Slide number three we will discuss on the historical background of Asian community

teddy scussion Honda establishment of Asian community can be traced back in the
year 2003 during the 9th action summit was held in Bali Indonesia when you buy all
10 member states of Asian agreed upon to establish the asking community within
this region and in order to express their agreement and consensus all 10 member
states are representative signed on the declaration of Asian Concorde 2 or also
known as valley Concorde 2 to express your determination of all member states two
establishment of Asian community in the year 2007 during the 12th Asian summit it
was held in civil the Philippines all are same members states representative again
express your determination on the establishment of Asian community by signing the
declaration on the acceleration of the establishment of an Asian community by the
year 2015 by having this declaration Cebu declaration it is the hope that what they
plan to attract and establish asian community in this region can be materialized
within 8 year 2007 they signed the document and it shall be convened and
completed by the year 2015 eight years period of time that they agreed upon to give
to all Asian members to participate and also contribute to the establishment of the
asset community you need the same year so in 2007 in the later Asian summit 13
Asian summit that was held in Singapore the first blueprint presented and agreed
and later on accepted and adopted by all member states of ASEAN and they sign on
the declaration of Asian Economic Community blueprint during on the submit 2007
and all of the representatives of us and member states agreed to adopt the blueprint
of AEC on 2009 during the 14th Asian summit there was held in Thailand the rest of
the pillars of South of Asian community comprises of political security community
and also socio cultural community blueprinting presented and also again accepted
and adopted by all member states play signing the declaration wanted option of both
blueprints EPS C&SCC in 2009 hence by having these blueprints for each of the
pillars it shall be the main reference for all member states on how they should
contribute and also on how will it be the guidelines for them to follow and obey in
order to materialize their Asian community specifically for each of their pillars by
2015
Next on slide number 4 I attached the blueprint of AEC front page in in order for you
to familiarize the document and also the representative of each Asian member states
that agree and signed on the adoption of AEC BLUEPRINT in 2007 so there are 10
country members represented goodbye hit off the governments during that particular
summit can I buy His Majesty Cambodia Prime Minister someday consent in public
of Indonesia like his president susilo bambang Yudhoyono public of Laos people
democratic Prime Minister one son Evan Malaysia represented by Prime Minister but
we put it by Myanmar Prime Minister general Jensen probably the Philippines
represented by yeah president Gloria macapagal Oreo Singapore Prime Minister Lee
St Luke and the last one was the Kingdom of Thailand represented by it's Prime
Minister general surya channel 9 10 countries then representative sign and adopted
the AEC blueprint.

alright so we move on to the main content I've already discussion today is on Asian
Economic Community and within the community blueprints outlined the main
characteristics are also known as the main elements of AEC they're all asking
members state should aware of and also a bite with and tried your best tried their
best to contribute towards Establishment of the AEC unity by 2015 according to the
AEC blueprint they are full main characteristics or elements of AEC asian plan to
fulfill in order to achieve a stable and also prosperous region the ISI main
characteristics are single market and production base competitive economy region
equitable economic development and integration into the global economy for
characteristics of AEC
The AEC will establish asian and Southeast Asian region as a single market and
single production base That would make Asian become more dynamic more
competitive to strengthen the recommendation of it existing economic initiatives
apart from that he is also will assist us in accelerating the regional integration within
the priority sectors main sectors that belief to be given Priorities and such successful
of these sectors will start over into the other sectors they will create a stable region
and increase financial stability of the member state in this region next facilitating
movement of business persons movement of skilled labor and skill talents as well as
strengthening the institutional mechanism of Asian itself hence within this objective I
Asian out line for characteristics to be fulfilled and try to be achieve in order to create
as Asian an attractive and competitive region in the world.

The first core elements that Asian outline for each member states to fulfill and to
contribute in creating a single market and production based industry region is the
free flow of goods free flow of goods is one of the principal mechanism by which
Asian believe that market and production base able but to be competitive and
extractive when they have plenty and various type of goods available in this region a
single market for goods and also for services will also facilitate the developement of
production networks within the RCN members intra networks ASEAN members and
ASEAN 10 members and ask ten members and also to enhance Asian institutional
capacity in serving as a global production center or production hub as part of the
global supply chain meaning to say that Asian try to look forward at what looking
institution as competitive as they could to offer quality products and services we did
this region as well as four the other region outside Asia so how free flow of food can
be achieved the free flow of good can be achieved true the creation of single market
the later on will attract internal investor and also foreign investors come in money
creating more businesses complex is creating more job opportunities in this region
and able to produce large number of products with very few costs what are CN plan
is to create their own area which is known as ASEAN free trade area or AFTA after
able to be a competitive opportunity by action in competing with other three area
within the other region for example NAFTA not America free trade area bye
removing the two types of barriers the first one is removing the rate barriers in terms
of tariff rates refer to government of individual state will charge on the percentage
against any products that have the intention to be traded within their country
meaning to say that any imported goods will be fixed by the host country and such
percentage of text here referring to tariff Marius it will be affecting to the costs of the
goods to be sold as a higher price because the producer was shifting tax towards the
consumer and the consumer have to pay more cost of the product plus tax state
other than that the non tariff barriers also should be limiting or reducing incrementally
until it can be totally removed the non tariff various referring to any limitation any trick
presidius Marius one country imposed against the other country yeah example of
none there's various can be seen in the form of kwarta and also embargo Cortana
me minimum and maximum number of products that allowed to be traded and
allowed to be sold within one particular countries embargo here is free various and
sanctioned impose if the producer coming from country that the host country do not
have implementing relation with them so as you're looking forward to reduce this
type of periods in order to create attractive and competitive region as a single market
and production base removing these barriers will allow Asian to attract more goods
to be treated within this region as well as able to produce their own goods and
compete with the international goods and services.

