Database
on Basic Documents of Japan-ASEAN Relations
Department of
Advanced Social and International Studies,
ASEAN Framework Agreement for the Integration of Priority Sectors
WE, the Heads of Government/State of Brunei Darussalam, the Kingdom of
Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic (hereinafter referred to as “Lao PDR”), Malaysia, the Union of Myanmar, the Republic of the
Philippines, the Republic of Singapore, the Kingdom of Thailand and the
Socialist Republic of Viet Nam, Member States of the Association of South East
Asian Nations (hereinafter collectively referred to as “ASEAN” or “Member States” or singularly as “Member State”);
RECALLING the Declaration of ASEAN Concord II (Bali Concord II) adopted
during the 9th ASEAN Summit in Bali, Indonesia on 7 October 2003, pursuant to
which ASEAN is committed to deepen and broaden its internal economic
integration and linkages, with the participation of the private sector, to realise an ASEAN Economic Community;
REAFFIRMING that the ASEAN Economic Community shall be the end-goal of
ASEAN economic integration as outlined in the ASEAN Vision 2020;
REITERATING that the ASEAN Economic Community will result in ASEAN
becoming a single market and
production base, turning the diversity that characterises
the region into opportunities and business complementation to make ASEAN a more
dynamic and stronger segment of the global supply chain and the world economy;
DESIRING to combine the economic strengths of Member States in key
strategic sectors for regional cohesiveness and enhanced global competitiveness
by accelerating the integration of the eleven priority sectors in the Bali
Concord II and such other sectors as may be agreed upon as necessary,
HAVE AGREED AS FOLLOWS:
PART I
OBJECTIVE, DEFINITION AND APPLICATION
Article I
Objective
The objective of this ASEAN Framework Agreement for the Integration of
Priority Sectors (hereinafter referred to as the “Framework Agreement”) is to identify
measures to be implemented, with clear timelines, in a mutually beneficial
manner, by Member States in respect of the priority sectors identified in
paragraph 1 of Article 2 of this Framework Agreement so as to enable the
progressive, expeditious and systematic integration of these sectors in ASEAN.
Article 2
Definition
For the purposes of this Framework Agreement:
1.
“priority sectors” means:
(a) the
11 sectors listed below:
(i)
agro-based products;
(ii) air
travel;
(iii)
automotives;
(iv)
e-ASEAN;
(v)
electronics;
(vi)
fisheries;
(vii)
healthcare;
(viii)
rubber-based products;
(ix)
textiles and apparels;
(x)
tourism;
(xi)
wood-based products; and
(b) such
other sectors as may be identified by the Ministers responsible for ASEAN
economic integration under Articles 19 and 20 of this Framework Agreement.
(c) Air
travel shall be deemed to refer to air transport.
2.
“ASEAN Sectoral Integration
Protocol” means the individual integration protocol for each
priority sector which identifies the common and specific measures for each
priority sector.
3.
“ASEAN-6” means Brunei
Darussalam,
4.
“CLMV” means
Article 3
Applicability to the ASEAN Sectoral Integration
Protocols
The provisions of this Framework Agreement shall apply to each priority
sector and be deemed to be included in each ASEAN Sectoral
Integration Protocol unless
provided otherwise therein.
PART II
LIBERALISATION
Article 4
Trade in Goods
1.
Member States shall eliminate all Common Effective Preferential Tariff
for the ASEAN Free Trade Area (CEPT-AFTA) tariffs in relation to products
(other than those in the sensitive, highly sensitive and general exception
lists) covered by the individual ASEAN Sectoral Integration Protocols, except those
listed in accompanying negative lists to the Protocols, which in total for each
Member State shall not exceed 15% of the total product list appearing as Annex
XII to this Framework Agreement, by:
(a) 1
January 2007 for ASEAN-6; and
(b) 1
January 2012 for CLMV
2.
Member States shall implement the following actions in relation to
non-tariff measures (hereinafter referred to as “NTMs”) to ensure
transparency, in accordance with the timelines indicated:
(a)
establish the database of ASEAN NTMs by 30
June 2004;
(b)
establish criteria to identify NTMs that are
barriers to trade by 30 June 2005; and
(c)
establish a definitive work programme for the
removal of NTMs that are barriers to trade by 31
December 2005.
