one vision
one identity
one community

ASEAN’S Free Trade Agreements
Tokyo
6 March 2013

ASEAN Secretariat

ASSOCIATION OF SOUTHEAST ASIA NATIONS (ASEAN)

ASEAN Trade and Economic Performance

Trend: Export, Import, and Total Trade
3,000.0

Trend in ASEAN export, import, and total trade, 1993‐2011 (in USD billions)2,500.0

2,388.6

2,000.0

1,536.9

1,500.0

1,243.5
1,145.0
1,000.0
Export500.0

Import
429.9

Total

223.3
‐
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

ASEAN trade increased significantly from USD 430 Billion in 1993 to USD 2.4 Trillion in 2011.
Likewise, exports and imports also increased remarkably, both from USD223.3 billion and
USD429.9 to USD1,243.5 billion and USD1,145 billion respectively for the same period.

Trend in ASEAN Trade Balance
120

109

Graphic 4.2 ASEAN Trade Balance, 1993‐2011 (in USD Billions)
100

97

80
60

60

67

61
50

99

2010

2011

84

81

57

96

71
58

54

40
20
0
1994

1995

‐20

‐22

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

‐13

‐20
‐27

‐40

Since 1998 ASEAN has been recording trade surplus, peaking at USD 109 Billion in 2007,
declined in 2008 (global economic crisis) and has picked up to reach the second highest
recording in 2011 at USD99 billion.

Share of ASEAN Trade with Dialogue Partners
Trade Partners
Intra ASEAN
Australia
Canada
China
EU‐27
India
Japan
Korea, Republic of
New ZealandPakistan
RussiaUSA
OthersTOTAL

Share of ASEAN Trade (%)
1993
2000
19.2
22.0
2.1
2.3
0.8
0.6
2.1
4.3
14.7
13.5
0.7
1.3
20.2
15.3
3.1
3.9
0.3
0.3
0.2
0.5
0.1
0.2
17.6
16.1
19.0
19.8
100.0
100.0

2011
25.0
2.5
0.5
11.7
9.8
2.9
11.4
5.2
0.3
0.3
0.6
8.3
21.4
100.0

ASEAN Trade: Selected Partners(US$ Million)
300,000
250,000
200,000

1993

2003

2011

150,000
100,000
50,000‐Intra‐ASEAN trade is the largest contributor; China has become
ASEAN’s largest trading Partner since 20097

FDI Into ASEAN, US$ Million
120,000

114,111

100,000

92,27984,152

US$ Million

80,00060,00046,89740,00029,27821,80920,000

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

8

Share of ASEAN FDI with Dialogue Partners
Share of ASEAN FDI (%)
FDI Sources
Intra ASEAN
Australia
Canada
China
EU‐27
India
Japan
Korea, Republic of
New ZealandPakistan
RussiaUSA
Others
TOTAL

1999

2000
16.5
(3.4)
(0.1)
0.2
35.8
(1)
0.2
6.2
1.9
0.3
0.0
0.0
21.5
30.9
100.0

2011
3.9
(1.7)
(3.6)
(0.7)
59.6
(1)
0.4
2.5
(0.2)
0.2
0.0
0.0
34.3
5.1
100.0

23
1.2
0.9
5.3
16.0
(1)
(1.6)
13.2
1.9
0.0
0.0
0.0
5.1
34.9
100.0

ASEAN ECONOMIC COMMUNITY(AEC)

A Historical Account of AEC
ASEAN Free
Trade Area
(AFTA)

1967

1992

1997

Birth of ASEAN ASEAN
Vision 2020

Hanoi
Plan of
Action(HPA)Vientiane
ActionProgramme
(VAP)

1998

2003

Bali
Concord II

2004

Entry into
Force of Master PlanASEAN on ASEAN
Charter Connectivity

2007

2008

2009

2010

2011

ASEAN Framework for
Regional Economic
Comprehensive
ASEAN Economic
Partnership & ASEAN
Roadmap for the Framework on Equitable
Community
ASEAN
Economic Development
Blueprint

