Japan-ASEAN Cooperation and Japan's initiative for AJCEP and RCEP. 8 August 2018 Ministry of Economy, Trade and Industry Kunihiko SHINODA

Transcription

1 Japan-ASEAN Cooperation and Japan's initiative for AJCEP and RCEP 8 August 2018 Ministry of Economy, Trade and Industry Kunihiko SHINODA

2 ASEAN-JAPAN Cooperation towards Innovation-led Inclusive Growth Various Challenges in ASEAN Necessity of MSMEs promotion and human resources development Advent of advanced industrial structures, and digital economy Calls for further integration into GVC Support through research and policy recommendation ASEAN-Japan Cooperation towards Innovation-led Inclusive Growth ASEAN-Japan Cooperation for Further Innovation Creation of Innovation in ASEAN Productivity Enhancement by IoT and AI Support for MSME s Inclusive Growth Overseas expansion support Promoting quality infrastructure investment and enhancing infrastructure connectivity in the Mekong region Capacity building Support for ERIA s Activity Support for Introduction of RCEP rules Surveys and workshops to introduce e-commerce rules Training programs for intellectual property experts Development of custom infrastructures development and training programs for custom workers Seminars regarding public enterprise reform 2

3 ASEAN-Japan Cooperation for Further Innovation Japan aims to create innovation in ASEAN so as to add discontinuous value and expand productivity of the ASEAN economy. 1) Introduction of ASEAN-JAPAN-Wide Connected Industries 2) Joint Creation of Cutting-Edge Industries by Utilizing AI, IoT, Robots, etc. 3)Japan-ASEAN Fair and Startup Pitch Events Funds ASEAN-Japan Innovation Platform HR 4)ASEAN Enterprises Overseas Expansion Support by Utilizing E- commerce Technology 5)B to B platform for Further ASEAN- JAPAN Innovation Cooperation 3

4 Mekong Industrial Development Vision <Concept of Vision> Developing the Mekong region together with surrounding countries, advancing industries and enhancing the value-chains, by reflecting the unique advantage and competitiveness of each country and mutual complementarity under the spirit of "Specialization & Collaboration, Integrating the Mekong region as the core of the production network in Asia and the world as a whole. Expected Outcome GDP increase of USD 20 billion in Mekong (i.e. 2% of Mekong s GDP) by 2020 (Intra-regional trade: 10 bil, Inter-regional trade: 8 bil, FDI: 2 bil) Growth in neighboring economies Lao PDR Abundant water resource and fertile soil China Myanmar Labor intensive work including agro and CMT Unique Advantages Vietnam Good access to US, EU, and south China India Thailand Existing automotive and electronic industry cluster Cambodia Labor intensive work including agro and CMT *CMK: cutting making trimming Mekong Industrial Development Vision ( ) Pillar I: Partnering with neighboring countries Trade Structure Local Business Collaboration Foreign Direct Investment Pillar II: Building a footing for more advanced industrial structure Competitive SME R&D Pillar III: Strengthening infrastructure and resources that support regional value chain Regional Connectivity Energy supply & Environment HRD Work Programme ( ) 4 Work Programme to be formulated in Its progress to be monitored annually

5 FJCCIA 10 Proposals with 3 Pillars 1 Promoting Further Responsive ASEAN 1. Dialogue mechanism in introducing/revising ASEAN Agreements 2. NTBs: More workable and effective coordination mechanism 2 Strengthening Existing Businesses towards Steady Industry Upgrading 3. MRAs: more effectiveness to existing MRAs, early conclusion to automotive MRA, and inclusion of other industries (e.g. iron & steel) 4. IPR: harmonization of patent examination process 5. FTA/Customs: smooth introduction of e-form D and selfcert / introduction of sophisticated Customs systems 6. Free Zone: introduction of Non-resident inventory scheme 7. Capital/Finance: relaxation of financial system and foreign exchange regulation 3 Creating and Adopting New Values 8. Services: Liberalization of innovation-related service sectors / high level and swift conclusion of ATISA negotiation 9. Data: harmonization of personal data definition / development of data-related contract guideline 10. Cross-cut discussion: holding meetings to broadly discuss innovation-related business fields

6 AJCEP is a regional Economic Partnership Agreement (EPA) between Japan and 10 ASEAN countries. In fact, the first Multilateral EPA for Japan. <Trade in Goods: Sequentially entered into force since December 2008 > The number of issuance of AJCEP certificates of origin has doubled in recent five years. The provision on accumulation of ACJEP Rules of Origin (ROO) has strengthened the production network within Japan-ASEAN region. For example, it realizes the tariff elimination in the case of processing into products in ASEAN region using parts produced in Japan and supplying those products within the region. <The Protocol to Amend the AJCEP Agreement, including Chapters on Investment and Trade in Service> The Ministers agreed the conclusion of the negotiation at the AEM-METI in November Currently preparing for the early signing of the Protocol. AJCEP(ASEAN-JAPAN Comprehensive Economic Partnership) Agreement It enables further liberalization and facilitation of investment and trade in services, and improves business environment in ASEAN. Example of utilization of AJCEP accumulation Outside ASEAN The Number of AJCEP CO Issued in Japan (Annually) A Japan B parts ASEAN I J parts Finished Product 0% Tariff AJCEP D C Example: Japan-ASEAN Added Value more than 40% Finished Product Parts/Materials H G F E Outside AJCEP ASEAN Countries It is applied only when the Rules of Origin of ATIGA(ASEAN Trade in Goods Agreement) and Bilateral EPA satisfy the Rules of Origin of AJCEP. Japan FY 2014FY 2015FY 2016FY 2017FY (Source) Made by METI based on the data of JCCI 6

7 Overview Regional Comprehensive Economic Partnership (RCEP) RCEP is an Economic Partnership Agreement among the ASEAN Member States and ASEAN s FTA Partners (AFP: Japan, China, Korea, India, Australia, and New Zealand), which aims to create a wide economic zone that covers about half of the world s population and accounts for about 30% of its GDP. The RCEP will make rules to contribute to high-level supply chains covering the East Asian region and to realize userfriendly EPAs with common procedures across the region. History of Negotiations Nov Announcement of the Launch of RCEP negotiations. Mar First round of negotiations in Brunei ( 22 rounds) Sep ASEAN related summits in Laos - The leaders reiterated the importance of the swift conclusion of the RCEP negotiations May The RCEP Intersessional Ministerial Meeting in Vietnam - Minister Seko proposed to start the work to identify key elements that will contribute to well-balanced progress of overall negotiations not only in market access but also on rules, such as E-commerce and custom procedures. Sep The RCEP Ministerial Meeting in Philippines - The Ministers endorsed the Key Elements which cover not only market access but also rules. Nov The RCEP Ministerial Meeting and Leaders Summit in Philippines Mar The RCEP Intersessional Ministerial Meeting in Singapore July The RCEP Intersessional Ministerial Meeting in Tokyo Japan China Australia Indonesia Cambodia Singapore Thailand Philippines RCEP Brunei Vietnam Malaysia Myanmar Laos India Korea New Zealand ASEAN have a separate EPA/FTAs with each AFP. RCEP will create larger economic region