All the lease has been categorized and put into a legal document and the common
effective preferential tariff or Capt can you ring the stablishment of after and also the
implementation of ECCEPT is the mechanism use to determine which goods will be
taxed higher which would will be exempted for tax and the current practice within us
and members CPT has been removed and change with the mall relevant mechanism
which is known as artiga RCN in good agreement article the second main elements
and single market and product should base it is free flow of services S one of the
important element in realizing community economy committee in Asian where there
will be substantially no restriction to ask services suppliers and providers in providing
your services as well as to establish companies within this region so I will prioritize
the member states protecting the local industry and local company by promoting the
local industrial players local provider to produce more services and goods because
there will be no restrictions on the number of suppliers and they also will be allowed
to create or to build yeah branches throughout Austria and member states in this
region how it can be done is true negotiations within the company with the
government of the particular state true the specific committee established by action
which is known as coordinating committee on services usually the negotiations will
be touching on specific services sectors such as financial services at transport
services and what kind of services and the sectors that they plan 2 she ate with the
host country it shall be carried out by its respective ministerial bodies if they are
discussing on financial services then Austrian finance minister and each relevant
bodies within that particular Batman or ministry will handle on that particular sectors
other than that under the free flow of services as well Asian believed it it should be
removing substantially all restrictions Asian would like to have free instruction they
swear they want to remove all the restriction on the street in the services for the four
but your iti services sectors I sent already outlined that there will be focusing on the
fall main sectors that he should process they should proceed with which are the air
transport sectors electronic kacian health care as well as the tourism sectors so
these four sectors will be given priority for RCN member States and also for
respective local companies if you are having intention to pursue for these services
sectors.

The third element the task outlined in order to create single market and production
base within this region will be focusing on free flow of investment assembly that a
free and open investment is the key to enhancing our competitiveness in attracting
foreign direct investment FBI as well as in attracting the local direct investment within
Asian member state intra Asian investment sustained inflows of new investments
and reinvestments will promote and ensure the dynamic development of Asian
economies and that is why asian focus on I mean you sing and he straight or serious
harmonizing the policies in order to attract FDI to inflow and become available for
this particular region how free flow of investment may be achieved is through the
framework agreement the nurse Jen outlined which specifically on the Asian
investment area or known as a eat under the AIA majority of the industries namely
the manufacturing agriculture officially first three mining and quarrying sector as well
shall be open and also will be given and granted with the national treatment for the
investors we need to say that in order to attract investment the host country need to
even the rights and privileged for the private and for an investor similar to what they
provide to their local investor this is to make sure that all the investor Abu to help
Asian develop this region become attractive and stable in terms of economic
situation other than that I said also provide safety net for the investors local and
foreign investors in order to increase the trust within this region by providing dispute
mechanism between the investor and state in the case of dispute arise the investor
and whose state unable to resolve the conflict and he shall be referred to Asian
institution and they have their own mechanism on how to solve such dispute in order
to give a win win situation for both parties other than that I should also provide
compensation in the case of losses being good by the investors this initiative will
attract the investors to pump India in money for this particular region because it is a
free risk Regent but investor to invest in and help ourselves to create this region for a
single market attractive production base.

