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thursday - august 22, 2013
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AseanWatch
Exporters ready for AEC 2015 — Philexport THE Philippines is gearing to build export industries where it has competitive advantages and will enable the country to exploit opportunities arising from ASEAN integration come 2015. “It is important to note that the greater majority of our exports today are more and more being influenced by the dynamics of the global value chain,” said Sergio OrtizLuis Jr., Philippine Exporters Confederation Inc. (Philexport) president, in a statement. Ortiz-Luis identified the big-ticket items and export winners, which include electronics and semiconductors, automotives and machineries, and consumer goods such garments, furniture and some agriculturebased products.
He said that services, being largely call centers and shared services of multinational companies, are investment-driven and also form part of the global value chain. Ortiz-Luis also cited the potential of creative industries particularly animation, mov ie ma k ing, book publishing and interactive media. He said t hat t he industr y and its stakeholders aim to expand indigenous exports that utilize mainly local raw materials and make full use of the creative energies of Filipino artisans, artists and craftsmen. These export products include fine and fashion jewelry and furniture and home furnishings. However, the export sector leader
underscored the bigger challenge posed by ASEAN 2015 in these sectors. “We produce almost similar products with those of our ASEAN counterparts. But our edge can come from our workers’ natural f lair for design, creativity and commitment to quality and hard work,” Ortiz-Luis said. He also cited various programs aimed at addressing gaps in improving productivity and efficiency of the workers. “This is imperative to help us comply with the regional and even global standards that are increasing in number and importance if manufacturers want to secure global markets,” Ortiz-Luis said. He said that the sector’s ASEAN 2015
agenda also cover facilitating a competitive currency, fast tracking infrastructure projects, institutionalization of the Export Support Fund starting in the budget year 2014, completion of reforms at the Bureau of Customs and the approval of relevant bills. “We are hoping that the next 18 months in preparation will be enough to put the country at the same level as our neighbors who have prepared ahead of us,” Ortiz-Luis said. The ASEAN market remains to be the Philippine second top export destination, accounting for a 22-percent share in the total merchandise exports in May 2013 at $1.2 billion. (MT)
firms skeptical One voice on China issues adopted US on AEC 2015 goal THE Association of Southeast Asian Nations have agreed to try to convince China to hold “negotiations” instead of mere “consultations” for the crafting of the Code of Conduct (CoC) in the West Philippine Sea (South China Sea) when the two sides meet in Beijing in September. Department of Foreign Affairs (DFA) Secretar y Albert del Rosario said that he and Vietnamese Foreign Minister Pham Binh Minh were able to convince China to draft a binding code in the region through negotiations and not mere consultations. “With solidarity and the intention of speaking with one voice, the ASEAN has taken the position that they will urge China to agree to an expeditious CoC,” he said. Del Rosario added that the 10-member-bloc ASEAN aims to turn the “consultations” to “negotiations” when China and the ASEAN countries meet at the end of August. Del Rosario said t he ASEAN bloc also agreed to allow Vietnam to speak to China on the CoC in behalf of the bloc. “For one thing we’ve voted to speak with one voice on
the CoC, and to that objective we have selected Vietnam to speak for all of ASEAN when it comes to CoC. We all want to make sure that ASEAN speaks truly with one voice, so we’ve elected a spokesperson to do this for us,” he explained. Del Rosario admitted that the meeting with China would not be that simple but he hopes that Beijing would agree with the 10-member countries. Vietnam is one of the six claimant-countries of the resource-rich region. Other claimant countries are China, the Philippines, Taiwan, Malaysia, and Brunei Darussalam. The CoC was drafted under the 2002 Declaration on the Code of Conduct (DoC) that was signed by ASEAN and China to reduce adopted/PAGE 10
