Economic Blueprint

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02 Declaration on the ASEAN EconomicCommunity Blueprint

05 ASEAN Economic Community Blueprint

30 Strategic Schedule or ASEAN EconomicCommunity

56 Annex 1


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DECLARATION ON THE

ASEAN ECONOMIC COMMUNITY BLUEPRINT

WE, the Heads o State/Government o Brunei Darussalam, the Kingdom o Cambodia, the Republico Indonesia, the Lao Peoples Democratic Republic, Malaysia, the Union o Myanmar, the Republico the Philippines, the Republic o Singapore, the Kingdom o Thailand and the Socialist Republic oViet Nam, Member Countries o ASEAN, on the occasion o the 40th Anniversary o ASEAN and the13th ASEAN Summit in Singapore;

RECALLING our earlier decision to establish by 2020 the ASEAN Community, including theASEAN Economic Community (AEC), made in the Declaration o ASEAN Concord II in Bali,Indonesia, on 7 October 2003;

DETERMINED to achieve higher levels o economic dynamism, sustained prosperity, inclusivegrowth and integrated development o ASEAN;

CONSCIOUS o the increasing interdependence o the ASEAN economies within the region as wellas with the rest o the world and stressing the importance o narrowing the development gap oraccelerating the ASEAN Economic Community by 2015;

RECOGNISING that dierent levels o development within ASEAN require some exibility as ASEANmoves towards a more integrated and interdependent uture;

REAFFIRMING our collective commitment, made at the 12th ASEAN Summit in Cebu, the Philippines,

on 13 January 2007, to accelerate the establishment o the ASEAN Community, including its AECpillar, to 2015;

COGNISANT o the need to have a strengthened institutional ramework and a unifed legalidentity as set orth in the ASEAN Charter by putting in place rules-based systems to realise theestablishment o the AEC by 2015;

EXPRESSING satisaction at the overall progress made and commitment shown by ASEAN indeveloping the AEC Blueprint and to ensure its timely implementation;

REAFFIRMING the ASEAN Economic Ministers (AEM) as the coordinator o all ASEAN economic

integration and cooperation issues;

DO HEREBY:

1. ADOPT the AEC Blueprint which each ASEAN Member Country shall abide by and implementthe AEC by 2015. The AEC Blueprint will transorm ASEAN into a single market and productionbase, a highly competitive economic region, a region o equitable economic development, and aregion ully integrated into the global economy. The AEC Blueprint including its strategic scheduleis annexed to this Declaration.

2. TASK concerned Ministers, assisted by the ASEAN Secretariat, to implement the AEC Blueprintand to report to us regularly, through the Council o the ASEAN Economic Community, on theprogress o its implementation.


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DONE in Singapore on the Twentieth Day o November in the Year Two Thousand and Seven, insingle copy, in the English language.

For Brunei Darussalam:

HAJI HASSANAL BOLKIAHSultan o Brunei Darussalam

For the Kingdom o Cambodia:

SAMDECH HUN SENPrime Minister

For the Republic o Indonesia:

DR. SUSILO BAMBANG YUDHOYONOPresident

For the Lao Peoples Democratic Republic:

BOUASONE BOUPHAVANHPrime Minister

For Malaysia:

DATO SERI ABDULLAH AHMAD BADAWIPrime Minister


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For the Union o Myanmar:

GENERAL THEIN SEINPrime Minister

For the Republic o the Philippines:

GLORIA MACAPAGAL-ARROYOPresident

For the Republic o Singapore:

LEE HSIEN LOONGPrime Minister

For the Kingdom o Thailand:

GENERAL SURAYUD CHULANONT (RET.)Prime Minister

For the Socialist Republic o Viet Nam:

NGUYEN TAN DUNGPrime Minister


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ASEAN ECONOMIC COMMUNITY BLUEPRINT

I. INTRODUCTION

The ASEAN Leaders at their Summit in Kuala Lumpur in December 1997 decided to1.transorm ASEAN into a stable, prosperous, and highly competitive region with equitable economicdevelopment, and reduced poverty and socio-economic disparities (ASEAN Vision 2020).

At the Bali Summit in October 2003, ASEAN Leaders declared that the ASEAN Economic2.Community (AEC) shall be the goal o regional economic integration (Bali Concord II) by 2020. Inaddition to the AEC, the ASEAN Security Community and the ASEAN Socio-Cultural Community arethe other two integral pillars o the envisaged ASEAN Community. All the three pillars are expected

to work in tandem in establishing the ASEAN Community in 2020.

Subsequently, the ASEAN Economic Ministers Meeting (AEM) held in August 2006 in Kuala3.Lumpur, Malaysia, agreed to develop a single and coherent blueprint or advancing the AEC byidentiying the characteristics and elements o the AEC by 2015 consistent with the Bali ConcordII with clear targets and timelines or implementation o various measures as well as pre-agreedexibilities to accommodate the interests o all ASEAN Member Countries.

At the 124. th ASEAN Summit in January 2007, the Leaders afrmed their strong commitmentto accelerate the establishment o an ASEAN Community by 2015 as envisioned in the ASEANVision 2020 and the ASEAN Concord II, and signed the Cebu Declaration on the Acceleration othe Establishment o an ASEAN Community by 2015. In particular, the Leaders agreed to hasten the

establishment o the ASEAN Economic Community by 2015 and to transorm ASEAN into a regionwith ree movement o goods, services, investment, skilled labour, and reer ow o capital.

II. CHARACTERISTICS AND ELEMENTS OF AEC

The AEC is the realisation o the end goal o economic integration as espoused in the5.Vision 2020, which is based on a convergence o interests o ASEAN Member Countries to deepenand broaden economic integration through existing and new initiatives with clear timelines. Inestablishing the AEC, ASEAN shall act in accordance to the principles o an open, outward-looking,inclusive, and market-driven economy consistent with multilateral rules as well as adherence to

rules-based systems or eective compliance and implementation o economic commitments.

The AEC will establish ASEAN as a single market and production base making ASEAN more6.dynamic and competitive with new mechanisms and measures to strengthen the implementation oits existing economic initiatives; accelerating regional integration in the priority sectors; acilitatingmovement o business persons, skilled labour and talents; and strengthening the institutionalmechanisms o ASEAN. As a frst step towards realising the ASEAN Economic Community, ASEANhas been implementing the recommendations o the High Level Task Force (HLTF) on ASEANEconomic Integration contained in the Bali Concord II.

At the same time, the AEC will address the development divide and accelerate integration o7.Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV) through the Initiative or ASEAN Integration


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and other regional initiatives. Other areas o cooperation are also to be incorporated such ashuman resources development and capacity building; recognition o proessional qualifcations;closer consultation on macroeconomic and fnancial policies; trade fnancing measures; enhanced

inrastructure and communications connectivity; development o electronic transactions throughe-ASEAN; integrating industries across the region to promote regional sourcing; and enhancingprivate sector involvement or the building o the AEC.

Based on the above and taking into consideration the importance o external trade to8.ASEAN and the need or the ASEAN Community as a whole to remain outward looking, the AECenvisages the ollowing key characteristics: (a) a single market and production base, (b) a highlycompetitive economic region, (c) a region o equitable economic development, and (d) a regionully integrated into the global economy. These characteristics are inter-related and mutuallyreinorcing. Incorporating the required elements o each characteristic in one Blueprint shall ensurethe consistency and coherence o these elements as well as their implementation and propercoordination among relevant stakeholders.

A. Single Market and Production Base

An ASEAN single market and production base shall comprise fve core elements: (i) ree9.ow o goods; (ii) ree ow o services; (iii) ree ow o investment; (iv) reer ow o capital; and(v) ree ow o skilled labour. In addition, the single market and production base also include twoimportant components, namely, the priority integration sectors, and ood, agriculture and orestry.

A1. Free ow o goods

Free ow o goods is one o the principal means by which the aims o a single market and10.production base can be achieved. A single market or goods (and services) will also acilitate thedevelopment o production networks in the region and enhance ASEANs capacity to serve as aglobal production centre or as a part o the global supply chain.

Through ASEAN Free Trade Area (AFTA), ASEAN has achieved signifcant progress in the11.removal o taris. However, ree ow o goods would require not only zero taris but the removalo non-tari barriers as well. In addition, another major component that would acilitate ree owo goods is trade acilitation measures such as integrating customs procedures, establishing theASEAN Single Window, continuously enhancing the Common Eective Preerential Taris (CEPT)Rules o Origin including its Operational Certifcation Procedures, and harmonising standards andconormance procedures.

The Common Eective Preerential Taris or ASEAN Free Trade Area (CEPT-AFTA) Agreement12.will be reviewed and enhanced to become a comprehensive agreement in realising ree ow ogoods and applicable to ASEAN needs or accelerated economic integration towards 2015.

Elimination o Taris13. . Taris on all intra-ASEAN goods will be eliminated in accordancewith the schedules and commitments set out in the CEPT-AFTA Agreement and other relevantAgreements/Protocols.


