The ASEAN Economic Community (AEC) shall be the goal of regional economic integration by 2015.

AEC envisages
the following key characteristics: (a) a single market and production base, (b) a highly competitive economic
region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy.
The AEC areas of cooperation include human resources development and capacity building; recognition of
professional qualifications; closer consultation on macroeconomic and financial policies; trade financing
measures; enhanced infrastructure and communications connectivity; development of electronic transactions
through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private
sector involvement for the building of the AEC. In short, the AEC will transform ASEAN into a region with free
movement of goods, services, investment, skilled labour, and freer flow of capital.
ASEAN Economic Community (AEC) Blueprint
The ASEAN Leaders adopted the ASEAN Economic Blueprint at the 13th ASEAN Summit on 20 November 2007 in
Singapore to serve as a coherent master plan guiding the establishment of the ASEAN Economic Community
2015.

Overview
Overview
To ensure that benefits from the ASEAN Community are shared among all ASEAN Member States, it is important
to have an understanding of the varying stages of their economic development and the development gaps that
exist between and among them. The Initiative for ASEAN Integration (IAI) and Narrowing the Development Gap
(NDG) are two of ASEANs frameworks that aim to address these development issues. Both frameworks
recognise the value of addressing subregional issues to support ASEAN-wide goals.
Narrowing the Development Gap
Narrowing the Development Gap (NDG) is ASEANs framework for addressing various forms of disparities
among and within Member States where pockets of underdevelopment exist. Under NDG, ASEAN has continued
coordinating closely with other subregional cooperation frameworks in the region (e.g., BIMP-EAGA, IMT-GT,
GMS, Mekong programmes), viewing them as equal partners in the development of regional production and
distribution networks in the AEC, and as a platform to mainstream social development issues in developing and
implementing projects, in the context of the ASCC.
Initiative for ASEAN Integration
The IAI aims to provide support to Cambodia, Lao PDR, Myanmar and Viet Nam (CLMV), ASEANs newer and
lesser developed member states. The IAI was launched in 2000 by ASEAN Heads of States to contribute to the
objectives of Narrowing the Development Gap and accelerating integration of CLMV as the newer members of
ASEAN. By augmenting the capacity of CLMV to implement regional agreements, the IAI hopes to accelerate
the regional integration process as a whole.
The six-year IAI Work Plans have been developed to assist the CLMV countries as well as ASEAN's other subregions to ensure that the economic wheels of their economies move at an accelerated pace. IAI Work Plan I
was implemented from 2002 to 2008, prior to the development of the Roadmap for an ASEAN Community (20092015). IAI Work Plan II (2009-2015) supports the goals of the ASEAN Community and is comprised of 182
prescribed actions, which includes studies, training programmes and policy implementation support conducted
through projects supported by ASEAN-6 countries, and ASEANs Dialogue partners and external parties. The IAI
Work Plan is patterned after and supports the key programme areas in the three ASEAN Community Blueprints:
ASEAN Political-Security Community Blueprint, ASEAN Economic Community Blueprint and ASEAN SocioCultural Community Blueprint.
The IAI Task Force, comprised of representatives of the Committee of Permanent Representatives and its

working group from all ten ASEAN member states, is in charge of providing general advice and policy guidelines
and directions in the design and implementation of the IAI Work Plan. All 10 ASEAN Member States are
represented in the IAI Task Force, with the Task Force chaired by representatives of the four CLMV countries.
Chairmanship is rotated annually in alphabetical order. The chair for 2014 is Cambodia.
ASEAN
Secretariat
IAI
and
NDG
Division
The ASEAN Secretariat, in particular through the IAI and NDG Division, supports the implementation and
management of the IAI Work Plan and coordinates activities related to sub-regional frameworks. This includes
servicing meetings, assisting in the formulation, implementation, monitoring and reporting of projects, resource
mobilization and overall operational coordination among various IAI&NDG-related stakeholders. The Division
works closely with the Dialogue Partners and international agencies to develop strategies and programmes to
assist in promoting and implementing IAI and NDG activities in ASEAN.

