U.S.-ASEAN CONNECTCONCEPT NOTE

I. Goal U.S.-ASEAN Connect (“Connect”) is a new unifying framework for U.S.-ASEAN economic engagement announced by President Obama at the U.S.-ASEAN Leaders’ Summit in Sunnylands, CA. U.S.-ASEAN Connect will strengthen the United States’ relationship with the Association of Southeast Asian Nations (ASEAN) and the private sector. Connect combines the expertise and resources of the U.S. government and U.S. private sector to increase U.S.-ASEAN economic relations and assist ASEAN and the ASEAN Member States (AMS) in achieving the economic integration goals of the ASEAN Economic Community (AEC).

II. U.S.-ASEAN Connect Connect will encompass and build upon ongoing programs and future U.S. government economic programs and economic engagements within ASEAN. As part of Connect, we will also launch new programs, disseminate Connect-related information via a centralized website, and coordinate U.S. government responses to requests for information or assistance from ASEAN and the private sector.

Connect Pillars The four pillars of Connect provide an organizing framework to capture the full extent of ongoing and future USG programming and policies. The four pillars themselves are interconnected and will be supported by activities of all relevant U.S. government agencies and the U.S. private sector.

Business Connect

Business Connect supports increased commercial engagement between U.S. and ASEAN businesses in a variety of regionally important sectors, including clean energy, transportation, healthcare, information and communications technology (ICT) and infrastructure. It also offers proactive support for U.S. businesses seeking opportunities to export goods and services in AMS. It will also increase coordination between the Export-Import Bank (EXIM), the Overseas Private Investment Corporation (OPIC), and the U.S. Trade and Development Agency (TDA) on infrastructure projects. Business Connect will also bring U.S. and ASEAN businesses together to capitalize on opportunities created through the AEC. Business Connect assists ASEAN as it implements measures to facilitate greater trade and economic integration

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under the AEC. It will continue to advance efforts including the ASEAN SME development program implemented by the U.S. Agency for International Development (USAID) in collaboration with the U.S.-ASEAN Business Council, project preparation programs, and work on intellectual property rights by multiple agencies including the U.S. Patent and Trademark Office.

Energy Connect

Energy Connect prioritizes the development of power sectors built around sustainable, efficient, and innovative technologies. It will support the connectivity, clean energy and energy security goals of the ASEAN Plan of Action for Energy Cooperation (APAEC) 2015 – 2025. Emphasizing increased integration and regulatory harmonization in the energy sector, Energy Connect will establish the next phase of the U.S.-Asia Pacific Comprehensive Energy Partnership (USACEP) and facilitate implementation of the U.S.-ASEAN Energy Cooperation Work Plan 2016-2020. Energy Connect offers, in line with the U.S.-ASEAN Energy Work Plan, concrete activities in five APAEC program areas: ASEAN power grid, energy efficiency and conservation, renewable energy, regional energy policy and planning, and civilian nuclear energy. Energy Connect will build upon existing programs such as USTDA’s clean energy and grid modernization/connectivity project preparation programs, and USAID’s Clean Power Asia initiatives.

Innovation Connect

Innovation Connect supports Southeast Asia’s growing entrepreneurship and innovation ecosystems through policy support and engagement with aspiring innovators and entrepreneurs. Innovation Connect also facilitates discussions and engagement on using high technology to develop solutions for a range of problems. Innovation Connect showcases programs such as the Young Southeast Asian Leaders Initiative (YSEALI) Innovation Challenges. Technical assistance under Innovation Connect will include the Global Entrepreneurship Program, support for the ASEAN Science Prize for Women, and other economic programs. This pillar also includes collaborations with the U.S. private sector such as the Innovation Roadshow series that launched in March in Indonesia, the Philippines, and Vietnam. The Department of State’s senior economic team led a delegation of top U.S. executives across ASEAN to meet with companies, entrepreneurs and government officials to share their experiences and best practices in building successful companies and the enabling regulatory environment needed to support innovation and entrepreneurship.