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Actions:

Eliminate import duties on all products, except or those phased in rom the Sensitivei.

and Highly Sensitive Lists by 2010 or ASEAN-6 and by 2015, with exibilities or somesensitive products by 2018, or CLMV in accordance with the provisions o the Protocolto Amend the CEPT Agreement or the Elimination o Import Duties;

Eliminate import duties on products in the Priority Integration Sectors by 2007 orii.ASEAN-6 and 2012 or CLMV in accordance with the provisions o the ASEAN Framework(Amendment) Agreement or the Integration o Priority Sectors;

Complete the phasing in o the remaining products in the Sensitive List (SL) into theiii.CEPT Scheme and reduce taris on these products to 0-5% by 1 January 2010 orASEAN-6, 1 January 2013 or Viet Nam, 1 January 2015 or Lao PDR and Myanmar, andby 1 January 2017 or Cambodia, in accordance with the provisions o the Protocol on

Special Arrangements or Sensitive and Highly Sensitive Products; and

Phase in products, which are in the General Exceptions List, in conormity with the CEPTiv.Agreement.

Elimination o Non-Tari Barriers14. . ASEAN has achieved signifcant progress in tariliberalisation. The main ocus o ASEAN towards 2015 will be placed on the ull elimination o non-tari barriers (NTBs).

Actions:

Enhance transparency by abiding to the Protocol on Notifcation Procedure and settingi.up an eective Surveillance Mechanism;

Abide by the commitment o a standstill and roll-back on NTBs;ii.

Remove all NTBs by 2010 or ASEAN-5, by 2012 or the Philippines, and by 2015 withiii.exibilities to 2018 or CLMV, in accordance with the agreed Work Programme on Non-Tari Barriers (NTBs) elimination;

Enhance transparency o Non-Tari Measures (NTMs); andiv.

Work towards where possible having regional rules and regulations consistent withv.International best practices.

Rules o Origin (ROO)15. : Putting in place ROO which are responsive to the dynamic changesin global production processes so as to: acilitate trade and investment among ASEAN MemberCountries; promote a regional production network; encourage development o SMEs and thenarrowing o development gaps; and promote the increased usage o the AFTA CEPT Scheme.

Actions:

Continuously reorm and enhance the CEPT ROO to respond to changes in regionali.production processes, including making necessary adjustments such as the introduction

o advance rulings and improvements to the ROO;


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Simpliy the Operational Certifcation Procedures or the CEPT ROO and ensure itsii.continuous enhancement, including the introduction o acilitative processes such asthe electronic processing o certifcates o origin, and harmonisation or alignment o

national procedures to the extent possible; and

Review all the ROO implemented by ASEAN Member Countries, individually andiii.collectively, and explore possible cumulation mechanisms, where possible.

Trade acilitation16. . Simple, harmonised and standardised trade and customs, processes,procedures and related inormation ows are expected to reduce transaction costs in ASEAN whichwill enhance export competitiveness and acilitate the integration o ASEAN into a single market orgoods, services and investments and a single production base.

Actions:

Assess trade acilitation conditions in ASEAN;i.

Develop and implement a comprehensive trade acilitation work programme which aimsii.at simpliying, harmonising and standardising trade and customs, processes, proceduresand related inormation ows;

Promote transparency and visibility o all actions and interventions by all stakeholdersiii.within international trade transactions;

Establish a regional trade acilitation cooperation mechanism;iv.

Establish ASEAN Trade Facilitation Repository;v.

Develop national level measures to support and ensure eective implementation ovi.regional level initiatives; and

Develop a comprehensive capacity building programmes to ensure smoothvii.implementation o the work programme.

Customs Integration17. . In light o the acceleration o AEC, the realisation o ASEAN CustomsVision 2020 is brought orward to 2015. In particular, the 2005-2010 Strategic Plan o CustomsDevelopment aims to: (a) integrate customs structures; (b) modernise tari classifcation, customsvaluation and origin determination and establish ASEAN e-Customs; (c) smoothen customsclearance; (d) strengthen human resources development; (e) promote partnership with relevantinternational organisations; () narrow the development gaps in customs; and (g) adopt riskmanagement techniques and audit-based control (PCA) or trade acilitation.

Actions:

Modernise customs techniques, guided by simple and harmonised customs proceduresi.and ormalities in line with international standards and best practices through theimplementation o regional models o processing o cargoes and shipments (ASEANCargo Clearance and ASEAN Customs Declaration Document in 2007);

Establish ASEAN Customs Transit system to acilitate movement o goods and means oii.transport;


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Establish ASEAN Customs systems dealing with special customs regimes such asiii.Temporary Admission, Outward Processing and Inward Processing with the view toacilitate integration o production and supply chains;

Adopt international standards and practices to secure a uniorm system o tariiv.classifcation, a synchronised system o value assessment or customs purposes and aharmonised system o origin determination, and inormation exchange where possible;

Implement ASEAN e-Customs; andv.

Promote mutual assistance or better customs efciency and eectiveness.vi.

18. ASEAN Single Window. The implementation o measures o simpliying, harmonising andstandardising trade and customs, processes, procedures and the application o ICT in all areas relatedto trade acilitation would be paramount in the ultimate creation o an ASEAN Single Window. The

ASEAN Single Window is an environment where ten National Single Windows o individual MemberCountries operate and integrate. National Single Window enables a single submission o data andinormation, a single and synchronous processing o data and inormation and a single decision-making or customs clearance o cargo, which expedites the customs clearance, reduce transactiontime and costs, and thus enhance trade efciency and competitiveness.

Actions:

i. ASEAN-6 (Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore and Thailand)shall operationalise their National Single Windows by 2008 at the latest;

ii. ASEAN-4 (Cambodia, Lao PDR, Myanmar and Viet Nam) shall operationalise theirNational Single Windows no later than 2012; and

iii. Standardisation o data elements based on WCO data model, the WCO data set andUnited Nation Trade Data Elements Directory (UNTDED) and acceleration o introductiono inormation, communication and technology (ICT) or digitalised processing andexchange.

19. Standards and Technical Barriers to Trade. Systems o standards, quality assurance,accreditation, and measurement are crucial to promote greater efciency and enhance costeectiveness o production o intra-regional imports/exports. Standards, technical regulations andconormity assessment procedures will be harmonised through the implementation o the ASEANPolicy Guideline on Standards and Conormance, with greater transparency, improved quality oconormity assessment and active participation o the private sector.

Actions:

Harmonisei. standards, technical regulations and conormity assessment proceduresthrough their alignment with international practices, where applicable; 1

Develop and implement sectoral Mutual Recognition Arrangements (MRAs) onii.Conormity Assessment or specifc sectors identifed in the ASEAN FrameworkAgreement on Mutual Recognition Arrangements (also see ootnote 1);

1 Identifcation o standards, technical regulations and conormity assessment procedures to be harmonised oror sectoral MRAs to be developed, must take into consideration the impact on ASEAN trade, the complexityo the regulatory system, the technical inrastructure as well as the eedback rom stakeholders.


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Enhance technical inrastructure and competency in laboratory testing, calibration,iii.inspection, certifcation and accreditation based on regionally/internationally acceptedprocedures and guides;

Promote transparency in the development and application o standards, technicaliv.regulations and conormity assessment procedures in line with the requirements othe World Trade Organisation (WTO) Agreement on Technical Barriers to Trade and theASEAN Policy Guideline on Standards and Conormance;

Strengthen post market surveillance systems to ensure the successul implementation ov.the harmonised technical regulations; and

Develop capacity building programmes to ensure smooth implementation o the workvi.programme.

A2. Free ow o services

20. Free ow o trade in services is one o the important elements in realising ASEAN EconomicCommunity, where there will be substantially no restriction to ASEAN services suppliers in providingservices and in establishing companies across national borders within the region, subject todomestic regulations. Liberalisation o services has been carried out through rounds o negotiationmainly under the Coordinating Committee on Services. Negotiation o some specifc services sectorssuch as fnancial services and air transport are carried out by their respective Ministerial bodies. Inliberalising services, there should be no back-loading o commitments, and pre-agreed exibilityshall be accorded to all ASEAN Member Countries.

21. In acilitating the ree ow o services by 2015, ASEAN is also working towards recognitiono proessional qualifcations with a view to acilitate their movement within the region.

Actions:

Remove substantially all restrictions on trade in services or 4 priority services sectors,i.air transport, e-ASEAN, healthcare and tourism, by 2010 and the fth priority servicessector, logistics services, by 2013;

Remove substantially all restrictions on trade in services or all other services sectors byii.2015;

Undertake liberalisation through consecutive rounds o every two years until 2015, i.e.iii.2008, 2010, 2012, 2014 and 2015;

Target to schedule minimum numbers o new sub-sectors or each round: 10 sub-sectorsiv.in 2008, 15 in 2010, 20 in 2012, 20 in 2014 and 7 in 2015, based on GATS W/120universe o classifcation;

Schedule packages o commitments or every round according to the ollowingv.parameters:

No restrictions or Modes 1 and 2, with exceptions due to bona fde regulatory reasons


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(such as public saety) which are subject to agreement by all Member Countries on acase-by-case basis;

Allow or oreign (ASEAN) equity participation o not less than 51% by 2008, and

70% by 2010 or the 4 priority services sectors; not less than 49% by 2008, 51% by2010, and 70% by 2013 or logistics services; and not less than 49% by 2008, 51%by 2010, and 70% by 2015 or other services sectors; and

Progressively remove other Mode 3 market access limitations by 2015;

Set the parameters o liberalisation or national treatment limitations, Mode 4 andvi.limitations in the horizontal commitments or each round by 2009;

Schedule commitments according to agreed parameters or national treatmentvii.limitations, Mode 4 and limitations in the horizontal commitments set in 2009;

Complete the compilation o an inventory o barriers to services by August 2008;viii.

