Regional Partnerships Scheme Program Stream Regional Economic Policy Support Facility
The East Asia Summit was held on 15 January 2007, and concluded a week of peak ASEAN meetings hosted by the Government of the Philippines on Mactan Island, Cebu. Postponed from December 2006 because of an expected typhoon, meetings also included the 12th ASEAN Summit, ASEAN Plus 3 and Ministerial trade talks.
The East Asia Summit (EAS) was the broadest forum, attended by Leaders of ASEAN Member Countries, Australia, New Zealand, Japan, China, South Korea and India. In only its second meeting, chaired by Philippines’ President, HE Gloria Arroyo, the EAS demonstrated its potential to work productively for the interests of the region as a whole. The major outcome of the EAS was the signing of the CebuDeclarationonEast AsianEnergySecurity. This Declaration recognises that reliable, adequate and affordable energy supplies are essential to the region’s continued growth and competitiveness. At the same time, appropriate energy policies are necessary to address threats of global warming and climate change.
The Declaration commits to:
Improve the efficiency and environmental performance of fossil fuel use;
Reduce dependence on fossil fuels through energy conservation and development of alternative fuel supplies;
Promote open and competitive regional and international energy markets;
Mitigate greenhouse gas emissions through effective policies and measures;
Encourage private sector investment in energy resource and infrastructure development.
Leaders agreed to establish an EAS Energy Cooperation Task Force to find practical ways to pursue these objectives.
The EAS welcomed ASEAN’s efforts towards integration and community-building, and agreed to work further towards wider regional integration. •
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The ASEAN Secretariat will now coordinate a Track Two study on a Comprehensive Economic Partnership in East Asia amongst EAS participants.
Discussions also covered strengthening of regional financial markets, the importance of reviving free trade negotiations under the Doha Round, de-nuclearisation of the Korean Peninsula, and continued cooperation in combating avian influenza.
The ASEAN Summit also achieved several major outcomes, including the signing of the CebuDeclarationonthe AccelerationoftheEstablishmentofan ASEANCommunityby2015.
The Declaration expressed its determination to:
Accelerate the full implementation of the ASEAN Community’s programme areas, measures and principles, with appropriate flexibility;
Create a stronger, more united and cohesive ASEAN that can better manage the challenges posed by the evolving regional architecture and economic climate; and
Further expand engagement with Dialogue Partners and other parties and draw on their support with integration efforts to achieve the ASEAN Community by 2015, rather than the previously agreed 2020. The next East Asia Summit will be held in Singapore on 21 November 2007. •
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aadcp
news
No. 12, January 2007
ASEAN Community Now Targeted by 2015
In this Edition
Australia to Chair APEC during 2007 New ASEAN Plus Three Emerging Infectious Diseases Programme Boost for the Renewable Energy Sector Australia Assists Integration of ASEAN’s Automotive Sector
ASEAN Free Trade Agreements Facilitated •
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ASEAN – Australia Development Cooperation Program
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Regional Partnerships Scheme News
Six New Projects Approved in Final RPS Funding Round
A key factor preventing more widespread use of renewable energy technologies and services throughout ASEAN is the lack of skilled local personnel to undertake system design and installation, and to provide ongoing service, maintenance and advice. The training of tradesmen in renewable energy technologies differs from that of other trades, in that it is usually only offered through periodic courses which may not have been developed to international standards.
The two-year Development of Regional Competency Standards for Training in Renewable Energy Project, completed in July 2006, established a recognised international standard for renewable energy (RE) training in the ASEAN region that would facilitate intra-regional recognition of skills and qualifications. The RPS project was implemented by Australian firm Global Sustainable Energy Solutions Pty Ltd (GSES) in partnership with the ASEAN Centre for Energy (ACE).
The project worked with representatives from ASEAN Member Country energy departments, the RE industry and training institutes from all ASEAN Member Countries to prioritise RE training requirements for the region and develop task analyses detailing competencies and skills that practitioners need in order to design and install RE technologies.
