Chapter III EU Model, Experts and Public Observations Section One Transport Policy as an Instrument for Integration: Lessons from the EU

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1 Chapter III EU Model, Experts and Public Observations Section One Transport Policy as an Instrument for Integration: Lessons from the EU 98

2 Section One Transport Policy as an Instrument for Integration: Lessons from the EU This section examines the use of Transport Policy as an Instrument for Integration in the European Union. It starts with the history of the policy, the actual implementation during the first stage, and some of the side effects of the policy. It also examines the reform of the policy in the year 2001, when the EU felt that there was more to be incorporated into its policy. Some comparison with the ASEAN endeavour on transport will be mentioned in the conclusion of this section. History of EU Transport Policy Transport Policy as an instrument for integration has been used since the beginning of the creation of the European Community, particularly when the single market was among the first tenets of the European Community. 1 The EU Commissioner for Transport points out the well known reasons that: 1 Tenets of the EC originated from the founding treaties. See Chapter II, supra. Romano Prodi, when he was the president of the European Commission, mentioned the EC s tenets: These basic tenets form the foundations of the European Community, now the European Union. The original Member States pooled some of their sovereignty, they opened up their markets, they laid down common rules, they made provision for political representation, and they set aside funds to show solidarity to the less prosperous regions and sections of the population in Europe. And the results have been astonishingly successful. Speech by Romano Prodi, President of the European Commission, on Cultural diversity and shared values at New York University Law School, November 4, 2003, accessed at euun.org/articles/en/article_2969_en.htm 99

3 The ability to move people and goods quickly, efficiently and cheaply is a central tenet of the EU s goal for a dynamic economy and cohesive society. The transport sector generates 10% of EU wealth measured by gross domestic product (GDP), equivalent to about one trillion euro a year. It provides more than ten million jobs. ( accessed January 9, 2008) The common transport policy is not only necessary but also the one that needs constant revision. The commissioner again stressed the point: The removal of barriers to cross-border trade and travel has increased the volume of long-distance goods and passenger transport. This phenomenon is being repeated in the wake of the 2004 EU enlargement with significant increases, particularly of road freight, between the new members and the rest of the Union. (Ibid.) Yet it is however admitted that rapid increase in mobility of the EU s goods, services, and people puts severe strains on EU transport systems. Congestion on roads and at airports increases not only pollution, bus an estimated 6% in EU fuel consumption. The EU realized that transport policy is much more than the ability to move. Despite the success in opening up the 100

4 transport market to member countries, 2 the EU realizes that it also requires better transport practices, too, and it is now working on a single transport infrastructure. In March 2003, The EU instituted a first package of measures to liberalise rail infrastructure by opening to competition about 70 80% of rail freight traffic over main lines. The EU also cited its achievement in the area of air transport. The liberalisation of air travel has brought more competition and lower fares for travellers in the EU, which resulted in a better and more connections between member states. The EU also channels its resources to promote major transport infrastructure projects, the so-called Trans-European Networks (TENs). These TENs projects are claimed to be unique in nature because they implement the modern idea of efficiency and an environmentally friendly undertaking. Among the priority TENs projects concentrating on water and rail transport are: the removal of bottlenecks on the main east-west inland waterway linking the Rhine, Main and Danube; a programme to regulate traffic on the busy shipping lanes off the EU coasts; upgrading of several north-south and east-west rail lines. It should be noted here that the EU concentrates more on water and rail transport because they are considered the better choices. Also, they are more economical and, with best practices, water and rail transport are ranked as the most desirable common transport policy. 2 In the last ten years, the EU has successfully opened national transport markets across the Union to competition, particularly in the road and air sectors and, to a lesser extent, for rail. As a result, trucks can operate in countries other than their own, so that they no longer return empty on international journeys. 101

5 EU Transport policy of the present time The EU transport policy at the present time has gone beyond a free and competitive market. In fact, it is the policy to correct the side effects of a single transport market where certain means must be introduced to fill up the gap among different modes of transport. The Commissioner on Transport reiterates that liberalisation alone has not been able to solve several deep-seated problems. Besides congestion, these include the dominance of roads over other forms of transport, pollution, and the fragmentation of transport systems, including poor links to outlying regions or the lack of good connections between regional or national networks. The EU transport figures are used here to demonstrate the points: Road haulage now carries 44% of all goods transported in the EU, against 39% for short-sea shipping routes, 10% for rail, and 34% for inland waterways. The imbalance is more marked for passenger transport, where road (largely car journeys) accounts for 81%, against rail s 6% and 8% for air. Various measures have been recently introduced in the EU, for example, shifting goods and passengers from roads to less polluting forms of transport such as rail and waterways. Such efforts, to the commissioner, are key factors in any sustainable transport policy. The EU aspires to improve its ability to integrate different modes of transport by combining road-rail, sea-rail, or rail-air elements. 3 Another example of these measures is congestion charging, where users pay for the 3 Overview of the European Union Activities: Transport, 102