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Policy Connect

Policy Connect focuses on supporting ASEAN in creating a policy environment conducive to complementary ASEAN and U.S. goals in trade and investment, digital economies, and sustainable and equitable economic growth, including through capacity building and technical support to AMS. Programs under Policy Connect include the U.S.-ASEAN Trade and Investment Framework Arrangement work plan initiatives, including ASEAN Single Window support, Standards Cooperation, and a new series of U.S.-ASEAN Trade Workshops. Policy Connect programs will also focus on broader economic policy engagement through the US-ASEAN Air Transport Working Group Workplan focused on aviation issues, the U.S.-ASEAN ICT Workplan, the Global Connect Initiative, and the Global Procurement Initiative. Implementing the U.S.-ASEAN ICT Workplan will help to increase e-Commerce, bridge the digital divide, promote emerging technologies, and build capacity among ASEAN ICT policymakers and regulators. The ICT workplan will also support the Global Connect Initiative, which aims to catalyze multi-stakeholder partnerships to bring 1.5 billion additional people online by 2020. The Global Procurement Initiative, which educates public procurement authorities on how to implement best value procurement practices by utilizing cost-effective life cycle cost analysis, has launched programs with the Governments of Vietnam and the Philippines.

Implementation

A network of three Centers will support the implementation of U.S.–ASEAN Connect. They will also be a conduit for easier and more efficient responses to requests for information, expertise, capacity building and technical assistance.

There are already a wide range of ongoing programs being showcased under US-ASEAN Connect (See Appendices A and B for a list of events and programs). Other elements of U.S.-ASEAN Connect implementation, such as the Connect Centers (Centers) in Jakarta, Singapore and Bangkok, a website, a centralized point of contact, and social media accounts will be implemented in a phased approach through which we will continue to work closely with ASEAN, seeking feedback and input along the way.

All three centers will be operational by the end of 2016 along with select additional regional staffing resources to drive implementation of Connect, as detailed below. The website will

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serve as a central repository for events, projects, announcements, and informational resources for stakeholders. The contact phone numbers and email addresses will provide simplified contact details and a “one-stop shop” for ASEAN requests for information, engagement, and/or assistance.

III. Connect Centers

Connect Center Jakarta Jakarta is the seat of the ASEAN Secretariat and hosts the U.S. Mission to ASEAN. The U.S. Mission to ASEAN will house the Center in Jakarta under the direction of the U.S. Ambassador to ASEAN, who serves as the overall coordinator of U.S.-ASEAN Connect. The Jakarta Center will be responsible for messaging, coordinating a strategic focus for programs, serving as a conduit between ASEAN and the U.S. Government, and working closely with Washington-based agencies and other Centers to develop programming that reflects priorities and requests from ASEAN, AMS, and the private sector. The Jakarta Center will also facilitate U.S. engagement with the ASEAN Secretariat, ASEAN sectoral bodies, and Missions to ASEAN to help achieve our shared goal of increasing US-ASEAN economic engagement and strengthening ASEAN as an organization and to support ASEAN’s goal of centrality in the regional architecture.

Connect Center Singapore Singapore is home to the financial hub of ASEAN, the APEC Secretariat, the new World Bank Infrastructure and Urban Development Hub, and the largest concentration of U.S. companies in the region. Housed in the Department of Commerce’s ASEAN Regional Office, the Center in Singapore will continue to provide access to the full suite of U.S. government commercial resources as well as more focused interaction with the U.S. private sector, multilateral development banks, and other regional actors. This Center will continue to drive and fund the development and delivery of the Lower Mekong Initiative (LMI) Best Practice Exchange Programs. The first was delivered on February 17, 2016. The second is scheduled for June 13-14, 2016. This Center will also oversee U.S. engagement in and with major trade show activities related to aviation, ICT, the digital economy, and energy such as: the Singapore Air Show, Communicasia/Broadcast Asia and Singapore International Energy Week.

