Regional Partnerships Scheme Program Stream Regional Economic Policy Support Facility
The Joint Planning Committee of the ASEAN-Australia Development Cooperation Program (AADCP) met in Bangkok, Thailand, on 22 May 2007 to ‘take stock’ of the existing program and to seek agreement on the strategic focus of the AADCP successor program. Delegates included representatives of the Australian Government, Thailand Ministry of Foreign Affairs, ASEAN Secretariat, ASEAN Diplomatic Missions in Bangkok, and AADCP Managing Contractors.
ASEAN Co-Chair H.E. Mr. Nopadol Gunavibool, Director-General of ASEAN Affairs, Thailand Ministry of Foreign Affairs, thanked Australia for its development support to the ASEAN region. He noted that the ASEAN-Australia Comprehensive Partnership to be signed in August 2007 demonstrates the strength and breadth of the relationship.
Australian Co-Chair Mr. Peter Callan, Assistant Director General, Asia Regional Branch, AusAID noted the ASEAN-Australia relationship had reached new heights in relation to two-way trade and investment, ‘people-to-people’ contact through tourism and education, and the development partnership with ASEAN.
Significant meetings since the JPC had last convened included the ASEAN-Australia Forum in November 2006 and the 2nd East Asia Summit held in Cebu in January 2007.
Mr. Callan shared with ASEAN highlights of the recently announced 2007/08 Australian aid budget, including an increase in the allocation for development cooperation activities in ASEAN and ASEAN Member Countries to approximately $A850 million.
He detailed a major package of initiatives worth $A2.5 billion to implement strategies announced in the 2006 White Paper, Australian Aid: Promoting Growth and Stability, part of the Australian Government’s plan to double its aid program by 2010/11. He also briefed the meeting on AusAID’s new East ASEAN Growth Area Initiative (see article page 5) and the 2007 APEC Summit to be chaired by Australia.
Delegates were briefed by the ASEAN Secretariat on progress made to date in the development of the ASEAN Charter, implementation of the Vientiane Action Programme (2004-2010), and ASEAN’s strategies to accelerate the establishment of an ASEAN Economic
Community by 2015. The Australian Government committed to supporting ASEAN achieving these goals through the AADCP successor program, due to commence mid-2008.
The meeting also received updates on the progress of AADCP’s three components: Regional Partnerships Scheme (RPS); Program Stream (PS); and the Regional Economic Policy Support Facility (REPSF).
It is anticipated that the final Joint Planning Committee Meeting for the current program will be held in May 2008 in Australia.
aadcp
news
No. 13, May 2007
Joint Planning Committee Meets in Bangkok
In this Edition
Enhancement of Intellectual Property Examination Skills in ASEAN
Trade Statistics Project Completed Standards and Conformity Systems Strengthened
ASEAN Automotive Sector Supported Energy Cooperation in East Asia Summit Monetary and Fiscal Responses to Higher Oil Prices
Australia’s East ASEAN Initiative AADCP Events: June – September 07 •
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Regional Partnerships Scheme News
Enhancement of Intellectual Property Examination Skills
Improvement of ASEAN’s regionalframework of intellectual property (IP) rights protection policies and institutions is an important part of ASEAN's economic development agenda.
IP Australia recently completed a Regional Partnerships Scheme project to help improve the skills, knowledge and consistency of examination in IP offices of ASEAN Member Countries. The project supported the objectives of the ASEAN Intellectual Property Rights Action Plan 2004-2010 and the IP-focused capacity building aspirations of the Vientiane Action Programme (VAP).
Under the project, three advanced workshops were conducted in patents, trade marks, and industrial designs for the benefit of ASEAN’s IP examiners, as follows:
Workshop 1 onTrademarks: held in Singapore, November 2005;
Workshop 2 on Patents: held in Singapore, February 2006; and
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Workshop 3 on Industrial Designs:
held in Kuala Lumpur, November 2006.
