ASEAN Economic Community (AEC)

1 One visionone identityone communityASEAN Economic Community (AEC) The Association of Southeast Asian Nations ( ASEAN ) was established on 8 August 1967. The Member States are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia,Myanmar, Philippines, Singapore, Thailand and Viet Nam. The ASEAN Secretariat is based in Jakarta, inquiries, contact:The ASEAN SecretariatCommunity Relations Division (CRD)70A Jalan SisingamangarajaJakarta 12110, IndonesiaPhone:(62 21) 724-3372, 726-2991 Fax:(62 21) 739-8234, A Community of OpportunitiesCatalogue-in-Publication DataFact Sheet of ASEAN Economic Community (AEC)Jakarta, ASEAN Secretariat, May Trade Investment Finance2. ASEAN Economic CommunityISBN 978-602-6392-36-7 The text of this publication may be freely quoted or reprinted, provided proper acknowledgement is givenand a copy containing the reprinted material is sent to the Community Relations Division (CRD) of the ASEAN Secretariat, credits: ASEAN information on ASEAN appears online at the ASEAN Website: Association of Southeast Asian Nations ( ASEAN ) 2017.

2 All rights Economic Community (AEC)Goods Agreement and other ASEAN +1 FreeTrade implementation of AEC Blueprint 2025requires key reference for institutionalisingmonitoring and evaluation mechanisms acrossAEC sectors. To this end, the AEC 2025 Monitoring and Evaluation Framework wasendorsed by the ASEAN Economic Communityand the AEC Council in August and September2016, respectively. This framework enhances theprevious mechanism, by going beyondcompliance monitoring to also cover the outcomesmonitoring and impact evaluation of regionaleconomic formal establishment of the ASEAN EconomicCommunity (AEC), as part of the ASEANC ommunity, on 31 December 2015, marks animportant milestone in ASEAN economicintegration agenda.

3 This was preceded byimplementation of measures in the first AECB lueprint (2008-2015), with the following keyachievements: More open market, with intra-regional tariffsvirtually eliminated and formal restrictions inservices sector gradually removed; Reduced trade costs through simplificationof cross-border trading processes, includingon customs procedures and rules of origin,harmonisation of technical regulations andmutual recognition arrangements; More attractive investment regime, and amore business-friendly and innovation-supportive environment through the adoption(APSC) Blueprint 2025 and the ASEAN Socio-Cultural Community (ASCC) Blueprint 2025, theAEC Blueprint 2025 forms part of ASEAN 2025:Forging Ahead the new Blueprint, a stronger AEC isenvisaged by 2025 with the followingcharacteristics:(a) A Highly Integrated and Cohesive Economy;(b) A Competitive, Innovative, and DynamicASEAN;(c) Enhanced Connectivity and SectoralCooperation;(d) A Resilient, Inclusive and People-Oriented,People-Centred ASEAN .

4 And(e) A Global ASEANThe AEC Blueprint 2025 sets higher ambitionthrough the deepening of existing integrationareas, and incorporation of new focus areas suchas Global Value Chains (GVCs), good regulatorypractice, sustainable development, globalmegatrends and emerging trade-related the time of its establishment, the AEC took formof a large market with a combined GDP over US$ trillion, which collectively put the region as the6th largest economy in the world. With a totalpopulation of almost 630 million people, ASEANis the world s 3rd most populous market, behindonly China and 2016, efforts have been focused on putting inplace the fundamentals for effectiveoperationalisation of the AEC Blueprint 2025through the adoption of various AEC sectoral workASEAN Economic Community 2025A Highly Integrated &Cohesive EconomyTrade in GoodsTrade in ServicesInvestment EnvironmentFinancial Integration,Financial Inclusion, andFinancial StabilityFacilitating Movement ofSkilled Labour & BusinessVisitorsEnhancing Participation inGVCsA Competitive, Innovative &Dynamic ASEANE ffective Competition PolicyConsumer ProtectionStrengthening IPR CooperationProductivity-Driven Growth,Innovation, R&D.

5 TechnologyCommercialisationTaxation CooperationGood GovernanceEffective, Efficient, Coherentand Responsive Regulations,and GRPS ustainable EconomicDevelopmentGlobal Megatrends andEmerging Trade-related IssuesEnhancedConnectivity &SectoralCooperationTransportICTE-commer ceEnergyFood, Agriculture,and ForestryTourismHealthcareMineralsScience &TechnologyA Resilient, Inclusive,People-Oriented &People-Centred ASEANS trengthening the Roleof MSMEsStrengthening the Roleof the Private SectorPublic-PrivatePartnershipNarrowing theDevelopment GapContribution ofStakeholders onRegional IntegrationEffortsA Global ASEANS trategic approachtowards externaleconomic relationsReview and improveexisting ASEAN FTAsand CEPsEnhance economicpartnerships with non-FTA DPsEngage with regionaland global partnersSupport to themultilateral tradingsystemEngagements withregional and globalinstitutions3 ASEAN Economic Community (AEC)of common frameworks, standards andmutual cooperation in various areas.