Community (20092015)

Stages Towards an
ASEAN Economic Community

Why ASEAN Economic Community?
• Recognise the need to not only build resilience tocushion ASEAN from the adverse impact of any
internal and/or external shocks but alsosustainable growth• Emerging regional economic architecture ‐ rise of
China, India and other emerging economies
underscores the importance of creating a stronger,
more united and cohesive ASEANSTEPS Towards ASEAN Integration• AEC is a natural progression towards the nextlevel of economic integration as ASEAN matures
after 40 years• Traditional approach of tariff and non‐tariffbarriers insufficient – need a comprehensive
strategy to upgrade competitiveness of ASEAN• Creation of ASEAN Economic Community (AEC)
through: “a single and coherent blueprint foradvancing the AEC”

Foundation of theASEAN Economic Community• An AEC Blueprint to provide ASEAN Member
Countries a strategic plan for the short tomedium‐term towards 2015
• Strategic Schedule includes key milestones for acomprehensive and deeper economic integration
by 2015• Four‐phase approach (2008‐09, 2010‐11, 2012‐13,
and 2014‐15)

ASEAN Economic Integration Framework• Internal Integration – ASEAN Economic Community– Single market and production base
– Competitive economic region– Equitable economic development– Integration into the global economy• External – FTAs and CEPs
– Enhance market access– To remain competitive vis‐à‐vis countries/blocs
directly competing with ASEAN– ASEAN Centrality

4 PILLARS OF THE AEC

ASEAN Economic Community
Strategic Schedule of the AEC Blueprint (2008‐2015)

AEC Pillar 1

AEC Pillar 2

AEC Pillar 3

AEC Pillar 4Single Market &Production Base

Competitive
Economic Region

Equitable Economic
Development

Integration into
the Global Economy•SME development•Initiative for ASEAN
Integration•Coherent approach
towards external
economic relations•Enhanced
participation in global
supply networks•Free flow of goods•Free flow of services•Free flow ofinvestment•Freer flow of capital•Free flow of skilledlabor•Priority Integration
Sectors•Food, agriculture andforestry•Competition policy•Consumer protection•Intellectual property
rights•Infrastructuredevelopment•Taxation•E‐Commerce

HUMAN RESOURCE DEVELOPMENTRESEARCH AND DEVELOPMENT
17

ASEAN ECONOMIC COMMUNITY‐ Status and FTAs Update

Four‐Phase Approach on Implementation of AEC Blueprint

A
E
C
2014 ‐ 20152012 – 2013(70.5% completed)2010 – 2011(67.4% completed)2008 – 2009(87.6% completed)

Combined : Jan 2008 – Oct 2012(74.5% completed)

19

PILLAR 4
INTEGRATION INTO THE GLOBAL ECONOMY

20

The Role of ASEAN Agreements andRegional FTAs
Main ASEAN
Agreements

Regional FTAs

ACIA
(Investment)

AFAS(Services)

ATIGA(Goods)China, ROK, Japan, India,
Australia & New Zealand• Opening up economies to greater investment & trade• Providing stability, predictability & transparency in the businessenvironment

FTAs in ASEAN‐ Entry into force• ASEAN Free Trade Agreement (AFTA) – 1993
• ASEAN‐China Free Trade Agreement (ACFTA) – 2005
• ASEAN‐Korea Free Trade Agreement (AKFTA) – 2007
• ASEAN‐Japan Comprehensive Economic Partnership(AJCEP) – 2008
• ASEAN‐Australia‐New Zealand Free Trade Agreement(AANZFTA) – 2010
• ASEAN‐India Free Trade Agreement (AIFTA) – 2010

ASEAN Free Trade Area

• Established in 1992, realised on 1 January 2010
(ASEAN‐6) as 99% of total tariff lines eliminated for
intra‐ASEAN trade• Average tariff for ASEAN‐6 is now 0.95% from 12% in
1992• AFTA for CLMV will be realised as early as 1 January
2015 (part of the S&D given to CLMV as new ASEAN
members and as least developed ASEAN Members)• Ultimate goal is free flow of goods in 2015 as ASEAN
realises the ASEAN Economic Community