Over 80 examiners participated across all three workshops. Integral to the success
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of the workshops, and the project, was the support provided to IP Australia by its project partners, in particular the IP Office of Singapore (IPOS) and the IP Corporation of Malaysia (MyIPO).
In addition, IP Australia was able to strengthen relationships with ASEAN IP offices, which is integral to IP Australia’s ongoing development cooperation efforts in the ASEAN region.
In order to harmonise practices within ASEAN IP offices, examiners need to have a similar understanding of IP laws and IP rights applications. As a result of these workshops, participants were able to share the information and knowledge acquired during the workshops and to mentor fellow examiners within their own IP office.
Participants were also exposed to a network of contacts and colleagues throughout the region with whom they can continue to exchange information and learning.
International Trade Statistics Project Successfully Completed
An 18-month Regional PartnershipsScheme project in the area of trade statistics was recently completed. The project aimed to develop regional and national work plans to better harmonise and improve ASEAN statistics on international trade in goods and services.
National and regional workshops were conducted to develop the work plans for international merchandise trade statistics (IMTS) and statistics on international trade in services (SITS). National activities were coordinated by ASEAN Member Country National Statistical Offices (NSOs), with Customs Offices, Central Banks, policy and source data agencies involved.
Key actions in the ASEAN IMTS Work Plan included:
use of the ASEAN Harmonised Tariff Nomenclature (AHTN) as the basis for national commodity classifications;
closer alignment with international standards and better classification of goods to country of origin (imports) and final destination (exports);
addressing country-specific data quality issues;
closer alignment with ASEAN
Secretariat specifications for the national supply of detailed IMTS, including through more direct NSO involvement;
release of IMTS within three months of the reference period and;
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Key actions in the ASEAN SITS Work Plan included:
addressing all high priority uses, to support macroeconomic policy, regional economic integration, trade liberalisation and national economic development;
expanding SITS by providing more detailed services data, some partner country estimates and data on inward foreign affiliate trade;
establishing regional specifications for the estimates and taking initial steps towards their achievement;
implementing the updated Balance of Payments Manual;
sharing of experiences and discussion of leading practice through the ASEAN SITS Task Force; and
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improving national coordination and support, including through a regular regional report on SITS developments.
The ASEAN Heads of Statistical Offices Meeting (AHSOM) held in Brunei Darussalam on 21-22 November 2006 endorsed the ASEAN IMTS and SITS Work Plans. They agreed terms of reference for ASEAN IMTS and SITS Task Forces established to support future work, and endorsed the project evaluation report.
AHSOM acknowledged with appreciation the contribution by AADCP-RPS in establishing a sound foundation for progressing and harmonising IMTS and SITS.
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DelegatesattheASEAN Statistics in International Trade in Services (SITS) WorkshopheldinKualaLumpur,Malaysia, 6-8September2006.(L-R):Mrs.NguyenThiHong(VietNam);Mrs.LeThiMinhThuy(VietNam);Mrs.TranThiHang (VietNam);Ms.NantachaveeHongnuson(Thailand);Ms.PuntharikSupaarmorakul(Thailand);Ms.MayureeChayasit (Thailand).
IP Australia trainer Mr. Les McCaffrey with participants from the Advanced Training Course on Patent Examination
Program Stream News
The Strengthening ASEAN Standards and Conformity Assessment Systems Project, managed by PDP Australia Pty Ltd in partnership with the Joint Accreditation System of Australia and New Zealand (JAS-ANZ), has been focusing on final project activities in the areas of enhanced integration through good regulatory practice, improved international standards development, and training, accreditation standards and models for Cambodia, Lao PDR, Myanmar, Viet Nam (CLMV) development.
The project recently delivered two on-the-job training workshops on ISO/IEC standards. The first workshop, held in January 2007, was hosted by the
Department of Standards, Malaysia, and was a three-day event on ISO/IEC 17025 Laboratory Accreditation Standards.
The training workshop assisted ASEAN Member Country participants to gain a better understanding of accreditation practices, including on-the-job training in accreditation for testing laboratories, and the resources and processes required to maintain an internationally recognised accreditation body.
