of sponsors locarry out necessary steps asnoted
Creation of a regular groupor subcommittee toeffeclively and efficientlyaddress IT-lP-relatedmatters, specifically theASEAN database systemestablishment and sharing
Patented TechnologyBrokering System
Usage of service bybusinesses and inventors
In the event individual countrydecides to develop this systemin their country, followingpoints could be taken intoaccount:
Establishment of a systemfor the exchange ofinformation on patentedtechnologiesDevelopment of databasethat will contain• Technologies that are
offered for licensingand/or sale
On going
2005
In the event individual •country decides to developthis system in their countryfollowing points could betaken into account:- Building up the database- Identification of the
entity that will manageand maintain the servicein the internetenvironment
- Promotion andmarketing of the serviceto potential users in
Consideration by individualASEAN member countriesto set up or make use ofsystem
A survey to be conducted onthe need of companies, espe-cially small and mediumenterprises, for such service
A study to be carried out toconceptualize, establish,operationalize and managethe system
Page 38
Roadmapfor Integration of ASEAN Cooperation in Intellectual Property
es;; - Recommendations• List of corporations
or businessmenlooking for patentedinventions tomanufacture orcommercialize
Linking of the databasesvia the ASEAN web pageMarketing of the service
each ASEAN countryFinancing for theprojectTraining of humanresources that will beinvolved in the project
Improved IntellectualProperty (IP) legislation,protection andenforcement
World standard IP lawsand legislations in place
Reviewing and aligningdomestic IP laws andregulations for TRIPSconformance among WTOmembers of ASEAN- monitoring of status of IP
protection- change of laws to TRIPS
standard
2002-2004all ASEAN
MemberCountries
completed review
Needing politicalcommitment
On-going review andupgrading of IP legislationsand regulations
Membership of interna-tional IP treaties- WtPO Internet Treaty
• WIPO Copyrighttreaty
• InternationalConvention forthe Protection ofPerformers.Producers ofPhonograms andBroadcastingOrganisations
- Madrid Protocol(trademark)
Consideration of accessionissue
On going
As 0/2001,1 country has
become party tothe Convention
As of 2001.I country has
become party tothe Protocol
Needing politicalcommitment
Page 39
Roatltnap/or Integration ofASEANr
Cooperation in Intellectual Property
. ' • " • ' - ':ty--i'i:-'<£>*G$£:$i • • ' ; • • ; " ; • ; < : _"•- • < ; • ; • .4'^V^:;v:-,v ...•'..;- Hague Agreement
concerning the Inter-national Deposit ofIndustrial Design
Paris Convention forthe Protection of In-dustrial Property
- Berne Convention forthe Protection ofLiterary ami ArtisticWoria
- Patent CooperationTreaty
- Budapest treaty on theInternational Recog-nition of the Deposit ofMicroorganism for thePurposes of PatentProcedure
Increased IP humanresource capacity
f •- •"'.„'*']]> '-. -i -f-,-- t'f-'i't^'fr""'-'^^^ jt*«^/"•,Prit| || | ||
Achievement of belterquality of IP humanresource
'
Identifying specific areas ofneed for capacity building andskills enhancement
Recruiting and training humanresources
Designing and conductingtraining programmes to ensurea greater supply of trained andskilled IP officials on various
.^&i&?^-'$»f'^&!'K?
^ft^frf^tAs of200l.
I country hasbecome party ofthe Agreement
An of200l,7 countries havebecome party of
the Act
As of 2001,5 countries havebecome party of
the Act
As 0/2001,4 countries havebecome party of
the Treaty
As of 2001.2 countries havebecome party of
the Treaty
2003 andon regular basis
on acontinuing basis
2003 onward
^ Jrfll?|0^si'0b$iacjes ,'.;•;
Need for each membercountry to identifyweaknesses in its IP humanresource capacity
jRecomm^ndat|pii§
Conduct, with technicalassistance from donors,capacity building andtraining activities.
Mobilization of domesticresources to carry outnecessary steps as noted
Page 40
Roatlmap for Integration of ASEAN Cooperation in Intellectual Property
siilliiii;ill
Enhanced IP cooperationamong ASEAN countries
IP policy dialogue withpartners
IP education
rff.^<F,v?r&$-R'.,'^M^kr&'fc%f$i;
Improved coordinationand understanding of eachother's needs andrequirements
To keep abreast of IPdevelopment and developan IP network for ASEAN
Increased awareness of IPprotection amongst thepublic in general
IP matters (e.g. study visits,training courses, expertmeetings etc.)
Hyperlinking of all ASEANnational IP offices to ASEANweb page.
