Josephine A. Sanoy

Overview of Regional Trade Agreements (RTAs) Association of Southeast Asian Nations (ASEAN)

and the AEC

Asia Pacific Economic Region (APEC)

East ASEAN Growth Area (EAGA)

European Brazil-Russia-India-China-South Africa (BRICS)

Growth Triangles

World Trade Organization (WTO)

For detailed list of RTAs visit: http://rtais.wto.org

These are defined as virtual agreements within states which aim:

For detailed list of RTAs visit: ttp://rtais.wto.org

To increase economic integration and reduce barriers to trade between states

To increase movement of goods, services, people, and capital between states

They do not have to be neighboring states

RTA s can cover large geographical areas

They are multi-scalar

Preferential Trade Agreement Free Trade Agreement Customs Union Common Market Economic Union

Specific tariffs Ad valorem tariffs Licenses Import quotas Voluntary export restraints Local content requirements

The reduction in trade barriers can allow countries greater access to foreign markets.

Because RTAs are smaller than multilateral trade agreements, the number of successful negotiations is often

higher.

Trade agreements can improve relations thus improving the national security of the countries involved and reducing

the likelihood of war.

A political and economic organization of ten countries located in Southeast Asia which was formed on Aug 1967 in Bangkok, Thailand

ASEAN members are: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei (1984), Cambodia (1999), Myanmar (1997), Laos (1997), and Vietnam (1995).

Objectives

To accelerate the economic growth, social progress and cultural

development in the region through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations;

To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter;

Objectives

To promote active collaboration and mutual assistance on

matters of common interest in the economic, social, cultural, technical, scientific and administrative fields;

To provide assistance to each other in the form of training and research facilities in the educational, professional, technical and administrative spheres;

Objectives To collaborate more effectively for the greater utilization of their

agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples;

Objectives

To promote Southeast Asian studies

To maintain close and beneficial cooperation with existing international and regional organizations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves.

Fundamental principles As contained in the Treaty of Amity and Cooperation in Southeast

Asia (TAC) of 1976:

1. Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;

2. The right of every State to lead its national existence free from external interference, subversion or coercion;

3. Non-interference in the internal affairs of one another;

4. Settlement of differences or disputes by peaceful manner;

5. Renunciation of the threat or use of force; and

6. Effective cooperation among themselves.

Founded in

Bangkok, Thailand

on August 8 1967

ASEAN Free Trade

agreement (AFTA)

(1992)

ASEAN Vision

2020 (1997)

Resolution of ASEAN

Economic Community

(AEC) in the 9th

summit (2003)

Establishment of AEC by

2015 (Cebu Declaration on

the Acceleration of the

Establishment of an ASEAN

Community by 2015

(2007)

Milestones

AEC

Single Market

and

Production

Base

Competitive

Economic

Region

Equitable

Economic

Development

Integration

into Global

Economy

A. Single Market and Production Base 1. Free flow of goods 2. Free flow of services 3. Free flow of Investment 4. Freer flow of Capital 5. Free flow of Skilled Labour 6. Priority Integration Sectors 7. Food, Agriculture and Forestry

B. Competitive Economic Region 1. Competition Policy 2. Consumer Protection 3. Intellectual Property Rights 4. Infrastructure Development 5. Taxation 6. E-Commerce

Singapore-Kunming Rail Line

ASEAN Highway Network

Singapore-Kunming Rail Line

C. Equitable Economic Development 1. SME Development D. Integration into the Global Economy 1. Coherent Approach Towards External Economic

Relations 2. Enhanced Participation in Global Supply Networks

Data from www.asean.org

74.5% of the targets achieved

74.6% 77.3% 61.1% 75.0%

As of October 2012

Private sector as driver of economic growth Contributes about 95% of GDP, 92% workforce Low AFTA utilization (15% in 2006 2007, 11.8% in 2008) Fall in investment rate from 2000 2009