The second workshop, held in March 2007, was hosted by Vietnamese accreditation body, QUACERT, and consisted of a three-day training session on ISO/IEC 17011 Product Certification.
QUACERT demonstrated its product accreditation activities to six accreditation body representatives from other ASEAN Member Countries. This provided a unique opportunity to demonstrate how a ‘good practice’ product accreditation activity (product accreditation surveillance) is performed.
Over the past three years, by adopting a harmonised system of standards and conformity assessment of goods, the Project has assisted ASEAN Member Countries to deliver real gains in freeing up the flow of intra-ASEAN trade through the elimination of technical barriers to trade.
Throughout the project, a number of key documents has been developed, including: Regional Benchmark and National Development Models for CLMV Countries; Advances in Standards
Development and Training; Good
Regulatory Practice Toolkits in four key sector areas; and training for improved ISO/IEC Accreditation Standards.
Much work remains to be undertaken in the area of standards development, good regulatory practice and national development models. However, through this project, ASEAN Member Countries have developed a strong platform and collaborative partnership on which to build further success.
The final activity under the Program Stream, the ASEAN Small and Medium Enterprise (SME) Automotive Activity, is now underway.
The ASEAN Policy Blueprint for SME Development notes that SMEs form the backbone of the economy in the ASEAN region, are the largest source of domestic employment, and provide opportunities for women and youth.
This project was designed to complement both ASEAN’s efforts to foster a thriving
SME sector and Australia’s competitive advantage in the automotive industry. The goal of the project is to support the establishment of a regional ASEAN environment for the development of a competitive private and SME sector.
During the project design phase in January 2007, a workshop was held in Jakarta, Indonesia, to clearly define the focus and outputs of the project. This workshop was attended by key representatives from the ASEAN Secretariat, the ASEAN Automotive Federation, the ASEAN
SME Working Group, Member Country agencies, and various SME automotive industry associations.
Outputs of the implementation phase will include:
the identification of demand-side entry and subcontracting compliance requirements for SMEs in the automotive sector;
a survey of SMEs’ capability to comply with these requirements;
a regional workshop to discuss these findings; and
development and dissemination
of appropriate material, such as best practice guidelines, to better assist the SME automotive sector to comply with demand requirements and become more competitive.
The $A500,000 project is being
implemented by AMSAT Ltd, with technical input sourced from the Australian and Thai automotive industries.
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Strengthening ASEAN Standards and Conformity Assessment Systems
The SME automotive industry plays a significant role in the economies of ASEAN Member Countries. Photo: Tritos Laosirihongthong, Isuzu Motors, Thailand
Trainer Mr. Brett Abraham with participants at the ISO/IEC Training Course held in Malaysia, January 2007.
Energy Cooperation in the East Asia Summit
The Australian Bureau of Agriculturaland Resource Economics (ABARE) and the Australian National University (ANU) undertook a joint study in late 2006 to provide a background paper on energy issues for the 2nd East Asia Summit (EAS), held 15 January 2007 in Cebu, the Philippines. The objective of the paper was to provide relevant background information to facilitate the discussion by the Leaders and to identify directions for
cooperation in three core areas: energy security; new and renewable energy; and energy efficiency and conservation.
The EAS forum represents 16 countries within a geographic region, thereby providing the potential for joint net benefits from policy cooperation, greater scope to offer cross-border assistance, and opportunities to facilitate increased integration of energy markets in the region.
Intra-regional energy trade is already important, but there is the potential to increase the scale and scope of these linkages through further cooperation. In 2005, 87 and 70 per cent of EAS coal and gas imports, respectively, were sourced from within the region. The EAS forum may facilitate increased integration of energy markets by extending the interconnection of the electricity and gas networks in ASEAN member economies.
Other potential directions for information sharing and policy cooperation in the EAS region include sharing policy experience, harmonising energy efficiency and labelling standards, and encouraging technology development and deployment to address key energy security and environmental sustainability concerns.
