one vision one identity

one community

Regional Approach to Standardization and their Impacts

on ASEAN

Regional Seminar on Standard and Standardization, Linkages to Regional Integration and Trade Promotion

17-18 December 2013, Vientiane, Lao PDR

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OUTLINE

TRADE and ECONOMIC PERFORMANCEASEAN ECONOMIC COMMUNITY (AEC)

Free flow of goodsTrade in GoodsCustomsStandards & Conformance

ASEAN Consultative Committee for Standards and Quality (ACCSQ) and AEC

ASEAN and FREE TRADE AREA (FTA)

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TRADE AND ECONOMIC PERFORMANCE

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Trend: Export, Import, and Total Trade

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.

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Trend in ASEAN Trade Balance

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.

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Share of ASEAN Trade with Dialogue Partners

Trade Partners Share of ASEAN Trade (%)

1993 2000 2011 Intra ASEAN 19.2 22.0 25.0 Australia 2.1 2.3 2.5 Canada 0.8 0.6 0.5 China 2.1 4.3 11.7 EU-27 14.7 13.5 9.8 India 0.7 1.3 2.9 Japan 20.2 15.3 11.4 Korea, Republic of 3.1 3.9 5.2 New Zealand 0.3 0.3 0.3 Pakistan 0.2 0.5 0.3 Russia 0.1 0.2 0.6 USA 17.6 16.1 8.3 Others 19.0 19.8 21.4

TOTAL 100.0 100.0 100.0

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Share of ASEAN FDI with Dialogue Partners

FDI Sources

Share of ASEAN FDI (%)

1999 2000 2011 Intra ASEAN 16.5 3.9 23 Australia (3.4) (1.7) 1.2 Canada (0.1) (3.6) 0.9 China 0.2 (0.7) 5.3

EU-27 35.8

(1)59.6

(1)16.0

(1) India 0.2 0.4 (1.6) Japan 6.2 2.5 13.2 Korea, Republic of 1.9 (0.2) 1.9 New Zealand 0.3 0.2 0.0 Pakistan 0.0 0.0 0.0 Russia 0.0 0.0 0.0 USA 21.5 34.3 5.1 Others 30.9 5.1 34.9

TOTAL 100.0 100.0 100.09

ASEAN Economic Community (AEC)

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ASEAN Economic CommunityASEAN Economic Community

Strategic Schedule of the AEC Blueprint (2008-2015)Strategic Schedule of the AEC Blueprint (2008-2015)

AEC Pillar 1 Single Market & Production Base

•Free flow of goods•Free flow of services•Free flow of investment•Freer flow of capital•Free flow of skilled labor•Priority Integration Sectors•Food, agriculture and forestry

AEC Pillar 2 Competitive

Economic Region

•Competition policy•Consumer protection•Intellectual property rights•Infrastructure development•Taxation•E-Commerce

AEC Pillar 3 Equitable Economic

Development

•SME development•Initiative for ASEAN Integration

AEC Pillar 4 Integration into

the Global Economy

•Coherent approach towards external economic relations•Enhanced participation in global supply networks

HUMAN RESOURCE DEVELOPMENT RESEARC H AND DEVELOPMENTHUMAN RESOURCE DEVELOPMENT RESEARC H AND DEVELOPMENT

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4 PILLARS OF THE AEC4 PILLARS OF THE AEC

ASEAN Economic CommunityASEAN Economic Community

Strategic Schedule of the AEC Blueprint (2008-2015)Strategic Schedule of the AEC Blueprint (2008-2015)

HUMAN RESOURCE DEVELOPMENT RESEARC H AND DEVELOPMENTHUMAN RESOURCE DEVELOPMENT RESEARC H AND DEVELOPMENT

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4 PILLARS OF THE AEC4 PILLARS OF THE AEC

Free flow of goodsFree flow of goodsTrade in GoodsCustomsStandards & Conformance

• Succeeds the Agreement on Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area (CEPT-AFTA), which mainly covered tariff liberalization.

• ATIGA brings into one single agreement all aspects of trade in goods and provides the legal framework to realize free flow of goods within the AEC

ASEAN Trade in Goods Agreement (ATIGA)ASEAN Trade in Goods Agreement (ATIGA)

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• ATIGA covers more than tariff liberalization as it includes substantive chapters on: • enhanced ROO

• disciplines on the application of NTMs and the elimination of NTBs

• trade facilitation work program

• customs procedures

• Standards, Trade Regulations and Conformity Assessment Procedures (STRACAP) and Sanitary and Phyto-Sanitary Measures (SPS)

• Signed in February 2009, it entered into force on 17 May 2010

ASEAN Trade in Goods Agreement (ATIGA)ASEAN Trade in Goods Agreement (ATIGA)

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Trade in Goods

• Elimination of Duties (1 Jan 2010) • ASEAN-6 99.65% tariff lines eliminated • CLMV 98.86% tariff lines reduced to 0-5%

• Elimination of Non-tariff barriers (NTBs) • Work Programme on ASEAN NTMs• Matrix of actual cases NTM/trade barriers

• Rules of Origin: Self Certification Pilot Project • Enable certified exporters to self-certify the origin of

exports to enjoy preferential tariffs under ASEAN Trade in Goods Agreement.

• Implemented through Self-certification Pilot Project. • ASEAN-wide implementation of Self-certification by 2015.

