Press Release on the Signing of Economic Agreements at the 14th ASEAN Summit
Cha-am, Thailand, 1 March 2009
ASEAN Economic Ministers met on 26 February 2009 at the sidelines of the 14th ASEAN Summit to sign the ASEAN Trade in Goods Agreement (ATIGA), ASEAN Comprehensive Investment Agreement (ACIA), Protocol to Implement the 7th Package of Commitments under ASEAN Framework Agreement on Services (AFAS), Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), and Protocols on the Accession of Thailand to the ASEAN-Korea Agreement on Trade in Goods and the Agreement on Trade in Services.
The ATIGA integrates all existing ASEAN initiatives related to trade in goods into one comprehensive framework, ensuring synergies and consistencies among those various initiatives. It contains a number of key features that would enhance transparency, certainty and predictability within the ASEAN legal framework, and enhance ASEAN Free Trade Area’s rules-based system, which is of importance to the ASEAN business community.
The ACIA incorporate elements of investment liberalisation, promotion, awareness, facilitation, and protection. Investment liberalisation will be progressive with a view towards achieving a free and open investment environment in the region in line with the goals of the ASEAN Economic Community (AEC). The comprehensive provisions of ACIA improve investors’ confidence in the region and encourage further development of intra-ASEAN investment, especially among multinational corporations based in ASEAN through expansion, industrial cooperation and specialisation. It will contribute to enhancing economic integration.
The Secretary-General of ASEAN Dr Surin Pitsuwan said, “The ATIGA and ACIA allow for a streamlined, consolidated, predictable and transparent set of rules that will facilitate businesses to operate more efficiently in the ASEAN region”.
The 7th Package is the most ambitious of commitments made to date under AFAS in line with the targets set under the AEC Blueprint. These include the movement of services supplied across border without restrictions, committing higher foreign equity levels, and progressively removing other restrictions. “Under the 7th package, ASEAN Member States are expected to continue expanding the depth and breadth of their services commitments towards achieving free flow of services by 2015,” Dr Surin said.
The ASEAN Economic Ministers also met their counterparts from Australia and New Zealand, and the Republic of Korea (ROK) to sign landmark agreements that are meant to reinforce ASEAN’s outward-looking strategy.
Dr. Surin lauded the signing of the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the single most comprehensive economic agreement entered into by ASEAN to date. “The AANZFTA Agreement is an important milestone not only for the ASEAN Economic Community but also for Australia and New Zealand’s Closer Economic Relations,” according to the Secretary-General. The Agreement is expected to create an open market of over 600 million people with a combined GDP of US$ 2.3 trillion, based on the IMF’s 2007 figures.
With the Republic of Korea, Ministers signed two Protocols on the accession of Thailand to the Agreement on Trade in Goods and the Agreement on Trade in Services under the ASEAN-Republic of Korea Framework Agreement on Comprehensive Economic Cooperation. Dr. Surin welcomed Thailand’s accession to the two agreements and is delighted that “ASEAN as a regional entity is finally on the road to creating a genuine free trade area with the Republic of Korea.”
On the ASEAN-India FTA, ASEAN Member States had secured the mandate and were prepared to sign four Agreements with India, including the much-awaited Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and India. However, the request by India in early February 2009 for a change in the effective date of entry into force of this Agreement required an amendment to the finalised Agreements. This would result in ASEAN Member States needing more time to undergo another round of domestic processes to seek Cabinet/Parliament approval for signing. “It is unfortunate that India could not join us in Cha-am, Thailand,” said the Secretary-General of ASEAN. Nevertheless, ASEAN remains committed and hopeful that both Parties could sign the Agreement within the shortest possible time, and create the ASEAN-India Free Trade Area by 2012.
Cha-am, Thailand, 1 March 2009
ASEAN Economic Ministers met on 26 February 2009 at the sidelines of the 14th ASEAN Summit to sign the ASEAN Trade in Goods Agreement (ATIGA), ASEAN Comprehensive Investment Agreement (ACIA), Protocol to Implement the 7th Package of Commitments under ASEAN Framework Agreement on Services (AFAS), Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), and Protocols on the Accession of Thailand to the ASEAN-Korea Agreement on Trade in Goods and the Agreement on Trade in Services.
The ATIGA integrates all existing ASEAN initiatives related to trade in goods into one comprehensive framework, ensuring synergies and consistencies among those various initiatives. It contains a number of key features that would enhance transparency, certainty and predictability within the ASEAN legal framework, and enhance ASEAN Free Trade Area’s rules-based system, which is of importance to the ASEAN business community.
The ACIA incorporate elements of investment liberalisation, promotion, awareness, facilitation, and protection. Investment liberalisation will be progressive with a view towards achieving a free and open investment environment in the region in line with the goals of the ASEAN Economic Community (AEC). The comprehensive provisions of ACIA improve investors’ confidence in the region and encourage further development of intra-ASEAN investment, especially among multinational corporations based in ASEAN through expansion, industrial cooperation and specialisation. It will contribute to enhancing economic integration.
The Secretary-General of ASEAN Dr Surin Pitsuwan said, “The ATIGA and ACIA allow for a streamlined, consolidated, predictable and transparent set of rules that will facilitate businesses to operate more efficiently in the ASEAN region”.
The 7th Package is the most ambitious of commitments made to date under AFAS in line with the targets set under the AEC Blueprint. These include the movement of services supplied across border without restrictions, committing higher foreign equity levels, and progressively removing other restrictions. “Under the 7th package, ASEAN Member States are expected to continue expanding the depth and breadth of their services commitments towards achieving free flow of services by 2015,” Dr Surin said.
The ASEAN Economic Ministers also met their counterparts from Australia and New Zealand, and the Republic of Korea (ROK) to sign landmark agreements that are meant to reinforce ASEAN’s outward-looking strategy.
Dr. Surin lauded the signing of the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the single most comprehensive economic agreement entered into by ASEAN to date. “The AANZFTA Agreement is an important milestone not only for the ASEAN Economic Community but also for Australia and New Zealand’s Closer Economic Relations,” according to the Secretary-General. The Agreement is expected to create an open market of over 600 million people with a combined GDP of US$ 2.3 trillion, based on the IMF’s 2007 figures.
With the Republic of Korea, Ministers signed two Protocols on the accession of Thailand to the Agreement on Trade in Goods and the Agreement on Trade in Services under the ASEAN-Republic of Korea Framework Agreement on Comprehensive Economic Cooperation. Dr. Surin welcomed Thailand’s accession to the two agreements and is delighted that “ASEAN as a regional entity is finally on the road to creating a genuine free trade area with the Republic of Korea.”
On the ASEAN-India FTA, ASEAN Member States had secured the mandate and were prepared to sign four Agreements with India, including the much-awaited Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation between ASEAN and India. However, the request by India in early February 2009 for a change in the effective date of entry into force of this Agreement required an amendment to the finalised Agreements. This would result in ASEAN Member States needing more time to undergo another round of domestic processes to seek Cabinet/Parliament approval for signing. “It is unfortunate that India could not join us in Cha-am, Thailand,” said the Secretary-General of ASEAN. Nevertheless, ASEAN remains committed and hopeful that both Parties could sign the Agreement within the shortest possible time, and create the ASEAN-India Free Trade Area by 2012.
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