Eleven task analyses were developed by the project. These cover the design and installation of large-grid connected power voltage systems, solar home systems, village central hybrid systems, micro hydro systems, biogas systems, central grid-connected biomass systems,
village biomass systems and mini-grid systems. The task analyses were reviewed and approved by intra-ASEAN regional committees in six RE technology areas which were formed by the project. The task analyses were accepted as the regional training competency standards for these tasks.
GSES developed guidelines for selection and operation of regional committees that will govern future RE competency standards development, particularly establishment of new committees to address future regional RE training needs.
In addition, 13 auditors, including representatives from each ASEAN Member Country, were trained to audit the quality
of training courses in RE technologies being offered throughout the region.
As the final project activity, socialisation workshops were held in each ASEAN Member Country to publicise the RE training accreditation framework, regional RE competency standards and processes involved in their development to 250 stakeholders from the energy and education/training sectors.
The 9th Joint Selection and Review Panel meeting approved the implementation of a follow-up project that will work with ACE to assess the viability and business potential of a regional service offering accreditation of RE training throughout ASEAN.
Development of Regional Competency Standards in Renewable Energy Project Auditors’ Training Course, held January 2006, Jakarta, Indonesia.
Boost for the Renewable Energy Sector
The 9th Joint Selection and Review Panel(JSRP) Meeting was held in Jakarta, Indonesia, on 30 November and 1 December 2006. Co-chaired by Ms. Kerrie Anderson, AusAID, and Dr. Anish Kumar Roy, ASEAN Secretariat, the meeting was the largest ever AADCP-Regional Partnerships Scheme (RPS) funding round, with 40 concept papers initially received and 12 full project proposals developed and submitted to the JSRP for funding consideration.
Six project proposals received in-principle approval at the Meeting. Project designs
for the new projects are currently being strengthened prior to project start-up. All projects are expected to commence implementation in March 2007 and conclude by February 2008.
The JSRP Meeting also approved an extension to the Statistical Capacity BuildingforHarmonisationofInternational Trade in Goods and Services Indicators Project, to support a ‘bridging workshop’ on international merchandise trade statistics due to the delayed mobilisation of a related European Community (EC)-ASEAN project.
The Meeting noted that 16 RPS-funded projects have completed implementation and that seven current projects are progressing well; building partnerships between Australia and ASEAN, supporting the development of integrated regional policies and harmonised institutional frameworks, and enhancing ASEAN’s capacity to implement harmonised policies within the region.
Program Stream News
AADCP Program Stream (PS) is currently at its peak of project implementation, with 12 projects being implemented. This resulted in the 5th Meeting of the PS Program Coordination Committee (PCC), held in Jakarta on 19 and 20 September 2006, being the largest meeting in the program’s history.
More than 40 participants attended the PCC Meeting, which was co-chaired by the ASEAN Secretariat and AusAID. Representatives from 11 Program
Stream-funded projects attended, including six Regional Focal Points and ten Australian Implementing Partners. Cardno Acil performed the Secretariat role for the Meeting.
This largest ever attendance of the PCC signifies the strengthening of cooperation between ASEAN and Australia and formation of a pool of ASEAN and Australian development practitioners with experience in working together to strengthen the ASEAN Community.
The PCC meeting provided a unique opportunity for an exchange of information on implementation of all Program Stream-funded activities.
When the panel next convenes in September 2007, four Round 1 projects and one Round 2 project will have finished. Discussions at the September 2006 PCC included a focus on how project contributions and lessons learned could provide broader benefits to the ASEAN-Australia partnership.
Australia Assists Integration of ASEAN’s Automotive Sector
As part of its far-reaching strategy forbuilding the ASEAN Economic Community, ASEAN’s Vientiane Action Programme has nominated 11 sectors for ‘fast-track’ integration into a single market and production base by 2010.
Each priority sector has a designated ASEAN Member Country to coordinate the integration process with support from the ASEAN Secretariat (ASEC).
Automotive manufacturing was identified as a sector where Australia’s experience in policy reform could assist ASEAN.