6 And Better connectivity in transportation and otherinfrastructure , Community building is not a static endgoal but rather a dynamic process that requirescontinuous reinvention of the region to seekdeeper and broader integration as well as ensureits continued relevance in an evolving AEC Blueprint 2025, adopted by the ASEANL eaders at the 27th ASEAN Summit in KualaLumpur, Malaysia, provides broad directionsthrough strategic measures to guide the nextphase of ASEAN Economic integration from 2016to 2025. Along with the ASEAN Community Vision2025, the ASEAN Political-Security Communityplans. In parallel, continued progress was madeon completing the remaining AEC 2015 measuresas well as initiating the implementation of newmeasures under the AEC Blueprint its inaugural year of the AEC, and under thechairmanship of Lao PDR, the 48th ASEANE conomic Ministers (AEM) Meeting adopted thefollowing priority deliverables:1) The ASEAN Trade Facilitation Framework;2) The ASEAN Food Safety RegulatoryFramework;3) The ASEAN Institutional Framework onAccess to Finance for MSME;4) The Report and Work Programme on Startinga Business in ASEAN .

7 And5) The ASEAN Guidelines for Special EconomicZones Development & Pakse Declaration on ASEAN Roadmap forStrategic Development of Ecotourism Clustersand Corridors was likewise adopted by the ASEANT ourism Ministers, while good progress was alsomade in the work on the ASEAN SustainableTourism ASEAN Solutions for Investments, Servicesand Trade (ASSIST), which is aimed at deliveringpractical solutions to help businesses addresstheir concerns and difficulties while doing businessin the region ( ) is now fullyoperational; while ASEAN Tariff Finder website( ) has been launched,providing a cost-free search engine for tariff-related information under the ASEAN Trade inASEAN Economic Community (AEC)2 ASEAN Economic Community (AEC)The formal establishment of the ASEAN EconomicCommunity (AEC), as part of the ASEANC ommunity, on 31 December 2015, marks animportant milestone in ASEAN economicintegration agenda.

8 This was preceded byimplementation of measures in the first AECB lueprint (2008-2015), with the following keyachievements: More open market, with intra-regional tariffsvirtually eliminated and formal restrictions inservices sector gradually removed; Reduced trade costs through simplificationof cross-border trading processes, includingon customs procedures and rules of origin,harmonisation of technical regulations andmutual recognition arrangements; More attractive investment regime, and amore business-friendly and innovation-supportive environment through the adoption(APSC) Blueprint 2025 and the ASEAN Socio-Cultural Community (ASCC) Blueprint 2025, theAEC Blueprint 2025 forms part of ASEAN 2025:Forging Ahead the new Blueprint, a stronger AEC isenvisaged by 2025 with the followingcharacteristics:(a) A Highly Integrated and Cohesive Economy;(b) A Competitive, Innovative, and DynamicASEAN;(c) Enhanced Connectivity and SectoralCooperation;(d) A Resilient, Inclusive and People-Oriented,People-Centred ASEAN .

9 And(e) A Global ASEANThe AEC Blueprint 2025 sets higher ambitionthrough the deepening of existing integrationareas, and incorporation of new focus areas suchas Global Value Chains (GVCs), good regulatorypractice, sustainable development, globalmegatrends and emerging trade-related the time of its establishment, the AEC took formof a large market with a combined GDP over US$ trillion, which collectively put the region as the6th largest economy in the world. With a totalpopulation of almost 630 million people, ASEANis the world s 3rd most populous market, behindonly China and 2016, efforts have been focused on putting inplace the fundamentals for effectiveoperationalisation of the AEC Blueprint 2025through the adoption of various AEC sectoral workASEAN Economic Community 2025A Highly Integrated &Cohesive EconomyTrade in GoodsTrade in ServicesInvestment EnvironmentFinancial Integration,Financial Inclusion, andFinancial StabilityFacilitating Movement ofSkilled Labour & BusinessVisitorsEnhancing Participation inGVCsA Competitive, Innovative &Dynamic ASEANE ffective Competition PolicyConsumer ProtectionStrengthening IPR CooperationProductivity-Driven Growth,Innovation, R&D.

10 TechnologyCommercialisationTaxation CooperationGood GovernanceEffective, Efficient, Coherentand Responsive Regulations,and GRPS ustainable EconomicDevelopmentGlobal Megatrends andEmerging Trade-related IssuesEnhancedConnectivity &SectoralCooperationTransportICTE-commer ceEnergyFood, Agriculture,and ForestryTourismHealthcareMineralsScience &TechnologyA Resilient, Inclusive,People-Oriented &People-Centred ASEANS trengthening the Roleof MSMEsStrengthening the Roleof the Private SectorPublic-PrivatePartnershipNarrowing theDevelopment GapContribution ofStakeholders onRegional IntegrationEffortsA Global ASEANS trategic approachtowards externaleconomic relationsReview and improveexisting ASEAN FTAsand CEPsEnhance economicpartnerships with non-FTA DPsEngage with regionaland global partnersSupport to themultilateral tradingsystemEngagements withregional and globalinstitutions3 ASEAN Economic Community (AEC)of common frameworks, standards andmutual cooperation in various areas.