Exchange of information onASEAN patent and trademarkagents and law enforcementagencies
Visits to each other's IPoffices by ASEAN ministersor other officers.
Policy dialogue as follows:- ASEAN- WIPO- ASEAN -EC- ASEAN -CER- ASEAN -AtPA- ASEAN -INTA
Convene regular regionalseminars and forums topromote better awareness ofIP issues and implications inpublic and private sectors
IP subjects introduced in thecurriculum of institutions ofhigher learning withinASEAN
^^""^rtri^*^^^'^^^'^^ *• r''~'r
On going
On going
> ;t f robieras?pbs t acies ;- AVt-i.1 ,^c^a'*;j' .vi'*'j™ 'l '*.'t''' >^*" V'
Recommend a (ions
Member countries to takeadvantage of the dialogues
Mobilization of domesticand donor resources to carryout necessary steps as noted
Page 41
Roadmapfor Integration of ASEAN Cooperation in Air Services Liberalization
Cooperation in Air Services Liberalization
Develop a Competitive Air Services Policy which may be a gradual step towards "Open-Sky" Policy" in ASEANTo liberalize air servicesin ASEAN, on a phasedand progressive basis, byproviding greater marketaccess, flexibility andcapability in air servicesoperations towards:- a competitive ami
efficient air transportservices in ASEAN toenhance consumerchoices;
- an adequate andreliable air services tosupport economicgrowth in ASEAN; and
- a siistainable growthand development of airtraffic in ASEAN.
ASEAN have existinginstitutional mechanisms/arrangements to addressair transport servicesliberalization in the sub-regions like BIMP-EAGA, IMT-GT, CLMVcountries.etc.
Some ASEAN countrieshave concluded "Open-Sky" arrangements/agreements
Broad liberalizationpolicies in place/laid outin the Hanoi Plan ofAction and its mid-termreview, as well as fromSTOM/ATM decisions.
12u'STOM/7lbATMagreed to Implement aliberal air services policyfor passenger and freightservices in ASEAN,especially between andamong the ASEAN sub-regions/growth areas.
Liberalization of A jr. Freight. Services
Implement ASEAN MOU on AirFreight Services
Review MOU implementation
Amend MOU to implement full 5Ul
freedom traffic rights to allintermediate and beyond points withinASEAN, with no restrictions incapacity, frequency and aircraft typefor freighter services to at least two(2) designated points including thecapital ciry in each ASEAN country
Implement MOU for full liberaliza-tion of air freight services, withincreased tonnage and expandeddesignated points
Liberalization of Scheduled PassengerServices
Liberalization arrangements withinthe ASEAN sub-regions, byproviding:- full 3ftl/4'h rights for all designated
points in the sub-region
2003
2004
2005
2006
3004-3006a
Restrictive or protectivenational policies for airtransport liberalization.Bilateral arrangement isthe current mode, on areciprocity basis.
Different levels ofpreparedness and maturityof the air transport industry
Limited supportinghardware / infrastructure(aircraft fleet, airports,human resources, etc.)
Strong political will isneeded by MemberCountries to open up airtransport services on aplurilateral or multilateralbasis, by providing greatermarket access andeliminating restrictions
Continue exchange ofinformation and bestpractices. Exploretechnical assistance toassist CLMV countries.
Bilateral / Multilateralassistance is imperative.Explore private sectorfinance / investment inairport development.
' Member countries wil l be provided flexibility in the implementation of this Roadmap, including the deferminalion of ihe period of implementation. Two or more member countries mayproceed with the implementation first, if other member countries are not ready to implement these arrangements. These other countries could join in the implementation when they are ready.- The 6th ASEAN Air Transport Working Group held in Manila, Philippines on 15-16 August 2002 recommended deletion of the lime frame.
Page 42
Roadmap for Integration of ASEAN Cooperation in Air Services Liberalization
- full 5'" rights to all intermediateand beyond points within theASEAN sub-regions, with norestrictions in capacity, frequencyand aircraft type for passengerservices for at least two (2)designated points in each countryof the sub-region
Liberalization Arrangements betweenASEAN sub-regions, by providing:- full 3ri1 /4lh rights for at least two
(2) designated points in eachcountry of the sub-region
- full 5'h rights to ail intermediateand beyond points betweenASEAN sub-regions, with norestrictions in capacity, frequencyand aircraft type for passengerservice for at least two (2)designated points in each countryof the sub-region
ASEAN-wide LiberalizationArrangements, by providing:- full 3rU / 4th rights for the capital
city in each ASEAN country- full 5'1' rights to all intermediate
and beyond points with norestrictions in capacity, frequencyand aircraft type for passengerservices for at least onedesignated point viz the capitalcity in each ASEAN country.
