Asean unveils plans for formal declaration of AEC

MANILA, Philippines – The Association of Southeast Asian Nations (Asean) for 2015 will focus on bringing down the remaining barriers to trade, face up to non tariff barriers and rising protectionism, and lay out a decade-long plan for economic growth in the sub-region.

In a statement, Malaysia’s Trade and Industry Minister Datuk Seri Mustapa Mohamed outlined plans for the Asean Community, including a strategy to include small and medium-sized enterprises into the global chain.

This year, the 10 member-countries are set to declare officially the establishment of the Asean Economic Community (AEC), an integrated region whose 620 million-plus population “will be afforded the opportunity to become a single market and production base with a deeper sense of shared Asean identity, and a major actor on the global stage,” he said.

Malaysia is Asean chairman for 2015, and its Ministry of International Trade and Industry will spearhead the implementation of the AEC initiative.

The trade official reiterated that Asean is committed to delivering on its promise of the AEC because Asean’s credibility and the continued prosperity of the region are on the line, and has the overarching objective of helping “establish an Asean which enjoys peace and prosperity.”

This year, the bloc will iron out the remaining barriers to regional trade, he said, and “will not shy away from addressing the sensitive issue of protectionism among Asean member states and will seek to defuse the rising rhetoric of nationalism.”

The association will also work on further reducing non tariff barriers, promoting a freer flow of services, and harmonizing standards and procedures.

“It will be a year when we introduce a robust and inclusive small and medium enterprises agenda to be implemented across Asean,” said Mustapa.

“But 2015 is not without challenges. We know that there are pressures for more regulation and protectionism. However, there is no backtracking. We have seen and experienced the benefits of closer inter-Asean integration in the form of freer trade flows, more Asean investments, more economic cooperation,” he said.

This year will also see the launch of “an ambitious plan for Asean for the next 10 years” that will continue efforts toward economic integration.

“We must realize that globalization is here to stay and if we don’t come on board in this journey, we will be left out,” he said.