ASEAN Trade in Goods Agreement(ATIGA)• Signed in Thailand on 26 February 2009 and enteredinto force on 17 May 2010
• Supersedes the 1993 Agreement on Common
Effective Preferential Tariff Scheme (CEPT)• Provides the legal framework to realise free flow ofgoods in the ASEAN Economic Community• Covers more than tariff liberalisation ‐ includes
substantive chapters on enhanced ROO, tradefacilitation, customs procedures, STRACAP(standards, technical regulations and conformity
assessment procedures) and SPS

ASEAN Framework Agreement in Services(AFAS)• 8th Package of Commitments‐ Completed; two more packages• Mutual Recognition of Arrangement‐ Roadmaps/Implementation Plan to operationalise
the 7 MRAs being considered by the MRA
committees• ASEAN Agreement on Movement of Natural Person‐ Endorsed by 44th AEM Meeting in August 2012 andsigned in the sidelines of the 21st ASEAN Summit inNovember 2012
25

ASEAN Comprehensive Investment Agreement(ACIA)• ASEAN Comprehensive Investment Agreement(ACIA)‐ view to creating a free, open and transparent
investment environment in line with ASEAN’s
economic integration goals‐ took effect on 29 March 2012
‐ includes provisions for promotion, facilitation,
protection and liberalisation
Modalityfor
Elimination/Improvementof
Investment Restrictions and Impediments in
ASEAN Member States
26

ASEAN’s Plus One FTAs•

Compelling Reasons:‐ ASEAN has been dependent on its major trading partners
for trade and investment‐ create stability andpredictability‐ Pause at WTO: With the growing trend towards free tradeand comprehensive economic partnership arrangements,
ASEAN has to enhance its level of competitiveness, expand
its market access opportunities through bilateral FTAs

• Target/Strategy:

ASEAN’s FTAs with its major
trading/dialogue partners within the region has become
ASEAN’s main economic strategy for integrating the region
into the global economy

ASEAN’s Plus One FTAs

• Approach: Two pronged approach:‐ Create a single market and production base
‐ Integrating into Regional and Global Economies•Role: Playing special role in the next steps – acentral role – in the emerging regionalarchitecture in East Asia/Asia Pacific Region

Approach to FTA Negotiations

Sequential• Framework Agreement• Trade in Goods• Trade in Services• Investment

SingleUndertaking• Comprehensive
agreement covering
goods, services,
investment,
economiccooperation, otherrelated disciplinesF
TA

ASEAN Plus FTAs
• ASEAN + China and ASEAN + Korea‐ Goods, services and investment
agreements signed• ASEAN + India‐ Goods completed; Negotiations Completed: services and investment• ASEAN + Japan‐ Goods completed; still to conclude services and investment• ASEAN + Australia + New Zealand‐ Comprehensive agreement implemented
1 January 201030

ASEAN‐China Free Trade Agreement• Negotiated using a “sequential approach”• ASEAN’s only FTA that provided for an Early Harvest Programme,
implemented in 2004
• Trade in Goods Agreement signed in 2004 and implemented in
2005; ROO review being undertaken• Trade in Services Agreement signed 2007; 2nd Package ofSpecific Commitments signed in November 2012. It improves
the first services offer thus improve the level of liberalization intrade in services.
• Investment Agreement signed in 2009
• ACFTA realised on 1 January 2010
• Total population of 1.95 billion with a combined GDP of US$9.4
trillion (2011)

ASEAN‐China FTA
ASEAN-CHINA
FTA(Framework
Agreement, 2002)
INVESTMENT- Agreement signed in 2009

GOODS

- EHP in 2004;- Agreement signed in 2004
and implemented in 2005

SERVICES- Agreement signed in 2007
- 2nd package of specificcommitments completed
and signed in November
2012

ASEAN – CHINA FREE TRADE AGREEMENTThe Trade in Goods Agreement•Signed in 2004 and implemented in 2005
•Technically been realized on 1 January 2010 when tariffs onabout 90% of products traded by ASEAN 6 and China within the
FTA (i.e. products classified in the so‐called Normal Track) were
eliminated•The rest of the ASEAN Member States – Cambodia, Lao PDR,
Myanmar and Viet Nam – were given longer time frames fortariff elimination as part of the special and differential
treatment given to the less developed ASEAN members.

