Connect with us

Asean

Why the AEC Will Struggle beyond 2015 deadline

This is not the first time that AEC faces a probable delay: In 2012, the commencement of the AEC was postponed to December 31, 2015 from the original plan of January 1, 2015.

Boris Sullivan

Published

on

The recently released U.S. Chamber of Commerce ASEAN Business Outlook Survey 2015 highlighted the widespread concern that the much-anticipated ASEAN Economic Community (AEC) would not be launched by the end-2015 deadline.

Indeed, most respondents were pessimistic about the inauguration of the AEC by 2020 or later. This is not the first time that AEC faces a probable delay: In 2012, the commencement of the AEC was postponed to December 31, 2015 from the original plan of January 1, 2015.

Despite ASEAN Secretary-General Surin Pitsuwan’s firm reassurance that “[t]here will be no more delays and that all ten ASEAN countries will participate,” even the most fervent proponents of AEC are beginning to worry about the increasingly diminishing chance of delivering AEC on time as 2015 closes in.

ASEAN Economic Community

AEC originates from the ASEAN Vision 2020, which was adopted in 1997 on the 30th anniversary of ASEAN. It aspires to create a single market and production base with a free flow of goods, services, investments, capital and skilled labor by 2020. In 2003, ASEAN leaders signed the Declaration of ASEAN Concord II and agreed to establish the AEC by 2020.

The 2007 Cebu Declaration accelerated the establishment of the AEC to 2015, and ASEAN introduced the AEC Blueprint, which was substantiated into the Roadmap for the ASEAN Community (2009-2015) two years later, to guide the implementation of the AEC.

To track the progress of the AEC, the AEC Scorecard, a compliance tool developed based on the EU Internal Market Scorecard, was adopted by ASEAN. To date, two official scorecards have been published, one in 2010 and the other in 2012.

According to the AEC Scorecard 2012, the implementation rates of AEC’s four primary objectives: (a) single market and production base; (b) competitive economic region; (c) equitable economic development; and (d) integration into the global economy were 65.9 percent, 67.9 percent, 66.7 percent, and 85.7 percent, respectively, with 187 out of 277 measures being fully implemented by 2011.

The formation of AEC appeared to be on track, which makes it all the more intriguing that so few people expect it to come into force even by 2020.

via Why the ASEAN Economic Community Will Struggle | The Diplomat.

ASEAN may not necessarily get an honor, but it will pass the exam

ASEAN has made remarkable achievements in terms of free trade of goods, with tariffs already close to zero on most of the products. The AEC vision is defined by factors, such as a single market and production base, a competitive economic region, equitable economic development and integration into the global economy.

Observers said that the remaining 15 percent of the targets, though only a small part, are the hard ones, as they may involve domestic efforts.Kaewkamol said these mainly fall into issue areas such as non-tariff barriers, services trade liberalization, investment liberalization and free flow of people, particularly skilled labor.

There are also challenges arising from the changing global economic landscape.The European economy remains weak and the recovery in the United States has been slow

Comments

Asean

The Latest on Covid-19 in Southeast Asia

Thailand has largely avoided widespread community transmission of Covid-19, but the kingdom is not faring well on the economic front, with a projected contraction of 7.1 percent this year.

Avatar

Published

on

Coronavirus Asia

As a region, Southeast Asia has fared relatively well in keeping coronavirus cases low, with the notable exceptions of the Philippines and Indonesia.

(more…)
Continue Reading

Laos

China’s debt-trap diplomacy: Laos’ credit rating downgraded to CCC

Laos’ debt challenge is deeply concerning, with some media commentators suggesting the country is falling into a debt trap as a result of Chinese infrastructure investments connected to the Belt and Road Initiative (BRI)

Boris Sullivan

Published

on

On 23 September, the Fitch Ratings agency downgraded Laos’ credit rating to CCC — the second downgrade in 2020, having dropped to B- in May.

(more…)
Continue Reading

Vietnam

Foreign capital still heads to Vietnam

As many as 798 projects added a combined over 5.11 billion USD to their investment capital, down 23 percent year-on-year in project number but up 6.8 percent in value.

Avatar

Published

on

Hanoi (VNA) – The total amount of foreign investment poured into Vietnam this year to September 20 reached 21.2 billion USD, equivalent to 81.8 percent of the same period last year, reported the Ministry of Planning and Investment.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,609 other subscribers

Trending