MANILA, Philippines — ASEAN members, including the Philippines, are facing legal constraints in meeting the 2015 goals of full economic integration but have remained committed to comply with the agreed timetable for the ASEAN Economic Community (AEC).
Trade and Industry Undersecretary Adrian S. Cristobal Jr. told reporters that leaders are expected to touch on the issue at the 20th ASEAN Summit this week in Phnom Penh, Cambodia. President Aquino will lead the Philippine delegation to the summit.
“All members are committed to the 2015 goals, but there is also a recognition that each country has own legal constraints, especially in the services and investments front,” Cristobal said.
Cristobal said there would be stocktaking at the Phnom Penh meeting although the nitty-gritty of the issues are taken up in the Senior Economic Officials Meeting.
For the Philippines, he said, the government is on track with its commitment but he noted of “slowing down a bit just like other countries because of some restraints in the Constitution.”
Cristobal cited some Constitutional constraints like the further liberalization of the services sector, the foreign equity contribution and investments. The Philippine Constitution limits foreign equity investments in specific economic activities to a maximum of 40 percent only.
Such restraints are common ASEAN countries with the exception of the island-state Singapore, which has long liberalized its economy.
“The goal of the 2015 is still there, there are ongoing negotiations for internal adjustments, thus the slowdown because of domestic constraints, but it is still 2012,” he stressed.
Despite these issues in services and investment components, Cristobal said, other areas leading to the attainment of the 2015 AEC are proceeding smoothly.
He said that ASEAN countries are putting more emphasis on further trade facilitation like harmonizing the region’s customs administration.
According to Cristobal, ASEAN countries have moved to accelerate trade facilitation so as not to inadvertently leave this area behind amid concerns for more negotiations in other areas like the services sector.
Meantime, Cristobal said the Philippines will prioritize the growth of small and medium enterprises (SMEs) and emphasize the country’s continued commitment to the envisioned economic integration of ASEAN by 2015 during the Phomn Penh Summit.
By 2015, ASEAN envisions an ASEAN Economic Community with the following key characteristics: A single market and distribution base, a highly competitive economic region with equitable economic development, and a region fully integrated into the global economy.
The 20th ASEAN Summit will be chaired by Cambodian Prime Minister Hun Sen. At the Summit, leaders will adopt documents on Phnom Penh Declaration on ASEAN: One Community, One Destiny. The Meetings will also cover updates on the Implementation of the ASEAN Charter and Roadmap for the ASEAN Community.
The Philippines will also join the rest of the ASEAN members in working towards the implementation of the Regional Comprehensive Economic Partnership (RCEP). RCEP reaffirms ASEAN’s position as lead and driver of economic integration in the region.
“The Philippines will actively participate in the ASEAN Working Groups in trade, services, and investment and work out ways with our free trade agreement (FTA) partners on how we can strengthen integration efforts,” Cristobal said.
In the Philippines, increasing exporter awareness of FTAs through the DTI’s program Doing Business in Free Trade Areas (DBFTA) has resulted in 41.15% utilization rate in 2010 compared to 20% rate in the 2008 survey of the Asian Development Bank (ADB).
At the sidelines of the Summit Plenary Sessions and Retreat, the Philippines will also join the 11th ASEAN Economic Ministers-EU Trade Commissioner Consultations.
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By: Bernie Cahiles-Magkilat
Source: Manila Bulletin, April 2, 2012
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