At ASEC’s request, AusAID funded an Australian consultant to advise on automotive sector integration. The consultant, Mr. Hian Yap, was previously Manager of Australia’s Automotive Council Secretariat and played a key role in developing Australia’s automotive policy.
Mr. Yap was engaged as an Automotive Specialist within the ASEAN Secretariat for 12 months from January 2006.
He consulted extensively with ASEAN automotive industry stakeholders,
helping to raise industry awareness and define achievable outcomes for integration by 2010.
He also assisted Indonesia, the sectoral coordinator, in implementing the automotive integration roadmap, and captured time-series statistical information regarding the ASEAN automotive sector that could be used for both policy development and business planning.
Mr. Yap is enthusiastic about the potential for a fully integrated ASEAN automotive sector. He believes it will enable ASEAN members to exploit the benefits of specialisation and economies of scale, and maximise investment and growth opportunities stemming from a single market and production base.
The new AADCP Program Stream SME Automotive Sector Activity will further advance ASEAN integration in the automotive sector.
A design workshop in Jakarta held 31 January 2007 brought together representatives from the government and private sectors that further refined the Activity’s design and implementation strategies.
Record Attendance at Program Stream PCC Meeting
Australian Automotive Specialist Mr. Hian Yap (second from right), meets with officials from Indonesia’s Ministry of Industry, (from left) Mr. Yan Tandiele, Mr. Soerjono, Mr. Syarkani Salam. Indonesia is the Country Coordinator for ASEAN automotive integration.
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REPSF Phase II Launched
The AADCP Regional Economic Policy Support Facility (REPSF) bid a fond farewell to Mr. John Cunningham and Ibu Fary at a function on Thursday 18 January 2007, commemorating the successful completion of Phase I and the launch of Phase II. The REPSF Phase II team, led by Dr. Monette Serafica, expressed their gratitude to Pak John and Ibu Fary for their contribution and wished them both the very best in the future.A five-year activity, REPSF Phase I was designed to support ASEAN’s economic recovery and promote closer integration and sustainable economic development in ASEAN Member Countries through the provision of high priority, high quality and
timely regional economic policy analysis. Throughout the duration of the Facility, more than $A5 million was spent on undertaking 50 economic research studies, at the request of ASEAN bodies, furthering understanding of evolving ASEAN priority issues. In addition, 130 country reports were produced. REPSF databases and material contained in the commissioned research reports provide the largest collection of research in existence on ASEAN over the last five years.
REPSF Phase II covers the period 22 January 2007 to 30 June 2008 and will build on established REPSF mechanisms to focus research on economic integration and cooperation between ASEAN and
other East Asia Summit (EAS) participants. Acknowledging that the EAS process is still evolving, guidance on research priorities is expected following the second EAS held in Cebu, Philippines in mid-January 2007.
REPSF Phase II will provide greater support for research dissemination and feedback of research outputs while maintaining maximum flexibility to ensure responsiveness to initiatives emerging from East Asia Summits.
Revised research selection and
management guidelines for Phase II will be posted on the REPSF website, along with any forthcoming tender opportunities.
Regional Economic Policy Support Facility News
ASEAN is currently negotiating five Free Trade Agreements with its major dialogue partners: Australia and New Zealand; China; India; Japan; and the Republic of Korea (ROK). To support ASEAN in this process, the ASEAN Secretariat commissioned a study through the Regional Economic Policy Support Facility (REPSF) to examine investment relations between ASEAN and its Dialogue Partners and used the results to design a model framework for ASEAN’s investment negotiations with each Dialogue Partner.
The REPSF study was undertaken by a team of 14 experts led by Dr. Denis Hew from the Institute of Southeast Asian Studies (ISEAS) and involved extensive fieldwork in ASEAN and each Dialogue Partner country. The study comprised
two focus areas: analysis of the legal framework; and understanding of the underlying economic rationale. It reviewed existing legality with regards to bilateral, regional (i.e. ASEAN Investment Area (AIA) Agreements) and multilateral investment models, and undertook a comparative analysis of the legal frameworks for foreign direct investment (FDI) in ASEAN to ascertain the degree of convergence and divergence vis-à-vis the AIA. Analysis was also undertaken on legal norms of existing Free Trade Agreements and Bilateral Investment Treaties (BITs) between ASEAN and non-ASEAN countries.