the next main component in achieving single market and production base and the
EAC is on the freer flow of capital assembly that production base and single market
able to be achieved if the Asian member states able to pull the capital reading this
region any able to harmonise their operation procedures and standard it of the depth
securities disclosure requirements as well as the whole for distribution I said also
believed that capital can be increased through mutual recognition agreement that
comprise of the qualification and education as well as through experience market
professionals they need to rely on the professional bodies or group of individuals in
order to facilitate the capital market within this region this individual and
professionals should be a high recognize individual having high quality of knowledge
within the investment and capital market background but from that Asian also believe
that single market and production base can be increased and exist through a greater
flexibility in terms of the law by having similar and standardized law in this area put
assist both parties the government and also the individuals private company to fulfill
yeah objective off assisting action in creating this region to become a single market
last but not least last but not least ASEAN also belief on the greater capital mobility
which would be guided by several principles in terms of to ensure the capital account
consistent with the member countries agenda and it should not be contradict with the
national countries aspiration and policy and also it should be rely on the readiness of
the country itself in the case of Asian 4 that consists of Cambodia Laos Myanmar
and Vietnam CL MV considered as underdeveloped country in slow in terms of
economy acceleration so this group of countries should be given more time to cope
with Asian economy situation the asian six economy situation because asean do not
want to have a weak country that would will impact negatively towards this region
last but not least what asean belief is that single market and production base can be
achieved through a free flow of capital by having liberalization among all countries in
Asian they should open up the market they should reduce or totally eliminate any
barriers that would even problem for even problem for the capital to be pulled and to
be increase within these regions.

The last component under the single market and production base is on free flow is
on free flow of skilled labor ASEAN agreed ASEAN agreed to allow the people to
mobilize from one area to another state within the category of labor Asian would
accept the people who have skilled weather professional or semi skilled labor to be
allowed to work within the asian member state by having this situation it will provide
job opportunity for these people and also help the host country which having difficulty
in getting employees so how does skill labor able to be mobilized from one state to
another is to another is to facilitate the issuance of visas and also employment
passes reducing limitation and also Straight law on this employment expect it will
attract people from underdeveloped country that facing with difficulty in getting jobs
in their country to explore opportunity as well as to get Employment Opportunity in
other country within this region in facilitating the free flow of the services so asian
and also rely on the free flow of labor without labor then the service is unable to be
provided so Asian and also focusing on the mobility of students and also the
academic stuff within the university level through the creation of Asian university
network or a UN by having this platform students able to pursue for their studies
abroad within this region student able to get more education opportunity from the
higher rank institution within this region as well as the Academy staff also able to
develop yeah Academy career by having opportunity to be visiting lecturer or
professor also engaged with short term or long term academic staff mobility within
the universities in this region hence it will create harmonious relation between these
countries and also promoting this region to the other countries around the globe.

Move on to slide number 8 second characteristic of AEC is to create a competitive

economy region Asian agreed upon to become a competitive region in the area of
economy by providing a competitive policy the main object if of the competition policy
is to foster a culture of Fair competition competition here referring to Asian member
states able to compete within themselves in terms of economic activities in order to
become an attractive economic country they need to be able to produce and to have
attractive economic policy institutions and law related to competition policy has been
established by Asian member countries and currently yeah there is no official Asian
country in charge for cooperative work but Asian believed that competition policy is
very important for the countries in order to endeavor for a competition policy like all
member states in Asian hence all country members in Asian has been given time to
produce yeah or policy that will reflect on their competitive policy by the year 2015
other than that ask and also urged all the company all the countries in Southeast
Asian region to establish a network of authorities or network of agencies that would
be having the responsibility to serve as the forum to meet to discuss about what will
be the best policy and what they can adopt from their neighboring countries policies
in order to be an attractive region for asian as well last but not least competitive
economy region also relying on the protection for the consumer consumer protection
measures are being developed with the proposed economic measures to address for
the consumer protections and Asian believed it consumer protection able to be
materialized by having since of strengthening consumer protection through the
establishment of specific committee that will oversee on the protection of consumer
which is known as Asian coordinating committee on consumer protection or a CCCP
next consumer protection also able to be materialized by having an network of
consumer protection agencies within this particular region and should be established
by the member states so the role of this agency is to provide information share and
exchange information in terms of the consumer it can be in the sense of consumer
behavior consumer preferences and also the current consumer needs and demands.

Alright now we move on to the third characteristics of AEC which is the equitable
econonmic development within the AEC blueprint Asian member states collectively
agreed upon to embark on several programs and activities in order to enhance the
economy growth within this region however for the purpose of our discussion today I
only will highlight and discuss 2 programs and effort agreed BIOS end member
states toward achieving AEC through the equitable economic development the two
program and effort are the small and medium enterprises development and also
initiative for Asian integration known as IAI

