Regional Approach to Standardization and their Impacts on ASEAN

1. one vision one identity one community Regional Approach to Standardization and their Impacts on ASEAN Regional Seminar on Standard and Standardization, Linkages to Regional Integration and Trade Promotion 17-18 December 2013, Vientiane, Lao PDR

2. TRADE and ECONOMIC PERFORMANCE • ASEAN ECONOMIC COMMUNITY (AEC) • Free flow of goods • Trade in Goods • Customs • Standards & Conformance • ASEAN Consultative Committee for Standards and Quality (ACCSQ) and AEC • ASEAN and FREE TRADE AREA (FTA) OUTLINE

3. TRADE AND ECONOMIC PERFORMANCE

4. Trend: Export, Import, and Total Trade ASEAN trade increased significantly from USD 430 Billion in 1993 to USD 2.4 Trillion in 2011. Likewise, exports and imports also increased remarkably, both from USD223.3 billion and USD429.9 to USD1,243.5 billion and USD1,145 billion respectively for the same period.

5. Trend in ASEAN Trade Balance Since 1998 ASEAN has been recording trade surplus, peaking at USD 109 Billion in 2007, declined in 2008 (global economic crisis) and has picked up to reach the second highest recording in 2011 at USD99 billion.

6. Share of ASEAN Trade with Dialogue Partners

9. Share of ASEAN FDI with Dialogue Partners

10. ASEAN Economic Community (AEC)

11. 4 PILLARS OF THE AEC ASEAN Economic Community Strategic Schedule of the AEC Blueprint (2008-2015) HUMAN RESOURCE DEVELOPMENT RESEARC H AND DEVELOPMENT

12. 4 PILLARS OF THE AEC ASEAN Economic Community Strategic Schedule of the AEC Blueprint (2008-2015) • Free flow of goods • Trade in Goods • Customs • Standards & Conformance HUMAN RESOURCE DEVELOPMENT RESEARC H AND DEVELOPMENT

13. Succeeds the Agreement on Common Effective Preferential Tariff Scheme for the ASEAN Free Trade Area (CEPT-AFTA), which mainly covered tariff liberalization. • ATIGA brings into one single agreement all aspects of trade in goods and provides the legal framework to realize free flow of goods within the AEC ASEAN Trade in Goods Agreement (ATIGA)

14. ATIGA covers more than tariff liberalization as it includes substantive chapters on: • enhanced ROO • disciplines on the application of NTMs and the elimination of NTBs • trade facilitation work program • customs procedures • Standards, Trade Regulations and Conformity Assessment Procedures (STRACAP) and Sanitary and Phyto-Sanitary Measures (SPS) • Signed in February 2009, it entered into force on 17 May 2010 ASEAN Trade in Goods Agreement (ATIGA)

15. Trade in Goods • Elimination of Duties (1 Jan 2010) • ASEAN-6  99.65% tariff lines eliminated • CLMV  98.86% tariff lines reduced to 0-5% • Elimination of Non-tariff barriers (NTBs) • Work Programme on ASEAN NTMs • Matrix of actual cases NTM/trade barriers • Rules of Origin: Self Certification Pilot Project • Enable certified exporters to self-certify the origin of exports to enjoy preferential tariffs under ASEAN Trade in Goods Agreement. • Implemented through Self-certification Pilot Project. • ASEAN-wide implementation of Self-certification by 2015.

16. Customs • ASEAN Agreement on Customs • Operationalise the customs chapter of ASEAN Trade in Goods Agreement – signed on 30 April 2012 • ASEAN Single Window • Single point of decision for the release of cargo • Implementation of the ASW Pilot Project to exchange test data initially scheduled for 2 months • Extended to 31 March 2013 • Extension to allow for parallel testing for interested Member States • Working on the completion of the Legal Framework Agreement for the eventual live ASW implementation

17. Standards and Conformance • Address Technical Barriers to Trade for Priority Integration Sectors (PIS) • Single regulatory regime/framework agreement for PIS (cosmetics, electrical and electronic equipment and medical device, traditional medicines and health supplements.) • Harmonisation of standards (agro-based products, automotive, cosmetics, electrical and electronic equipment, medical devices, rubber-based products, wood-based products) • Mutual recognition arrangements for recognition and acceptance of conformity assessment results (automotive, agro-based products, electrical and electronic equipment and pharmaceuticals)