With regards to the economic rationale for ASEAN’s participation in Free Trade Agreements, the study undertook an analysis of the economic drivers of the
five Dialogue Partners compared with ASEAN and identified possible areas of competition and complementarity with respect to the global market and third country markets of importance (e.g. the United States and European Union). The extent of existing trade and investment linkages between Dialogue Partners and ASEAN was also analysed and key stakeholders were interviewed to determine the potential benefits for future expansion of these linkages.
Drawing on the findings of the legal and economic analysis, a model framework for investment negotiations with each Dialogue Partner was formulated, taking into account the economic diversity of ASEAN Member Countries, legal nuances and their economic interests.
Emergency Safeguard Measures for Services Trade Debated
A draft report by Mr. Malcolm Bosworthfrom the Australian National University Crawford School of Economics and Government and Mr. Donny Narjoko from the Indonesian Centre for Strategic and International Studies, undertaken through the REPSF program, has questioned the desirability and feasibility of establishing Emergency Safeguard Measures (ESMs) for trade in services under an ASEAN Framework Agreement on Services (AFAS), similar to that existing for goods.
ASEAN Member Countries are exploring this possibility in their services trade liberalisation agenda and the majority of countries are strongly advocating for ESM to be included in the General Agreement on Trade & Services (GATS). Most World Trade Organisation (WTO) members, especially those from developed countries, oppose the idea of ESMs,
which involve the temporary withdrawal of WTO commitments.
In goods trade, ESMs have been used to increase developing countries’ protection to relieve threats to domestic producers of rising imports caused by trade liberalisation commitments and obligations. Lengthy negotiations in relation to this matter have not been successful in achieving a positive outcome and negotiations were suspended in July 2006 at the time of the Doha Round.
The draft REPSF report largely rejected the main economic rationale advanced for an ESM and said that the introduction of ESMs in services trade is likely to weaken the value of the ASEAN Framework Agreement on Services (AFAS) and GATS as trade liberalisation tools. The report noted that there were also practical
and conceptual problems in applying ESM to services which, unlike goods, are intangible and non-storable and are traded not only across borders but also by consumers travelling abroad, through foreign direct investment, and through the temporary movement of people.
The report commented that if AFAS is to adopt an ESM, ‘safeguards’ are needed to minimise the potential for misuse and maximise the incentives provided for countries to liberalise trade. Limited, objective and transparent measures, possibly inscribed in Members’ schedules of commitments, may offer the best way forward. The report also noted that such concerns were usually best managed by scheduling phase-in periods or transition mechanisms when trade liberalisation commitments are made.
Asia-Pacific Economic Cooperation (APEC) is a forum for promoting regional growth and prosperity and strengthening the Asia-Pacific Community.
Leaders of APEC member economies meet annually to plan joint initiatives for advancing free trade and investment,
human security and regional harmony. APEC members rotate the hosting of the annual APEC program.
Seven ASEAN economies and Australia are amongst APEC’s 21 members. ASEAN, as a regional organisation, has observer status in APEC.
The 2006 APEC Economic Leaders Meeting was held 18 and 19 November 2006 in Ha Noi, Viet Nam, with the theme: ‘Towards a Dynamic Community for SustainableDevelopmentandProsperity’. Australia will host APEC 2007, with a series of ministerial, officials-level and business meetings being held in cities throughout Australia this year culminating in the APEC Economic Leaders meeting in Sydney on 8 and 9 September 2007.
There are strong parallels between APEC’s development agenda and ASEAN’s goals as articulated in the Vientiane Action Programme. Like ASEAN, APEC is committed to building a regional community based on stability, security and prosperity, and to reducing economic and social disparities. APEC also seeks to encourage the Doha Round negotiations towards free and open multilateral trade, and to enhance global security and sustainable development.
