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

BOX 2.3 ASEAN-wide free trade agreements, 2010—Continued
FTA partner Description Status
FTAs under negotiation
European Union
Trade in goods and services;
government procurement;
competition policy; intellectual
property rights; industrial and
commercial property rights;
sustainable development including
labor and environmental issues;
cooperation on trade related
issues; and dispute settlement
mechanism
Negotiations launched on May 4, 2007, on
a region-to-region basis, but stalled in early
2009. In December 2009, EU agreed to
pursue negotiations towards FTAs with
interested individual ASEAN countries,
which could become building blocks for an
ASEAN-wide regional agreement.
Negotiations with Singapore began in
March 2010. Vietnam has shown interest in
a bilateral FTA.
Source: ADB, Free Trade Agreement Database for Asia (accessed February 2, 2010); WTO, Regional Trade
Agreements portal (accessed February 2, 2010); European Commission, “Overview of FTA and other Trade
Negotiations,” April 21, 2010.
Note: On the implementation date indicated, the ASEAN FTA enters into force only with respect to those
ASEAN countries that have completed their respective legal procedures. The FTA will become effective with
respect to the other ASEAN countries once they notify the completion of their respective legal process.
According to the AEC Blueprint, the ASEAN Economic Ministers (AEM) are in charge
of economic integration and accountable for the overall implementation of the AEC
Blueprint. Relevant ASEAN sectoral bodies are responsible for coordinating,
implementing, and monitoring commitments under their respective purview. The ASEAN
Secretariat (Secretariat) reviews and monitors compliance of implementation. 19 The
Secretariat was tasked with developing the AEC Scorecard to monitor progress.
According to the first AEC Scorecard, which was published in 2010 and covers the first
two-year period (2008–09), 73.6 percent of AEC targets were achieved, including
82 percent of the measures and activities included under the goal of achieving a single
market and production base; 50 percent of measures under that of creating a competitive
economic region; and 100 percent of measures under the goals of attaining equitable
economic development and integration with the global economy. Actions that still need
to be addressed include ratification of various agreements, including the ASEAN
Comprehensive Investment Agreement (ACIA) and several agreements covering goods
in transit and air services; implementation of National Single Windows (see discussion
below); and determination of final tariff reduction rates on highly sensitive products, such
as rice and sugar. 20
Following a meeting of the AEM in February 2010, the Malaysian Trade Minister, who
hosted the meeting, reported that there were gaps in the implementation of some
commitments, particularly in the areas of eliminating nontariff barriers, streamlining
customs clearance, harmonizing standards, and removing duplication of testing and
certification procedures. The Minister noted that among the priority sectors, “satisfactory
19 ASEAN, “ASEAN Economic Community Blueprint,” November 20, 2007, section III. Unlike the EU,
which has strong institutions and a large regional bureaucracy, the ASEAN Secretariat is small and poorly
funded (2010 budget: $14.5 million), limiting its ability to monitor compliance with agreements and
commitments, collect and synthesize information, and conduct analytical work. Chia, “Trade and Investment
Policies and Regional Economic Integration in East Asia,” April 2010, 5; ASEAN Secretariat official, e-mail
message to USITC staff, April 28, 2010.
20 “AEC Scorecard,” March 2010, 12–14. It is difficult to interpret the AEC Scorecard results because of
the political sensitivity of the process.
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