The ABARE/ANU study, A Background Paper on Energy Issues for the 2nd East Asia Summit, REPSF Project No. 06/003, is available at www.aadcp-repsf.org/ publications.html.
Regional Economic Policy Support Facility News
Between 2004-2006, ASEAN countries were hit by the largest oil price increases since the 1970s. ASEAN countries, as a group, are far more ‘trade intensive’ than other economies and highly integrated into global production chains.
Mr. Peter Downes, from the Centre for International Economics, in his presentation to the ASEAN Finance and Central Bank Deputies Meeting (AFDM) on 2 April 2007, explained that, as ASEAN countries are highly exposed to trade, they have the potential to feel the effects of an oil price shock doubly, both via trade and via the direct effects on ASEAN’s oil-intensive economies. He emphasised that each oil price shock is different and that the key to a successful monetary and fiscal response is to understand what type of shock it is and how it will impact on households and business.
He said the next oil shock, if it occurs, may be much worse than the current shock. If significant oil supply disruption were to occur, oil prices would probably rise above US$100 per barrel, risk premiums and perceptions of risk would rise markedly, OECD output could fall by between one and a half and two per cent in the first year and world trade growth could fall by between five and seven per cent. In those circumstances, growth in ASEAN economies would fall by four to six per cent while at the same time inflation would be rising, rendering monetary policy powerless to offset the output effects.
He recommended a number of preparatory measures that ASEAN policy-makers could pursue to reduce the impact of such an oil price shock:
cultivate monetary policy credibility. This would help anchor inflation expectations in the face of the shock;
pursue sound fiscal policy within a medium-term framework, reducing public debt levels in good years to allow room for fiscal policy to support activity in the case of an adverse shock;
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reduce dependence on oil via a variety of means including reducing subsidies and increasing taxes on oil products;
develop competitive and flexible product and labour markets. The more flexible and competitive markets are, the lower the transitional impacts on activity and unemployment will be;
foster economic growth and regional integration. This will reduce the exposure of the region to both oil price and external shocks.
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ASEAN Monetary and Fiscal Responses to Higher Oil Prices
Oil Storage in Brisbane, Australia. Photo: Australian Bureau of Agricultural and Resource Economics (ABARE)
The East ASEAN Initiative is a $A2.7 million, two-year development program aimed at promoting growth and security in the East ASEAN sub-region. Developed by AusAID in partnership with the ASEAN Secretariat, the Initiative aims to advance sub-regional cooperation on private sector investment and infrastructure, as well as address the security dimensions of the sub-region’s economic growth agenda.
The East ASEAN Initiative aims to complement existing regional frameworks for assistance, including the ASEAN-Australia Development Cooperation Program (AADCP), but places specific emphasis on ‘lagging’ regions, the southern Philippines and eastern Indonesia.
RegionalWorkshops
The first major step in the East ASEAN Initiative was the conduct of three regional workshops in March 2007 in private investment, infrastructure and security for economic growth. These workshops brought together experts and stakeholders throughout the region to identify possible pilot activities to be funded under the Initiative.
Two workshops were held in Makassar, Indonesia, co-hosted by the Indonesian Coordinating Ministry for Economic Affairs. These were a Workshop on Private Investment on 4 - 5 March 2007 and a Workshop on Infrastructure on 6 March 2007. In Davao, the Philippines, the Mindanao Economic Development Council (MEDCo) co-hosted the third workshop, on Security for Economic Growth, on 12 - 13 March 2007.
Twenty-four concept papers were presented at the three workshops by key experts in the region. Workshop delegates peer-reviewed the concept papers in small
breakout groups and had the opportunity to ask questions of the presenters before providing an assessment of the papers.
At the completion of the workshops, 10 concept papers were selected by delegates for further consideration by the Australian Government. Five of the 24 concept papers will now be developed into more detailed project design documents by the authors with the assistance of a project design specialist.
