The ASEAN Economic Community Integration 2015
The ASEAN Community
- The ASEAN Free Trade Area (AFTA) – free flow of goods in ASEAN community
- Comprehensive Investment Area - The ASEAN Comprehensive Investment Area (ACIA) will encourage the free flow of investment within ASEAN.
- Trade in Services - ASEAN members are negotiating intra-regional services liberalization in several sectors, including air transport, business services, construction, financial services, maritime transport, telecommunications and tourism.
- More jobs and opportunities – e.g. In terms of labor force in the Philippines, it has “competitive labor cost” and “quality skilled workers”
- Western countries have criticized ASEAN for being too "soft" in its approach to promoting human rights and democracy in the junta-led Myanmar.
- “The AEC development has been criticized for being ‘too slow’ and some observers have said that the issues that have been delayed were those of importance and could make or break the success of the integration. Some specialists also commented about the lack of leadership on this issue - the role of ASEAN chairmanship is a rotating position and a series of officials from the poorer, less developed ASEAN countries will be the chair of ASEAN for the next few years which means that leadership will be inexperienced and possibly be less interested in pushing ahead quickly with integration on all fronts.”
- “Some observers note that the less experienced officials from poorer and less developed ASEAN countries set to follow them will not have the same leadership skills, experience or knowledge and that this will tell on future progress.”
- Influx of cheap foreign goods to the local market
- Intense competition among the ASEAN
- Some social issues will arise – e.g. effects of migration of workers
- Lack of protection of SMEs
- Some of ASEAN countries is not ready of AEC – e.g. Cambodia
- Poor governance and weak institutions in some ASEAN countries
Department of Trade and Industry – www.dti.gov.ph
James Clifford T. Santos. The ASEAN Economic Community: A Noble Initiative That Will Benefit the Philippines- http://thecatholiceconomistphilippines.wordpress.com/2013/06/21/the-asean-economic-community-a-noble-initiative-that-will-benefit-the-philippines/
Christopher W. Runckel. Asia Opportunities: Asean Economic Community (AEC) in 2015 - http://www.business-in-asia.com/asia/asean_economic_community.html
What are the Advantages and Disadvantages of ASEAN?