Allow or overall exibilitiesix. 2, which cover the sub-sectors totally excluded romliberalisation and the sub-sectors in which not all the agreed parameters o liberalisationo the modes o supply are met, in scheduling liberalisation commitments. The schedulingo liberalisation commitments in each round shall be accorded with the ollowingexibilities:

Possibility o catching up in the next round i a Member Country is not able to meetthe parameters o commitments set or the previous round;

Allowing or substituting sub-sectors that have been agreed to be liberalised in around but or which a Member Country is not able to make commitments with sub-sectors outside the agreed sub-sectors; and

Liberalisation through the ASEAN Minus X ormula.

Complete mutual recognition arrangements (MRAs) currently under negotiation, i.e.x.architectural services, accountancy services, surveying qualifcations, medical practitionersby 2008, and dental practitioners by 2009;

Implement the MRAs expeditiously according to the provisions o each respective MRA;xi.

Identiy and develop MRAs or other proessional services by 2012, to be completed byxii.2015; and

Strengthen human resource development and capacity building in the area o services.xiii.

For the fnancial services sector3,

22. Liberalisation measures o the fnancial services sector should allow members to ensureorderly fnancial sector development and maintenance o fnancial and socio-economic stability.

2 The 15% fgure or overall exibility will be reviewed upon the completion o the inventory o limitations in2008.

3 All measures or the fnancial services sector will be subject to prudential measures and balance o paymentsaeguards as provided or under the WTO General Agreement on Trade in Services.


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Member Countries would be guided by the ollowing principles in pacing their liberalisationmeasures:

(a) Liberalisation through ASEAN Minus X ormula where countries that are ready toliberalise can proceed frst and be joined by others later; and

(b) The process o liberalisation should take place with due respect or national policyobjectives and the level o economic and fnancial sector development o the individualmembers.

Actions:

Progressively liberalise restrictions in sub-sectors or modes as identifed by each memberi.country by 2015; and

Progressively liberalise restrictions in the remaining sub-sectors or modes, which are notii.identifed under pre-agreed exibilities, by 2020.

A3. Free ow o investment

23. A ree and open investment regime is key to enhancing ASEANs competitiveness inattracting oreign direct investment (FDI) as well as intra-ASEAN investment. Sustained inowso new investments and reinvestments will promote and ensure dynamic development o ASEANeconomies.

24. ASEAN investment cooperation is being implemented through the Framework Agreementon the ASEAN Investment Area (AIA), 1998, while investment protection is accorded under aseparate agreement i.e. the ASEAN Agreement or the Promotion and Protection o Investment,1987 or commonly reerred to as ASEAN Investment Guarantee Agreement (IGA).

25. Under the AIA, all industries (in the manuacturing, agriculture, fshery, orestry and miningand quarrying sectors and services incidental to these fve sectors) shall be open and nationaltreatment granted to investors both at the pre-establishment and the post-establishment stages,with some exceptions as listed in member countries Temporary Exclusion Lists (TEL) and SensitiveLists (SL). The TEL is to be phased-out based on agreed timelines. Although the SL does not have atimeline or phasing-out, they will be reviewed periodically.

26. To enhance regional integration as well as to maintain a competitive investment area,both the Framework Agreement on the AIA and the ASEAN IGA will be reviewed. The objectiveis to realise a more comprehensive investment agreement which should be orward looking, withimproved eatures, provisions and obligations by considering international best practices that wouldincrease the investor confdence in ASEAN. The ASEAN Comprehensive Investment Agreement(ACIA), which will build on the existing AIA Agreement and ASEAN IGA, will cover the ollowingpillars:


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Investment Protection

27. Provide enhanced protection to all investors and their investments to be covered under the

comprehensive agreement.

Actions:

To strengthen among others the ollowing provisions:i.

investor-state dispute settlement mechanism;

transer and repatriation o capital, profts, dividends, etc. 4

transparent coverage on the expropriation and compensation;

ull protection and security; and

treatment o compensation or losses resulting rom strie.

Facilitation and Cooperation

28. A more transparent, consistent and predictable investment rules, regulations, policies andprocedures.

Actions:

Harmonise, where possible, investment policies to achieve industrial complementationi.and economic integration;

Streamline and simpliy procedures or investment applications and approvals;ii.

Promote dissemination o investment inormation: rules, regulations, policies andiii.procedures, including through one-stop investment centre or investment promotionboard;

Strengthen databases on all orms o investments covering goods and services toiv.acilitate policy ormulation;

Strengthen coordination among government ministries and agencies concerned;v.

Consultation with ASEAN private sectors to acilitate investment; andvi.

Identiy and work towards areas o complementation ASEAN-wide as well as bilateralvii.economic integration.

Promotion and Awareness

29. Promote ASEAN as an integrated investment area and production network.

4 Since these items are related to capital movements, they should ollow the guiding principles o capitalmovements as stated in section A.4. Freer Flow o Capital, particularly on allowing Greater Capital Mobility.


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Actions:

Create the necessary environment to promote all orms o investment and new growthi.

areas into ASEAN;

Promote intra-ASEAN investments, particularly investments rom ASEAN-6 to CLMV;ii.

Promote the growth and development o SMEs and MNEs;iii.

Promote industrial complementation and production networks among MNCs iniv.ASEAN;

Promote joint investment missions that ocus on regional clusters and productionv.networks;

Extend the benefts o ASEAN industrial cooperation initiatives in addition to the AICOvi.Scheme to encourage regional clusters and production networks; and

Work towards establishing an eective network o bilateral agreements on avoidance ovii.double taxation among ASEAN countries.

Liberalisation

30. Progressive liberalisation o ASEAN Member Countries investment regime to achieve reeand open investment by 2015.

Actions:

Extend non-discriminatory treatment, including national treatment and most-avouredi.nation treatment, to investors in ASEAN with limited exceptions; minimise and wherepossible, eliminate such exceptions;

Reduce and where possible, eliminate restrictions to entry or investments in the Priorityii.Integration Sectors covering goods; and

Reduce and where possible, eliminate restrictive investment measures and otheriii.impediments, including perormance requirements.

A4. Freer ow o capital

31. Strengthening ASEAN Capital Market Development and Integration.

Actions:

Achieve greater harmonisation in capital market standards in ASEAN in the areas oi.oering rules or debt securities, disclosure requirements and distribution rules;

Facilitate mutual recognition arrangement or agreement or the cross recognition oii.qualifcation and education and experience o market proessionals;


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Achieve greater exibility in language and governing law requirements or securitiesiii.issuance;

Enhance withholding tax structure, where possible, to promote the broadening oiv.investor base in ASEAN debt issuance; and

Facilitate market driven eorts to establish exchange and debt market linkages, includingv.cross-border capital raising activities.

32. Allowing Greater Capital Mobility.

The liberalisation o capital movements is to be guided by the ollowing principles:

Ensuring an orderly capital account liberalisation consistent with member countriesa)

national agenda and readiness o the economy;

Allowing adequate saeguard against potential macroeconomic instability and systemicb)risk that may arise rom the liberalisation process, including the right to adopt necessarymeasures to ensure macroeconomic stability; and

Ensuring the benefts o liberalisation to be shared by all ASEAN countries.c)

Actions:

Remove or relax restrictions, where appropriate and possible, to acilitate the ows oi.payments and transers or current account transactions;

Remove or relax restrictions on capital ows, where appropriate and possible, to supportii.oreign direct investment and initiatives to promote capital market development

A5. Free ow o skilled labour

33. In allowing or managed mobility or acilitated entry or the movement o natural personsengaged in trade in goods, services, and investments, according to the prevailing regulations o thereceiving country, ASEAN is working to:

Action:

Facilitate the issuance o visas and employment passes or ASEAN proessionals andi.skilled labour who are engaged in cross-border trade and investment related activities.


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34. In acilitating the ree ow o services (by 2015), ASEAN is also working towards harmonisationand standardisation, with a view to acilitate their movement within the region.

Actions:

i. Enhance cooperation among ASEAN University Network (AUN) members to increasemobility or both students and sta within the region;

ii. Develop core competencies and qualifcations or job/occupational and trainers skillsrequired in the priority services sectors (by 2009); and in other services sectors (rom2010 to 2015); and

iii. Strengthen the research capabilities o each ASEAN Member Country in terms opromoting skills, job placements, and developing labour market inormation networksamong ASEAN Member Countries.

A6. Priority Integration Sectors

35. While it is desirable to integrate across the whole range o economic sectors, ASEAN hasrecognised the magnitude o the challenge this would pose and initially ocused its resources oncomprehensively integrating a limited number o priority sectors, which will serve as a catalyst orthe overall ASEAN economic integration.

36. Twelve priority integration sectors were identifed or accelerated economic integration.Several Member Countries took on the coordinator role or each sector. Each priority integration

sector has a roadmap, which combines specifc initiatives o the sector and the broad initiatives thatcut across all sectors such as trade acilitation measures.

37. Raising the efciency o these key sectors will enable ASEAN to compete or capital, andretain value-added economic activity and employment in the region. The sectoral approach allowsthe region to ocus its limited resources on rapid and deep integration in these critical areas whileprovides ASEAN members the opportunity to observe and manage the impact of integration and to

jointly develop a stronger sense of commitment to economic integration prior to a broader roll-out.