Many APEC activities complement AADCP initiatives, in areas such as the harmonisation of customs services, trade liberalisation, sustainable management of marine and coastal resources, and establishment of regional safeguards against threats of pandemic disease.
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APECSeniorOfficialsMeeting(SOM)DelegatesatPlenaryMeeting,held18January2007,Canberra,Australia.
Photo:OfficialAPEC2007website.
Australia to Chair APEC during 2007
New ASEAN Plus Three Emerging Infectious Diseases Programme
Australia’s Minister for Trade, the HonWarren Truss MP, recently announced that Australia would provide a further $A5 million to help combat emerging infectious diseases in the East Asian region. The Australian funding, announced January 2007 at the East Asian Summit in Cebu, the Philippines, aligns with the Australian
Government’s new Pandemics and
Emerging Infectious Diseases Strategy 2006-2010.
The additional funds for the ASEAN region will support activities including workshops on strengthening regional and national laboratories, reviews of internet-based surveillance networks, training of response team trainers and the development of a ministerial agreement on deploying multi-national response teams. A new program management team is being established within the ASEAN Secretariat to support the ASEANPlusThreeEmergingInfectious DiseasesProgramme.
The ASEAN Expert Group on
Communicable Diseases will provide strategic direction and oversight of
program implementation. The new
program is a joint initiative of the Australian Government (through AusAID), the ASEAN Secretariat and ASEAN Plus Three member countries, including the
People’s Republic of China, Japan, and the Republic of Korea. The World Health Organisation, Food and Agriculture Organisation and the World Organisation for Animal Health, were consulted during the development of the new program.
The ASEAN Plus Three Emerging InfectiousDiseasesProgramme builds on work undertaken by Australia and ASEAN through the AADCP Regional Partnerships
Scheme (RPS) ASEAN Emerging and Resurging Infections: Surveillance and ResponseProgram(AERISRP)PhaseI in 2004 - 2005. This program, also known as the ASEANPlus3EmergingInfectious Diseases (EID) program, was designed to support three ASEAN sub-programs developed during the Severe Acute Respiratory Syndrome (SARS) crisis and made more urgent by the emergence of Avian Influenza.
Eggs are now sold pre-packaged in Viet Nam, a protection against bird flu following new government measures.
February 2007
• 4th - 10th February: 2nd Training Workshop, for RPS project StrengtheningAquaticAnimal Health CapacityandBiosecurityinASEAN, Viet Nam • 12th - 14th February: 2nd Policy Workshop and
2nd Aquatic Animal Pathogen and Quarantine Information System (AAPQIS) Training Day, for RPS project Operationalise Guidelines on Responsible MovementofLiveFoodFinfish, Philippines • 15th - 16th February: Socialisation Workshop
conducted by ASEAN Member Country Technical Reference Group, for RPS project CapacityBuilding foranASEANMutualRecognitionArrangementin Tourism, Philippines
• 21st - 22nd February: Socialisation Workshop conducted by ASEAN Member Country Technical Reference Group, for RPS project CapacityBuilding foranASEANMutualRecognitionArrangementin Tourism, Indonesia
• February: Socialisation Workshop conducted by ASEAN Member Country Technical Reference Group, for RPS Project Capacity Building for an ASEAN Mutual Recognition Arrangement in Tourism,Brunei Darussalam, Cambodia
• February: Pest List Consolidation Workshop, for PS project Strengthening ASEAN Plant Health CapacityProject, Malaysia
• February: Taxonomy Re-entry Workshop - Cercosporoid Fungi, for PS project Strengthening ASEANPlantHealthCapacityProject, Thailand • End February: Preparation for ASEAN International
Merchandise Trade Statistics Workshop, for RPS project Statistical Capacity Building for Harmonisation of ASEAN International Trade in GoodsandServicesIndicators, Indonesia • 28th February - 2nd March: Implementation