IAA^ inno'J:\J\JQ ZUUB
2QQ6-20Q82
3008-2010*
3004-30062
?fl0fi-?0flft2G WV M C WO
^X| l s*%f« /i*1t;:fe : .;•-•;,-': :£v-, ;-;••;':||| p|i |?« ;:;; RetiommenUalions
Page
r rRoadmaj) for Integration of ASEAN Cooperation in Lanti Transport Infrastructure integration
Cooperation in Laud Transport Infrastructure Integration
To promote (heintegration of ASEAN'sland transport network byenhancing greaterinterconnectivity,accessibility and inter-operability
RecommendationsASEAN leaders endorsedSKRL as a priority projectand its recommendedroutes at the 7th ASEANSummit
Member Countries arecommitted to develop theASEAN HighwayNetwork under theTransport MinisterialUnderstanding signed inSeptember 1999
IAI Work plan addressesimprovement of CLMV'stransport infrastructure asa priority .ADB hasprograms for 10 CMSpriority road projects.
For 2002-2004, STOM/ATM agreed to developimplementation programsfor the ASEAN highwayand railway projects.
ROK-assistance forproject preparation studiesfor the ASEAN highwayssoon to start.
ASEAN Highway
Complete project preparationstudies for (he ASEANHighways' 8,300 km (under ROKassistance)
Conduct full feasibilitystudies/detailed design forpriority road packages/sections
Prepare implementation programsand secure funding assistance
Construction to commence
SKRL Project
implementation of the 48 km.Poipet-Sisophon missing section
Conduct full feasibilitystudies/detailed design for other .missing sections and thoserequiring new construction/rehabilitation . ,i "
Prepare implementation programsand secure funding assistance
Construction to commence
2004
2004-2006
2006-2007
2008-2009
2004
2003-2005
2005-2007
2008-2009
Project development andimplementation requirehuge amount ofinvestments / financingsupport.
Member Countries havelimited internal budgetaryresources to support theseprojects
There are no readilyavailable feasibilitystudies/detailed design andimplementation plans. Ifthese are available, theplans are not updated orcurrent.
Mobilize funds / support from+3 Countries (China, Japan,Korea), ADB and olherinternational aid agencies.
Urge ASEAN private sectorto initiate projectdevelopment andconstruction.
Encourage bilateral / sub-regional approach to projectimplementation and rundmobilization.
Page 44
Roaitinapfor Integration of ASEAN Cooperation in Transport Fucilitaiioii of Goods
Cooperation in Transport Facilitation of Goods
To provide anefficient, integratedand harmonizedsystem for thefacilitation of goods,to support AFfA,improve transportlogistics operationsand to furtherintegrate the region'seconomies
STOM/ATM agreed toenhance cooperation intransport facilitation ofgoods for the period2002-2004
ASEAN goods-in-transitagreement in force as of 2October 2000
National TransitTransport CoordinatingCommittees (NTTCCs)duly established in nine(9) Member Countries
Four (4) QMS countriessigned similar agreementfor cross-border transport.QMS-wide applicationenvisaged by 2005
The IAI Workplan also'.addressed transportfacilitation of goods as apriority concern
The ASEAN MaritimeTransport SectorDevelopment Studycommended, under Japanassistance, for completionin September 2002.
Adopt the recommendations andfollow-up action of the ASEANMaritime Transport SectorDevelopment Study
Convene and establish theregional Transit TransportCoordinating Board
Operational ize the FrameworkAgreement on the Facilitation ofGoods in Transit
Conclude and sign alt fiveremaining Protocols
- Ratify/accept all nineProtocols
Implement the FrameworkAgreement on MultimodalTransport- Conclude and sign the
framework Agreement- Ratify/accept the Framework
Agreementi
Implement the FrameworkAgreement on the Facilitation ofInter-State Transport
Conclude and sign theFramework Agreement
- Ratify/accept the frameworkAgreement
- Prepare and conclude all 10Protocols
- Ratify/accept all 10 Protocols
2002
2003
2003
2002
2002-2003
2003
2002
2002-2003
2004-2005
2002-2003
2003
2003-2004
2004
Protracted delays in thefinalization of the protocolsand the multi-modal andinter-slate agreements
Bilateral concerns and pro-tection of national interestsby some countries have im-paired the formulation andfinalization processes
Cross-sectoral nature of theagreements also contributedto the protracted process
The policy and regulatoryenvironment in somecountries is not aligned withthe proposed Agreements.