Connect Center Bangkok

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Embassy Bangkok currently houses U.S. government personnel from OPIC, USTDA, USAID, and Commerce. Working directly with the U.S. private sector, these personnel promote trade and investment in the region in multiple sectors by strengthening coordination and information sharing.

The Center in Bangkok will facilitate enhanced programming under the Energy Connect Pillar building upon the existing Asia Clean Energy Program (ACEP) established under the U.S.-Asia Pacific Comprehensive Energy Partnership (USACEP) in February 2014. ACEP has served as the coordination center for the $6 billion in collective U.S. government clean energy financing commitments and expansion of USTDA’s regional portfolio working directly with ASEAN project sponsors under USACEP. It aims to catalyze private U.S. clean energy investment in the Asia-Pacific region by offering a range of tools, such as financing, insurance, project preparation and technical assistance support, while enhancing U.S.-ASEAN business partnerships. USAID Clean Power Asia, a multi-million dollar, multi-year program to be launched in 2016, will support AMS to strengthen their power sector planning; to improve the policy and regulatory frameworks; and facilitate mobilization of investment in grid-connected renewable energy. The Center will also continue to work with the Asian Development Bank (ADB) on a range of complementary infrastructure project financing tools both through existing relationships and through the U.S. presence at the ADB.

IV. More on the Connect Centers Who are Connect Clients? U.S. ASEAN Connect will provide services to myriad stakeholders interested in ASEAN who hope to collaborate to achieve positive economic outcomes. Some potential examples of Connect Customers include: the ASEAN Secretariat (ASEC), ASEAN Member State (AMS) representatives working ASEAN energy issues, AMS representatives working on ASEAN aviation issues, the U.S. private sector, the ASEAN private sector, think tanks, universities, NGO’s, business councils, multilateral development banks (MDB’s) and many more. Many of these services are already provided bilaterally through U.S. embassies throughout the region. Connect will serve as a bridge to those information networks for the many clients, both in ASEAN and in the United States, who may be unsure of the right place to go for their answers.

Examples of Topics the Connect Centers Could Address:

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● Where can I find specific examples of tax/internet/visa/IPR policies that would best help the ICT sector in ASEAN?

● How do U.S. universities commercialize their intellectual property?

● What U.S. government programs could offer training to SMEs?

● Where can I find financing for an infrastructure feasibility study?

● Can you help our economic think tanks connect with potential U.S. counterparts?

● How can my tech firms find U.S. venture capitalists?● How can I save money by manufacturing in a cleaner, more

efficient way?● How do I design an infrastructure project to minimize delays

and maximize viability?● I am an ASEAN company in the area of clean energy technology

and services. How can I access U.S. expertise and investment in the area of software and modeling, engineering design, technology and equipment, and energy services?

● How do I implement life-cycle costs into our fiscal and project planning?

● Should we invest more in STEM or liberal arts curricula to increase innovation?

● How can we improve tax collection policies to fund infrastructure projects?

● Should our government seed a venture capital fund? Should we manage it internally or seek a private sector partner?

● What vehicles are available for mitigating foreign exchange and political risks?

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Appendix A: Select Events Showcased by U.S.-ASEAN Connect

# Name of Event Event Start Date

Event End Date

Involves Hi-Level Offical Travel (Y/N)

(Bilateral, Multilateral, ASEAN-wide, TBD)

Description of Event/Talking Points

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Global Entrepreneurship Summit (GES) - panel session organized by USAID on ASEAN Connect Navigating the ASEAN Market: Successes and Challenges in Investing in Southeast Asia

6/24/2016 6/24/2016 Y N/A

GES is a White House initiative that aims to showcase inspiring entrepreneurs and investors from around the world creating new opportunities for investment, partnership, and collaboration; connect American entrepreneurs and investors with international counterparts to form lasting relationships; and highlight entrepreneurship as a means to address some of the most intractable global challenges. This year, GES will be held in Silicon Valley to highlight America’s entrepreneurial spirit and allow American investors and entrepreneurs to connect with the opportunities that exist globally. USAID is convening a panel session on the entrepreneurship ecosystem in ASEAN, bringing in dynamic entrepreneurs and investors from across Southeast Asia.

