THERE is plenty of news on Asean integration in the news regularly, clearly indicating that the preparations are ongoing and that Asean member-states, companies operating in those countries, both local and foreign, and the citizens of these countries are taking the challenges and opportunities in connection with the Asean Economic Community (AEC) in 2015 seriously. Of course, everybody also understands that the integration is a process that has started years ago and will continue years after January 1, 2016. The European Union went through the same process and grew from originally six member-companies to 28 today.
To demonstrate that AEC is happening, let’s look at recent news items:
- The leadership of the House of Representatives assured the public that Congress would focus its efforts on institutionalizing policy reforms that would maximize gains from an emerging AEC. Home Speaker Feliciano Belmonte Jr. reiterated during a recent House hearing that the country remains on track for the coming integration. He noted that Asean has a market of 600 million people and a combined gross domestic product of $3 trillion, which makes the AEC “a formidable force in the global economy.”
- The Speaker added that several measures are on the priority list of the 16th Congress in preparation of the integration which include:
- enacting a Fair Competition law;
- amending the economic provisions of the 1987 Constitution on foreign ownership and equity;
- amending the Foreign Investment Act;
- amending the Customs and Tariff code;
- reforming the aviation sector through an open-skies policy;
- amending the charters of the Philippine Ports Authority and the Maritime Industry
Authority; and - amending the Cabotage Law.
- Sen. Bam Aquino expressed the same views during a recent European Chamber of Commerce of the Philippines membership meeting. It is obvious that Executive branch and the legislature will help the country to maintain the Philippines’s global competitiveness and integration toward sustainable economic development.
- The expressed goal behind the creation of the AEC is sustainable and equitable development. But for millions of people in this part of the world, the true value and test of any regional development plan rest on its ability to sustainably and effectively address hunger and poverty. In the last few decades Southeast Asia made substantial gains in reducing hunger. But the challenge of meeting the food security needs of 64.5 million undernourished people in the region remains.
- The opening of the Philippine banking sector to foreign banks which was accomplished thorough legislation a few months ago is a good indication that all sectors of the Philippines are preparing for the integration.
- The areas for cooperation among the Asean members, contained in the Asean Economic Blueprint include human-resources development and capacity-building, recognition of professional qualifications, closer consultations on macroeconomic and financial policies, trade facilitation and financing measures, enhanced transactions through e-Asean, integrating industries across the region to promote regional sourcing (the automotive industry is a good example), and enhancing private-sector involvement for the building of the AEC.
Asean has made progress in the implementation of commitments to the AEC by its member-states.