Corporate Competitiveness in FTA Era 5.1.2.3 Incorporating FTAs into Business Strategy Corporate Competitiveness in FTA Era 31st ASEAN-Japan Business Meeting November 2005

A Region Without FTAs Regulatory walls isolate domestic markets Tariff and non-tariff measures Regulatory requirements / restrictions Focus on individual domestic market Captive market Captive consumer Operational isolation Little / No sharing of resources Duplication November 2005 Corporate Competitiveness in FTA Era: Incorporating FTAs into Business Strategy

ASEAN Free Trade Area (AFTA) Intra ASEAN barriers gradually removed Tariff reduction and elimination Removal of non-tariff measures Access to regional market Expanded marketplace Greater pool of supply Create regional operational space Rationalization Specialization November 2005 Corporate Competitiveness in FTA Era: Incorporating FTAs into Business Strategy

ASEAN+ Japan ASEAN Implemented On-going Negotiations China Republic of Korea India Australia New Zealand November 2005 Corporate Competitiveness in FTA Era: Incorporating FTAs into Business Strategy

Bilateral THAILAND 1. Australia 2. BIMSTEC 3. EFTA 4. India 5. Japan 6. New Zealand 7. Peru 8. United States PHILIPPINES Japan SINGAPORE Australia EFTA India Japan Jordan Kuwait New Zealand Pakistan Panama Qatar Republic of Korea Trans-Pacific United States MALAYSIA Australia Japan New Zealand Pakistan INDONESIA Japan November 2005 Corporate Competitiveness in FTA Era: Incorporating FTAs into Business Strategy

Facing FTAs Inevitability of FTAs Maximizing opportunities and minimizing challenges Market access / competition Regulatory transparency / corporate governance Influencing / Anticipating the FTA negotiations Regular updates on FTA developments Inputs to negotiations Safety net for the “losers” November 2005 Corporate Competitiveness in FTA Era: Incorporating FTAs into Business Strategy

Worldwide. For Our Clients. www.whitecase.com November 2005 White & Case, a New York State registered limited liability partnership, is engaged in the practice of law directly and through entities compliant with regulations regarding the practice of law in the countries and jurisdictions in which we have offices. Corporate Competitiveness in FTA Era: Incorporating FTAs into Business Strategy