first of all you need to be able to understand the term equitable economic
development equitable here means equality or impartiality in the case of Southeast
Asia countries equitable here referring to that oh I'll send member states should have
and also should be given the same opportunity to be in the same level of economic
progress and development hence Asian belief that in order to materialize the Asian
Economic Community then all member states within this region shall have the same
economic base this is to ensure that there will no longer having two blocks or groups
in Southeast Asia which will be the Asian six and Asian 4 as you understand that
Asian six consists of developing and well developed nations in this region on the
other Asian for consists of the underdeveloped end the list developed state in this
region in order to reduce this gap hence Asian collectively agreed to make sure that
Asian four can be assist and also can be upgraded to become the same level and
the same pace with all developing and developed states in this region
specifically at the micro level Assam member state skin and determined in focusing
on the small and medium enterprises or SME development hence Asian member
states agreed and able to produce blueprint specifically to up great SMP enterprises
within this region the so called asian policy blueprint for SME development 2004
2014 even though this blueprint focus up to 2014 but don't forget that we are
discussing on the development of Asian community to 2015 we are not discussing
on the current development of AEC we are discussing on the first phase of AEC by
2015 and in fact if you want to know the current development of AEC Asian already
move on to the second phase by by the action community has been declared to be
fully integrated and created and also success will be successfully achieved by the
year 2025 OK back to our discussion on a development the blueprint specifically on
SME development 2004 until 2014 comprises the strategic work programs policy
measures as well as indicative outputs by having these three main content within this
blueprint again look programs second one policy measures and if that one is
indicative outputs it will give a clear path and road map for us and country members
and how to upgrade the SME within this region

Specifically within the blueprint for SME development 2004 until 2014 it outlines
several major objective that ASEAN try to achieve in order to create very prosperous
region especially in term of the economic development among others the first
objective to accelerate the piece of SME development optimizing on the diversity's of
Asian members countries the second one is to enhance the competitiveness and
dynamism of Asian SME's by facilitating the access to information access into the
market HR development and skills human resource development and human
resource skills finance as well as in the aspect of technology hence this objective
outline within this blueprint for SME development will assist all the players within this
region especially the country headed by a state actor the government together with
the non state actors the private sector MNC well put their effort on how best to assist
the SME's and update the SME status this region as a key influences through a
stimulation on the economic growth specifically for these countries and Asian region
first effort SME development.
how this effort of IAI may help us to reduce the gap between the Asian six and Asian
4 so specifically the IAI covers the following priority areas whereby it has been
identified by our sent as the key areas to be focusing on and the key areas to be
taken into consideration and serious effort if they want to reduce the gap between
Asian six and Asian four So what are the priorities areas within IAI among others all
the area of infrastructure human resource development information and
communications technologies or ICT capacity building for regional economic
integration in the area of energy in the area of investment tourism poverty reduction
and last but not least in the area of improvement in the quality of life so here are the
key areas on what will be Asian focusing on to reducing the development gap
between Asian six and four within the AEC 2015. we move on to the second effort on
how Asian able to become a competitive econonmic region equitable economic
development effort is through the initiative for auction integration all I AI do you
initiative for us yet integration IAI was launched back in November 2000 which gives
the direction and also the focus of collective efforts within this region 2 narrowing the
development gap not only within US and its member states but also between the
other parts of the world as well so the benefits of IAI hear is the effort the effort to
reduce the gap generally within action members and also including the non asset
member as well.

4TH CHARACTERISTIC OF ASEAN ECONOMIC COMMUNITY.

Now the characteristics of AEC please refer to slide number 9 it's on the integration
into global economy within this characteristic few programs and effort agreed and
took by states and for the purpose of discussion we will we will be discussing on 2
effort and programs which oh the external economy relations as well as participation
in global supply networks.

No Asian shall work towards maintaining in engaging the external economic relations
as we discussed previously on chapter 5 Asian external relations how ASIAN
engage with the non member states non member states here referring to states are
not within the Southeast Asia region and the famous nonstate becoming the Asian
best friend don't forget about +3 option 3 Asian plus three here considered as their
best friend consist partners namely China Japan and South Korea last three other
than this groups +3 Asian also embark with by literal relationship between the non
state outside southeast asian country for example Asian India Asian Australia and
others yeah external economic relation between Asian and the external part this year
not limited to it's negotiation for pursuing free trade agreements comprehensive
economic partnership agreements or CEP.

As we discussed previously what will be the benefit for asian if they have relationship
with the non state southeast Asia region for example China econonmic giant in the
world so Asian have benefited through this relationship economically socially and
also in terms of security and health so through the free trade agreements it can be a
direct free threat agreement such as bilateral free trade agreement within one entity
with another entity for example Asian in China bilateral trade agreements with also
through asian and other integration such as Asian and EU trade agreement for
example normally free trade agreements having similarity with what we have within
our region AFTAR but AFTAR stop is only focusing on this region promotting product
services from this region so be traded manufacturing and also eksport and import
within this region 10 country members in order for asian to be asian regard
internationally to be recognize hence asian need to upgrade them self market
themselves and also to please themselves within the international arena and
because of this optimistic objective then the FDA shall be the mechanism for Asian
to attract the FDI foreign direct investment from outside this region to benefit our
region in many aspects.