Actions:

Conduct a bi-annual review to monitor the status, progress and eectiveness o PISi.roadmaps to ensure their timely implementation; and

Identiy sector-specifc projects or initiatives through regular dialogues or consultationii.with stakeholders, particularly the private sector.

A7. Food, Agriculture and Forestry

38. Enhance intra- and extra-ASEAN trade and long-term competitiveness o ASEANs ood,agriculture and orestry products/commodities.


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Actions:

Monitor implementation o CEPT-AFTA schemes or agricultural and orest products;i.

Develop and apply fsheries quality management systems that ensure ood saety andii.support competitive position o ASEAN fsheries products on world markets throughthe implementation, validation, verifcation o Hazard Analysis Critical Control Point(HACCP)-based systems and improved laboratories practices, and adapting quality andsaety management systems so that they may be applied to small enterprises in ASEANby 2009;

Establish Good Agriculture / Aquaculture Practices (GAP), Good Animal Husbandryiii.Practices (GAHP), Good Hygiene Practices (GHP), Good Manuacturing Practices (GMP),and Hazard Analysis Critical Control Point (HACCP) based systems; or agricultural andood products with signifcant trade / trade potential by 2012;

Harmonise the quarantine and inspection/sampling procedure by 2010 and Sanitary andiv.Phytosanitary (SPS) measures or agricultural, ood and orestry products with signifcanttrade / trade potential; in accordance with international standards/guidelines, whereapplicable, by 2015;

Harmonise the Maximum Residue Limits (MRLs) o commonly used pesticides or widelyv.traded crop products in accordance with international standards/guidelines, whereapplicable, by 2010;

Harmonise the regulatory ramework or agricultural products derived rom modernvi.

biotechnology in accordance with international standards/guidelines, where applicable,by 2015;

Harmonise the saety and quality standards or horticultural produce and agriculturalvii.products o economic importance in the ASEAN region, in accordance with internationalstandards/guidelines, where applicable, by 2015;

Harmonise the animal (both terrestrial and aquatic animals) health control or saety oviii.ood o animal origin through a common bio-security management standards scheme,in accordance with international standards/guidelines, where applicable, by 2015;

Harmonise guidelines or the use o chemicals in aquaculture and measures to eliminateix.the use o harmul chemicals, in accordance with international standards/guidelines,where applicable, by 2009; and

Develop a regional reerence ramework on phased-approach to orest certifcation byx.2015.

39. Promote cooperation, joint approaches and technology transer among ASEAN MemberCountries and international, regional organisations and private sector.

Actions:

Develop joint strategies / positions on issues o related interest to ASEAN withi.


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international organisations such as WTO, Food and Agriculture Organisation o theUnited Nations (FAO), World Organisation or Animal Health (OIE), International PlantProtection Convention (IPPC), CODEX, Convention on International Trade in Endangered

Species o Wild Fauna and Flora (CITES) and dialogue partners;

Promote collaborative research and technology transer in agriculture, ood and orestryii.products;

Establish strategic alliances and joint approaches with the private sectors in promotingiii.ood saety, investment and joint venture opportunities, promotion o agriculturalproducts and market access;

Strengthen eorts to combat illegal logging and its associated trade, orest fre and itsiv.resultant eects; and

Strengthen eorts to combat illegal fshing.v.

40. Promote ASEAN agricultural cooperatives as a means to empower and enhance marketaccess o agricultural products, to build a network mechanism linking agricultural cooperatives, andto ulfl the purpose o agricultural cooperatives or the beneft o armers in the region.

Actions:

Strengthen strategic alliance between agricultural cooperatives in ASEAN throughi.bilateral, regional and multilateral cooperation;

Establish business linkages among the potential agricultural cooperatives within ASEAN;ii.and

Promote direct investment and strategic partnership with ASEAN agricultural cooperativesiii.producers, consumers, and traders.

B. Competitive Economic Region

B1. Competition Policy

41. The main objective o the competition policy is to oster a culture o air competition.Institutions and laws related to competition policy have recently been established in some (but notall) ASEAN Member Countries (AMCs).5 There is currently no ofcial ASEAN body or cooperativework on CPL to serve as a network or competition agencies or relevant bodies to exchange policyexperiences and institutional norms on CPL.

Actions:

Endeavour to introduce competition policy in all ASEAN Member Countries by 2015;i.

Establish a network o authorities or agencies responsible or competition policy to serveii.as a orum or discussing and coordinating competition policies;

5 Currently, only our AMCs (Indonesia, Singapore, Thailand and Viet Nam) have their own competition lawand competition regulatory bodies. Malaysia has not passed any nation-wide competition law but has,instead, relied on sector-level regulations to ensure and enorce competition in markets.


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Encourage capacity building programmes/activities or ASEAN Member Countries iniii.developing national competition policy; and

Develop a regional guideline on competition policy by 2010, based on countryiv.experiences and international best practices with the view to creating a air competitionenvironment.

B2. Consumer Protection

42. The building o an integrated economic region with a people-centred approach in this regionhas made ASEAN mindul that consumers cannot be precluded in all measures taken to achievethis integration. Consumer protection measures are already being developed in tandem with theproposed economic measures to address the already emerging consumer protection.

Actions:

Strengthen consumer protection in ASEAN through the establishment o the ASEANi.Coordinating Committee on Consumer Protection (ACCCP);

Establish a network o consumer protection agencies to acilitate inormation sharingii.and exchange; and

Organise regional training courses or consumer protection ofcials and consumeriii.leaders in preparation or an integrated ASEAN market.

B3. Intellectual Property Rights (IPR)

43. In principle, intellectual property (IP) policy can serve as a powerul stimulus to (a) cultural,intellectual and artistic creativity and their commercialisation; (b) efcient adoption and adaptationo more advanced technologies; and (c) continuous learning to meet the ever-rising threshold operormance expectations.

44. IP policy can also help to incubate a vibrant culture o creativity and invention, and toensure more equitable access and benefts to all stakeholders in both traditional and newer IPRs.Furthermore, IP policy can inuence both the volume and quality o external trade and investmentand the transers o advanced, proprietary technologies. IP creativity is a major determinant o localvalue added and external competitiveness.

45. Regional cooperation in IPR has been guided by the ASEAN IPR Action Plan 2004-2010 andthe Work Plan or ASEAN Cooperation on Copyrights which aim to develop a culture o learningand innovation supported by a riendlier IP profle to businesses, investors, inventors and creators inASEAN. In addition, these Plans are also designed to oster better public awareness, coordinationand networking, predictability, capacity building, and contribution o IP industries to competitivenessand development.

Actions:

Fully implement the ASEAN IPR Action Plan 2004-2010, and the Work Plan or ASEANi.Cooperation on Copyrights;


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Establish an ASEAN fling system or design to acilitate flings by users and promoteii.coordination among the IP Ofces in ASEAN Member Countries, as receiving ofce,contingent upon the language requirements;

Accession to the Madrid Protocol, where possible;iii.

Sustain consultations and inormation exchanges among national enorcement agenciesiv.in IPR protection; and

Promote regional cooperation on Traditional Knowledge (TK), Genetic Resources (GR)v.and Cultural Traditional Expressions (CTE).

B4. Inrastructure Development

46. Transport Cooperation. An efcient, secure and integrated transport network in ASEANis vital or realising the ull potential o the ASEAN Free Trade Area as well as in enhancing theattractiveness o the region as a single production, tourism and investment destination and narrowingdevelopment gaps. ASEAN transport is also critical in linking ASEAN with the neighbouring Northeastand South Asian countries.

47. Regional eorts have been made to enhance transport acilitation and logistics services,promote multimodal transport inrastructure linkages and connectivity, acilitate transport andtourism integration and urther liberalise the air and maritime transport sectors. The enablingramework or the ull liberalisation o air services in ASEAN shall be expeditiously implemented.

48. Multi-modal transport and transport acilitation. The ASEAN Transport Action Plan (ATAP)2005-2010 covers maritime, land and air transport, and transport acilitation. The Plan outlines 48action measures.

Actions:

Implementation o the ASEAN Framework Agreement on the Facilitation o Goods ini.Transit by 2009;

Implementation o the ASEAN Framework Agreement on Multimodal Transport byii.2010; and

Finalisation o the ASEAN Framework Agreement on the Facilitation o Inter-Stateiii.Transport by 2008 or its implementation beginning 2010.

49. Land transport. Priority is given to completion o the Singapore-Kunming Rail Link (SKRLand the ASEAN Highway Network (AHN) projects.

Actions:

Complete the development o all the missing links in the Singapore-Kunming Rail Link;i.

Complete the implementation o the AHN projects, in particular, road constructionii.

/ improvement o below Class III road (two narrow lanes with double bituminoustreatment) sections o designated Transit Transport Routes (TTRs) o the AHN; and


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Enhance road saety in ASEAN.iii.

50. Maritime and air transport. Adopt the general principles and ramework or an ASEANSingle Shipping Market and develop and implement the ASEAN Single Aviation Market.

Actions:

Implement relevant International Maritime Organisation (IMO) conventions;i.

Implement the Roadmap towards an Integrated and Competitive Maritime Transport inii.ASEAN;

Implement the ASEAN Open Sky Policy (Roadmap or Integration o the Air Travel Sector);iii.and

Implement the ASEAN Single Aviation Market.iv.

