Asean Economic Integration

Zaman University

BUS 310 Section 1

Instructor: Sereikhouch Eng

Date: 30-03-2015

Portfolio

“ASEAN Economic Integration”

Group name:

Thidasakmithik Kang

Van Monita Hoeung

Souyady Lak

Chheng Chiv

Sovatdy Sum

Recently, ASEAN has been boosting its effort to build the ASEAN Economic Community by 2015. Every member state has to implement plenty policies reform and adjustment in order reach the AEC Blueprint goal. The purpose of this integration is to make the free flow of goods, service, skill labor, investment, and capital movement in the region. However, based on the observation, there are 81% living in capital cities recognize name ASEAN and 76% lack of a basic understanding of what ASEAN actually does. Therefore, in essay the writer will describe about what is AEC, the impact of AEC in region, the challenge of implementing AEC, and advantages and disadvantages of AEC.

To begin with, there are five core elements that will be implemented when the ASEAN integration takes place. Those elements are free flow of goods, free flow of services, free flow of investment, free flow of capital and free flow of skilled labor (ASEAN Economics Community Blueprint, 2008).

The first core element which is free flow of goods, it aims to achieve a single market and production base. There will be an elimination of tariff and non-tariff barriers. Additionally, in order to facilitate the free flow of goods is to apply the trade facilitation measures such as integrating custom procedures, establishing the ASEAN Single Window, Rules of Origin and harmonizing standards and conformance procedures. In the custom procedures, there will be a modernization of custom techniques which guides by the custom procedures and formalities with an international standard. Regarding the ASEAN Single Window, it enables each member of the ASEAN comes together operate and integrate in order to arrive at a single decision such as custom clearing and reduction of transaction costs. Furthermore, the action that will be taken to make the free flow of goods happen is to eliminate all import duties on all products, except for the products that are listed in the Sensitive and Highly Sensitive lists. The purpose is to protect the local producers and to let consumers enjoy more variety of goods from neighboring countries with lower prices.

In addition, in the second core element of AEC which is a free flow of services there will not be any restrictions of ASEAN services suppliers in providing services to the ASEAN members as long as it does not abuse the domestic regulations. There will be a working toward recognition of professional qualifications within the regions. Moreover, the actions to be taken are to remove substantially all restrictions regarding to 5 priorities service sectors such as air transport, e-ASEAN, healthcare, tourism and logistic services.