G - Recommendations of the High-Level Task Force on ASEAN Economic Integration

Summary

INTRODUCTION

1. The realization of a fully integrated economic community requires implementation of both liberalization and cooperation measures. The Task Force while focusing its recommendations relating to liberalization and facilitation measures in the area of trade in good, services and investment, acknowledges on the need to enhance cooperation and integration activities in other areas. These will involve among others, human resource development and capacity building; recognition of educational qualifications; closer consultations on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement.

ASEAN ECONOMIC COMMUNITY

2. As a step towards the realization of ASEAN Economic Community for trade in goods, services and investment, the HLTF took into account the experience of other Regional Trading Arrangements (RTAs), ASEAN's own experience, the development perspective in ASEAN and also the views contained in the following documents:

1. (i) ASEAN Vision 2020, the Hanoi Plan of Action (HPA), and RIA;

2. (ii) ASEAN Competitiveness Study;

3. (iii) ASEAN Economic Community: Concept Paper by ISEAS; and

4. (iv) ASEAN ISIS: Towards an ASEAN Economic Community.

3. The HLTF is of the view that the elements of the AEC in the area of goods, services and investment have been elaborated in ASEAN Vision 2020, HPA and RIA, and recommends that the AEC should be:

1. (i) The end-goal of economic integration as outlined in the ASEAN Vision 2020;

2. (ii) Characterized as a single market and production base, with free flow of goods, services, investment and skilled labour, and freer flow of capital by 2020; and

3. (iii) Approached on a progressive basis with clear timelines by strengthening existing initiatives and building new initiatives to enhance economic integration.

RECOMMENDATIONS

4. Recognizing that not all ASEAN member countries can meet the recommended deadlines, the HLTF recommends that flexibility be allowed in its implementation to enable those member countries that are ready to proceed first.