51. Inormation Inrastructure. A secure and connected inormation inrastructure is importantor sustaining the regions economic growth and competitiveness. Eorts have been made toacilitate interconnectivity and technical interoperability among ICT systems, leveraging on existingnational networks and evolving these into a regional inormation inrastructure. Equal emphasis hasbeen given to improving trust and confdence in the use o the Internet and security o electronictransactions, payments and settlements.

52. Develop high-speed inter-connections among all national inormation inrastructures (NII).

Actions:

Facilitate high-speed connection among all national inormation inrastructure by 2010i.and implement ICT measures as identifed in the VAP;

Intensiy capacity building and training programmes or national Computer Emergencyii.Response Teams (CERTs) and strengthen its capacity, cooperation and the coverage othe regions cyber-security network, including expanding the ASEAN CERT Incident Drillsto include ASEANs Dialogue Partners in 2007;

Encourage the participation o all stakeholders (people, communities, enterprises andiii.public administrations) in utilisation and development o ICT applications and serviceson the regional inormation inrastructure;

Support sectoral ICT applications (initially in key sectors such as customs, logistics,iv.transport, content industry) to improve their eectiveness and productivity;

Expand the number o ASEAN countries participating in the ASEAN MRA orv.telecommunications equipment; and

Deepen regional policy and regulatory ramework to deal with the opportunities andvi.challenges in the area o Next Generation Networks, including the interoperability o

products/services, inormation systems and networks in the convergence environment.


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53. Energy Cooperation. Secure and reliable supply o energy including bio-uel is crucial tosupport and sustain economic and industrial activities. Regional collaboration in the Trans-ASEANGas Pipeline (TAGP) and the ASEAN Power Grid (APG) Projects allows the optimisation o the regions

energy resources or greater security. These projects also provide opportunities or private sectorinvolvement in terms o investment, including fnancing, and technology transer. Interconnectednetworks o electricity grids and gas pipelines oer signifcant benefts both in terms o security,exibility and quality o energy supply.

54. Expedite the development o the ASEAN Power Grid (APG) and the Trans-ASEAN GasPipeline (TAGP). The APG involves 14 electricity interconnection projects and the TAGP, seven gasinterconnection projects.

Actions:

Accelerate implementation o the APG and TAGP;i.

Promote greater involvement o private sectors in APG and TAGP; andii.

Finalise the ASEAN Petroleum Security Agreement to enhance oil and gas security in theiii.region;

55. While ASEAN strive towards accelerating the establishment o an ASEAN Community by2015, it is important to ensure that such development is sustainable through, among others,mitigating greenhouse gas emission by means o eective policies and measures, thus contributingto global climate change abatement. Recognising the limited global reserve o ossil energy andthe unstable world prices o uel oil, it is essential or ASEAN to emphasise the need to strengthen

renewable energy development, such as bio-uels, as well as to promote open trade, acilitationand cooperation in the renewable energy sector and related industries as well as investment in therequisite inrastructure or renewable energy development.56. Mining cooperation. Enhance trade and investment and strengthen cooperation and capacityin geological and mineral sector or sustainable mineral development in the ASEAN region.

Actions:

Facilitate and enhance trade and investment in minerals;i.

Intensiy institutional and human capacity building in ASEAN geological and mineralii.sector;

Promote environmentally and socially sustainable mineral development; andiii.

Encourage the participation o the private sector in mineral development.iv.

57. Financing o Inrastructure Projects. Financing is always recognised as an importantcontributor to economic growth. As ASEAN accelerates its economic integration eorts, greaterinvestment will be needed particularly in the development o regional inrastructure. Putting inplace innovative fnancing schemes to attract greater private sector involvement is thus important.


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Actions:

Promote greater participation o private sectors and international organisations ini.

fnancing regional inrastructure development such as the APG, TAGP, SKRL and ASEANHighway Network; and

Remove or relax impediments to cross-border investment in/fnancing o regionalii.inrastructure projects.

B5. Taxation

58. Actions:

Complete the network o bilateral agreements on avoidance o double taxation amongi.

all Member Countries by 2010, to the extent possible.

B6. E-Commerce

59. To lay the policy and legal inrastructure or electronic commerce and enable on-line tradein goods (e-commerce) within ASEAN through the implementation o the e-ASEAN FrameworkAgreement and based on common reerence rameworks.

Actions:

Adopt best practices in implementing telecommunications competition policies andi.ostering the preparation o domestic legislation on e-commerce;

Harmonise the legal inrastructure or electronic contracting and dispute resolution;ii.

Develop and implement better practice guidelines or electronic contracting, guidingiii.principles or online dispute resolution services, and mutual recognition ramework ordigital signatures in ASEAN;

Facilitate mutual recognition o digital signatures in ASEAN;iv.

Study and encourage the adoption o the best practices and guidelines o regulationsv.and/or standards based on a common ramework; and

Establish a networking orum between the businesses in ASEAN and its Dialogue Partnersvi.

as a platorm or promoting trade and investment.


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C. Equitable Economic Development

C1. SME development

60. The ASEAN Policy Blueprint or SME Development (APBSD) 2004-2014 outlines theramework or SME development in the ASEAN region. It comprises strategic work programmes,policy measures and indicative outputs. Its objectives are to:

(a) Accelerate the pace o SME development, optimising on the diversities o ASEANMember Countries;

(b) Enhance the competitiveness and dynamism o ASEAN SMEs by acilitating their accessto inormation, market, human resource development and skills, fnance as well astechnology;

(c) Strengthen the resilience o ASEAN SMEs to better withstand adverse macroeconomicand fnancial difculties, as well as the challenges o a more liberalised tradingenvironment; and

(d) Increase the contribution o SMEs to the overall economic growth and development oASEAN as a region.

Actions:

Timely implementation o the ASEAN Policy Blueprint or SME Development 2004-2014i.(APBSD);

Promote networking o SMEs and their participation in the building o regional productionii.and distributions networks; and

Promote best practices in SME development, including SME fnancing.iii.

C2. Initiative or ASEAN Integration (IAI)

61. Given the dierent levels o development among ASEAN Member Countries, there arises theneed to ensure the deepening and broadening integration o ASEAN is accompanied by technicaland development cooperation to address the development divide and accelerate the economicintegration o the less developed ASEAN Member Countries so that the benefts o ASEANintegration are shared and enjoyed by all ASEAN Member Countries. This would allow ASEANMember Countries to move in a unifed manner.

62. The Initiative or ASEAN Integration (IAI), launched in November 2000, gives the direction andsharpens the ocus o collective eorts to narrow the development gap not only within ASEAN butbetween ASEAN and other parts o the world as well. The IAI currently covers the ollowing priorityareas, namely inrastructure, human resource development, inormation and communicationstechnologies (ICT), capacity building or regional economic integration, energy, investment climate,tourism, poverty reduction and improvement in the quality o lie.


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63. Meeting the AEC challenge will require CLMV to develop policy to enhance economicgrowth, strengthen economic competitiveness, increase domestic and oreign direct investments,expand private sector enterprises while meeting its public goals.

Actions:

Enhance the IAI to serve as the platorm or identiying and implementing technicali.assistance and capacity building programmes or both public and private sectors in ASEANMember Countries, in particular, CLMV and the other sub-regional arrangements suchas the IMT-GT and the BIMP-EAGA within ASEAN to allow them to be equal partners inthe development o regional production and distribution networks;

ASEAN-6 to continue its support or IAI programmes;ii.

Garner sufcient support rom dialogue partners and international organisations suchiii.

as the Asian Development Bank and the World Bank or eective implementation o theIAI programmes;

Build/strengthen capacity o government ofcials to develop/implement economic andiv.social policies that would mitigate the eects o economic integration; and

Conduct periodic socio-economic studies to monitor/evaluate the impact o economicv.integration.

D. Integration into the Global Economy

64. ASEAN operates in an increasingly global environment, with interdependent markets andglobalised industries. In order to enable ASEAN businesses to compete internationally, to makeASEAN a more dynamic and stronger segment o the global supply chain and to ensure that theinternal market remains attractive or oreign investment, it is crucial or ASEAN to look beyondthe borders o AEC. External rules and regulations must increasingly be taken into account whendeveloping policies related to AEC.

D1. Coherent Approach towards External Economic Relations

65. ASEAN shall work towards maintaining ASEAN Centrality in its external economicrelations, including, but not limited to, its negotiations or ree trade (FTAs) and comprehensiveeconomic partnership (CEPs) agreements. This shall be done by:

Actions:

Review FTA/CEP commitments vis--vis ASEANs internal integration commitments; andi.

Establish a system or enhanced coordination, and possibly arriving at commonii.approaches and/or positions in ASEANs external economic relations and in regional andmultilateral ora.


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D2. Enhanced participation in global supply networks

66. ASEAN shall also enhance participation in global supply networks by:

Actions:

Continuing the adoption o international best practices and standards in production andi.distribution, where possible; and

Developing a comprehensive package o technical assistance or the less developedii.ASEAN Member Countries to upgrade their industrial capability and productivity toenhance their participation in regional and global integration initiatives.

