WE, the Heads of Government/State of Brunei Darussalam, the Kingdom of Cambodia, the Republic of
RECALLING the Declaration of ASEAN Concord II (Bali Concord II) adopted during the 9th ASEAN Summit in Bali,
REAFFIRMING that the ASEAN Economic Community shall be the end-goal of ASEAN economic integration as outlined in the ASEAN Vision 2020;
REITERATING that the ASEAN Economic Community will result in ASEAN becoming a single market and production base, turning the diversity that characterises the region into opportunities and business complementation to make ASEAN a more dynamic and stronger segment of the global supply chain and the world economy;
DESIRING to combine the economic strengths of Member States in key strategic sectors for regional cohesiveness and enhanced global competitiveness by accelerating the integration of the eleven priority sectors in the Bali Concord II and such other sectors as may be agreed upon as necessary,
HAVE AGREED AS FOLLOWS:
For the purposes of this Framework Agreement:
(a) the 11 sectors listed below:
(i) agro-based products;
(ii) air travel;
(iii) automotives;
(iv) e-ASEAN;
(v) electronics;
(vi) fisheries;
(vii) healthcare;
(viii) rubber-based products;
(ix) textiles and apparels;
(x) tourism;
(xi) wood-based products; and
(b) such other sectors as may be identified by the Ministers responsible for ASEAN economic integration under Articles 19 and 20 of this Framework Agreement.
(c) Air travel shall be deemed to refer to air transport.
The provisions of this Framework Agreement shall apply to each priority sector and be deemed to be included in each ASEAN Sectoral Integration Protocol unless provided otherwise therein.
(a) 1 January 2007 for ASEAN-6; and
(b) 1 January 2012 for CLMV
(a) establish the database of ASEAN NTMs by
(b) establish criteria to identify NTMs that are barriers to trade by
(c) establish a definitive work programme for the removal of NTMs that are barriers to trade by
Member States shall integrate trade in services by:
(a) setting clear targets and schedules for progressive liberalisation for each round of negotiations towards achieving freer flow of trade in services earlier than 2020;
(b) accelerating the service liberalisation for the priority sectors by 2010;
(c) accelerating the development of Mutual Recognition Arrangements (hereinafter referred to as “MRAs”) by
(d) applying the ASEAN-X formula; and
(e) promoting joint ventures and cooperation, including third country markets.
Member States shall undertake the following measures:
(a) Accelerate the opening up of sectors currently in the Sensitive List (hereinafter referred to as “SL”) by transferring these sectors into the Temporary Exclusion List (hereinafter referred to as “TEL”) under the Framework Agreement on the ASEAN Investment Area (AIA), using the ASEAN-X formula, beginning 2004.
(b) Reduce restrictive investment measures in the SL beginning 2004 and complete the progressive elimination of restrictive investment measures in the TEL by
(c) Identify programmes and activities to promote investments in ASEAN by
(d) Promote manufacturing processes in ASEAN to take advantage of their comparative strengths through:
(i) the establishment of a network of ASEAN free trade zones to facilitate outsourcing activities beginning 2005; and
(ii) undertaking more efficient joint ASEAN facilitation and promotion measures to promote foreign direct investments on an ongoing basis.
(e) Promote and facilitate joint/cross border investments in manufacturing activities, on an ongoing basis, through:
(i) special incentives, where appropriate, to be given by CLMV for investments from ASEAN; and
(ii) special measures, where appropriate, to be given by ASEAN-6 to promote and facilitate relocation of investment to CLMV especially for labour intensive manufacturing activities.
Member States shall, by
(a) making them more transparent, predictable and standardised, taking into account the best practices of other Regional Trade Agreements, including the rules of origin of the
(b) adopting substantial transformation as an alternative criteria for conferring origin status.
Member States shall implement the following measures, in accordance with the timelines indicated, so as to expedite customs clearance and simplify customs procedures:
(a) Extend the application of the ASEAN Harmonised Tariff Nomenclature (AHTN) for extra-ASEAN trade on an on-going basis .
(b) Simplify, improve and harmonise customs declaration forms by
(c) Ensure full implementation of the Green Lane System for CEPT products or similar system at entry points of all Member States by
(d) Develop common implementation guidelines, by
(e) Each ASEAN customs authority to adopt a service commitment (client charter) by
(f) Develop the Single Window approach, including the electronic processing of trade documents at national and regional level by
Member States shall take the following steps to accelerate the development of MRAs and harmonise product standards and technical regulations:
(a) Accelerate the implementation and where appropriate the development of sectoral MRAs for priority sectors beginning
(b) Encourage domestic regulators to recognise test reports issued by testing laboratories which are accredited by national accreditation bodies in ASEAN that are signatories to International Laboratory Accreditation Cooperation (ILAC) and Asia-Pacific Laboratory Accreditation Cooperation (APLAC) MRAs.