The ASEAN Framework for Equitable Economic Development

Guiding Principles for Inclusive and Sustainable Growth
We, the Heads of State/Government of Brunei Darussalam, the Kingdom of Cambodia, the Republic of Indonesia,
the Lao People's Democratic Republic, Malaysia, the Republic of the Union of Myanmar, the Republic of the
Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Vietnam, Member
States of ASEAN, at the 19th ASEAN Summit in Bali, Indonesia;
Recalling the Cha-am HuaHin Declaration on the Roadmap for the ASEAN Community (2009-2015), the goal of
establishing an ASEAN Economic Community (AEC) by 2015;
Emphasizing that equitable economic development is characterized by narrowing development gaps within and
between Member States, better access to opportunities for human development, social welfare and justice, and
more inclusive participation in the process of ASEAN integration and community building;
Recalling the guidance of the 18th ASEAN Summit to explore the role of ASEAN beyond 2015 and realize ASEAN
as a region of equitable economic development, tasked Ministers to develop a Framework/Guiding Principles for
Equitable Economic Development;
Realizing that the successful implementation of the AEC Blueprint will enable Member States to sustain economic
growth and development and be part of a community of nations enjoying economic, social, cultural, political and
regional security;
Recognizing that Member States will drive development according to their specific needs while benefiting from
best practice, knowledge sharing, and ASEAN initiatives;
Do hereby:
Commit to further enhance the third pillar of the AEC Blueprint on Equitable Economic Development so as to
provide our people with equal opportunities to benefit from regional economic integration;
Agree that equitable economic development calls on Member States to ensure that regional economic
integration helps alleviate poverty and narrow the development gap within ASEAN through mutual assistance and
cooperation;
Agree that this Framework provides the guiding principles for inclusive and sustainable growth for all sectoral
and ministerial bodies under the AEC Pillars as follows:
Inclusive and Sustainable Growth
Targeting policies to promote sustainable growth and investment is an essential element of development and
poverty reduction. This growth will be equitable if it is inclusive both within and between Member States.
Inclusive growth is broad based across sectors and the general population by providing equal opportunities

irrespective of income, gender, or size of enterprise.

Connectivity
Sustainable and inclusive development will be one of thekey elements of our economic integration. Securing this
growth is based on ensuring robust connectivity within and between our Member States. Connectivity
encompasses physical, institutional, and people-to-people connectivity and therefore requires adequate physical
infrastructure, human capital mobility, technology transfer, and access to markets.
Cohesive Action
To ensure growth is inclusive and sustainable, the equitable economic development pillar mutually reinforces
actions under the other AEC pillars of a single market, competitive economic region, and integration in the global
economy. In addition to this function, the equitable development pillar guides policy actions to remove obstacles
in narrowing development gaps.
Single Market and Production Base
An effective and sustainable integration of our region requires addressing the equity consequences of the
transition to our integrated community. We must ensure that the poor as well as the less and especially the
least developed Member States take advantage of the available opportunities that integration provides.
Identifying the value chain and connectivity issues to enable access to markets by those in less and
especially the least developed regions and Member States will be our focus. We will promote inclusive
growth through enhanced economic activities by reducing and/or eliminating barriers to trade and
investment, , increasing private investment in the region and ensuring production and transaction costs
remain competitive.
Competitive Economic Region
We will ensure that actions to enhance competiveness also support equitable economic development. We
commit to addressing institutional, regulatory and policy bottlenecks to private investment, especially in less
developed regions and Member States. Equity considerations will help prioritize infrastructure projects
guided by the basic needs of our populations and targeting bottlenecks to development of less developed
regions and Member States. We commit to ensure equitable growth by reducing the development divide
through design and implementation of effective sub regional cooperation programmes that promote private
sector investment.
Integration into the Global Economy
To ensure that all of our peoples benefit from the growth opportunities of our integration into the global
economy, we affirm our collective resolve to take actions at the national and regional level. We recognize the
importance of education and skills development in raising productivity, support for small and medium size
enterprise, as well as broadening access to technology and finance.
Fostering Inclusive Growth
Specific measures to target poverty reduction and protect the most vulnerable are needed under our pillar of
equitable economic development. It is necessary to foster human development, strengthen national and regional
connectivity, promote coherent macroeconomic cooperation, promote private sector industrial collaboration,
SME development and effective capacity building. As our Member States integrate, they should look into
introducing or improving the quality, coverage and sustainability of social protection. These measures should be
complemented by contingency plans in the event of economic or other forms of instability. In this regard, we
recognize the role of employment creating public outlays, such as on small-scale pro poor infrastructure projects.
Financing
With Member State led development efforts guided by our shared experiences, we recognize the need for
mechanisms to support efforts guided by this Framework. In this regard, we see important roles for both private
and public capital to support the needed institutional and capacity building, technology transfer, and financing.