III. IMPLEMENTATION

67. A strategic schedule that includes key milestones or a comprehensive and deeper economicintegration shall orm an integral part o this Blueprint. Consultations have been made with relevantbodies/stakeholders to invite their inputs and coordinating conerences were held to jointly reviewthe Blueprint and its strategic schedule among all stakeholders to ensure consistency o the abovemeasures, programmes and milestones across sectors and promote greater sense o ownership othe Blueprint.

68. Relevant ASEAN sectoral bodies will coordinate the implementation o the aboveprogrammes and measures while relevant government agencies will be responsible or overseeingthe implementation and preparation o more detailed action plans at the national level. Partnership

arrangements with the private sector, industry associations and the wider community at theregional and national levels will also be actively sought where required to ensure participation o allstakeholders in the integration process.

69. For the successul implementation o these programmes and measures, the necessaryinstitutions or mechanisms, resources, capacity and political will be accorded to the Communitybuilding process.

A. Implementation Mechanism

70. Relevant sectoral Ministerial bodies shall be responsible or the implementation o theBlueprint and monitoring o commitments under their respective purview. The ASEAN EconomicMinisters (AEM), as the Ministers-in-Charge o Economic Integration in the Council o ASEANEconomic Community, shall be accountable or the overall implementation o the Blueprint.

71. To allow or eective implementation o the Blueprint, the ollowing measures on chartingstrategic directions and coordination shall be implemented.

Actions:

The HLTF shall provide strategic inputs to the AEM on issues aecting the timelyi.implementation o the Blueprint;


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Undertake regular consultations with various sectoral bodies to discuss and elicitii.eedback on implementation issues o the Blueprint; and

The Secretary-General o ASEAN shall report the progress o AEC to relevant ministerialiii.meetings and the Summit.

72. In enhancing the implementation arrangements and streamlining the decision-makingprocess o all ASEAN economic initiatives identifed in the Blueprint and beyond, the ollowingmeasures are recommended:

Promote transparency and improve the operation o notifcation procedures under alli.ASEAN economic agreements through the Protocol on Notifcation Procedures;

Ratifcation o ASEAN legal instruments shall be made within six months o signing;ii.

Decision-making process by economic bodies to be made by consensus, and whereiii.there is no consensus, ASEAN to consider other options with the objective o expeditingthe decision-making process;

Utilise the Enhanced Dispute Settlement Mechanism (DSM) to promote a rules-basediv.community;

The ASEAN Minus X ormula can be invoked to accelerate the implementation o agreedv.economic initiatives; and

Flexibility should be accorded in the implementation o AEC, which shall be pre-agreedvi.

and not delay the overall progress and implementation o the AEC.

73. Progress in the implementation o the above programmes and measures or AEC buildingby Member Countries needs to be monitored, reviewed and disseminated to all stakeholders. TheASEAN Secretariat shall review and monitor compliance o implementing the Blueprint.

Action:

Develop and maintain a set o statistical indicators, including an integrated tari andi.trade data database system, address harmonisation o statistics and data quality issues,and the AEC scorecards, to monitor and assess the progress o implementation o eachelement o the AEC.

74. For the fnancial sector,

Establish an appropriate implementation mechanism in the orm o regular progressi.reports to the Leaders.


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B. Resources

75. Research and capacity building support is to be mobilised rom various acilities.

Actions:

The ASEAN Development Fund, with contributions rom Member Countries, will be ai.vehicle to draw resources rom other ASEAN and non-ASEAN sources;

Identiy and implement technical studies or training programmes on issues, areas orii.topics where analytical as well as capacity building support are needed to acilitate theimplementation o the AEC Blueprint;

Translate milestones and targets o the AEC Blueprint into national milestones andiii.targets and incorporate them in their national development plans;

Promote the participation o the ADB, World Bank/IFC, dialogue or trading partners andiv.the private sector in the development o regional inrastructure projects;

Strengthen the research and planning capabilities o the ASEAN Secretariat in areasv.relevant to the AEC;

Strengthen the research capabilities and human capital development o each ASEANvi.Member Country; and

Establish appropriate capacity building programmes to assist newer member countriesvii.

to enhance the development and regulatory rameworks o their fnancial markets.

C. Communications

76. Success o building the AEC requires involvement by all stakeholders in the integrationprocess. In addition to involving all stakeholders in the ormulation o the Blueprint, a goodcommunications programme is required to create greater public awareness o the AEC in all ASEANcountries as well as to keep all stakeholders, including the business communities and people oASEAN, inormed o the progress o this community building.

Actions:

Launch a comprehensive communications plan to explain to the government ofcials,i.key stakeholders and the general public the objectives, benefts and challenges o theAEC;

Develop a regional platorm or open discussion and sharing inormation in implementingii.the ASEAN Economic Community;

Member Countries shall set up a mechanism at the national level to regularly report theiii.outcome and issues o the integration process; and

Create an AEC communications website that would provide an additional channel toiv.

reach communities at large, where stakeholders can provide eedback and respond toASEAN economic initiatives.


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D. Review

77. The AEC Blueprint shall be reviewed periodically taking into account dynamic regional and

global developments.


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1 ASEAN-6 and Viet Nam have completed their tari reduction schedule in 2003 and 2006 respectively2 ASEAN-6 and Viet Nam have reached their 60% tari elimination in 2003 and 2006 respectively.

Strategic ApproachPriority Actions

2008-2009 2010-2011 2012-2013 2014-2015

A. Towards a Single Market and Production Base

A1. Free Flows oGoods

Common EectivePreerential Taris-ASEAN Free TradeArea (CEPT-AFTA)

Enhance CEPTAgreement (2008)

Taris Reduction Complete the tarireduction scheduleto 0-5% or all ILproducts or Laosand Myanmar(2008)1

Complete the tarireduction scheduleto 0-5% or allIL products orCambodia (2010)1

Elimination o Taris Integrate productsoutside theCEPT Scheme inaccordance to theCEPT Agreement(2008);

Eliminate importduties on 60% o allIL products exceptor those phased in

rom SL and HSL orLaos and Myanmar(2008);2

Eliminate importduties on 60%o all IL productsexcept or those

phased in romSL and HSL orCambodia (2010);

Eliminate importduties on 80% o allIL products exceptor those phased inrom SL and HSL orASEAN 6 (2007);

Eliminate importduties on 80%o all IL productsexcept or thosephased in rom SLand HSL or VietNam (2010);

Eliminate importduties on 80%o all IL productsexcept or thosephased in rom SLand HSL or Laosand Myanmar(2012);

Eliminate taris onall products, except

or those phasedin rom the SL andHSL, or ASEAN 6(2010);

Eliminate tarison all products,

except or thosephased in rom theSL and HSL, orCLMV 2015 withexibility on somesensitive productsup to 2018

Eliminate importduties on products inthe PIS or ASEAN-6(2007);

Eliminate importduties on productsin the PIS or CLMV(2012);

Strategic Schedule or ASEAN Economic Community


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2008-2009 2010-2011 2012-2013 2014-2015

Elimination o

duties or 1st and2nd tranche o ICTproducts or CLMVin accordance tothe FrameworkAgreement one-ASEAN (2008 orthe 1st tranche ICTproducts and 2009or the 2nd trancheICT products);3

Elimination o

duties or the3rd tranche ICTproducts or CLMVin accordance tothe FrameworkAgreement one-ASEAN (2010)3

Reduce tarison Sensitive List

(SL) products to0-5% or ASEAN-6(2010);

Reduce taris onSensitive List (SL)

products to 0-5%or Viet Nam(2013). In the caseo sugar Viet Namshall reduce thetaris to 0-5% by2010;

Complete phase ino the remaining

products in theSensitive List (SL)into the CEPTScheme and reducetaris on theseproducts to 0-5%(2015- Lao PDRand Myanmar;2017-Cambodia)

Complete the tarireduction scheduleor Highly SensitiveList (HSL) to the

agreed end-rateElimination o Non-Tari Barriers

Abide by thecommitmento a standstilland roll-back onNTBs, eectiveimmediately;

Enhancetransparencyby abiding tothe Protocolon NotifcationProcedure andsetting up an

eective SurveillanceMechanism;

Eliminate NTBs orASEAN 5 (2010)

Eliminate NTBsor the Philippines(2012)

Eliminate NTBs orCLMV (2015) withexibility to 2018or some sensitiveproducts

3 ASEAN-6 has completed its tari reduction or all ICT products in 2005


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2008-2009 2010-2011 2012-2013 2014-2015

Rules o Origin

Continuously

reorm and enhancethe CEPT ROO torespond to changesin global productionprocesses, includingmaking necessaryadjustments such asthe introduction oadvance rulings andimprovements to theROO (2007);

Simpliy theOperational

CertifcationProcedures or theCEPT ROO andensure its continuousenhancement,including theintroduction oacilitative processessuch as the electronicprocessing ocertifcates o origin,and harmonisationor alignment onational proceduresto the extent possible

(2007); and

Review all the ROOimplemented byASEAN MemberCountries,individually andcollectively, andexplore possiblecumulationmechanisms, wherepossible.

Trade FacilitationWork Programme

Finalisation o theComprehensive WorkProgramme on TradeFacilitation

Assessment oTrade Facilitationconditions in ASEAN

Establish RegionalTrade Facilitationmechanism

Promotetransparency andvisibility o all actionsand interventionsby all stakeholders

within internationaltrade transactions.

Promotetransparencyand visibility oall actions andinterventions by allstakeholders withininternational tradetransactions.