PrivateInvestmentConceptPapers
Single Window for Investment Facilitation and Trade (SWIFT) – authored by Merly Cruz, Department of Trade and Industry, the Philippines. The pilot project will undertake a feasibility study into the establishment of a single window for investment facilitation and trade. Its objective is to develop a simplified or unified access point from which investment and trade data can be submitted, accessed and used.
Establishment of Business Development Service Centres for Micro, Small and Medium Enterprises in Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) – authored by the Indonesia International Rural and Agricultural Development Foundation (INIRADEF).
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The pilot project will establish Business Development Service Centres in two locations to provide micro, small and medium enterprises with access to a range of business services. Training will be provided to approximately 150 eco-tourism and mariculture enterprises in the region to assist in development of business action plans.
InfrastructureConceptPapers
Improving Maritime Logistics to East ASEAN – authored by Meyrick & Associates. The pilot project will develop an integrated, practical strategy for improving maritime logistics for non-bulk commodities between the East ASEAN sub-region and key Asian markets. The study will develop and test alternative maritime logistics concepts for connecting East ASEAN to the major markets of East Asia, culminating in a draft strategy for maritime logistics development.
SecurityforEconomicGrowthConcept Papers
Developing a Customs Exchange for BIMP-EAGA – authored by Ma. Joy Abrenica, University of the Philippines. The pilot project aims to improve customs co-operation by building a platform for bilateral port-to-port customs information exchange between customs authorities in General Santos and Bitung, Davao and Manado, Zamboanga and Sandakan.
Strengthening Security in the East ASEAN Region of the Philippines and Indonesia – authored by Rear Admiral Edgardo Israel, Office of Transport Security, the Philippines. The pilot project will establish cooperative working relationships between Indonesia and the Philippines on maritime security through information exchange. It aims to encourage consistent security practices and raise awareness of maritime security issues through training and workshops.
Once the detailed project designs have been finalised, AusAID and the ASEAN Secretariat will host a meeting with other dialogue partners and donors within the region to present the project designs and coordinate regional assistance to support their implementation.
Pilot projects under the East ASEAN Initiative will be implemented over 18 months. At the completion of implementation, pilot activities will be evaluated and AusAID will consider ‘scaling up’ successful pilot activities with support from other donors and regional partners.
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aadcp
profile
ParticipantsinWorkshop on Private InvestmentheldinMakassar,Indonesia,4-5March2007.
Australia’s East ASEAN Initiative
RegionalPartnerships
Scheme(RPS)
Maria Eloida Cruz Balamiento
Project Coordinator
The ASEAN Secretariat, Second Floor 70A Jl. Sisingamangaraja
Jakarta 12110 INDONESIA
Tel. +62 21 724-3372, 726-2991 (ext. 150) Fax +62 21 7278-7252
The ASEAN Secretariat, Second Floor 70A Jl. Sisingamangaraja
Jakarta 12110 INDONESIA
Tel. +62 21 724 3372, 726 2991 (ext. 152) Fax +62 21 7278 7252
Email: iwan@aseansec.org The ASEAN Secretariat, Ground Floor 70A Jl. Sisingamangaraja
Jakarta 12110 INDONESIA
Tel. +62 21 722-0643, 726-2991 (ext. 463) Fax +62 21 722-9028
Email: monette@aseansec.org
Sarah Black
Project Manager MDI International
Level 27, 150 Lonsdale Street Melbourne Vic 3000 AUSTRALIA Tel +61 3 8676 6800
Fax +61 3 8676 6888
Email: sarahb@mdi-international.com.au
For further information go to www.aadcp.org
aadcp
events
June 2007
• 18 June: The 10th Meeting of the Joint Selection and Review Panel for the RPS program, Australia • June: Regulatory Expert Workshop for RPS project,
Capacity Building for the Implementation of the ASEAN Marine Water Quality Criteria Project - Phase II, Myanmar
• June: Monitoring Expert Workshop for RPS project, Capacity Building for the Implementation of the ASEAN Marine Water Quality Criteria Project - Phase II, Myanmar
• June: Pilot Assessor Train the Trainer program for RPS project, Developing Common ASEAN Tourism Curriculum, Viet Nam
