Fact Box: ASEANs plan for economic integration by 2015
The Association of South East Asian Nations has agreed to establish an ASEAN Economic Community by 2015 that aims to create a region with free movement of goods, services, skilled labour and freer flow of capital. Here are some highlights of the blueprint the 10 ASEAN leaders agreed at their annual summit this week.
* Free flow of goods free
ASEAN will fully dismantle non-tariff trade barriers by 2015, having made significant progress in the removal of tariffs under its ASEAN Free Trade Area, the blueprint says.
The grouping is trying to enhance its ability to serve businesses as a global production centre, or part of a global supply chain. Establishing an ASEAN Single Window will allow business to submit one set of documents and data for one single decision-making for customs clearance, the plan says.
The 10 countries will harmonise customs standards and tariff classifications.
* Free flow of services
The plan promises little or no restriction to ASEAN services suppliers in setting up shop across borders within the region.
Restrictions on trade in services will be removed by 2010 in four priority areas: air transport, electronic commerce, healthcare and tourism. Restrictions on services in logistics will be removed by 2013 and all other sectors fully opened up by 2015.
Liberalisation measures in the financial sector will take place progressively with due respect for national policy objectives and the level of economic and financial sector development of the individual members.
* Free flow of investment
Equal treatment will be given to foreign and national companies investing in manufacturing, agriculture, fisheries, forestry and mining, with some exceptions.
ASEAN will strengthen investor-state dispute settlement mechanisms, enhance protection for repatriating capital, give transparent cover on expropriation and compensation, and strengthen treatment of compensation for losses due to strife.
* Free flow of capital
The group aims to achieve greater harmonisation in capital market standards by offering rules for debt securities, disclosure requirements and distribution.
It will also promote market-driven efforts to establish exchange and debt market linkages, including cross-border capital-raising activities.
Member nations agreed to remove or relax restrictions to help the flows of payments and transfers for current account transactions.
* Free flow of labour
ASEAN agreed to facilitate visas for ASEAN professionals and skilled labour engaged in cross-border trade and investment.
* Transport and energy
ASEAN pledged to complete a 5,500-km railway line from Singapore, through Malaysia, Thailand and Indochina to Kunming in southern China.
Members also agreed to push for an ASEAN Power Grid, involving 14 electricity interconnection projects, and the Trans-ASEAN Gas Pipeline, which links seven projects. reuters
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