A. Human Development 1. Advancing and Prioritizing Education 2. Investing in HR Development 3. Promotion of Decent Work 4. Promoting Information and Communication

Technology (ICT) 5. Facilitating Access to Applied Science and Technology 6. Strengthening Entrepreneurship Skills for Women,

Youth, Elderly, and Persons with Disabilities 7. Building Civil Service Capability

B. Social Welfare and Protection 1. Poverty Alleviation 2. Social Safety net and Protection from the Negative

impacts of Integration and Globalization 3. Enhancing Food security and safety 4. Access to Healthcare and Promotion of Healthy

Lifestyle 5. Improving Capability to Control Communicable

Diseases 6. Ensuring a Drug-free ASEAN 7. Building Disaster-Resilient Nations and Safer

Communications

C. Social Justice and Rights 1. Promotion and Protection of the Rights and Welfare

of Women, Children, the Elderly, and Persons with Disabilities

2. Protection and Promotion of the Rights of Migrant Workers

3. Promoting Corporate Social Responsibility (CSR)

D. Ensuring Environmental Sustainability 1. Addressing Global Environmental Issues 2. Managing and Preventing Transboundary

Environmental Pollution 3. Promoting Sustainable Development through

Environmental Education and Public Participation 4. Promoting Environmental Sound Technology (EST) 5. Promoting Quality Living Standards in ASEAN Cities/

Urban Areas

D. Ensuring Environmental Sustainability 6. Harmonizing Environmental Policies and Database 7. Promoting the Sustainable use of Coastal and Marine

Environment 8. Promoting Sustainable Management of Nature

Conservation and Biodiversity 9. Promoting the Sustainability of Freshwater Resources 10. Responding to Climate Change and Addressing its

Impacts 11. Promoting Sustainable Forest Management (SFM)

E. Building ASEAN Identity 1. Promoting of ASEAN Awareness and a Sense of

Community 2. Preservation and Promotion of ASEAN Cultural

Heritage 3. Promotion of Cultural Creativity and Industry

A. A Rules- Based Community of Shared Values and Norms (Political Cooperation)

B. A Cohesive, Peaceful and Resilient Region with Shared Responsibility for Comprehensive Security (Security Cooperation)

C. A Dynamic and Outward-Looking Region in an Increasingly Integrated and Interdependent World (External Relations)

It is a forum established in 1989 in Canbera, Australia that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.

Members are Australia, Brunei, Canada, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, and the Unites States. China, Hongkong, Taiwan joined in 1991. Mexico and Papua New Guinea joined in 1993, Chile in 1994. Peru,

Russia, Vietnam joined in 1998.

Mission statement

APEC is the premier Asia-Pacific economic forum. Our primary goal is to support sustainable economic growth and prosperity in the Asia-Pacific region.

We are united in our drive to build a dynamic and harmonious Asia-Pacific community by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, enhancing human security, and facilitating a favorable and sustainable business environment. Our initiatives turn policy goals into concrete results and agreements into tangible benefits.

Key areas

1. Trade and Investment Liberalisation

2. Business Facilitation

3. Economic and Technical Cooperation

The Brunei Darussalam Indonesia Malaysia Philippines East ASEAN Growth Area (BIMP-EAGA) is a sub-regional economic cooperation designed to spur economic development in the lagging sub-economies of member countries.

It is comprised of the following focus areas: the entire sultanate of Brunei Darussalam; the provinces in Kalimantan, Sulawesi, Maluku, and Papua in eastern Indonesia; the states of Sabah and Sarawak and the federal territory of Labuan in Malaysia; and Mindanao and Palawan in the Philippines.

Vision To realize socially acceptable and sustainable economic

development and the full participation of the subregion in the ASEAN development process.

Goal Short-to-medium-term: To become a major location in ASEAN for

high-value-added agro-industry, natural resource-based manufacturing, and high-end tourism.