ASEAN – CHINA FREE TRADE AGREEMENTThe Trade in Services Agreement‐Signed on 14 January 2007.
‐Aims to liberalize and substantially eliminate discriminatory
measures with respect to trade in services among the Parties invarious services sectors.
‐With the GATS Plus principle applied, the level of liberalizationcommitments under this Agreement are considerably higher than thecommitments made by participating countries under the General
Agreement on Trade in Services (GATS) in the WTO.
‐A second package of specific commitments under the ASEAN‐China
Trade in Services Agreement was signed in November 2012.

ASEAN – CHINA FREE TRADE AGREEMENT
Investment Agreement•Signed on 15 August 2009
•Aims to create a favorable environment for investors and theirinvestments from ASEAN and China•Stipulates key protection elements aimed at:‐ providing fair and equitable treatment to investors‐ non‐discriminatory treatment on nationalization or expropriationand compensation for losses.
‐ allowing transfers and repatriation of profits to be made freely andin freely usable currency.

• Furthermore, the Agreement also has a provision on investor‐state
dispute settlement that provides investors recourse to arbitration.

ASEAN‐Korea Free Trade AGREEMENT• Negotiated using a “sequential approach”• Introduced the concept of Product Specific Rules• Trade in Goods Agreement implemented in 2007, without
Thailand• Trade in Services Agreement signed 2007, without Thailand• Thailand acceded to both the Goods and Services Agreements
in 2009• Investment Agreement signed in 2009
• AKFTA realised on 1 January 2010
• Total population of 653 million with a combined GDP of US$3.2
trillion (2011)

ASEAN-KOREA FTA(Framework
Agreement, 2005)

TIG

INVESTMENT- Agreement implemented in 2007
- FTA to be realized in 2010
- Thailand accession, 2009

- Agreement signed in 2009

TIS

- Agreement signed in 2007
- Entry into force, 2009
- Thailand accession, 2009

ASEAN – KOREA FREE TRADE AGREEMENTThe Trade in Goods Agreement‐ signed in August 2006 and implemented in 2007
‐ provides for the elimination of tariffs on products in the Normal Track of
ASEAN 6 and Korea by 1 January 2010, which means realized at the sametime with ACFTA.
The Trade in Services Agreement‐ Signed in 21 November 2007
‐ Provides the platform for further opening up or greater market access for
ASEAN and Korean services providers.
‐ Improving levels and depth of commitments through the addition of new
sectors/subsectors in the list of commitments‐ Easing up of restrictions on entry and treatment on a wide range ofservices sectors including business, construction, education,communication services, environmental, tourism services, and transport
services.

ASEAN – KOREA FREE TRADE AGREEMENT• Agreement on Investment‐ signed on 2 June 2009

‐ aims to provide for a transparent, facilitative and a moresecure environment for ASEAN and Korean investors andtheir investments• Key provisions:‐ stipulate prompt publication and publicly making availablelaws, regulations, judicial and administrative rulings as wellas international agreements or any changes to it that may
affect this Agreement‐ Enquiry point on informationASEAN – KOREA FREE TRADE AGREEMENT• Protection elements under AKFTA Investment Agreement‐ Provisions on fair and equitable treatment and full protection andsecurity of covered investments‐ Transfers of funds relating to covered investments‐ Treatment relating to compensation in case of losses incurred due toarmed conflict, state of national emergency, and civil strife‐ Compensation in the event of nationalization or expropriation ofcovered investments‐ Also in case of disputes, investors have recourse to arbitration as theAgreement provides for an investor‐state dispute settlement
mechanism