SINGAPOR E—Two leading American business groups have said US firms operating in ASEAN countries are skeptical the regional bloc can meet a 2015 deadline to establish a single market. The 10-member Association of Southeast Asian Nations has set 2015 as the target for creating a single regional economic market known as the Asean Economic Community (AEC). In a survey of 475 senior US business executives from the region–jointly conducted Representatives of China and Association of Southeast Asian Nations by the American Chamber of Commerce (ASEAN) pose for group photos during the opening ceremony of ASEAN- in Singapore and the US Chamber of China Foreign Ministers’ Meeting in Kunming, capital of southwest Commerce–52 percent said they “do not China’s Yunnan Province on Jan. 25, 2011. think that the AEC’s goals will be realised by 2015.” Of those who doubt ASEAN will reach its deadline, nearly 60 percent “think that ASEAN will not reach AEC’s goals until YANGON—The incoming chairman We want to see an agreement within 2020 or later”. Only 23 percent of a ll executives of the Association of Southeast Asian our chairmanship,” Htut said. Nations said on Wednesday that it “But it takes both sides to tango. questioned believe that ASEAN will meet would rally the bloc into crafting a ASEAN is our friend and China is its 2015 goal, the poll showed. Despite their skepticism, the survey binding Code of Conduct (CoC) that our friend,” he added. would govern maritime disputes in But ahead of its chairmanship showed that US companies are optimistic of the ASEAN and the crafting of about overall business prospects in the the South China Sea. But at the same time, presidential the CoC, Myanmar said it would region. spokesman and Deputy Information confront allegations of human rights US firms said their level of trade and investment in ASEAN rose over the past Minister Ye Htut underscored the abuses in the country. need to strike a balance between President Thein Sein vowed to two years and expect this figure to climb advancing the ASEAN-CoC and tackle allegations of human rights, over the next five years. Indonesia was maintaining friendly ties with but added that he would keep the issue named the most attractive country for new of the Rohingya Muslim refugees business expansion, followed by Vietnam, neighboring superpower China. maritime/PAGE 10 Thailand and Myanmar. (MST) “We will try to push for the CoC.
Maritime CoC pushed
Angara, Aquino broaches need Gov’t prepares M’nao as AEC 2015 gateway for PHL to prepare for AEC 2015 TWO neophy te senators have co-filed a resolution seeking a Senate inquiry to determine the potential “risks and opportunities” for Filipino workers and industries that may arise from the establishment of the Association of Southeast Asian Nations Economic Community (AEC) by 2015. Senators Juan Edgardo Angara and Paolo Benigno Aquino IV co-filed Senate Resolution (SR) 191, directing the Senate Committee on Trade and Commerce to conduc t a n i nqu i r y, i n aid of legislation, on the impending integration to help the country prepare for and even take advantage of the “The Philippines should be well prepared in anticipation of the ASEAN economic integration and must be poised to take advantage of
the opportunities that will be brought by such initiative,” Angara and Aquino, who chair the Committees on Ways and Means and Trade and Commerce, respectively, said in SR 191. The AEC, the culmination of ASEA N ef for ts to achieve regional economic i n t e g r a t i o n b y 2 01 5 , envisions a single market a nd product ion base, a highly competitive economic region, a region of equitable economic development, and a region filly integrated into the global economy. The senators said the AEC “is supposed to be beneficial to the Philippines by promising equitable economic growth while spurring regiona l competitiveness, creating more industr y and jobcreat i ng oppor t u nit ies, removing barriers to free trade, and fostering a more
peaceful and cooperative relationship with member countries.” But they said that in a recent forum organized by the Management Association of the Philippines, “it had been repor ted t hat ou r financial institutions are not yet ready and need more time to prepare for the proposed
integration in 2015.” “ T here a re lo om i ng concerns that our domestic businesses, manufacturing industry and labor sector may not yet be ready to c omp e te a ga i n s t ot her ASEAN countries, as foreign businesses will be able to freely enter the country, prepare/PAGE 10
AS the Philippines gears up for its integration into a single ASEAN market in 2015, Mindanao pushes regional growth corridors as its gateways to the ASEAN Economic Community. “Growth corridors can spur economic activities in rural areas and urban centers, providing more opportunities for our industries and enabling them to participate in the ASEAN community through our export gateways,” said Luwalhati Antonino, chairman of Mindanao Development Authority (MinDA). Antonino said that growth corridors are development strategies aimed to accelerate economic development in Mindanao and designed to provide equitable opportunities for rural enterprises to grow and become more competitive. Called the Mindanao Innovation and Growth Corridors Development Program, MinDA has crafted its framework and is advocating the initiative as part of a larger and more long-term development program for Mindanao’s socioeconomic growth. In support of this, the Department of Public Works and Highways (DPWH) said that it has allocated P34 billion for Mindanao’s infrastructure development for 2014. DPWH Secretary Rogelio Singson said that separate infrastructure support to Autonomous Region in Muslim Mindanao (ARMM) totaled P8.78 billion, inclusive of other projects funded from 2011. The presentation of other cabinet secretaries also showed support to the much needed infrastructure development in Mindanao. For one, DOTC will improve the transport gateway/PAGE 10