Innovative actions, such as aid-for-trade, that can boost the prospects for successful integration are encouraged.
We task the concerned ASEAN Ministers and the Secretary-General of ASEAN to implement this Framework with
the support of Member States, Dialogue Partners, Development Partners of ASEAN as well as other external
parties.

Equitable Economic Development

ASEAN is committed to reducing development gaps in the region. It aims to develop small and
medium enterprises (SMEs) through the ASEAN Blueprint for SME Development. It seeks to
strengthen the implementation of technical assistance and capability building programmes for
public and private sectors needing assistance in some ASEAN countries through the Initiative
for ASEAN Integration (IAI).
With the success of these initiatives, investors can expect strong participation of SMEs in the
building of regional production network which in turn will provide businessmen with wider options for
suppliers and partners from supporting industries. Investors can benefit from the Initiative for
ASEAN Integration as beneficiary ASEAN governments will be more capable to develop and
implement economic policies that would further boost the positive effects of the AEC.

Integration into the Global Economy

Amid increasing globalization, ASEAN aims to become a more dynamic and stronger segment
of the global supply chain and is determined to look beyond the borders of the ASEAN
Economic Community. The region presents opportunities for investors to access not only
ASEAN markets but also some of the worlds largest economies. These include ASEANs top
trade partners such as USA, EU, China, Japan, and India, as well as its FTA partners like Korea,
Australia, and New Zealand.
ASEAN is a signatory to five (5) FTAs one each with China, Korea, Japan, Australia and New
Zealand, and India.

ASEAN, post-FTA signing and entry-into-force, focuses on how these

agreements can be effectively implemented. It strives to ensure that target beneficiaries optimize
their FTA utilization on order that parties to the agreements achieve their desired results.
The FTAs push for trade liberalisation and facilitation, with others being more comprehensive and
including provisions on investments and movement of natural persons. Other provisions are
focused on rules of origin, customs procedures, and dispute settlement.
ASEAN and its dialogue partners continue to discuss ways and negotiate on how the FTAs can be
enhanced and best maximized.

In November 2012, heads of states of ASEAN, China, Japan,

Korea, Australia, New Zealand, and India officially kicked off negotiations for the Regional
Comprehensive Economic Partnership (RCEP) in Phnom Penh, Cambodia.

RCEP is bound to be the largest regional trading arrangement as it would create an integrated
market spanning 16 countries with a combined market of over 3 billion people and total GDP of
about US$20 trillion. ASEAN leaders expect the RCEP to keep the regions growth momentum as it
further opens up markets and makes economies competitive.
What are the possibilities for investors?
Retail companies such as supermarkets can offer the market a wider range of products
and may even consider creating ASEAN isles
Exporters in ASEAN such as furniture and jewelry makers can diversify their markets and
manage business risks
SMEs in supporting industries can more easily integrate themselves into the regional
supply chain and global economy
Large multinationals doing business in ASEAN have wider options in selecting regional
hubs and marketing offices