ASEAN‐Japan Comprehensive Economic
Partnership (AJCEP)• The AJCEP Agreement was signed in April 2008 and entered into force
in December 2008

• First single‐undertaking FTA agreement where specific provisions andcommitments in services and investment have been made part of built‐
in agenda• First FTA to have an elaborate section on trade facilitation, SPS,STRACAP and economic cooperation, among others• Unique: bilateral EPAs (7) vis‐à‐vis regional AJCEP Agreement signed in•

April 2008 and entered into force in December 2008
The FTA between ASEAN and Japan – comprising a market of 731
million people with a combined GDP of US$ 8.04 trillion (2011)• As part of the built‐in agenda of the AJCEP Agreement, services andinvestment Chapters to be negotiated later – currently being
negotiatedTIG- Bilateral vs regional commitments- Regional cumulation- Trade facilitation, including customs,
SPS and standards- FTA to be realized within 10 years fromEIF

TIS
- Specific details and regional
commitments part of built-in agenda

ASEAN-JAPAN CEP- Signed April 2008
- Entry into force Dec 2008

ECONOMIC
COOPERATION- Identified areas including intellectual
property

INVESTMENT- built-in agenda

ASEAN‐Australia New Zealand Free Trade
Agreement• Negotiated as a single undertaking• Agreement establishing the AANZFTA signed on 27
Feb 2009 and entry into force on 1 Jan 2010
• Considered the most comprehensive, most ambitious
FTA ASEAN has to‐date• Includes chapters not in any of ASEAN’s FTAs: IP,
MNP, electronic commerce and competition• Total population of 631 million with combined GDP
of US$3.8 trillion (2011)

Competition

IP

Economic

Cooperation

DSM

AANZ
FTA

Goods
Customs
STRACAPSPS

2009

Services
Finance

E-CommTELCO
MNP
Investment

ASEAN‐Australia‐New Zealand Free Trade Area
(AANZFTA)• Commitment of both sides under this agreement:‐ Progressively liberalize tariffs from the entry into force of the Agreement andeliminate tariffs on at least 90 per cent of all their tariff lines within timeframes
specified in the Agreement‐ Progressively liberalize barriers to trade in services and allow for greater
market access for the other Parties services suppliers‐ Facilitate the movement of natural persons for those engaged in trade andinvestment activities in the region‐ Accord protection to covered investments, in terms of treatment ofinvestment, compensation for losses, transfers relating to profit and capital,
and transfer of rights or claims to investment‐ Facilitate the movement of goods by implementing specific provisions on rulesof origin; customs procedures; SPS measures; and standards, technicalregulations and conformity assessment procedures.

ASEAN-India Free Trade Area

• Framework Agreement on Comprehensive Economic
Cooperation between ASEAN and India was signed
on 2003.
• Negotiated using a “sequential approach” similar to
ACFTA and AKFTA• Trade in Goods Agreement signed in August 2009and entry into force on 1 January 2010
• Unique General ROO: 35% + CTSH
• Agreement on Services and Investment negotiations
completed and to be signed in August 2013
• Total population of 1.8 billion with combined GDP of
US$3.8 trillion (2011)

ASEAN-INDIA FTA(Framework
Agreement, 2003)

TIG

INVESTMENT- Negotiations completed in 2008
- Signed in 2009
- Level of ambition different fromASEAN’s other FTAs

- Negotiations completed- Target date for signing 2013

TIS

- Negotiations completed- Target date for signing 2013

ASEAN‐India Free Trade Area (AIFTA)
Trade in Goods Agreement•Provides for progressive tariff reduction and/or elimination of originating goods(subject to compliance with the rules of origin, i.e. regional value content of 35%
plus change in tariff sub‐heading) traded by the ten ASEAN Member States and
India•Under the normal track, tariffs imposed by‐ASEAN 6 (except Philippines) and India will be eliminated by 2016.
‐Philippines and India will only be eliminated by 2019