(c) Set, by
(d) Harmonise and/or develop technical regulations as appropriate, for national application by
(e) Ensure compliance with the requirements of the
(f) Explore the development of ASEAN policy on standards and conformance to further facilitate the realisation of the ASEAN Economic Community, beginning 2005.
Expedite the development of integrated transport logistics services within ASEAN through:
(a) Promotion of efficient door-to-door cargo transport and cross-border transport facilitation through the expeditious implementation of the ASEAN Framework Agreement on the Facilitation of Goods in Transit, and the ASEAN Framework Agreement on Multimodal Transport;
(b) Improvement of land transport network infrastructures and services to achieve better inter-connectivity, inter-operability and inter-modality with the national, regional and international maritime and air transport gateways.
(c) Strengthening intra-ASEAN maritime and shipping transport services; and
(d) Establishment of enabling and conducive policy environment for increased private sector involvement and/or public-private partnerships in the development of transport infrastructure and the provision and operation of transport logistics facilities and services.
Member States shall:
(a) harmonise procedures for the issuance of visas to international travelers in ASEAN by
(b) provide visa exemption for intra-ASEAN travel by ASEAN nationals by 2005.
Member States shall, taking into account their respective domestic laws and regulations:
(a) develop an ASEAN agreement to facilitate the movement of business persons, including the adoption of an ASEAN Travel Card, by
(b) develop an ASEAN agreement to facilitate the movement of experts, professionals, skilled labour and talents by
(c) accelerate completion of MRAs to facilitate free movement of experts, professionals, skilled labour and talents in ASEAN by
Member States shall, beginning 2005 and on an ongoing basis, work in close cooperation with the ASEAN Business Advisory Council (ASEAN-BAC), the ASEAN Chambers of Commerce and Industry (ASEAN-CCI), and relevant industry clubs/associations to:
(a) intensify joint intra-ASEAN and extra-ASEAN trade promotion efforts;
(b) organise regular private sector driven ASEAN selling and buying missions;
(c) assist CLMV in organising promotional activities; and
(d) undertake more effective joint ASEAN facilitation and promotion measures and develop new sources of inward foreign direct investment, particularly from potential countries such as the People’s Republic of
Member States shall establish an effective system to monitor ASEAN trade and investments through:
(a) provision of updates to the ASEAN Secretariat of the latest trade (goods and services) and investment statistics; and
(b) preparation of consolidated industry profiles, by the respective associations, which, inter alia, cover information such as production capacity and product range.
Member States shall expand the scope of ASEAN intellectual property rights cooperation beyond trademarks and patents to include cooperation in copyrights information exchange and enforcement by
Member States shall promote complementation among ASEAN manufacturers, as applicable, through:
(a) identification and development of specialisation of production processes, research and development (R&D), and testing facilities based on comparative advantage of individual Member State; and
(b) development of guidelines on promoting outsourcing arrangements among Member States, as applicable.
Member States shall cooperate to develop and upgrade skills and capacity building through joint training and workshops.
Nothing in this Framework Agreement shall prevent any Member State from taking actions and adopting measures which it considers necessary for the protection of its national security, the protection of public morals, the protection of human, animal or plant life and health, and the protection of articles of artistic, historic and archaeological value.
2. The ASEAN Secretariat shall:
(a) provide support to the Ministers and the
(b) monitor and regularly report to the
The Ministers responsible for ASEAN Economic Integration shall meet as and when necessary to review this Framework Agreement for the purpose of considering further measures and/or other sectors for priority integration or any other relevant matters as may be agreed.
The ASEAN Sectoral Integration Protocols attached to this Framework Agreement as Annexes (I) to (XI) and the total product list attached as Annex (XII) shall form an integral part of this Framework Agreement.
Member States shall accord adequate opportunity for consultations regarding any representations made by another
The provisions of the ASEAN Protocol on Enhanced Dispute Settlement Mechanism, done at
IN WITNESS WHEREOF, WE have signed this ASEAN Framework Agreement for the Integration of Priority Sectors.
DONE at
For
HAJI HASSANAL BOLKIAH
Sultan of
For the
SAMDECH HUN SEN
Prime Minister
For the
DR. SUSILO BAMBANG YUDHOYONO
President
For the Lao People’s Democratic Republic
Prime Minister
For
DATO’ SERI ABDULLAH AHMAD BADAWI
Prime Minister
For the
LIEUTENANT GENERAL SOE WIN
Prime Minister
For the Republic of the
GLORIA MACAPAGAL-ARROYO
President
For the
LEE HSIEN LOONG
Prime Minister
For the
DR. THAKSIN SHINAWATRA
Prime Minister
For the
PHAN VAN KHAI
Prime Minister
z