ASEAN Sectoral Integration Protocol for Electronics

The Governments 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) issued 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 world economy to realise an ASEAN Economic Community;
DESIRING 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;
NOTING that as a first step towards the realisation of the ASEAN Economic Community, the Leaders have signed
the ASEAN Framework Agreement for the Integration of Priority Sectors on 30th November 2004 in Vientiane, Lao
PDR (hereinafter referred to as the "Framework Agreement");
HAVING carried out an initial round of negotiations and concluded the roadmap for the full integration of the
electronics sector in ASEAN,
HAVE AGREED AS FOLLOWS:

ARTICLE 1

OBJECTIVE
The objective of this Protocol is to spell out measures as in the Roadmap referred to in Article 2 to be taken by
Member States on a priority basis so as to enable the progressive, expeditious and systematic integration of the
electronics sector.

ARTICLE 2
MEASURES
1. The integration measures to be pursued are grouped into two broad categories, taking into account existing
agreements
or
earlier
relevant
committed
measures,
namely:
(a)
(b)

Common
measures
Specific
measures
that

which
are

of

cut
across
all
priority
sectors;
direct
relevance
to
the
electronics

and
sector.

2. All categories of measures shall be pursued in parallel.

3. SEOM may conduct additional negotiations, as and when necessary, to consider new integration
measures for the sector.

1.
2.

1.
2.

1.
2.
3.

4.

ARTICLE 3
EMERGENCY MEASURES
Article 6 of the Common Effective Preferential Tariff (CEPT) Agreement on Safeguard Measures shall be applied to
this Protocol.
Where emergency measures are taken pursuant to this Article, immediate notice of such action shall be given to
the Ministers responsible for ASEAN economic integration referred to in Article 19 of the Framework Agreement,
and such action may be the subject of consultations pursuant to Article 22 of the Framework Agreement.
ARTICLE 4
APPENDICES
The Roadmap for Integration of Electronics Sector shall be Appendix I to this Protocol and shall form an integral
part of it. The negative list in relation to the electronics sector shall be Appendix II to this Protocol.
Additional measures other than those identified in the Appendix I may be introduced, as and when deemed
necessary through an amendment pursuant to paragraph 2 of Article 5 of this Protocol.
ARTICLE 5
FINAL PROVISIONS
Member States shall undertake the appropriate measures to fulfill the agreed obligations arising from this
Protocol.
The provisions of this Protocol may be modified through amendments mutually agreed upon in writing by all
Member States.
This Protocol 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
Protocol in accordance with the timelines indicated in the Framework Agreement for the Integration of Priority
Sectors and the Roadmap for Integration of Electronics Sector attached to this Protocol.
This Protocol shall be deposited with the Secretary-General of ASEAN, who shall furnish a certified copy to each
Member State.
IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have
signed the ASEAN Sectoral Integration Protocol for Electronics.
DONE at Vientiane, Lao PDR on 29 November 2004, in a single copy in the English language.

For the Government of

For the Government of

Brunei Darussalam

the Kingdom of Cambodia

ABDUL RAHMAN TAIB

CHAM PRASIDH

Minister of Industry and

Senior Minister

Primary Resources
For the Government of

Minister of Commerce
For the Government of

the Republic of Indonesia

the Lao People's Democratic Republic

MARI ELKA PANGESTU

SOULIVONG DARAVONG

Minister of Trade
For the Government of

Minister of Commerce

Malaysia

For the Government of

the Union of Myanmar

RAFIDAH AZIZ
SOE THA
Minister of International Trade
Minister of National Planning and Economic Development
and Industry
For the Government of

For the Government of

the Republic of the Philippines the Republic of Singapore

CESAR V. PURISIMA

LIM HNG KIANG

Secretary of Trade and Industry Minister for Trade and Industry

For the Government of
For the Government of
the Kingdom of Thailand

the Socialist Republic of Vietnam

WATANA MUANGSOOK

TRUONG DINH TUYEN

Minister of Commerce

Minister of Trade

ASEAN Sectoral Integration Protocol for Automotives

The Governments 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) issued 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 world economy to realise an ASEAN Economic Community;