•A longer time frame is given for Cambodia, Lao PDR, Myanmar and Viet Nam(CLMV) to eliminate tariffs on normal track goods•the only agreement that provides for a special products category whereby crude
and refined palm oil, coffee, black tea and pepper are subject to a different
reduction schedule

ASEAN PLUS ONE FTAs
CONSOLIDATION

49

ASEAN FTAs: key convergence/divergence
Element

AFTA

ACFTA

AKFTA

AJCEP

AANZFTA

AIFTA

01.01.10

01.01.10

01.01.10

within 10 yrs

2015

2016

more than 99%
none
none
rice and sugar
5% (UAP)at least 90%
yes (tech)none (tech)none
20% (SL)
50% (HSL)at least 90%
None
40 TL
none

at least 90%
none
1% (total trade)none

90%, 100%
None
Yes
None

at least 80%
None
About 500 TLs
Coffee, tea,
pepper andpalm oil

Rules of Origin

RVC (40) or CTC;
PSRs

RVC (40); limited
PSRs

RVC (40) orCTC; PSRs

RVC (40) orCTC; PSRs

RVC (40) orCTC; PSRs

RVC 35%+CTSH

SPS/TBTyesyesminimal

yes

yes

None

Services andInvestment

AFAS and ACIA

Yes (only
protection forinvestment)Yes(liberalisationforinvestment inbuilt-inagenda)Built-in agenda
Beingnegotiated

Yes

Yes

Realisation

Tariffs• elimination• standstill• exclusion• special prods• max tariffs

ASEAN’s FTA Network
AFTA

ACFTA

AKFTA

AJCEP

AIFTA

AANZFTA

Entry into
force

1993

2005

2007

2008

2010

2010

Market size
(million)

605

1,953

654

733

1,812

637

Econ size (US$,trillion)

2.2

9.5

3.3

7.1

3.9

3.8

Goods
Services
Investment

Goods
Services
Investment

Goods
Services
Investment

Goods(services &investment inbilateral EPAs)

Goods
Services
Investment

Goods
Services
Investment,
etc.

2010

2012

2012

2026

2019

2020

40% or CTH
PSRs

40%
Limited PSRs

40% or CTH
PSRs

40% or CTH
PSRs

35%+CTSH

40% or CTH
PSRs

2,388.6

6,030.5

3,468.2

4,066.2

3,155.8

2,977.5

Coverage

Duty phaseout date(A6+DP)
ROO
Total trade(US$, billion)

