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2004/AMM/019
Agenda Item: XVI
Comprehensive Integration Towards The ASEAN Community
Purpose: Information
Submitted by: ASEAN Secretariat
/ 16th APEC Ministerial Meeting Santiago, Chile17-18 November 2004
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COMPREHENSIVE INTEGRATION
TOWARDS THE ASEAN COMMUNITY
Statement of Mr. Ong Keng Yong, Secretary-General
of the Association of Southeast Asian Nations (ASEAN)
at the APEC Ministerial Meeting
Santiago, 18 November 2004
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1.In the one year since APEC Ministers met in Thailand, ASEAN economies have performed well. Trade and investment flows have expanded. For 2004, the projected ASEAN GDP growth is about six percent. The oil price increases have a dampening effect but ASEAN is hopeful of achieving the forecast target.
2.ASEAN has beenmakingsteady progress in realising the ASEAN Community by 2020 as envisioned by ASEAN Leaders. This ASEAN Community is based on the three pillars of economic cooperation, political and security cooperation and socio-cultural cooperation.
ASEAN Economic Community
3. In economic cooperation, the efforts have been developed around the ASEAN Economic Community or AEC in short. The AEC is envisaged as a single market and production base with free flow of goods, services, investment, skilled labor and freer flow of capital. In order to achieve this goal, ASEAN agreed to intensify current economic cooperation initiatives, implement measures targeted for completion on or before 2010 and develop new ones to accelerate the integration.
4. The economic integration measures include: enhancing the attractiveness of ASEAN as an investment destination; accelerating the liberalization of trade in goods and services; improving trade and business facilitation; reducing trade transaction costs; upgrading competitiveness of ASEAN SMEs; strengthening the ASEAN dispute settlement system; and other integration support measures.
5. As an important step toward the AEC, ASEAN agreed to fast track integration of 11 priority sectors, which are electronics, e-ASEAN, healthcare, wood-based products, automotives, rubber-based products, textiles and apparels, agro-based products, fisheries, air travel and tourism. These sectors were selected on the basis of comparative advantage in natural resource endowments, labour skills and cost competitiveness, and value-added contribution to ASEAN’s economy. As the institutional capacity of ASEAN for economic integration is built through experience, more sectors will be included in the accelerated integration programme, following the 11 priority sectors.
6.A roadmap has been finalised to serve as the basis for economic integration of each of the priority sectors, with active involvement of the private sector. These roadmaps aim to (i) enhance the competitiveness of ASEAN; (ii) strengthen regional integration efforts through liberalization, facilitation and promotion measures; and (iii) promote private sector participation. Each roadmap contains detailed and specific measuresto be implemented with timelines. The integration documents are expected to be signed at the end of November 2004 during the ASEAN Summit in Vientiane, Laos, for immediate implementation.
7.To advance the AEC, ASEAN has been working to strengthen its institutional mechanisms, including dispute settlement mechanism.ASEAN is moving ahead with the ASEAN Consultations to Solve Trade and Investment Issues (ACT), which is a non-legal and non-binding internet-based problem-solving network to resolve complaints within 30 days. The ASEAN Compliance Body (ACB) has been set up to provide for the adjudication mechanism wherein ASEAN member countries can make use of the less legalistic peer pressure in dispute resolution. The Protocol on ASEAN Dispute Settlement Mechanism has been enhanced to ensure expeditious and legally binding decision in resolving trade disputes.
ASEAN Security Community
8.For ASEAN to achieve the AEC, it is essential to have a conducive political and security environment. Hence, ASEAN Member Countries resolved to establish the ASEAN Security Community or ASC in short. The ASC is built on an action plan covering five strategic thrusts, namely, political development, shaping and sharing of norms, conflict prevention, conflict resolution, and post-conflict peace-building.
9.The implementation of action plan for the ASC will contribute to peace and security in the Asia Pacific region, strengthen ASEAN’s role as the driving force of the ASEAN Regional Forum (ARF), and continue to enhance ASEAN’s engagement with Dialogue Partners and other countries and regions.
ASEAN Socio-Cultural Community
10.The AEC and ASC will be complemented by the ASEAN Socio-Cultural Community (ASCC) to ensure that the populations of ASEAN are prepared for, and benefit from, economic integration. Through the ASCC, there will be more resources allocated for basic and higher education, training, science and technology development, job creation, and social protection. The development and enhancement of human resources is a key strategy for employment generation, alleviating poverty and socio-economic disparities, and ensuring economic growth with equity.
11.The roadmap being developed for the ASCC focuses on four strategic thrusts, namely, having strong and functional systems of social protection that address poverty, equity and health impacts of economic growth; promoting environmental sustainability and sustainable natural resource management that meets current and future needs; ensuring social governance that manages impacts of economic integration; and maintainingthe preservation and promotion of the region’s cultural heritage and cultural identity.
Vientiane Action Programme (VAP)
12.In moving towards the ASEAN Community, ASEAN has developed the Vientiane Action Programme (VAP)to be implemented for the period 2004-2010, as an instrument to unify and cross-link the strategies and goals of the AEC, ASC and ASCC and as an integral part of the action plans and programmes building up to the realisation of the goals of ASEAN Vision 2020. Through the implementation of the VAP, ASEAN intends to narrow the development gap among Member Countries in order to quicken the pace of integration.
13. Finally, ASEAN sees the need to strengthen further its institutional framework both in terms of structure and process to ensure that it is responsive to the challenges and needs of moving towards the ASEAN Community. Various measures have been pursued and are being implemented.
Conclusion
14.While ASEAN’s economic performance is generally positive and ASEAN is committed to economic integration, there are many challenges from elsewhere which could impact negatively on Southeast Asia. The rising oil prices and the threat of international terrorism are two obvious examples. Nevertheless, ASEAN believes that by pulling together, all its ten Member Countries can gain substantively and substantially. The big picture of the ASEAN Community is settled. Now, we will implement the elements to realize the short-term and long-term goals.
Thank you.
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