ASEAN Economic Community - Milestones and Key Achievements of The ASEAN Economic Community

Summary

The video highlights the ASEAN Economic Community's (AEC) progress and milestones, focusing on its economic growth, trade integration, and digitalization efforts. It emphasizes ASEAN's position as a leading global trading hub, eliminating tariffs, and advancing initiatives like the ASEAN Trade Repository and ASEAN Single Window. The video also discusses the importance of services, investment liberalization, and financial integration, while promoting sustainable development, digitalization, and innovation. The AEC continues to work on enhancing free trade agreements and cooperation across sectors, aiming to achieve its 2025 economic integration goals and beyond.

Takeaways

• 🌍 ASEAN Economic Community (AEC) has achieved significant economic growth, with ASEAN becoming the world's fifth-largest economy driven by its supply networks, middle class, young workforce, and resources.
• 📈 Pre-COVID-19, ASEAN’s GDP grew by over 5% annually, making it a leading region for trade and investment globally.
• 🔍 The AEC has nearly eliminated regional tariffs and now focuses on reducing non-tariff barriers and enhancing trade facilitation through digital initiatives.
• 📦 Key projects like the ASEAN Trade Repository, ASEAN Single Window, and ASEAN Customs Transit System streamline customs and promote smoother cross-border trade.
• 📝 Services are a substantial part of ASEAN’s GDP, and the ASEAN Trade in Services Agreement further liberalizes and integrates service sectors.
• 💼 Investment in ASEAN is guided by the ASEAN Comprehensive Investment Agreement, promoting investment liberalization, protection, facilitation, and promotion.
• 💳 Financial integration is a priority, with focus areas including liberalizing financial services, developing capital markets, integrating banking and insurance, and advancing sustainable and digital finance.
• 💻 Digitalization is a high priority, especially for e-commerce, with efforts underway to fully leverage digital trade within ASEAN’s single market.
• 🌱 The AEC aims to support small and medium enterprises (SMEs) and promote inclusive, sustainable business models that reduce the development gap across member countries.
• 🤝 ASEAN has six free trade agreements with major global economies and most recently signed the Regional Comprehensive Economic Partnership (RCEP), which, once enforced, will form one of the world's largest trade blocs.

Q & A

What is the ASEAN Economic Community (AEC) and why is it significant?

The ASEAN Economic Community (AEC) is an initiative to integrate the economies of the ASEAN member states. It is significant because it has helped ASEAN become the world's fifth-largest economy with strong supply networks, a growing middle class, and a young, digitally-savvy workforce.

How has ASEAN's economy performed prior to the COVID-19 pandemic?

Before the COVID-19 pandemic, ASEAN's economy was growing significantly, with an average GDP growth of more than 5% annually over the past decade, reaching a combined GDP of $3 trillion.

What progress has ASEAN made in terms of trade integration?

ASEAN has made significant progress in trade integration by virtually eliminating regional tariffs and addressing non-tariff barriers. Initiatives like the ASEAN Trade Repository, ASEAN Single Window, and ASEAN Customs Transit System have advanced trade facilitation.

What are some key initiatives mentioned to modernize ASEAN's trade and customs procedures?

Key initiatives include the ASEAN Trade Repository, ASEAN Single Window, ASEAN Customs Transit System, and ASEAN-wide Self-Certification. These efforts aim to streamline trade procedures and harmonize standards.

What role does the services sector play in ASEAN’s economy?

The services sector is the largest contributor to ASEAN's GDP and foreign direct investment. The region has gradually opened up its services sectors through agreements like the ASEAN Framework Agreement on Services and the ASEAN Trade in Services Agreement.

How is ASEAN improving its investment environment?

ASEAN is improving its investment environment through the ASEAN Comprehensive Investment Agreement, which focuses on investment liberalization, protection, facilitation, and promotion.

What is ASEAN's approach to financial integration?

ASEAN promotes financial integration, stability, and inclusion by liberalizing financial services, integrating banking and capital markets, and advancing insurance market integration. The region is also focused on sustainable finance and digitalization of financial services.

What is the importance of digitalization in ASEAN’s economic future?

Digitalization is essential for ASEAN’s future economic integration, especially in areas like trade facilitation and financial services. Digital technologies are expected to play a greater role in the ASEAN Single Market and across sectors such as transport, energy, and agriculture.

How does ASEAN support micro, small, and medium enterprises (MSMEs)?

ASEAN promotes the development, internationalization, and digitalization of MSMEs, recognizing their significant contribution to the economy and employment. Inclusive business models are also being promoted to ensure broader economic benefits.

What are some of ASEAN's free trade agreements with global partners?

ASEAN has six free trade agreements with global partners, including China, Japan, Korea, India, Australia, New Zealand, and Hong Kong. These agreements are regularly reviewed to ensure their relevance and effectiveness.