ASEAN Trade with FTA Partners
300.0

250.0

Total Trade, in billion US$

200.0

150.0

100.0

50.0

0.0
2009

China
178.2

India
39.1

Japan
160.9

Korea
74.7

ANZ
49.2

2010

232.0

55.4

206.6

98.6

62.8

2011

280.4

68.4

273.3

124.5

67.7

52

Summary of Tariff Outcomes: ASEAN

100.0
90.0
80.0

Percentage

70.0
60.0
50.0
40.0
30.0
20.0
AKFTA
AJCEP
AIFTA

10.0
0.0
BR

CA

ACFTA

ID

LA

MY

AANZFTA
MN

PH

MFN=0

SG

TH

VN

MFN=0

BR
81.0

CA
0.0

ID
22.5

LA
0.0

MY
59.2

MN
0.0

PH
2.4

SG
100.0

TH
21.6

VN
37.1

AANZFTA

98.7

86.2

93.9

90.5

95.5

86.1

94.7

100.0

98.8

90.6

ACFTA

97.3

86.7

88.7

97.3

93.7

91.3

89.4

99.9

90.1

90.4

AIFTA

80.4

84.1

50.1

77.5

84.8

73.0

75.6

100.0

75.6

69.3

AJCEP

96.5

75.4

0.0

86.6

94.1

81.2

92.4

100.0

93.2

88.6

AKFTA

98.5

75.4

94.1

85.4

95.5

87.3

88.5

100.0

89.9

83.8

53

Summary of Tariff Outcomes: AFPs

100
90
80

Percentage

70
60
50
40
30
20
10
0
AU
CN
IN
JP
KR
NZ

MFN=0

AU
18.8

CN
7.4

IN
2.8

JP
53.8

KR
15.6

NZ
63.1

ASEAN+1 FTA

100

94.6

74.2

91.9

92.1

100

54

THE ASEAN FTA TIMELINES

AKFTA
2010

ACFTA
2012

AIFTA
2016

AANZFTA
2020

AJCEP
2026

55

ROO in ASEAN’s FTAs (1)• Rationale: to ensure that only “qualifying” products are
eligible and able to enjoy tariff preferences• Rules of Origin provisions in ASEAN’s FTAs include:– Rules of Origin Chapter/Appendix (for the general provisions,principles and definitions)– Annex on Operational Certification Procedures– Annex/Attachment on Product Specific Rules (except for AIFTA)• Qualifying goods– Wholly obtained or produced– “Substantially transformed” products (value‐added, change intariff classification, specific process)56

NO PSRs

40%
RVC or
CTH(40.2%of TL)AANZFTA

PSRs

35%
RVC +
CTSH
(100%
of TL)

AIFTA

PSRs

40%
RVC or
CTH(57.9%of TL)AJCEP

PSRs(limited)40%
RVC or
CTH(76.4%of TL)

AKFTA

40%
RVC
(89.6%of TL)ACFTA

ROO in ASEAN’s FTAs (2)

PSRs

57

ROO in ASEAN’s FTAs (3)• Significant number of tariff lines in AKFTA,AJCEP and AANZFTA are subject to more
liberal rules of origin• All FTAs have provisions for cumulative rulesof origin (to support integration into theregional supply chain)• Only ACFTA and AIFTA have no de minimis
provisions• More of less uniform operational certification
provisions
58

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP(RCEP)

59

TransPacific
Partnership?

Emerging Regionalism‐ Economic Regional Architecture

Trilateral
Agreement
ChinaJapanKorea?

EAS- Includes
Russia and the US

ASEAN REGIONALCOMPREHENSIVEECONOMICPARTNERSHIP - P
Source: Emerging
Asian Regionalism, A
Partnership for Shared
Prosperity

60Regional Comprehensive Economic Partnership (RCEP)• RCEP: Integrating ASEAN Plus One FTA Partners (China + Japan +Rep. of Korea + Australia + New Zealand + India):‐ ASEAN Centrality has been acknowledged by all Parties; toensure this will be a challenge for ASEAN ‐ especially with
Australia, China & Japan‐ Indonesia is the lead country for ASEAN to spearhead thenegotiations‐ Tough and complicated‐ Pragmatic approach important‐ Professes open regionalism – others may join once completed
61

ASEAN‐JAPAN RELATIONS

62

ASEAN‐JAPAN RELATIONS• 2013 marks 40th Anniversary of ASEAN‐Japan Dialogue
Relations‐ Japan’s
plan
to
hold
the
ASEAN‐Japan
Commemorative Summit in December 2013
• Disaster Management: Japan’s strong support to the
ASEAN Humanitarian Assistance Centre (AHA), in
particular for its funding through Japan‐ASEAN
Integration Fund (JAIF)• Youth Exchange Programme

63

ASEAN‐JAPAN ECONOMIC RELATIONSJapan is an important Economic Partner for ASEAN: Japan’s economic
activities support very much all of ASEAN’s Four AEC Pillars –‐ is one of the most important trading partner for ASEAN. Consistently
ranking among the top 3 trading and source of FDI inflows into
ASEANs‐ Supports ASEAN’s specifically the realisation of AEC Pillar 1 – thecreation of a single market and production base through network of
subsidiary companies in the various Member States based oncomparative advantage• ASEAN‐Japan 10‐Year Strategic Economic Cooperation Roadmap• Japan has indicated support for Master Plan on ASEAN Connectivity(MPAC)• Japanese Private Sector Engagement with ASEAN: Federation ofJapanese Chamber of Commerce and Industry in ASEAN (FJCCIA) –model replicated by other international business councils•

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