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JOINT ACTI-PROGRESS SYMPOSIUM - ASEAN Economic Community (AEC) and its Implication on Judiciary:

TBD in July 2016 TBD N N/A

This is part of a planned multi-year US-PROGRESS program for the judiciary focusing on specific topics of the AEC. Investment was chosen as the first topic in view of its importance to ASEAN economic integration and the

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Investment Protection

fact that the study had highlighted several legal implications that needed the attention of ASEAN and the judiciary. The objective of this symposium is to work with the members of ASEAN judiciary on legal issues relating to ASEAN investment provisions in the ASEAN Comprehensive Investment Agreement, free trade agreements and bilateral investment treaties and to find possible solutions to protect and mitigate issues arising from increased regional investment.

3USAID’s Sankalp Southeast Asia Summit

11/2016(Exact Dates TBD)

11/2016(Exact Dates TBD)

N N/A

USAID is contributing to Sankalp Southeast Asia which is an annual forum that supports the growth of social enterprises in Southeast Asia. This forum works to create a dynamic ecosystem for entrepreneurship and innovation. Last year, Sankalp convened in Jakarta and will continue to hold these forums annually throughout Southeast Asia. In particular, Sankap will also support and connect women entrepreneurs through their networks.

4American Innovation Roadshow

3/1/2016 3/10/2016 Y Multilateral

The roadshow was led by Special Assistant to Secretary Kerry David Thorne with the participation of U.S. company representatives.

5 U.S.-ASEAN Connect Event TBD TBD TBD TBD

Deputy Secretary Blinken is exploring hosting a U.S.-ASEAN Connect-sponsored event during his travels to Indonesia.

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Regular speakers on entrepreneurship at the American Center

Recurring event

Recurring event

Recurring event Bilateral

The Public Affairs Section at the embassy in Hanoi hosts events with expert speakers to discuss entrepreneurship. This is a bilateral program listed as an example of the types of entrepreneurship exchanges that are possible for ASEAN and AMS under U.S.-ASEAN Connect.

7“Makers and Tinkers on the Wheel”

TBD TBD TBD TBD

The Public Affairs Section at the embassy in Hanoi program will showcase innovative technologies at provincial schools and universities. This is a bilateral program listed as an example of the types of entrepreneurship exchanges that are possible for ASEAN and AMS under U.S.-ASEAN Connect.

8ASEAN Council on Petroleum (ASCOPE) Board Meetings

5/17/2016 5/19/2016 Y Multilateral

ASCOPE will convene one of its two annual set of board meetings in Brunei to discuss progress on key projects under its jurisdiction, including the Trans-ASEAN Gas Pipeline and gas market integration. State/ENR will attend to brief on Energy Connect and present on U.S. views for cooperation with ASCOPE on natural gas infrastructure, policy, and market issues.

9 Asia Clean Energy Forum 6/6/2016 6/10/2016 Y Multilateral

ACEF is the preeminent, annual clean energy conference in Asia organized by ADB and USAID. ACEF will be a key opportunity to have senior USG representation message Connect through a keynote or panel participation. State/ENR also plans to hold a workshop on energy efficiency

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standards harmonization, a key component of Energy Connect's objectives to build more sustainable power sectors in ASEAN.

