February 1, 2016

Press Club Brussels Europe

The ASEAN Journey to Community Building

2015 ASEAN Community

2007 Cebu Declaration

2003 Bali Concord II

1997 ASEAN Vision 2020

1967 Bangkok Declaration

“Accelerate the economic growth, social progress and cultural

development in the region through joint endeavors.”

“Promote regional peace and stability through abiding respect for

justice and the rule of law.”

CAMBODIA

ASEAN (Association of South East Asian Nations)

2014 Land Area 4,435,618 Sq. km

Population 622.25 million

GDP value (US$) 2.57 trillion

GDP growth 4.7 %

GDP per capita (US$) 4,136

Foreign Direct Investment 136.1 billion

Merchandise Trade (US$) - Export - Import

2.52 trillion 1.29 trillion 1.23 trillion

Source : ASEAN Secretariat , August 2015

4

ASEAN Security

Community (ASC)

ASEAN Economic

Community (AEC)

ASEAN

Socio-Cultural Community

(ASCC)

Single Market and Production Base

Free flow of goods

Free flow of services

Competitive Economic Region

E - Commerce Taxation

Intellectual Property Rights Competition Policy

Infrastructure Development Consumer Protection

Equitable Economic Development

Development of SMEs

Narrowing Development Gap

A Region fully integrated into Global

FTA with non-ASEAN

Enhanced participation in Global supply chain

Freer flow of capital

Free flow of investment

Free flow of skilled Labor

Gradually reduced import tariffs since 1993

1. Free flow of goods

A Single Market and Production Base AEC Blueprint

1 January 2010 ASEAN-6 Zero import tariffs on products from ASEAN

1 January 2015 CLMV Zero import tariffs on products from ASEAN

Implement measures to improve trade facilitation

- ‘National Single Window’ linking ASEAN Single Window system

- ‘Self-Certification Pilot Project’

(Thailand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Brunei)

- Improvement of ROOs & customs data linkage

Elimination of Non-tariff barriers

- Harmonisation of standards for 20 products ex. Electronic appliances, Rubber products

- MRAs for Electrical and Pharmaceutical sectors

- Establishment of ‘ASEAN Trade Repository’

7

A Single Market and Production Base AEC Blueprint

2. Free flow of Services

Year

2006

Year

2008

Year

2010

Year

2013

Year

2015

To conclude the ‘Protocol to Implement the 9th AFAS Package’

Gradually increase foreign equity participation for ASEAN investors up to 70%.

Priority Integration Sectors

Telecommunication-

Computer / Health / Tourism

/ Air Transport

Logistic

Others

49% 51% 70%

49% 51% 70%

49% 51% 70% 8

A Single Market and Production Base AEC Blueprint

• Liberalization, Protection, Promotion, and Facilitation of Investment

1. Agriculture

2. Fishery

3. Forestry

4. Mining

5. Manufacturing

(Industrial)

• Extend non-discriminatory treatment, including National Treatment and

Most-Favored Nations to investors in ASEAN.

• Revise the AIA and draft the new ASEAN Comprehensive Investment

Agreement (ACIA)

ACIA : ASEAN Comprehensive Investment Agreement

3. Free flow of Investment

10

The Achievements

Source : ASEAN Economic Community 2015: Progress and Key Achievements

Free Flows of Goods: Intra-regional tariff elimination

•ASEAN – 6 99.2 % , CLMV 90.6 % , Average 95.99 %

•NTB : Simplified RO, Self Certification , Harmonized 170 Technical standard e.x. Electrical, Pharm, Medical Devices, Cosmetic ; Developing MRA on Auto, food and construction, Rubber standard etc.

Free Flows of Services and Investment:

• Increase equity for ASEAN Investors : at least 140 subsectors allow up to 70% ownership for ASEAN investors in any Member country

• Free Flow of skilled labor : MRA on Engineers, Architect, Nursing , Medical, Dental, Accountant, Surveyor, Tourism

•Continue to liberalize more on all sectors.

Integration to Global

• FTA In Force : ASEAN – AEC , ASEAN – INDIA , ASEAN – China, AEAN – CER , ASEAN – JAPAN • FTA Ongoing Negotiations : RCEP (ASEAN, China, Japan, India, Australia, New Zealand) • Suspended : ASEAN – EU

KEY Progress

Source: AMCHAM Business Outlook Survey 2016

The Survey

Picture : Circumspectnews

Source : ASEAN Secretariat : ASEAN Progress and Key Achievements 2015

DAWEI Deep Sea Port

Source Asian Development Bank

Road National Highway 63,000 km. Rural Road 39,254 km. Local Road 101,845 km.

Maritime Total international deep sea port : 6 ports Laem Chabung: 7.7 Million TEUs/Year Bangkok: 1.34 Million TEUs/Year

Air Total: 36 airports Suvarnabhumi: 45 million/year Don Mung: 36 million/year Phuket airport: 6.5 million/year Chiang Mai airport: 8 million/year

Source: BOI

Source : US news Best Countries Ranking

Over Century of Strategic and Friendship Partners

Mr. Gustave Rolin Jeanquemyns 373rd rank of the list “Greatest Belgian Ever”

Viaduc Leopold II Bridge 1958-1984 Treaty of Friednshp and Commerce 1868

Thai – Belgian Bridge

2015 Bilateral Trade Relations

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

9,000.00

10,000.00

9,834.41

6,373.32

5,241.61

4,308.01

3,251.68

2,401.29

1,332.10 1,267.82 889.10

680.89 590.88 531.69 216.65 172.38 22.68

Bilateral Trade Structure

Agricultural products

6%

Agro-industrial products

3%

Principle manufacturin

g products 91%

Mining and fuel products

0%

Agricultural products

Agro-industrial products

Principle manufacturing products

Mining and fuel products

Thailand Exports to Belgium 1,547 M. US$

Fuel lubricants

2%

Capital goods 11%

Raw materials and intermediate

69%

Consumer goods 17%

Vehicles and

transport 1%

Arms, munitions

used in official

0%

Fuel lubricants

Capital goods

Raw materials and intermediate

Consumer goods

Vehicles and transport

Arms, munitions used in official

Thailand Imports from Belgium 1,091 M. US $