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The ASEAN Economic Community:

State of Implementation and


Implications for the Philippines
Jrn Dosch, 5 December 2014

...

AEC
2015

ASEAN
Trade in
Goods
Agreement
(ATIGA)
2010

Post 2015
Vision

AFTA 1992

Cartoon: http://www.irrawaddy.org/articlefiles/14463-3_mar_cartoon.gif

ASEAN
Industrial
Projects
(AIP) 1976

Preferential
Trade
Agreement
(PTA) 1977

ASEAN Industrial
Complementation
Scheme (AIC) 1981

The Vision & the Challenge

Competitive
economic
region

Single market
and
production
base

The Trouble of
Terminology

AEC:
integrated
economic
region

A single or internal
market consists of two or
more nations among
which goods, capital, and
currencies can move
freely across borders
without tariffs or other
restrictions.

Equitable
economic
development

Integration
into the Global
Economy

22.11.2014 2014 UNIVERSITT ROSTOCK

Is Intra-Regional Trade the


Bottom Line?

Share of intra-regional trade in % of total ASEAN trade


30
25
20

21

25.1

24.5

25.5

25.4

25

24.3

26

2003

2008

2009

2010

2011

2012

2013

22

15
10
5
0
1998

2000

Data compiled from ASEAN Statistics

http://www.imf.org/external/country/VNM/rr/2013/101113.pdf

http://www.adbi.org/files/2013.10.25.wp440.asean.economic.community.progress.challenges.pdf
11/22/2014

....Extra-Regional Trade Looks


More Impressive.

ASEAN-China Trade 2007-2012


250000
200000
150000
100000
Deutsche Bank Research (2013),
http://www.dbresearch.com/PROD/DBR_INTERNET_ENPROD/PROD0000000000315342.pdf

50000
0

2007

2008

2009

2010

2011

2012

ASEAN imports from


97443 112560 97605 128045 156622 204270
China
ASEAN Exports to
79429 89327 82887 114134 142764 195820
China
Chart based on data compiled from WTO Trade Statistics
11/22/2014

Customs: The (modest) Success Story


Efficiency of Border Administration 2009 & 2014
7
6
5
4

6.5

3
2
1

3.4
3

4.4
3.8

5.2
4.3
4.7
3.7

6.3

4.7
4.5

3.3

3.4

2009
2014
3.3

*Data for Brunei (2009 and 2014), Laos and Myanmar (2009) were not available
The higher the score, the more efficient and transparent is the respective border administration
Chart based on data compiled from World Economic Forum: The Global Enabling Report 2009 and 2014

Efficiency of import-export
procedures, detailed indicators
(2009 & 2014)
Efficiency of
the clearance
process
1-5 (best)

No. of days to
import

No. of
documents to
import

Cost to
import, US$
per container

No. of days to
export

No. of
documents to
export

Cost to
export, US$
per container

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

2009

2014

Cambodia

2.2

2.7

30

24

11

872

930

22

22

11

732

795

Indonesia

2.7

2.9

27

23

660

660

21

17

704

615

Malaysia

3.4

3.4

14

450

485

18

11

450

450

Philippines

2.6

3.0

16

14

819

660

16

15

816

585

Singapore

3.9

4.0

439

440

456

460

Thailand

3.0

3.2

13

13

795

760

14

21

625

595

Vietnam

2.9

2.8

23

21

901

600

24

21

734

610

*Data for Brunei, Laos and Myanmar were not available


Table based on data compiled from World Economic Forum: The Global Enabling
Report 2009 and 2014

11/22/2014

Significant improvements
Slight improvements
Slight worsening
worsening
8

Concluding Diagnostics

Is the Institutional Setting the Problem?

11/22/2014

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