Workshop to discuss the Implementation Guide, its contents and arrangements in all ASEAN Member Countries, for PS project LegalInfrastructureforE-CommerceinASEAN–ElectronicContractingand DisputeResolutionExtension, Lao PDR
• February - March: Socialisation Workshop conducted by ASEAN Member Country Technical Reference Group, for RPS project CapacityBuilding foranASEANMutualRecognitionArrangementin Tourism, Lao PDR, Malaysia, Myanmar, Singapore, Viet Nam
• February - May: Project Team in-country visit in advance of ASEAN Member Country Technical Reference Group Socialisation Workshop, for RPS project Capacity Building for an ASEAN Mutual Recognition Arrangement in Tourism, Cambodia, Philippines
• February - May: Project Team in-country visit, for RPS project Capacity Building for an ASEAN Mutual Recognition Arrangement in Tourism, Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, Viet Nam
March 2007
• 7th - 10th March: Meeting with Thai project partners and representatives from ASEAN Foot and Mouth Disease testing laboratories (World Organisation for Animal Health-sponsored meeting), for RPS project Establishmentofareferencelaboratoryfor theSoutheastAsianfootandmouthdiseasecontrol program, Thailand
• March: ISO/IEC 17011 On the Job Training in Product Certification, for PS project Strengthening ASEAN Standards and Conformity Assessment SystemsProject, Viet Nam
• March: Mentoring Visit No 3, for PS project
Strengthening ASEAN Plant Health Capacity Project, Cambodia, Myanmar
• March: Taxonomy Workshop No. 3 - Scale Insects, for PS project StrengtheningASEAN Plant Health CapacityProject, Malaysia
April 2007
• 7th - 8th April: Endorsement to be sought of updated curriculum at Special Forum of ASEAN Task Force on Tourism Manpower Development, for RPS project Developing Common ASEAN TourismCurriculumProject, Cambodia
• April: Presentation of “ASEAN Fiscal and Monetary Policy Responses to the Rising Oil Prices” to the ASEAN Finance and Central Bank Deputies (AFDM), for REPSF project ASEAN Fiscal and MonetaryPolicyResponsestotheRisingOilPrices, Thailand
• April: Presentation of “ASEAN Fiscal and Monetary Policy Responses to the Rising Oil Prices” at the ASEAN Finance Ministers Meeting (AFMM), for REPSF project ASEANFiscalandMonetaryPolicy ResponsestotheRisingOilPrices, Thailand
• April: Workshop related to development of common ASEAN tourism curriculum conducted by ASEAN Member Country Technical Reference Group, for RPS project DevelopingCommonASEANTourism CurriculumProject, Brunei Darussalam, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, Viet Nam
• End April: ASEAN International Merchandise Trade Statistics Workshop, for RPS project Statistical Capacity Building for Harmonisation of ASEAN InternationalTradeinGoodsandServicesIndicators, location not confirmed
May 2007
• 7th -10th May (dates to be confirmed): 2nd Policy Workshop, for RPS project StrengtheningAquatic AnimalHealthCapacityandBiosecurityinASEAN, location not confirmed
• May: Implementation Review, for PS project
Enhanced Customs Capacity Building Project, Indonesia
• May: Socialisation Workshop conducted by ASEAN Member Country Technical Reference Group, for RPS project CapacityBuildingforanASEANMutual RecognitionArrangementinTourism, Thailand • May - June: Pilot Assessor Train the Trainer
Program for Cambodia, Lao PDR, Myanmar, Viet Nam representatives, for RPS Project Developing CommonASEANTourism Curriculum Project, Viet Nam
• May: Pest List Development Evaluation Workshop, for PS project StrengtheningASEAN Plant Health CapacityProject, Thailand
Timing to be confirmed
• Presentation: “An Impact Assessment of the Visit ASEAN Campaign” at the 30th Meeting of the Task Force on ASEAN Tourism Marketing in Siem Reap, for REPSF project An Impact Assessment of the VisitASEANCampaign, Cambodia
• Presentation: “Expanding the Market for Business Services in ASEAN” at the 50th Meeting of the Coordinating Committee on Services, for REPSF project ExpandingtheMarketforBusinessServices
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
Regional Economic Policy Support
Facility (REPSF)
Dr Ramonette Serafica
Team Leader/Research Manager 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
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