10U.S.-ASEAN Senior Officials' Meeting on Energy (SOME)

7/12/2016 7/15/2016 Y Multilateral

The U.S.-ASEAN SOME is the annual energy dialogue to gauge progress on the implementation of the U.S.-ASEAN Energy Cooperation Workplan and this year will be an opportunity to brief ASEAN's Senior Officials for Energy on U.S.-ASEAN Connect. State and DOE will participate, delegation composition still TBD.

11ASEAN Ministers of Energy Meeting (AMEM)

9/19/2016 9/23/2016 Y Multilateral

The AMEM is an annual meeting of ASEAN's Energy Ministers to endorse regional energy policy goals and objectives and to evaluate implementation efforts to implement the ASEAN Plan of Action on Energy Cooperation (APAEC). This could be an opportunity for high level engagement or an event related to Energy Connect.

12 AEM-USTR Consultation

Early August, TBC

Early August, TBC Y Multilateral

The AEM-USTR Consultation is the annual trade and investment dialogue to gauge progress on the implementation of the US-ASEAN TIFA Work plan. The U.S. delegation is led by USTR Michael Froman.

13 Cybersecurity workshop

Mid-2016 Mid-2016 N N/A USAID will organize a workshop to share experiences in cyber security and computer incident response with the objective of identifying future areas of collaboration with TELSOM on

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this critical issue.

14Symposium on financial inclusion

Mid 2016 Mid-2016 N N/A

USAID will provide capacity building and share best practices to facilitate development and implementation of national financial inclusion programs, including financial intermediaries and distribution channels, consumer education and protection.

15 Launch of the ASEAN SME Academy 5/2016 5/2016 N N/A

The launch, supported by USAID, will be held on the sidelines of ASEAN Coordinating Committee on Micro Small Medium Enterprise (ACCMSME)

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US-ASEAN Business Alliance workshops on improving SME competitiveness for access to regional and global supply chains in the digital economy

3/23/2016 4/12/2016 N N/A2 workshops supported by USAID to be held in Ho Chi Minh City and Vientiane

17 ASEAN Renewable Energy Week 2016 4/4/2016 4/8/2016 N N/A

This event will feature joint workshops with the Department of Energy and Brunei’s EIDPMO on 1) solar grid integration and 2) climate change risk mitigation for hydropower facilities

18 U.S.-ASEAN Telecommunications and IT Senior Officials/Ministers Meeting (TELSOM/TELMIN)

11/23/2015 11/25/2017 Y Multilateral The TELSOM/TELMIN is an annual meeting of ASEAN IT and telecommunications officials/ministers. The U.S. joined in 2015 as a dialogue partner to the TELSOM, and has proposed an ICT workplan under this new partnership focused on

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bridging the digital divide; e-commerce; emerging technologies; and capacity-building. Participants include State, USAID, FCC, and others tbd.

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Appendix B: Select Programs Showcased by U.S.-ASEAN Connect

# Name of Program Event Start Date

Event End Date

Involves Hi-Level Offical Travel (Y/N/TBD)

Description of Event/Talking Points

1ASEAN Connectivity through Trade and Investment - ASEAN Single Window

6/1/2013 6/1/2018 N

The USAID supported ASEAN Single Window (ASW) is a multi-year US-ASEAN initiative to support streamlined electronic border clearance of goods. Through this effort the ASEAN member states will reduce the time that it takes to move goods across borders and reduce costs, thus facilitating trade.

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ASEAN Connectivity through Trade and Investment - Trade and investment facilitation program

6/1/2013 6/1/2018 N

This multi-year program supports trade capacity building, standards harmonization, customs modernization, and other measures to facilitate trade in goods and services and improve the investment climate. In 2016, USAID will focus on promoting trade and investment reform through select work on standards, rules of origin, monitoring and evaluation, financial inclusion, and investment

3ASEAN Connectivity through Trade and Investment - SME competitiveness program

6/1/2013 6/1/2018 N

This multi-year program assists small and medium-sized enterprises (SMEs) to respond to the opportunities and the challenges of the AEC. With SMEs accounting for over 95 percent of the firms in the region, a healthy SME sector is

