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ASEAN: Regional Trends in Economic Integration, Export ... - USITC

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CHAPTER 1<br />

Introduction<br />

Purpose, Scope, and Organization of the Report<br />

This report provides an overview of regional trends <strong>in</strong> economic <strong>in</strong>tegration, export<br />

competitiveness, and <strong>in</strong>bound <strong>in</strong>vestment for 6 of 12 priority sectors identified <strong>in</strong> the<br />

Association of Southeast Asian Nations (<strong>ASEAN</strong>) <strong>Economic</strong> Community Bluepr<strong>in</strong>t<br />

adopted <strong>in</strong> November 2007; the six sectors are agro-based products, automotives,<br />

electronics, healthcare, textiles and apparel, and wood-based products. The report also<br />

identifies and describes an <strong>ASEAN</strong> <strong>in</strong>dustry with<strong>in</strong> each of these sectors that has<br />

undergone either significant changes <strong>in</strong> regional economic <strong>in</strong>tegration with other <strong>ASEAN</strong><br />

members, export competitiveness, or <strong>in</strong>bound <strong>in</strong>vestment <strong>in</strong> recent years; <strong>in</strong> some<br />

<strong>in</strong>dustries, there have been improvements <strong>in</strong> several of these areas. The six <strong>in</strong>dustries are<br />

computer components, cotton woven apparel, hardwood plywood and floor<strong>in</strong>g, healthcare<br />

services, motor vehicle parts, and palm oil. Information is provided about each <strong>in</strong>dustry’s<br />

export competitiveness, trade flows, <strong>in</strong>bound <strong>in</strong>vestment, and lead<strong>in</strong>g competitive factors<br />

such as trade facilitation, logistics services, and e-commerce.<br />

This chapter def<strong>in</strong>es key terms used <strong>in</strong> the report and identifies <strong>in</strong>formation sources.<br />

Chapter 2 provides <strong>in</strong>formation on <strong>ASEAN</strong> and <strong>ASEAN</strong>’s <strong>Economic</strong> Community<br />

Bluepr<strong>in</strong>t; trends <strong>in</strong> <strong>ASEAN</strong> economic <strong>in</strong>tegration, export competitiveness, and <strong>in</strong>bound<br />

<strong>in</strong>vestment; and regional improvements <strong>in</strong> trade facilitation, logistics services, and e-<br />

commerce. Chapters 3–8 describe these <strong>ASEAN</strong> regional trends more specifically for the<br />

six priority sectors. Chapters 3–8 also provide <strong>in</strong>formation about the six <strong>in</strong>dustries<br />

selected by the Commission, <strong>in</strong>clud<strong>in</strong>g (1) <strong>in</strong>dustry structure, size, and <strong>in</strong>ternational<br />

competitiveness; (2) lead<strong>in</strong>g <strong>ASEAN</strong> export<strong>in</strong>g countries and major export markets; (3)<br />

lead<strong>in</strong>g <strong>ASEAN</strong> country recipients of <strong>in</strong>bound <strong>in</strong>vestment, the source countries of this<br />

<strong>in</strong>vestment, and <strong>ASEAN</strong> <strong>in</strong>vestment rules specific to the <strong>in</strong>dustry; (4) pairs or groups of<br />

<strong>ASEAN</strong> countries that have experienced significant economic <strong>in</strong>tegration <strong>in</strong> <strong>in</strong>dustry<br />

production and/or market<strong>in</strong>g; and (5) lead<strong>in</strong>g competitive factors affect<strong>in</strong>g the <strong>in</strong>dustry’s<br />

regional <strong>in</strong>tegration, export competitiveness, and <strong>in</strong>bound <strong>in</strong>vestment.<br />

This report has been prepared by the United States International Trade Commission<br />

(<strong>USITC</strong>) at the request of the United States Trade Representative (USTR). 1 In its request<br />

letter, USTR noted that the 10 countries that are members of <strong>ASEAN</strong> have grow<strong>in</strong>g<br />

economies and a comb<strong>in</strong>ed population of 550 million. As such, they are already an<br />

important market for U.S. companies, and they represent significant opportunities for<br />

expanded trade and <strong>in</strong>vestment. Trade between the United States and <strong>ASEAN</strong> countries<br />

has grown steadily <strong>in</strong> recent years, and <strong>in</strong> 2008 totaled $177 billion. <strong>ASEAN</strong> has a goal<br />

of achiev<strong>in</strong>g full regional economic <strong>in</strong>tegration by 2015. As a way to achieve this<br />

<strong>in</strong>tegration, <strong>ASEAN</strong> identified 12 priority sectors for accelerated economic <strong>in</strong>tegration.<br />

To assist U.S. trade policymakers <strong>in</strong> assess<strong>in</strong>g progress toward this goal, USTR requested<br />

the <strong>USITC</strong> to prepare a report that would provide <strong>in</strong>formation about six of the priority<br />

sectors.<br />

1 A copy of the letter from the USTR request<strong>in</strong>g this factf<strong>in</strong>d<strong>in</strong>g <strong>in</strong>vestigation is provided <strong>in</strong> app. A.<br />

1-1

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