Limited human resource baseand expertise for NTTCCoperations
Strong political will is needed toaccelerate ASEAN cooperationin this area, possibly from thehighest political level (Leaders)
For those concerned countries tospeed up their dialogues orinternal consultation and submita compromise solution
Member countries to takeimmediate steps to align orharmonize existing nationallegislations and regulations.
Provide training programs toenhance NTTCC's capability,with funding support from dia-logue partners, private sector orinternational donor community.
Explore novel solutions/approaches to operationalize thetransport facilitation agreements,such as:
A critical mass of like-minded countries (IQ-X)Sab-regional implementationPilot-test implementation inspecified transportcorridor(s)Initial phase implementation,with minimum number orcore of applicable Protocols
Page 45
Roadmapfor Integration ofASEAN Cooperation in Trans-ASEAN Energy Network Development
Cooperation in Trans-ASEAN Energy Network DevelopmentRecommendslions
To establishinterconnectingarrangements in thefield of energy andutilities forelectricity andnatural gas throughthe ASEAN PowerGrid and Trans-ASEAN GasPipeline Projects
ASEAN POWER GRID
Three power interconnectionprojects wilt be on mainstreamoperation in 2001-2004, namely:Stage 11 links between Thailand-Peninsular Malaysia, Vietnam-Cambodia and Thailand-Cambodia.
The HAPUA's masterplan study iscurrently ongoing, with expectedcompletion by March 2003.Preliminary results of the AIMSlong term power development planstudy suggests 11 powerinterconnection projects, forpossible implementation from 2006up to 2020.
In line with the HPA's mid-termreview, the SOME/19Ul AMEMagreed to adopt regional cooperationagreement(s) for the enhanced deve-lopment and implementation of theintegrated trans-ASEAN energynetwork.
a) Complete the ASEANInterconnection Masterplan(AIMS) Study
b) Adopt AIMS Study asofficial guide/ reference for theAPG's implementation
c) Develop ASEAN commonpolicy for power interconnectionand electricity trade
d) Conclude ASEAN coopera-tion agreement on ASEANpower interconnection policyand implementation
e) Conduct further preparation /implementation studies for themost promising interconnectionprojects
f) Prepare implementationprograms and mobilize projectfinancing / funds support
2003
2003
2003
2004
2004-20061
The power sector inMember Countries hasdiffering levels of maturityand preparedness, in termsof institutional structuresand regulatory practices/framework.
Other than existingarrangements or proposalsfor bilateral power trade,there is no policy / guidelinefor regional / sub-regionalpower interconnection andpower trade.
Similarly, there are nofirmed up or committedpower interconnection
Initiate / intensify marketliberalization or openingreforms in the electricitysector, particularly in powertrade / exchange and in theinvolvement of the privatesector in power projects.Develop and adopt regional /sub-regional policy. Thepolicy adopted by the QMScountries could be a usefulguide.2
Conclude ASEANcooperation agreement, e.g.,Ministerial Understanding,MoU, etc. at the highestgovernment levels, to providethe commitment, support andacceptance of the ASEANPower Grid's policy andimplementation.
Ensure completion of theAIMS Study. The QMSinterconnection projects may
1 HAPUA X VIII deleted the time frames for Steps (e) to (h) as above indicated. The 20th SOME^O* AMEM agreed dial the dates are to be determined after ihe completion of ihe A'SEANInterconnection Master Plan Study (AIMS). .1 The CMS countries adopted a Policy Statement on Regional Power Trade in Phnom Penh in October 1999. The regional protocol on power pooling and power trade has been developed underWorld Bank assistance. The draft Inter-Government Agreement on Regional Power Trade in ihe Greater Mekong Subregion (1C A-PT) was finalized in December 2001 in Hanoi and wasendorsed for signing in the 11 th GMS Ministerial Conference in 2002.
Page 46
Roudmapfor Integration ofASEAN Cooperation in Trans-ASEAN Energy Network Development
g^^gwiv""8SI8SSSSELlsili
!''-f a !'-v v:-1^ iS L^afffi^^S^ssfefi>*. • • s'1-- j: ;;r: G f i tic 8 \- S ucCf&s'• Kd c to rfi. IReconiinendationiiThe BIMP-EA Business Councilinitiated the first Trans BorneoPower Grid Development Meeting,to intensify multilateral discussionfor power interconnection in Borneoisland.
ASEAN countries are accelerating(he restructuring, privatization andliberalization of the energy sector,particularly the electric supplyindustry. In a number of countries,Ihe electricity sector is progressivelybeing deregulated and the utilityassets privatized.
g) Mobilization period forpriority power interconnectionprojects
h) First commissioning/commencement date for PowerInterconnection and PowerExchange
3006-2008
2008'
projects for implementationto date.