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Customs• ASEAN Agreement on Customs

• Operationalise the customs chapter of ASEAN Trade in Goods Agreement – signed on 30 April 2012

• ASEAN Single Window• Single point of decision for the release of cargo• Implementation of the ASW Pilot Project to exchange test data

initially scheduled for 2 months- Extended to 31 March 2013- Extension to allow for parallel testing for interested Member

States• Working on the completion of the Legal Framework Agreement for

the eventual live ASW implementation

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Standards and Conformance• Address Technical Barriers to Trade for Priority Integration

Sectors (PIS)

• Single regulatory regime/framework agreement for PIS (cosmetics, electrical and electronic equipment and medical device, traditional medicines and health supplements.)

• Harmonisation of standards (agro-based products, automotive, cosmetics, electrical and electronic equipment, medical devices, rubber-based products, wood-based products)

• Mutual recognition arrangements for recognition and acceptance of conformity assessment results (automotive, agro-based products, electrical and electronic equipment and pharmaceuticals)

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Standards and Conformance

• Enhancement of regional policies for standards and conformance through revision of the ASEAN Policy Guidelines for Standards and Conformance.

• Implementation of the ASEAN Good Regulatory Practice Guide.

• Engaging the business community through participation at regional meetings and organisation of Public-Private Forum

ASEAN Consultative Committee for Standards and Quality (ACCSQ) and ASEAN Economic Community (AEC)

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ACCSQ Structure

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ACCSQ towards AEC – Standards • Harmonization of Standards and/or Technical Requirements

– Based on international standards and practices– Without compromising health and safety of consumers

and quality of the product– Achieving harmonised standards and procedures for

ASEAN region

• Priority Sectors:– Agro-based products (prepared foodstuff and fisheries)– Automotive– Healthcare products (Cosmetics, Medical Device, Pharmaceutical, Traditional

Medicines and Health Supplements)– Rubber-based– Electrical and Electronic Equipment– Wood based products– Building and Construction materials

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ACCSQ towards AEC - MRAs

• Mutual Recognition Arrangements (MRAs)

– Guided by ASEAN Framework Agreement on MRAs (1998)

– Recognition of conformity assessment results (testing, inspection and certification)

– Competence criteria following international standards and practices

– Nomination and listing of conformity assessment bodies

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ACCSQ towards AEC - MRAs

• Implementation of MRAs– ASEAN Sectoral MRA for Electrical and Electronic

Equipment (2002)– ASEAN MRA of Product Registration Approval for Cosmetics

(2003) (MRA is Schedule A of the ASEAN harmonised Cosmetics Regulatory Scheme)

– ASEAN Sectoral MRA for GMP Inspection of Manufacturers for Medicinal Products (2009)

• MRAs under consideration– MRA on Recognition of Conformity Assessment Results for

Prepared Foodstuff– ASEAN MRA on Type Approval for Automotive Product

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ACCSQ towards AEC – Regulatory Regimes

• Harmonised Regulatory Regimes– Agreement on the ASEAN Harmonised Cosmetic

Regulatory Scheme (2003) – ASEAN Cosmetic Directive (Schedule B)

– Agreement on the ASEAN harmonised Electrical and Electronic Equipment Regulatory Regime (2005)

• Under consideration– ASEAN Medical Device Directive – ASEAN Regulatory Framework for Traditional

Medicines and Health Supplements 24

TRUST

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ASEAN and Free-Trade Area

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ASEAN Plus FTAs

• ASEAN + China and ASEAN + Korea • Goods, services and investment

agreements signed • ASEAN + Japan and ASEAN + India

• Goods completed; still to conclude services and investment

• ASEAN + Australia + New Zealand• Comprehensive agreement implemented

1 January 2010

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ASEAN Plus FTAs and TBT

• ASEAN + China • TBT MOU• SPS and TBT Chapter of ASEAN-China FTA

• ASEAN + Japan Comprehensive Economic Partnership (AJCEP)

• TBT Chapter of the AJCEP on Standards, Technical Regulations and Conformity Assessment Procedures (SC-STRACAP)

• ASEAN + Australia + New Zealand FTA

• Chapter on Standards, Technical Regulations and Conformity Assessment Procedures (SC-STRACAP)

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Emerging Regionalism- Economic Regional Architecture

Trilateral Agreement

China-Japan-Korea?

Trans Pacific Partnership?

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ASEAN REGIONAL COMPREHENSIVE

ECONOMIC PARTNERSHIP - P

Source: Emerging Asian Regionalism, A Partnership for Shared Prosperity

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Fair Trade and Free movement of goodsFair Trade and Free movement of goods

Trade Facilitation between AMS Trade Facilitation between AMS

Reducing Cost Reducing Cost

standards are also a driving force for economic growth via standards are also a driving force for economic growth via

innovation includes technology transfer. Consequently, technology, innovation includes technology transfer. Consequently, technology,

creating new markets and increasing the productivity of these creating new markets and increasing the productivity of these

nations’ companies and economies.nations’ companies and economies. Stakeholder engagement is a key element of the legislative process and

involve within the consultation process. Consultation may be clear and

Transparency.

Implication to Trade and StakeholdersImplication to Trade and Stakeholders

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RCEP: Integrating ASEAN Plus One FTA Partners RCEP: Integrating ASEAN Plus One FTA Partners

(China + Japan + Republic of Korea + Australia +(China + Japan + Republic of Korea + Australia +

New Zealand + India).New Zealand + India).

• ASEAN CentralityASEAN Centrality

• Lead country for ASEAN to spearhead the negotiationsLead country for ASEAN to spearhead the negotiations

• Tough and complicatedTough and complicated

• Pragmatic approachPragmatic approach

• Professes open regionalism – others may join once Professes open regionalism – others may join once

completedcompleted

Regional Comprehensive Economic Partnership (RCEP)Regional Comprehensive Economic Partnership (RCEP)

www.asean.org

thank you

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