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2007/MRT/006
Agenda Item: VII
ASEAN Statement
Purpose: Information
Submitted by: ASEAN
/ Ministers Responsible for Trade MeetingCairns, Australia
6 July 2007
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Mr. Chairman,
Your Excellencies, Ministers Responsible for Trade
1.On behalf of the Secretary General of ASEAN, I would like to thank Australiafor hosting SOM III and culminating with the 13th APEC Ministerial Responsible for Trade Meeting.ASEAN congratulates Australia and APEC Member Economies for their ongoing efforts in keeping APEC’s agenda active and relevant and most importantly pro-active in meeting the many challenges. Among the many hallmarks of the APEC Year in Australiaare its efficiency and the novel way of ‘thinking outside the box’.
2.Your Excellencies, I take this opportunity to update you on developments in establishing an ASEAN Economic Community (AEC) and related initiatives. In ASEAN, we have also been thinking outside the box and broadly, these developments capture a renewed sense of urgency arising from the decision of the ASEAN Leaders in Cebu in January this year to bring forward our Community goals to 2015. We believe these initiatives will ensure ASEAN remaina competitive destination for FDI.
The AEC BluEprint
3.The AEC envisages having (i) a single market and production base, (ii) a highly competitive economic region, (iii) a region of equitable economic development, and finally(iv) a region that is fully integrated into the global economy.Elimination of tariffs and non-tariff barriers, streamlining customs procedure, harmonization of technical regulations and standards and simplification of rules of origin are expected to help ASEAN companies reduce operating costs, improve their economies of scale, and enhance their capacity to participate in the regional production network and global supply chain. The economic benefits from deeper economic integration were estimated at 10% of ASEAN’s GDP or more. In value terms, it amounts to over USD 100 billion based on estimated ASEAN GDP in 2006.
4.Given this ambitious goal, ASEAN Member Countries have embarked on developing an AEC Blueprint, a single document that will include detailed objectives with timelines and plans of action to realise the AEC. We are pleased to inform you that the drafting of the AEC Blueprint, in consultation with our various stakeholders is on track and ASEAN Economic Ministers (AEM) intent to present the AEC Blueprint to the ASEAN Leaders at the ASEAN Summit in Singapore in November 2007.
5.As ASEAN economies continue their growth in 2007, we are also pursuing the commitments in Narrowing the Development Gap (NDG) within ASEAN. The AEC Blueprint is incorporating safeguard measures and specific initiatives to achieve NDG targets. Towards this end, the Blueprint will address SME specific issues as theconcerns of the ASEAN SMEs and ASEAN’spoverty reduction initiatives are mutually inclusive.
6.The task for achieving the AEC remains daunting, but ASEAN remains confident given the progress being made towards community building, the positive feedback received from a concerted effort in consultations and coordination with our stakeholders and the determination to ensure effective implementation. Efforts are also being taken to strengthen the ASEAN Secretariat, including its research capacity. In addition, on a strategic level, other concurrent initiatives are being developed as inter-related and mutually reinforcing.
7.For example, ASEAN continues to embrace “open regionalism” in engaging its Dialogue Partners. This is often expressed through ASEAN’s economic partnership agreements (EPAs) and free trade agreements (FTAs) with Dialogue Partners as well as ASEAN’s collaboration and cooperation with like-minded countries and groupings in international fora. In this regard, I am pleased to report to you that negotiations are on-going with China, India, Japan, Republic of Korea and Australia/New Zealand. ASEAN will also start negotiation soon with the European Union for an FTA.
THE ASEAN CHARTER
8.Likewise, the challenge to strengthen ASEAN’s institutionsis being addressed through the establishment of the ASEAN Charter. Currently, ASEAN is a loosely-organised regional body. With the Charter, ASEAN will become a more rules-based organization in order to better meet the challenges posed by regional integration, the expansion of its external linkages and rapid globalisation. While doing so, ASEAN must remain an effective player on the regional and international stage. In this context, the ASEAN Charter will set the framework and lay the legal foundation for ASEAN to restructure its existing mechanisms and improve its decision-making process to enhance efficiency and ensure prompt implementation of all ASEAN agreements and decisions. Among others, the Charter will include enabling provisions to assist in NDG goals. The Charter will also provide ASEAN with a legal personality.
CELEBRATING 40 YeaRS
9.Your Excellencies, our preoccupation with work in 2007 has not meant we have forgotten to celebrate. As you are probably aware, ASEAN will turn forty on 8 August 2007. ASEAN has come a long way in the past four decades. Amidst the celebrations planned, is the desire to make ASEAN stronger and more relevant in regional and international affairs in the next 40 years. ASEAN citizens and Leaders are embracing wholeheartedly the shared goal of one ASEAN in which all have a strong sense of community and great pride in their ‘ASEAN-ness’.
10.In conclusion, allow me to reiterate that ASEAN and APEC share a common vision of promoting regional growth and shared prosperity. Through more cooperation and collaboration,we can make the Asia-Pacific more open to trade and investment, peaceful and prosperous.
11.Thank you for your kind attention. Our heartfelt gratitude to our Australian hosts for your wonderful display of warmth and hospitality.
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