3.
Member States shall adopt the WTO Agreement on Import Licensing
Procedures and develop common implementation guidelines appropriate for ASEAN
for this purpose by 31 December 2004.
4.
Member States shall endeavour to expand the
coverage of the ASEAN Integration System of Preferences (AISP) Scheme by
including products in the priority sectors.
Article 5
Trade in Services
Member States shall integrate trade in services by:
(a)
setting clear targets and schedules for progressive liberalisation
for each round of negotiations towards achieving freer flow of trade in
services earlier than 2020;
(b)
accelerating the service liberalisation for
the priority sectors by 2010;
(c)
accelerating the development of Mutual Recognition Arrangements
(hereinafter referred to as “MRAs”) by 1 January 2008;
(d)
applying the ASEAN-X formula; and
(e)
promoting joint ventures and cooperation, including third country markets.
Article 6
Investment
Member States shall undertake the following measures:
(a) Accelerate
the opening up of sectors currently in the Sensitive List (hereinafter referred
to as “SL”) by
transferring these sectors into the Temporary Exclusion List (hereinafter
referred to as “TEL”) under the
Framework Agreement on the ASEAN Investment Area (AIA), using the ASEAN-X
formula, beginning 2004.
(b)
Reduce restrictive investment measures in the SL beginning 2004 and
complete the progressive elimination of restrictive investment measures in the
TEL by 31 December 2010 for ASEAN-6, 2013 for Viet Nam and 2015 for Cambodia,
Lao PDR and Myanmar.
(c)
Identify programmes and activities to promote
investments in ASEAN by 31 December 2005.
(d)
Promote manufacturing processes in ASEAN to take advantage of their
comparative strengths through:
(i)
the establishment of a network of ASEAN free trade zones to facilitate
outsourcing activities beginning 2005; and
(ii)
undertaking more efficient joint ASEAN facilitation and promotion
measures to promote foreign direct investments on an ongoing basis.
(e)
Promote and facilitate joint/cross border investments in manufacturing
activities, on an ongoing basis, through:
(i)
special incentives, where appropriate, to be given by CLMV for investments
from ASEAN; and
(ii)
special measures, where appropriate, to be given by ASEAN-6 to promote
and facilitate relocation of investment to CLMV especially for labour intensive manufacturing activities.
PART III
TRADE AND INVESTMENT FACILITATION
Article 7
Rules of Origin
Member States shall, by 31 December 2004, improve the CEPT Rules of
Origin by:
(a)
making them more transparent, predictable and standardised,
taking into account the best practices of other Regional Trade Agreements,
including the rules of origin of the WTO; and
(b)
adopting substantial transformation as an alternative criteria for conferring origin status.
Article 8
Customs Procedures
Member States shall implement the following measures, in accordance with
the timelines indicated, so as to expedite customs clearance and simplify
customs procedures:
(a)
Extend the application of the ASEAN Harmonised
Tariff Nomenclature (AHTN) for extra-ASEAN trade on an on-going basis .
(b)
Simplify, improve and harmonise customs
declaration forms by 31 December 2005.
(c)
Ensure full implementation of the Green Lane System for CEPT products or
similar system at entry points of all Member States by 31 December 2004.
(d)
Develop common implementation guidelines, by 31 December 2004, to
fulfill the obligations of the WTO Agreement on Customs Valuation.
(e) Each
ASEAN customs authority to adopt a service commitment (client charter) by 31
December 2004; and
(f)
Develop the Single Window approach, including the electronic processing
of trade documents at national and regional level by 31 December 2005.
Article 9
Standards and Conformance
Member States shall take the following steps to accelerate the
development of MRAs and harmonise
product standards and technical regulations:
(a)
Accelerate the implementation and where appropriate the development of sectoral MRAs for priority
sectors beginning 1 January 2005.
(b)
Encourage domestic regulators to recognise
test reports issued by testing laboratories which are accredited by national
accreditation bodies in ASEAN that are signatories to International Laboratory
Accreditation Cooperation (ILAC) and Asia-Pacific Laboratory Accreditation
Cooperation (APLAC) MRAs.