18. Standards and Conformance • Enhancement of regional policies for standards and conformance through revision of the ASEAN Policy Guidelines for Standards and Conformance. • Implementation of the ASEAN Good Regulatory Practice Guide. • Engaging the business community through participation at regional meetings and organisation of Public-Private Forum

19. ASEAN Consultative Committee for Standards and Quality (ACCSQ) and ASEAN Economic Community (AEC)

20. ACCSQ Structure

21. ACCSQ towards AEC – Standards • Harmonization of Standards and/or Technical Requirements • Based on international standards and practices • Without compromising health and safety of consumers and quality of the product • Achieving harmonised standards and procedures for ASEAN region • Priority Sectors: • Agro-based products (prepared foodstuff and fisheries) • Automotive • Healthcare products (Cosmetics, Medical Device, Pharmaceutical, Traditional Medicines and Health Supplements) • Rubber-based • Electrical and Electronic Equipment • Wood based products • Building and Construction materials

22. ACCSQ towards AEC - MRAs • Mutual Recognition Arrangements (MRAs) • Guided by ASEAN Framework Agreement on MRAs (1998) • Recognition of conformity assessment results (testing, inspection and certification) • Competence criteria following international standards and practices • Nomination and listing of conformity assessment bodies

23. ACCSQ towards AEC - MRAs • Implementation of MRAs • ASEAN Sectoral MRA for Electrical and Electronic Equipment (2002) • ASEAN MRA of Product Registration Approval for Cosmetics (2003) (MRA is Schedule A of the ASEAN harmonised Cosmetics Regulatory Scheme) • ASEAN Sectoral MRA for GMP Inspection of Manufacturers for Medicinal Products (2009) • MRAs under consideration • MRA on Recognition of Conformity Assessment Results for Prepared Foodstuff • ASEAN MRA on Type Approval for Automotive Product

24. ACCSQ towards AEC – Regulatory Regimes • Harmonised Regulatory Regimes • Agreement on the ASEAN Harmonised Cosmetic Regulatory Scheme (2003) – ASEAN Cosmetic Directive (Schedule B) • Agreement on the ASEAN harmonised Electrical and Electronic Equipment Regulatory Regime (2005) • Under consideration • ASEAN Medical Device Directive • ASEAN Regulatory Framework for Traditional Medicines and Health Supplements

25. TRUST

26. ASEAN and Free-Trade Area

27. ASEANPlus FTAs • ASEAN + China and ASEAN + Korea • Goods, services and investment agreements signed • ASEAN + Japan and ASEAN + India • Goods completed; still to conclude services and investment • ASEAN + Australia + New Zealand • Comprehensive agreement implemented 1 January 2010

28. ASEANPlus FTAs and TBT • ASEAN + China • TBT MOU • SPS and TBT Chapter of ASEAN-China FTA • ASEAN + Japan Comprehensive Economic Partnership (AJCEP) • TBT Chapter of the AJCEP on Standards, Technical Regulations and Conformity Assessment Procedures (SC-STRACAP) • ASEAN + Australia + New Zealand FTA • Chapter on Standards, Technical Regulations and Conformity Assessment Procedures (SC-STRACAP)

29. Trans Pacific Partnership? Trilateral Agreement China-Japan-Korea? Emerging Regionalism - Economic Regional Architecture ASEAN REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP - P Source: Emerging Asian Regionalism, A Partnership for Shared Prosperity

30. Implication to Trade and Stakeholders • Fair Trade and Free movement of goods • Trade Facilitation between AMS • Reducing Cost • standards are also a driving force for economic growth via innovation includes technology transfer. Consequently, technology, creating new markets and increasing the productivity of these nations’ companies and economies. • Stakeholder engagement is a key element of the legislative process and involve within the consultation process. Consultation may be clear and Transparency.

31. Regional Comprehensive Economic Partnership (RCEP) • RCEP: Integrating ASEAN Plus One FTA Partners • (China + Japan + Republic of Korea + Australia + • New Zealand + India). • ASEAN Centrality • Lead country for ASEAN to spearhead the negotiations • Tough and complicated • Pragmatic approach • Professes open regionalism – others may join once completed 31

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