DESIRING 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;
NOTING that as a first step towards the realisation of the ASEAN Economic Community, the Leaders have signed
the ASEAN Framework Agreement for the Integration of Priority Sectors on 30th November 2004 in Vientiane, Lao
PDR (hereinafter referred to as the "Framework Agreement");
HAVING carried out an initial round of negotiations and concluded the roadmap for the full integration of the
automotive sector in ASEAN,
HAVE AGREED AS FOLLOWS:

ARTICLE 1
OBJECTIVE
The objective of this Protocol is to spell out measures as in the Roadmap referred to in Article 2 to be taken by
Member States on a priority basis so as to enable the progressive, expeditious and systematic integration of the
automotive sector.

ARTICLE 2
MEASURES
1. The integration measures to be pursued are grouped into two broad categories, taking into account existing
agreements
or
earlier
relevant
committed
measures,
namely:
(a)
(b)

Common
measures
Specific
measures
that

which
cut
across
all
are
of
direct
relevance
to

priority
sectors;
the
automotive

and
sector.

2. All categories of measures shall be pursued in parallel.

3. SEOM may conduct additional negotiations, as and when necessary, to consider new integration measures for the
sector.

ARTICLE 3
EMERGENCY MEASURES
1. Article 6 of the Common Effective Preferential Tariff (CEPT) Agreement on Safeguard Measures shall be applied to
this Protocol.
2. Where emergency measures are taken pursuant to this Article, immediate notice of such action shall be given to
the Ministers responsible for ASEAN economic integration referred to in Article 19 of the Framework Agreement,
and such action may be the subject of consultations pursuant to Article 22 of the Framework Agreement.

ARTICLE 4
APPENDICES

1. The Roadmap for Integration of Automotive Products Sector shall be Appendix I to this Protocol and shall form an
integral part of it. The negative list in relation to the automotive sector shall be Appendix II to this Protocol.
2. Additional measures other than those identified in the Appendix I may be introduced, as and when deemed
necessary through an amendment pursuant to paragraph 2 of Article 5 of this Protocol.

ARTICLE 5

FINAL PROVISIONS
1. Member States shall undertake the appropriate measures to fulfill the agreed obligations arising from this
Protocol.
2. The provisions of this Protocol may be modified through amendments mutually agreed upon in writing by all
Member States.

3. This Protocol 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
Protocol in accordance with the timelines indicated in the Framework Agreement for the Integration of Priority
Sectors and the Roadmap for Integration of Automotive Products Sector attached to this Protocol.
4. This Protocol shall be deposited with the Secretary-General of ASEAN, who shall furnish a certified copy to each
Member State.
IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have
signed the ASEAN Sectoral Integration Protocol for Automotives.
DONE at Vientiane, Lao PDR on 29 November 2004, in a single copy in the English language.

For the Government of

For the Government of

Brunei Darussalam

the Kingdom of Cambodia

ABDUL RAHMAN TAIB

CHAM PRASIDH

Minister of Industry and

Senior Minister

Primary Resources
For the Government of

Minister of Commerce
For the Government of

the Republic of Indonesia

the Lao People's Democratic Republic

MARI ELKA PANGESTU

SOULIVONG DARAVONG

Minister of Trade
For the Government of

Minister of Commerce

Malaysia

For the Government of

the Union of Myanmar

RAFIDAH AZIZ
SOE THA
Minister of International Trade
Minister of National Planning and Economic Development
and Industry
For the Government of

For the Government of

the Republic of the Philippines the Republic of Singapore

CESAR V. PURISIMA

LIM HNG KIANG

Secretary of Trade and Industry Minister for Trade and Industry

For the Government of
For the Government of
the Kingdom of Thailand

the Socialist Republic of Vietnam

WATANA MUANGSOOK

TRUONG DINH TUYEN

Minister of Commerce

Minister of Trade