ASEAN fta

Contents ASEAN brief introduction ASEAN FTA ASEAN Thailand trade ASEAN Cambodia trade Conclusion Questions and Answers

ASEAN anthem Raise our flag high, sky high Embrace the pride in our heart ASEAN we are bonded as one Look-in out to the world. For peace, our goal from the very start And prosperity to last. We dare to dream we care to share. Together for ASEAN We dare to dream, We care to share for it's the way of ASEAN.

ASEAN Establishment Original members Additional members Indonesia Malaysia Philippines Singapore Thailand Brunei Darussalam (1984) Vietnam (1995) Lao PDR (1997) Myanmar (1997) Cambodia (1999)

ASEAN Population size in million Indonesia 238,000,000 (4-th largest in the world) Philippines 91,983,000 Vietnam 85,846,997 Thailand 65,998,436 Myanmar 50,020,000 Malaysia 28,250,000 Cambodia 14,805,000 Laos 6,320,000 Singapore 4,987,600  Brunei 388,190 (172-nd) TOTAL# 577 million

“One Vision, One Identity, One Community”. Flag “One Vision, One Identity, One Community”.

ASEAN Chair Rotate every year (A-Z) order of 10 countries names Chair ASEAN summit, The ASEAN Coordinating council, Community Councils, Sectoral Ministerial Bodies and senior officials Committee of Permanent Representatives.

The Chairman of ASEAN for the year 2010 is Vietnam’s prime minister, Mr. NGUYEN TAN DUNG, Viet Nam’s theme for their Chairmanship is “Towards the ASEAN Community: from Vision to Action” The year 2010 marks the 15th year of Viet Nam’s accession to ASEAN.

External Relations ASEAN shall develop friendly relations mutually beneficial dialogue , cooperation and partnerships

Partner countries ASEAN-Australia 1974 (first partner country) ASEAN-New Zealand 1975 ASEAN-Japan 1977 ASEAN-USA 1977 ASEAN-EEC (EU) 1980 ASEAN-Canada 1981 ASEAN-ROK ASEAN-India 1995 ASEAN-China 1996 ASEAN-Russia

ASEAN PLUS THREE (APT) Process began in 1997 including China, ROK, and Japan Cooperation in 20 areas There are 57 bodies including 1 summit, 14 ministerial, 19 senior officials, 2 Directors- General, 18 technical level meetings and 2 other tracks meeting coordinating APT cooperation

ASEAN FTA JAN 28, 1992 SINGAPORE With signing of six countries Brunei Darussalam, Indonesia, Malaysia, Philippines, Singapore, and Thailand CLMV 1995-1999

Purposes of AFTA To Expand of the trade in region To attract foreign investment To increase the production efficiency of member countries To increase bargaining power of the Asian Forum for dialogue between the countries

What is Common Effective Preferential tariff ? (CEPT) Agreement for AFTA requires that tariff rates levied on a wide range of products traded within the region are reduced to 0-5%. Inclusion List Products in the Inclusion List are those that have to undergo immediate liberalization through reduction in intra-regional (CEPT) tariff rates, removal of quantitative restrictions and other non-tariff barriers.

Reduced tariff products in Inclusion List Agricultural products Fishery Rubber products Wooden products Textiles Motor vehicles Information technology Science Health

Members can exclude the products in three cases. Temporary Exclusion List (TEL) Temporary delayed but ultimately be lowered 0-5% Sensitive List (SL) unprocessed agricultural products Need longer time frame before FT General Exception List (GEL) permanently excluded products due to national security, public morals, human, animal or plant life and health and articles of artistic and archaeological value.

Tariff reduction process of six original member countries 2ooo(0-5%) 2oo1(0-5%) 2oo2(0-5%) 2003(0-5%) 2010(0%) 85% of products in IL 90% of products in IL All of product in IL (some product can flexible) All of products in IL and 60% in products of IL have non-tariff All of products in IL have non-tariff

Tariff reduction process of additional four member countries 2006(0-5%) 2008(0-5%) 2010(0-5%) 2015(0%) Vietnam Myanmar and Laos Cambodia All 4 new member countries.

THAILAND of ASEAN

Thailand ASEAN trade Thailand is ASEAN’s original member Since the ASEAN establishment trade volume continuously rising from $10,031.5 million in 1992 to $28,946 million in 2003 Thailand’s export value increased 21.9% , $16,537.4 Import increased to 15.5%, $12,490.4

Thailand ASEAN and foreign market Exporting goods Textiles and footwear Fishery products Rice Rubber Jewelry Automobiles Computer Electrical appliances

Thailand’s export partners The US - 10.9% China - 10.6% Japan - 10.3% Hong Kong - 6.2% Australia - 5.6% Malaysia - 5% 

Thailand ASEAN and foreign market Importing goods Electronic equipments Wooden furniture Capital goods Intermediate goods and raw materials Consumer goods Fuel

Thailand’s import partners Japan - 18.7% China - 12.7% Malaysia - 6.4% The US - 6.3% The UAE - 5% Singapore - 4.3% South Korea - 4.1%

So, what are the benefits of being MS of ASEAN for Thailand? The consumer perspective Reduced taxes on importing goods Cheaper price than before People have more purchasing power Variety of new importing products

The manufacturer perspective More opportunities to export Cheaper importing raw materials More competition Mass production Open and huge market size

CAMBODIA of ASEAN

Cambodia ASEAN Trade Joined ASEAN in 1999, 10th member The foreign trade increased after civil and political turmoil since 1999 Import value $5.374 billion in 2009 Export value $3.582 billion in 2009

Cambodia ASEAN and foreign market Exporting goods Clothing Timber Rubber Rice Fish Tobacco Footwear

Cambodia’s export partners The US: 54.5% Germany: 7.7% Canada: 5.9% The UK: 5.5% Vietnam: 4.5% (2008)

Cambodia ASEAN and foreign market Importing goods Petroleum Cigarettes Gold Construction materials Machinery Motor vehicles Pharmaceutical products 

Cambodia’s import partners Thailand: 27.1% Vietnam: 19.2% China: 14.7% Hong Kong: 8.2% Singapore: 7% Taiwan: 5.6%

Conclusion ASEAN is the strong force About 577 million people 4.5 million square kilometers land Rich in natural resources Strategic geographic location Combined GDP of almost US$700 billion 5-6% economic growth annually

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