Simplifed,harmonised andstandardisedtrade and custom,processes,proceduresand relatedinormation owsto move goods and

associated servicesinternationally romseller to buyer, andto pass payment inopposite direction


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2008-2009 2010-2011 2012-2013 2014-2015

Establish ASEAN

Trade FacilitationRepository

ASEAN Criteria orauthorised traders

Customs Integration

Strategic Plano CustomsDevelopment

Integrate customsstructures.

Modernise customstechniques, guidedby simple andharmonised customsprocedures andormalities through

the implementationo regional modelso processingo cargoes andshipments (ASEANCargo ProcessingModel and ASEANCustoms DeclarationDocument in 2007)as committed.

Establish ASEANCustoms Transitsystem to acilitatemovement o goods

and means otransport.

Establish ASEANCustoms systemsdealing with specialcustoms regimessuch as TemporaryAdmission, OutwardProcessing andInward Processingwith the view toacilitate integrationo production andsupply chains.

Modernise tariclassifcation,customs valuationand origindetermination andestablish ASEANe-Customs.


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2008-2009 2010-2011 2012-2013 2014-2015

Adopt international

standards andpractices to securea uniorm system otari classifcation, asynchronised systemo value assessmentor customs purposesand a harmonisedsystem o origindetermination(origin conerring),and inormationexchange, wherepossible.

Smoothen customsclearance

Strengthenhuman resourcesdevelopment

Implement ASEANe-Customs.

Promote mutualassistance or bettercustoms efciencyand eectiveness.

ASEAN SingleWindow

Brunei Darussalam,Indonesia, Malaysia,Philippines,Singaporeand Thailandoperationalise theirNational SingleWindows by 2008.

ASEAN-4 (Cambodia,Lao PDR, Myanmarand Viet Nam)operationalise theirNational Single

Windows no laterthan 2012.

Implementationo measureso simpliying,harmonising andstandardising tradeand customs,processes,procedures.


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2008-2009 2010-2011 2012-2013 2014-2015

Standardisation

o data elementsbased on WCO datamodel, the WCOdata set and UnitedNation Trade DataDirectory (UNTDED)and accelerationo introductiono inormation,communication andtechnology (ICT) ordigitalised processingand exchange.

Application o ICTin all areas relatedto trade acilitationand customsmanagement areparamount in theultimate creationo an ASEAN SingleWindow.

Standards andConormance

Implement a SingleRegulatory Schemeor Cosmetic

Monitor theimplementationo the SingleRegulatory Schemeor Cosmetics

Continue to monitorthe eectiveImplementation othe ASEAN SectoralMRA on Electricaland ElectronicEquipment (EEE)

The listedConormityAssessment Bodiesunder the SectoralMRAs will be utilisedto implement thesingle regulatoryregime or EEE

Prepare or theimplementation oa single regulatoryregime or electricaland electronicequipment

Implement a singleregulatory regimeor EEE

Monitor theimplementationo the singleregulatory regimeor EEE

Implement theASEAN CommonTechnical Dossiers(ACTD) orPharmaceutical andMedical Device

Monitor theimplementation othe ACTD.

Strengthencompetencyand confdenceamongst regulatoryauthorities inevaluation process

Implementharmonised

technicalrequirements orTMHS or identifedareas in all MemberCountries


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2008-2009 2010-2011 2012-2013 2014-2015

Monitor the

eectiveimplementation othe Sectoral MRAon GMP Inspectionor Pharmaceutical

Implementharmonisedstandards andtechnicalregulations

Implement theASEAN Common

Submission DossierTemplate (CSDT) orMedical Device

Monitor theimplementation o

the CSTD.

Strengthencompetencyand confdenceamongst regulatoryauthorities inevaluation process

Develop anASEAN Moduleor TraditionalMedicine and Health

Supplement (TMHS)and identiy areasor harmonisationo technicalrequirements

Harmonisethe technicalrequirements onTMHS or identifed

areas

Sign and prepare orthe implementationan ASEAN SectoralMRA on GoodManuacturingPractice (GMP)Inspection orPharmaceutical

Implement theSectoral MRA onGMP Inspection orPharmaceutical

Establish andimplement PostMarket Alert Systemsor various Sectors

Monitor theeectiveimplementation othe Post MarketingAlert System orvarious sectors

Identiy andharmonise morestandards andtechnical regulationsor other sectorssuch as wood-based,rubber- based andautomotive etc.

Continue toharmonisestandardsand technicalregulations oridentifed sectors


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2008-2009 2010-2011 2012-2013 2014-2015

Continue to

enhance TechnicalInrastructure:more testinglaboratories andcertifcation bodiesto be accredited torelevant internationalstandards and PostMarket Surveillanceto be strengthened

A2. Free Flows oServices

Services Liberalisationunder AFAS4

Removesubstantially allrestrictions on tradein services or the4 priority servicessectors (2010)

Removesubstantially allrestrictions ontrade in services orlogistics services by2013.

Removesubstantially allrestrictions ontrade in services orall other servicessectors by 2015.

Schedule at least10 new sub-sectors(2008)



Schedule at least20 (2014) and 7(2015) new sub-sectors

No restrictions orModes 1 and 2, withexceptions due to

bona fde regulatoryreasons (2008)

At least 51% oreignequity participationor the 4 priorityservices sectors,(2008)

At least 70%oreign equityparticipation or the4 priority servicessectors, (2010)

At least 49% oreignequity participationor logistics services,(2008)

At least 51%oreign equityparticipation orlogistics services,(2010)

At least 70%oreign equityparticipation orlogistics services,(2013)

At least 49% oreign

equity participationor other servicessectors, (2008).

Progressively removemarket accesslimitations or Mode3 as endorsed by theAEM.

Complete thecompilation o aninventory o barriersto services by August2008.

At least 51%

oreign equityparticipation orother servicessectors, (2010);

At least 70%

oreign equityparticipation orall services sectors,(2015).

4 The approaches shall be subject to exibility as provided in the Blueprint


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2008-2009 2010-2011 2012-2013 2014-2015

Set the parameters

o liberalisation ornational treatmentlimitations, Mode4 and limitationsin the horizontalcommitments oreach round (2009)

Schedule

commitmentsaccording to agreedparameters ornational treatmentlimitations, Mode4 and limitationsin the horizontalcommitments set in2009.

Mutual RecognitionArrangements (MRAs)

Complete MRAscurrently undernegotiation, i.e.architectural services,

accountancyservices, surveyingqualifcations,medical practitioners,and dentalpractitioners (2008).

Implement thecompleted MRAs

Identiy anddevelop MRAs orother proessionalservices by 2012

Full implementationo completed MRAs(2015).

Financial ServicesSector

Develop the listo pre-agreedexibilities thatcan be maintainedby each membercountry or the sub-

sectors identifed orliberalisation by 2015

Agree on the listo pre-agreedexibilities thatcan be maintainedby each membercountry or the sub-

sectors identifedor liberalisation by2015

Develop the listo pre-agreedexibilities thatcan be maintainedby each membercountry rom 2020

Substantiallyremove5 restrictionsor the Insurance,Banking andCapital Marketsub-sectors by 2015

as identifed bymember countriesin Annex 1.

By 2017, agree onthe list o pre-agreed exibilitiesthat can bemaintained by eachmember countryrom 2020

Substantiallyremove6 restrictionson trade in servicesor all remainingsectors by 2020.

A3. Free Flows oInvestment

ASEAN InvestmentAgreement (AIA)

Discuss, negotiateand drat thenew ASEANComprehensiveInvestmentAgreement (ACIA).

Finalise the ACIA tobe submitted to the

11th

AIA Council.

5 Members may maintain restrictions as negotiated and agreed in the list o pre-agreed exibilities or 2015.6 Members may maintain restrictions as negotiated and agreed in the list o pre-agreed exibilities or 2020.


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2008-2009 2010-2011 2012-2013 2014-2015

Liberalisation

Commence Phase

I o the progressivereduction/eliminationo investmentrestrictions andimpediments in2008.

Complete Phase I

o the progressivereduction/eliminationo investmentrestrictions andimpediments oreight (8) ASEANMember Countriesin 2010 and orASEAN 2 (Lao PDRand Myanmar) in2011.

Complete Phase II

o the progressivereduction/eliminationo investmentrestrictions andimpediments oreight (8) ASEANMember Countriesin 2012 and ASEAN2 (Lao PDR andMyanmar) in 2013.

Complete the

Final Phase othe progressivereduction/eliminationo investmentrestrictions andimpedimentsoreight (8) ASEANMember Countriesin 2014 andASEAN 2 (Lao PDRand Myanmar) in2015.

Realise ree and

open investmentregime withminimal investmentrestrictions in2015.

Achieve theharmonisationo investmentmeasuresto acilitatemovement oinvestments.

Commence Phase

II o the progressivereduction/eliminationo investmentrestrictions andimpediments oreight (8) ASEANMember Countriesin 2010 and orASEAN 2 (Lao PDRand Myanmar) in2011

Commence the

Final Phase othe progressiveeliminationo investmentrestrictions andimpediments oreight (8) ASEANMember Countriesin 2012 and orASEAN 2 (Lao PDRand Myanmar) in2013

Facilitation Identiy internationalbest practices on

investment measuresor possible adoptionby ASEAN.