(c) Set,
by 31 December 2005, clear targets and schedules for harmonisation
of standards in the priority sectors wherever required. Where international
standards are not available and when requested by industry, align national
standards among Member States.
(d) Harmonise and/or develop technical regulations as
appropriate, for national application by 31 December 2010.
(e)
Ensure compliance with the requirements of the WTO Agreements on
Technical Barriers to Trade and the Application of Sanitary and Phyto-Sanitary Measures.
(f)
Explore the development of ASEAN policy on standards and conformance to
further facilitate the realisation of the ASEAN
Economic Community, beginning 2005.
Article 10
Logistics Services
Expedite the development of integrated transport logistics services
within ASEAN through:
(a)
Promotion of efficient door-to-door cargo transport and cross-border
transport facilitation through the expeditious implementation of the ASEAN
Framework Agreement on the Facilitation of Goods in Transit, and the ASEAN
Framework Agreement on Multimodal Transport;
(b)
Improvement of land transport network infrastructures and services to
achieve better inter-connectivity, inter-operability and inter-modality with
the national, regional and international maritime and air transport gateways.
(c)
Strengthening intra-ASEAN maritime and shipping transport services; and
(d) Establishment of enabling and
conducive policy environment for increased private sector involvement and/or
public-private partnerships in the development of transport infrastructure and
the provision and operation of transport logistics facilities and services.
Article 11
Facilitation of Travel in ASEAN
Member States shall:
(a) harmonise procedures for the issuance of visas to
international travelers in ASEAN by 31 December 2004; and
(b)
provide visa exemption for intra-ASEAN travel by ASEAN nationals by
2005.
Article 12
Movement of Business Persons, Experts, Professionals,
Skilled Labour and Talents
Member States shall, taking into account their respective domestic laws
and regulations:
(a)
develop an ASEAN agreement to facilitate the movement of business
persons, including the adoption of an ASEAN Travel Card, by 31 December 2005;
(b)
develop an ASEAN agreement to facilitate the movement of experts,
professionals, skilled labour and talents by 31
December 2005; and
(c)
accelerate completion of MRAs to facilitate
free movement of experts, professionals, skilled labour
and talents in ASEAN by 31 December 2008.
PART IV
PROMOTION AND MONITORING
Article 13
Trade and Investment Promotion
Member States shall, beginning 2005 and on an ongoing basis, work in
close cooperation with the ASEAN Business Advisory Council (ASEAN-BAC), the
ASEAN Chambers of Commerce and Industry (ASEAN-CCI), and relevant industry
clubs/associations to:
(a)
intensify joint intra-ASEAN and extra-ASEAN trade promotion efforts;
(b) organise regular private sector driven ASEAN selling and
buying missions;
(c)
assist CLMV in organising promotional
activities; and
(d) undertake
more effective joint ASEAN facilitation and promotion measures and develop new
sources of inward foreign direct investment, particularly from potential
countries such as the People’s Republic of
China, India and the Republic of Korea.
Article 14
ASEAN Trade and Investment Statistics
Member States shall establish an effective system to monitor ASEAN trade
and investments through:
(a)
provision of updates to the ASEAN Secretariat of the latest trade (goods
and services) and investment statistics; and
(b)
preparation of consolidated industry profiles, by the respective
associations, which, inter alia, cover information
such as production capacity and product range.
PART V
OTHER AREAS FOR INTEGRATION
Article 15
Intellectual Property Rights
Member States shall expand the scope of ASEAN intellectual property
rights cooperation beyond trademarks and patents to include cooperation in
copyrights information exchange and enforcement by 31 December 2004.
Article 16
Industrial Complementation
Member States shall promote complementation among ASEAN manufacturers, as
applicable, through:
(a)
identification and development of specialisation
of production processes, research and development (R&D), and testing
facilities based on comparative advantage of individual Member State; and
(b)
development of guidelines on promoting outsourcing arrangements among
Member States, as applicable.
Article 17
Human Resource Development
Member States shall cooperate to develop and upgrade skills and capacity
building through joint training and workshops.