Long-term: To ensure that non-resource-based industries are

established in the subregion

Four strategic pillars

1. Connectivity

2. Food Basket

3. Environment

4. Tourism

First summit held in Russia in June 16, 2009 Association of five major emerging national economies Originally known as BRIC before South Africa joined in 2010. As of 2014, BRICS represent 40% of the world population. It has a combined nominal GDP of US $16 trillion equivalent to 20% of the

worlds GDP.

Average Annual Growth Rate of BRICS and Three Other Major Developed Countries

Growth triangles are mutual cooperation in economic development among nations.

They typically group remote regions of the nations involved in an effort to exploit complementary assets within the groupings.

Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)

is a subregional cooperation initiative formed in 1993 by the governments of Indonesia, Malaysia, and Thailand to accelerate economic transformation in less developed provinces

It is now composed of 14 provinces in southern Thailand, 8 states of Peninsular Malaysia, and the 10 provinces of Sumatra in Indonesia.

SIJORI Growth Triangle (1989)

A partnership arrangement between Singapore, Johor (in Malaysia), and Riau Islands (in Indonesia) that combines the competitive strengths of the three areas to make the subregion more attractive to regional and international investors.

It links the infrastructure, capital, and expertise of Singapore with the natural and labour resources and the abundance of land of Johor and Riau.

Southern China Growth Triangle

It comprises of Hongkong, Taiwan, and Southern provinces of China.

Tumen Delta Triangle

Integrates capital and technology of Japan and Republic of Korea with natural resources of Russia and North Korea and labor and agricultural resources of China

It is an economic and political partnership between 28 European countries and was created in 1958 in the aftermath of the Second World War. Founding members are Belgium, France, Germany, Italy, Luxembourg, and Netherlands.

Objectives

To unite European countries economically and politically in order to secure lasting peace.

To promote human rights both internally and around the world.

Facts

First named as European Economic Community (EEC) and evolved into political union as European Union (EU) in 1993.

The EU launched a single European currency, the euro.

The EUs main economic engine is the single or internal market, enabling most goods, services, money, and people to move freely.

Founding fathers are Winston Churchill, Joseph Bech, Konrad Adenauer, Johan Willem Beyen, Alcedi De Gasperi, Walter Hallstein, Sicco Mansholt, Robert Schuman, Paul-Henri Spaak, and Jean Monnet

Facts

First named as European Economic Community (EEC) and evolved into political union as European Union (EU) in 1993.

The EU launched a single European currency, the euro.

The EUs main economic engine is the single or internal market, enabling most goods, services, money, and people to move freely.

Founding fathers are Winston Churchill, Joseph Bech, Konrad Adenauer, Johan Willem Beyen, Alcedi De Gasperi, Walter Hallstein, Sicco Mansholt, Robert Schuman, Paul-Henri Spaak, and Jean Monnet

The World Trade Organization (WTO), founded in Jan 1, 1995, deals with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

The bulk of the WTOs current work comes from the 198694 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT).

The WTO is currently the host to new negotiations, under the Doha Development Agenda launched in 2001.

Comprises of 160 members since June 26, 2014

Basic principles Trade without discrimination Most-favoured-nation (MFN): treating other people equally National treatment: treating foreigners and locals equally

Freer trade

Predictability

Promoting fair competition

Encouraging development and economic reform

For more details visit: http://www.wto.org

A Global Partnership for Development

Develop further an open, rule-based, predictable, non-discriminatory trading and financial system

Address the special needs of the least developed countries

Address the special needs of landlocked developing countries and small island developing States

Deal comprehensively with the debt problems of developing countries

In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries

In cooperation with the private sector, make available the benefits of new technologies, especially information and communication

Philippines participation in WTO

Member since Jan 1, 1995

Member of GATT since Dec 27, 1979

Chairperson of Preparatory Committee on Trade Facilitation: Philippine Ambassador Esteban B. Conejos, Jr. (elected on Jan 31, 2014)