Project preparation studiesand eventual implementa-tion of power interconnec-tion projects require hugeamounts of investmentsand/or funding support
serve as reference forpossible ASEAN priorities,for phased implementation.1
Mobilize the EC-ASEANEnergy Facility for policy andproject preparation studies.
Implement HAPUA'sdecision for the formation ofASEAN joint venturecompanies, to provide and/ormobilize the required fundsfor project preparation andimplementation.
Explore external financingsupport from the privatesector or interested projectdevelopers, or from bilateral/multilateral aid agencies.
3 The ADB has completed ihe Indicative Master Plan Study on Power Interconnection in CMS countries. The Draft Report was considered in Ha Noi last December 2001. The draft final reportwill be presented in Chiang Mai in May 2002. Details of the following CMS projects were also discussed:a. First 500 kV Power Transmission Interconnection between Lao PDR, Thailand and Vietnam based on the development of the Nam Ngum, Nam Ngiep and Nam Theun River Basins in LaoPDR;b. Second 500 kV Power Transmission Interconnection between Lao PDR, Thailand, Vietnam and Cambodia based on ihe development of the Nam Ngum, Nam Ngiep and Nam Theun andSekong River Basins in Lao PDR;c. Power Transmission Interconnection from Jinghong Hydro Power Plant in Yunnan Province of PRC to Thailandd. Power Transmission Interconnection fro Tasang Hydro Power Plant in Myanmar 10 Thailande. Power Transmission Interconnection from Malutang Hydro Power Plant in Yunnan Province of PRC to Vietnam.
Page 47 .
Rouflmap for Integration of ASEAN Cooperation in Trans-ASEAN Energy Network Development
CGoals^v Critical Success Factors
TRANS-ASEAN GASPIPELINE CTAGP)PROJECT
TAGP Master Plan Studycompleted in October2000. Masterplan adoptedby the ASCOPE Councilin February 2001.SOME/19AAMEMagreed on an MoU toprovide the broad policyand implementationframework for realizationof the TAGP Project tohelp ensure greater energysecurity.
The MoU was signed atthe 20"' AMEM on 5th
July 2002 in Ball,Indonesia.
: ,/,:.^:,:''..-^Steps ';:;;;-j'.;.V^- ;,:.';.. :\\/^:^:v^Tiiiiefrarrie0 .' ;•, .."^v^y;Seven gas interconnection projects for implementation, as follows:
Projects
1. Duri, Indonesia -Melaka, Malaysia (bilateral)
2. W. Naluna, Indonesia -Duyong, Malaysia(bilateral)
3. E. Natuna, Indonesia -JDA -Erawan, Thailand(multilateral)
4a+4b E. Natuna -W. Natuna, Indonesia,Kerteh, Malaysia (bilateral)
4a+4c E. Natuna -W. Natuna, Indonesia,Singapore (bilateral)
5. E. Naruna, Indonesia -Sabah, Malaysia - Palawan- Luzon, Philippines(multilateral)
6. Malaysia - Thailand JDA- Block B Vietnam(multilateral)
7, Pauh, Malaysia - Arun,Sumatra, Indonesia(bilateral)
DetailedF/Stostart*2000
2000
2001*
2001*
2001*
2005
2005
2003
Developmentto start
2002/03
2001
2005
2003
2003
2008
2009
2005
Likely Yearfor Commis-
sioning2005
2002
2012
2010
2010
2015
2016
2010
^Problems/ObstaclesThere are no firmcommitments for thesetarget dates. Only thegas pipelineinterconnectionbetween Sumatera,Indonesia andSingapore and W.Natuna (Indonesia)-Duyong (Malaysia)have been firmed up.
The MOU providesbroad guidelines andprinciples for theTAGP's implementa-tion, especially thoserelating to cross-borderissues.
Pipeline constructionrequires huge amountof investment / fundingsupport
: Recommendations/ •Immediate implementationof the TAGP MoU, after ithas been signed. Membercountries have beenrequested lo ratify/accept theMoU, preferably no laterthan 3 1 December 2002
To undertake feasibilitystudies of the commoncarrier gas pipeline betweenEast to West Natuna.
Expedite early conclusion ofgas sale and purchaseagreements.
Expedite the detailed studieson these cross-border issuese.g., taxation, title/ownership of pipelines,transit rights/third partyaccess, safely standards, etc.in order to achieve promptagreement/consensus
Explore/mobilize projectfinancing from privatesector and from the fundingagencies.
Encourage ASEAN jointventure arrangements forpipeline construction.
* The 20'" SOME/201" AMEM agreed to determine the new schedule for detailed feasibility study at a future date.
Page 48
