by H.E. Ong Keng Yong
Secretary-General of ASEAN
1. ASEAN economic integration is currently in progress but the results are not as fast as what the ASEAN Leaders and the business sector want. The problems of implementation and coordination of ASEAN economic initiatives requires urgent attention. Deeper and accelerated economic integration entails deeper and broader cross-sectoral coordination as well as expeditious implementation of economic integration initiatives.
2. The challenge now is the need to address fundamental issues, particularly technical matters such rules of origin, customs procedures, and standards and conformance. In addition, there is a need to enhance commitment at the operational level to support economic integration.
3. ASEAN Member Countries are well on their way towards full realisation of the ASEAN Free Trade Area (AFTA) with 99.77% and 76.86% of the products in the CEPT Inclusion List (IL) of ASEAN-6 and Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV) respectively bringing down the tariff rates to the 0-5% range. Given the milestones achieved in tariff elimination, the emphasis now is on trade facilitation, liberalisation of trade in services, and opening up of the investment regimes in ASEAN.
4. Although the end goals of the ASEAN Economic Community have been defined in ASEAN Vision 2020 and Bali Concord II, it is crucial to underscore that ASEAN is not constructing an economic community along the lines of the European Union (EU). While EU ensures the free movement of goods, services, capital (including investment) and people across the territories of its Member States, ASEAN seeks to create a unique single ASEAN market where there is a free flow of goods, services, investment, skilled labour, and a freer flow of capital.
5. While ASEAN pursue economic integration, it is also committed to making the region attractive to its partners for economic activities. Indeed, ASEAN integration will open up more opportunities for these partners. At the same time, it will further strengthen ASEAN’s external trade with them. The commitment to open regionalism and inclusive approach to its external economic engagement has made ASEAN attractive to many countries both in the region and beyond. ASEAN is currently at different stages of FTA and EPA negotiations with its partners namely, China, India, Japan, Republic of Korea and Australia/New Zealand.
6. For regionalism to thrive, ASEAN will have to play a central role in setting the scope and pace of regional cooperation. This will require ASEAN to continue to drive ASEAN’s relations with its Dialogue Partners, the ASEAN Plus Three Process and the East Asia Summit. The honest broker role of ASEAN in these processes will ensure that all stand to gain from engaging the region.
7. Before concluding, let me say a few words on the ASEAN Charter. The most important point about the ASEAN Charter is the determination to have a more rules-based and legal way of doing things. This is a good signal for the economic integration of ASEAN. There will be more predictability and certainty of policy.