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a necessary foundation for broad economic growth. Specific program activities include: a region wide survey, focusing on a few (priority) sectors, on the main barriers and constraints and opportunities relating to supply chain integration in ASEAN

4ASEAN Connectivity through Trade and Investment - ICT for Development

6/1/2013 6/1/2018 N

This multi-year program supports Information and Communication Technology (ICT) and broadband development. Guided by the ASEAN ICT Master Plan, it helps ASEAN reduce the regional digital divide, improve livelihoods, and improve connectivity, thereby contributing to market integration both among ASEAN Member States and with countries outside of the region. In 2016 Annual Work Plan, USAID plans to work in four areas: Dynamic Frequency Allocation, Broadband Communication for Emergency Services, Cyber Security, and e-commerce. USAID additionally plans on conducting a study on the opportunities and challenges to help ASEAN countries leap forward in the digital economy.

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Connecting the Mekong through Training and Education (COMET) and YSEALI - World of Food Innovation Challenge

3/1/2016 2/1/2017 N

The World of Food Challenge is a way to collect innovative technology solutions to some of the region’s most complex challenges in the fields of agriculture, aquaculture and fisheries.

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6 USAID Clean Power Asia 9/1/2016 8/31/2021 Y

The purpose of USAID Clean Power Asia is to accelerate regional transition to high performing, low carbon power sector. The Activity will assist the governments of the Lower Mekong and other ASEAN member states in energy planning, effective policy, regulatory, and technical environment for low-emissions growth in the power sector. USAID Clean Power Asia will also simultaneously work to attract public- and private-sector investment in renewable energy development.

7USAID DCA Loan Guarantee with IIX on a Women's Livelihood Bond

TBD but likely 6/2016

9/1/2021 N

Later this year, USAID will launch a 5-year, $20.0 million 50% pari passu loan portfolio guarantee, supporting the underlying investments of a four year bond issuance, will provide the necessary scale to reach eight social enterprises (SEs) and microfinance institutions (MFIs) focused on women’s livelihood across Southeast Asia, including vocational training and economic sectors especially accessible to women (fair trade organizations, agriculture, etc). These eight borrowers have already been identified and are located in four countries: Cambodia, Philippines, Vietnam and Indonesia.

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8 USAID’s Sankalp Southeast Asia Summit Series 11/24/2015 9/30/2019 N

USAID is contributing to Sankalp Southeast Asia which is an annual forum that supports the growth of social enterprises in Southeast Asia. This forum works to create a dynamic ecosystem for entrepreneurship and innovation. Last year, Sankalp convened in Jakarta and will continue to hold these forums annually throughout Southeast Asia. In particular, Sankap will also support and connect women entrepreneurs through their networks.

9 Young Southeast Asian Leadership Initiative (YSEALI) – Economic Programs

11/1/2016 11/8/2016 Y Launched in 2013, the Young Southeast Asian Leaders Initiative (YSEALI) is U.S. President Barack Obama’s signature program to strengthen leadership development and networking in Southeast Asia. Through a variety of programs and engagements, including U.S. educational and cultural exchanges, regional exchanges, and seed funding, YSEALI seeks to build the leadership capabilities of youth in the region, strengthen ties between the United States and Southeast Asia, and nurture an ASEAN community. YSEALI focuses on critical topics identified by youth in the region: civic engagement, environment and natural resources management, and entrepreneurship and economic development.

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U.S.-ASEAN Connect will showcase various YSEALI economic programs focused on economic development, entrepreneurship and innovation.

10 Smithsonian Entrepreneurship Incubator course II 6/1/2016 10/1/2016 TBD

Entrepreneurship programming conducted by the Public Affairs Section in Hanoi. This is a bilateral program listed as an example of the types of entrepreneurship exchanges that are possible for ASEAN and AMS under U.S.-ASEAN Connect.

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