PART VI
GENERAL PROVISIONS
Article 18
General Exceptions
Nothing in this Framework Agreement shall prevent any Member State from
taking actions and adopting measures which it considers necessary for the
protection of its national security, the protection of public morals, the
protection of human, animal or plant life and health, and the protection of
articles of artistic, historic and archaeological value.
Article 19
Institutional Arrangement
1.
The Ministers responsible for ASEAN Economic Integration, with the
assistance of the Senior Economic Officials (SEOM), shall oversee, monitor
and/or coordinate the implementation of this Framework Agreement.
2.
The ASEAN Secretariat shall:
(a)
provide support to the Ministers and the SEOM for supervising,
coordinating and reviewing the implementation of this Framework Agreement; and
(b)
monitor and regularly report to the SEOM on the progress in the
implementation of this Framework Agreement.
3.
Member States shall cooperate with the ASEAN Secretariat in the
performance of its duties.
Article 20
Review
The Ministers responsible for ASEAN Economic Integration shall meet as
and when necessary to review this Framework Agreement for the purpose of
considering further measures and/or other sectors for priority integration or
any other relevant matters as may be agreed.
Article 21
Sectoral Integration
Protocols and Annexes
The ASEAN Sectoral Integration Protocols
attached to this Framework Agreement as Annexes (I) to (XI) and the total
product list attached as Annex (XII) shall form an integral part of this Framework
Agreement.
Article 22
Consultations
Member States shall accord adequate opportunity for consultations
regarding any representations made by another Member State with respect to any
matter that would affect the implementation of this Framework Agreement.
Article 23
Dispute Settlement
The provisions of the ASEAN Protocol on Enhanced Dispute Settlement
Mechanism, done at Vientiane, Lao PDR on the 29th day of November 2004, shall
apply to disputes arising under this Framework Agreement.
Article 24
Relation to other Agreements
1.
Except as provided in paragraph 2 hereof, this Framework Agreement or
any action taken under it shall not affect or nullify the rights and
obligations of a Member State under existing agreements or international
conventions to which it is also a party.
2.
The provisions in this Framework Agreement shall prevail over the rights
and obligations in other relevant ASEAN agreements to the extent that the same
subject matter is governed by this Framework Agreement.
Article 25
Final Provisions
1.
The provisions of this Framework Agreement may be modified through
amendments mutually agreed upon in writing by all Member States.
2.
This Framework Agreement shall be deposited with the Secretary-General
of ASEAN, who shall furnish a certified copy to each Member State.
Article 26
Entry into Force
1.
This Framework Agreement shall enter into force on 31 August 2005.
Notwithstanding the specified date of entry into force, Member States undertake
to carry out the obligations which arise prior to the date of entry into force
of this Framework Agreement in accordance with the timelines indicated herein
and the Roadmaps attached to the ASEAN Sectoral Integration
Protocols as Appendices.
2.
Member States undertake to complete their internal procedures of
ratification for the entry into force of this Framework Agreement.
3.
Each Member State shall upon the completion of its internal procedures
of ratification of this Framework Agreement notify the ASEAN Secretariat in
writing.
IN WITNESS WHEREOF, WE have signed this ASEAN Framework Agreement for the
Integration of Priority Sectors.
DONE at Vientiane, Lao PDR this 29th day of November 2004, in single
copy, in the English Language.
For Brunei Darussalam
HAJI HASSANAL BOLKIAH
Sultan of Brunei Darussalam
For the Kingdom of Cambodia
SAMDECH HUN SEN
Prime Minister
For the Republic of Indonesia
DR. SUSILO BAMBANG YUDHOYONO
President
For the Lao People’s Democratic
Republic
BOUNNHANG VORACHITH
Prime Minister
For Malaysia
DATO’ SERI ABDULLAH AHMAD BADAWI
Prime Minister
For the Union of Myanmar
LIEUTENANT GENERAL SOE WIN
Prime Minister
For the Republic of the Philippines
GLORIA MACAPAGAL-ARROYO
President
For the Republic of Singapore
LEE HSIEN LOONG
Prime Minister
For the Kingdom of Thailand
DR. THAKSIN SHINAWATRA
Prime Minister
For the Socialist Republic of Viet Nam
PHAN VAN KHAI
Prime Minister