• June: Train the Trainer Workshop for RPS project, Strengthening of Food Inspection and Certification for Shrimp and Bivalve Molluscs in ASEAN Member Countries, country location not confirmed • June: Regional Workshop for RPS project,
Strengthening of Food Inspection and Certification for Shrimp and Bivalve Molluscs in ASEAN Member Countries, country location not confirmed • June: 'Brainstorming' on Initiative for ASEAN
Integration (IAI) Development Cooperation Forum for PS project, Enabling ASEAN Project, Viet Nam • June*: Training Course in-country for PS project,
Strengthening ASEAN Standards and Conformity Assessment Systems, Cambodia
• June*: Training Course in-country for PS project, Strengthening ASEAN Standards and Conformity Assessment Systems, Lao PDR
• June*: Workshop 1 - System Design and Modification/Enhancement of system functionality for PS project, Strengthening Animal Health Management and Biosecurity in ASEAN, Singapore
• June - July*: Working group in-country workshop, for PS project, Enhancing Skills Recognition Systems in ASEAN, Brunei Darussalam
• June - July*: Working group in-country workshop, for PS project, Enhancing Skills Recognition Systems in ASEAN, Cambodia
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Indonesia
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Lao PDR
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Malaysia
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Myanmar
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Philippines
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Singapore
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Thailand
• June - July*: Working group in-country workshop for PS project, Enhancing Skills Recognition Systems in ASEAN, Viet Nam
• June – August: National Seminars for PS project, ASEAN Small and Medium Enterprise (SME) Automotive Activity, country location not confirmed
July 2007
• 2-4 July: Taxonomy Re-entry Workshop No. 3 (Scale Insects) for PS project, Strengthening ASEAN Plant Health Capacity, Thailand
• 2-6 July*: Pest List Development Re-Entry Mentoring Visit No. 1 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• 6 July: 2nd Project Coordination Group Meeting for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed • 9-13 July*: Pest List Development Re-Entry
Mentoring Visit No. 2 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• 16 July*: Pest List Development Mentoring Workshop No. 4 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• 16 July*: Pest List Development Mentoring Workshop No. 5 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• July: Project Coordinating Group meeting for PS project, Strengthening ASEAN Plant Health Capacity, Thailand
August 2007
• August: Skills and Data/Strategic Plan Workshop for PS project, Strengthening ASEAN Risk Assessment Capability to Support Food Safety Measures, Malaysia
• August: Final Strategy Workshop for PS project, Strengthening ASEAN Risk Assessment Capability to Support Food Safety Measures, Malaysia • August: Project Coordination Group Meeting for
PS project, Strengthening ASEAN Risk Assessment Capability to Support Food Safety Measures, Malaysia
• August*: Design a harmonised strategy for mutual recognition of digital signature for PS project, Legal Infrastructure for E-commerce in ASEAN Project, Cambodia
• August*: Training on Risk Assessment for PS project, Strengthening ASEAN Risk Assessment Capability to Support Food Safety Measures, Malaysia
• August - September (dates to be confirmed):
Present project outcomes and revised ASEAN Tourism Strategic Plan to ASEAN Task Force on Tourism Manpower Development for RPS project, Capacity Building for an ASEAN Mutual Recognition Arrangement in Tourism, Indonesia
September 2007
• 9 September: Mentoring Visit No. 4 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• 10-15 September: Mentoring Visit No. 4 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• 26-27 September: The 7th Meeting of the Project Coordination Committee for the PS program, Jakarta
• September: Mentoring Visit No. 4 for PS project, Strengthening ASEAN Plant Health Capacity, country location not confirmed
• September: The 10th Meeting of the Research Priorities Committee (RPC) for the REPSF program, Indonesia
• September*: Regional Training Meeting for PS project, Enhanced Customs Capacity Building in ASEAN, Indonesia
*=Proposedextensionactivitiessubjecttocontract negotiations