Review andrecommendapplicableinternationalbest practices oradoption by ASEAN.

Commencethe adoption

o applicableinternationalbest practiceson investmentmeasures

Review and assessthe impact and

eectiveness othe investmentmeasures adopted.

Continue eorts toadopt applicableinternationalbest practiceson investmentmeasures.

Review and assessthe impact and

eectiveness othe investmentmeasures adopted.

Achieve theharmonisation oselected investmentmeasuresto acilitatemovement oinvestment.


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2008-2009 2010-2011 2012-2013 2014-2015

Publish and

disseminateASEAN InvestmentPublications:

ASEAN Investment-Report (AIR);Statistics o FDI in-ASEAN;Compendium on-Investment Measuresand Policies inASEAN (Investing inASEAN Guidebook:An Update)

Update Investment-

Brochure; andBrochure on-OutsourcingActivities /Opportunities inASEAN

Publish and


ASEAN Investment-Report (AIR);Statistics o FDI in-ASEAN;Foreign Investors-Living in ASEAN;Directory on-Logistics in ASEAN;andDevelopment-

and Promotiono New GrowthAreas includingEnvironmentalFriendly Industries

Publish and


ASEAN Investment-Report (AIR);Statistics o FDI in-ASEAN;Facts and Figures o-Doing Business inASEAN (an update).

Publish and


ASEAN Investment-Report (AIR);Statistics o FDI in-ASEAN;Directory on-Electronics;Directory on-ComponentManuacturers

Identiy andpromote investmentopportunities orinrastructure inCLMV countries.

Link websiteon investmentbetween ASEANand DialoguePartners.

Develop ASEANInvestmentPromotion Videoto build up image/brand o ASEAN.

Undertakeconsultationwith businesssector to acilitateinvestment inASEAN.

Complete FDI

database coveringgoods and servicessector.

Undertake

consultation withbusiness sector toacilitate investmentin ASEAN.

Undertake

consultation withbusiness sector toacilitate investmentin ASEAN.

Enhance networkingamong ASEANInvestmentPromotion Agencies.

Organisediscussions on keyissues o FDI.

Undertakeconsultation withbusiness sector toacilitate investmentin ASEAN.

Establish database onIndustrial Cluster.

Promotion Organise twoinbound and twooutbound investmentmissions.

Organise twoinbound andtwo outboundinvestmentmissions.

Organise twoinbound andtwo outboundinvestment missionsannually.

Organise twoinbound andtwo outboundinvestmentmissions.

Continue series oASEAN investmentseminars onopportunities inCLMV countriesto be hosted byASEAN-6.

Promote regionalclusters andproductionnetwork throughASEAN industrialcooperationinitiatives

Promote regionalclusters andproductionnetwork throughASEAN industrialcooperationinitiatives


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2008-2009 2010-2011 2012-2013 2014-2015

Protection

Organise seminar on

investment protectionand settlement oinvestment disputes

Organise seminar on

investment protectionand settlement oinvestment disputes

A4. Freer Flows oCapital

Strengthening ASEANCapital MarketDevelopment andIntegration

Achieve greaterharmonisationin capital marketstandards inASEAN in theareas o oeringrules or debtsecurities, disclosurerequirements anddistribution rules

Facilitate mutualrecognitionarrangement oragreement or thecross recognitiono qualifcationand educationand experience omarket proessionals

Achieve greater

exibility inlanguage andgoverning lawrequirements orsecurities issuance

Enhancewithholding taxstructure, wherepossible, to promotethe broadeningo investor basein ASEAN debtissuance

Allowing greater capital mobility

The liberalisation o capital movements is to be guided by the ollowing principles:

1. Ensuring an orderly capital account liberalisation consistent with member countries national agenda and readinesso the economy.

2. Allowing adequate saeguards against potential macroeconomic instability and systemic risk that may arise rom theliberalisation process, including the right to adopt necessary measures to ensure macroeconomic stability.

3. Ensuring the benefts o liberalisation to be shared by all ASEAN countries.

Foreign DirectInvestment

Assess and identiyrules or liberalisationor reer ows ooreign directinvestments whichinclude:

- Direct outwardinvestment

- Direct inwardinvestment

- Liquidation odirect investment

Progressivelyliberalise, whereappropriate andpossible, the preidentifed list orules or reer ow

o oreign directinvestments

Continue to liberalise,where appropriateand possible, anyother items related to- Foreign direct

investment- Portolio

investments- Other types o

capital ows- To support FDI and

to promote capitalmarket development


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2008-2009 2010-2011 2012-2013 2014-2015

Portolio Investment

2009-2010:Assess andidentiy rules orliberalisation or reerows o portolioinvestments,particularly in debtsand equity, whichinclude:Purchase o domestic-debt securities andequity by non-residentsIssuance o debt-securities and equity

by non-residentslocallyRepatriation o-proceeds arising romportolio investmentsIssuance and/or sale-o debt securitiesand equity abroad byresidentsPurchase o debt-securities and equityabroad by residents

2011-2013:

Progressivelyliberalise, whereappropriate andpossible, the rulesidentifed or reerow o portolioinvestments

Other Types o Flows 2011-2012 Assess andidentiy rules orliberalisation oother types oows, particularlylong-term oreign

borrowing andlending

Progressivelyliberalise, whereappropriate andpossible, therules identifedor other types oows, particularlylong-term oreignborrowing andlending


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2008-2009 2010-2011 2012-2013 2014-2015

Current Account

Transactions Develop fnancial

market to eliminate,where applicable,the practice odual exchange ratestructure.

Further develop

fnancial market toeliminate, whereapplicable, thepractice o dualexchange ratestructure.

Remove and/

or relax, whereappropriate andpossible, restrictionson repatriation/surrenderrequirement

Continue to

liberalise, whereappropriate andpossible, any otheritems related tocurrent accounttransactions

Relax the limitationon oreign exchangepurchase andother payments orinvisible transactionsand current transers

Adopt Article VIIIIMF by ASEANcountries by 2011

Facilitation Drat/amend legal

and regulatoryramework, whereappropriate andpossible, to supportchanges in rules

Strengthen policydialogue onprudential regulationand supervision,to assist membercountries develop asupportive regulatoryramework ororderly liberalisation

Establish/enhancesystems to monitorows in eachmember country

Countrycollaboration toharmonise, wherepossible, policies,statistics andinrastructure relatedto ows

Share with membercountries progress onrules liberalised

A5. Free Flows oSkilled Labour

Complete MRAs ormajor proessionalservices, includingPIS services sectorsby 2008

Develop corecompetencies(concordance o skillsand qualifcations)or job/occupationalskills required inthe priority servicessectors by 2009

Develop corecompetencies(concordanceo skills andqualifcations) or

job/occupationalskills required in allservices sectors by2015


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2008-2009 2010-2011 2012-2013 2014-2015

A6. PriorityIntegration Sectors Conduct a bi-annual

review to monitoringthe status, progressand eectivenesso PIS roadmapsamongst ASEANMember Countries

Identiy sector-specifc projectsor initiativeswith CountryCoordinatorsthrough regulardialogues or

consultation withstakeholders,particularly theprivate sector

Complete mosto the measuresidentifed underthe roadmap ooriginal 11 priorityintegration sectors

Complete mosto the measuresidentifed underthe roadmap orintegration ologistics servicess

A7. Food,Agriculture andForestry

Enhance intra- andextra-ASEAN tradeand long-termcompetitivenesso ASEANs ood,agriculture andorestry products/commodities.

Develop and applyfsheries qualitymanagement systemthat ensure oodsaety and supportcompetitive positiono ASEAN fsheriesproducts on worldmarkets throughthe implementation,validation,verifcation oHazard AnalysisCritical ControlPoint (HACCP)-based systemsand improvedlaboratoriespractices, andadapting quality andsaety managementsystems so that theymay be applied tosmall enterprises inASEAN by 2009


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2008-2009 2010-2011 2012-2013 2014-2015

Establish Good

Agriculture /AquaculturePractices (GAP),Good AnimalHusbandry Practices(GAHP), GoodHygiene Practices(GHP), GoodManuacturingPractices (GMP),and Hazard AnalysisCritical ControlPoint (HACCP)based systems; or

agricultural andood products withsignifcant trade /trade potential by2012

Harmonise thequarantine andinspection/samplingprocedure by 2010

Sanitary andPhytosanitary(SPS) measuresor agricultural,ood and orestryproducts withsignifcant trade /trade potential by2015

Harmonise theMaximum ResidueLimits (MRLs) ocommonly usedpesticides or widelytraded crop productsin accordancewith internationalstandards/guidelines,where applicable, by2010

Harmonisethe regulatoryramework oragriculturalproducts derivedrom modernbiotechnology by2015

Harmonise thesaety and qualitystandards orhorticulturalproduce andagriculturalproducts oeconomicimportance in theASEAN region by2015


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2008-2009 2010-2011 2012-2013 2014-2015

Harmonise

guidelines or theuse o chemicalsin aquacultureand measures toeliminate the use oharmul chemicalsby 2009

Harmonise the

animal (bothterrestrial andaquatic animals)health control orsaety o oodo animal originthrough a commonbio-securitymanagementstandards schemeby 2015

Defne legalitystandard o timber

by 2008.Finalised dratGuideline on Phased-approach to ForestCertifcation by2009.

F

Documents

Economic Blueprint