6 scarce infrastructure they occupy on roads, at airports or elsewhere. Congestion charging is also being introduced in London in 2003, which charges motorists for driving into the city s central district. Pilot programmes for similar systems are in place in several other major cities. It is interesting to note that transport policy of the EU involves the creation of a system of incentives as well as a pricing scheme. Transport policy and its implementation are activated through the process of incentives, such as targeted investments in other transport modes so that they can handle the overflow, and pricing schemes which reflect the real cost of road use and which encourage a natural migration from roads to alternative forms of transport. The main objective is to have fewer long-distance passengers or goods travelling by road and more by rail, and to replace some short-haul passenger flights by rail journeys. Concern for the reduction of environmental damage and concern for safety are prevalent in transport policy. Infrastructure charging also supports the idea of paying for the pollution caused. According to EU statistics, the transport sector principally road vehicles is responsible for about 28% of all EU emissions of CO 2. As can be easily expected, the EU is very much in favour of better fuel efficiency and the use of alternative fuels and fuel taxation. In the area of oil spills, the European Commission is pressing for more rules on maritime safety, including tougher ship inspections, sanctions for pollution caused through gross negligence, and the accelerated phasing out of single-hulled tankers. 4 Disapproval of delinquent transport agents in the EU can make things very difficult for transport agencies. Blacklisting of outgoing and incoming transport vessels is now done at the EU level. The European Commission also publishes a list of sub-standard ships banned from EU ports. In another safety move, the European Commission published in March 4 Ibid. 103

7 2006 a list of airlines which are banned from operating passenger or freight flights to or from EU airports. All of these activities point to the fact that the EU transport policy is quite highly developed and can be a case of good practice for other regional efforts to learn from. The EU Policy Reform of Transport policy reform of the EU took place in 2001 when the European Commission came up with its White Paper proposals, 6 which proposed almost 60 measures designed to implement a transport system capable of restoring the balance between different modes, stimulating the railways, promoting sea and waterway transport and planning the increase in air transport. This Commission s White Paper was produced as a response to the sustainable development strategy adopted by the Göteborg European Council in June The White Paper was intended to be used as guide to European transport policy. Therein, the fact was reiterated that the transport sector provides 7% of GDP in the EU and 5% of jobs. To make it one of the priority sectors for reform, the Commissioner pointed to the fact that transport policy facilitates the mobility of goods and citizens, also creates cohesion, and is an essential element of the competitiveness of European industry and services. The researchers found that this policy reform was valuable to any new attempts to integrate regional transport regimes, and fifty years of European experience were put forward in this statement for reform. 5 The enhancement of transport policy was also distinguished as a policy reform of the EU. 6 Communication from the European Commission to the Council and the European Parliament of 22 June 2006 on the mid term review of the Transport White Paper, Keep Europe moving Sustainable mobility for our continent, published in Mid term review of the Transport White Paper, published in 2001 by the European Commission [COM(2006) 314 final Not published in the Official Journal]. Hereinafter refer to as COM (2006) 104

8 EU s reformed Transport policy objectives The researchers will examine firstly if there are changes in the policy objectives. According to the Transport Commission, changes are made to facilitate flexibility of the new policy. The transport commissioner states: this instrument of communication provides an opportunity for an overview of the different sectors and identify new solutions for the common policy. 7 At the outset, changes are prevalent in these areas: long term objectives; clearer identification of measures to be implemented; widening the application of transport policy; and specificity of new problem areas. Reformed objectives are discussed as follows: Long term objectives: To the European Commission, transport policy is at the heart of the Lisbon agenda for growth and jobs. 8 The policy 7 Activities of the European Union: Summary of Legislation. 8 During the meeting of the European Council in Lisbon (March 2000), the Heads of State or Government launched a "Lisbon Strategy" aimed at making the European Union (EU) the most competitive economy in the world and achieving full employment by This strategy, developed at subsequent meetings of the European Council, rests on three pillars: An economic pillar preparing the ground for the transition to a competitive, dynamic, knowledge based economy. Emphasis is placed on the need to adapt constantly to changes in the information society and to boost research and development. A social pillar designed to modernise the European social model by investing in human resources and combating social exclusion. The Member States are expected to invest in education and training, and to conduct an active policy for employment, making it easier to move to a knowledge economy. An environmental pillar, which was added at the Göteborg European Council meeting in June 2001, draws attention to the fact that 105

9 therefore has long term objectives which seek to balance economic growth, social welfare and environmental protection in all policy choices. However, it also comes with undesirable side effects which need to be balanced by corrective measures. The European Commission recommended that it is therefore necessary to: divorce mobility from its side effects, which are congestion, accidents and pollution; optimise the potential of each mode of transport. Some modes, including waterborne transport, do not reach their full capacity; promote green propulsion and encourage the use of more environmentally friendly, energy efficient and safer transport; promote co modality, i.e. the efficient use of different modes of transport on their own and in combinations, resulting in an optimal use of resources. 9 The EU, in effect, is now focusing more and more on rail and waterborne transport. To make these modes of transport more competitive, particularly with regard to road transport, EU policies must therefore support measures that improve their efficiency. economic growth must be decoupled from the use of natural resources. Europa Glossary < 9 Com 2006,

10 Clearer identification of measures: Four pillars for EU transport policy In order to succeed in meeting these objectives, the White Paper clearly identifies four pillars for common transport policy, namely: 1. the mobility of people and businesses throughout the Union; 2. environmental protection, the security of energy supply, promoting minimum labour standards and protecting passengers and citizens; 3. innovation, which supports the implementation of the two previous objectives by making sector activity more efficient and sustainable; 4. action on the world stage so that other countries can share in these objectives. 10 Widening the application of transport policy: The changing context of the EU s Transport image The text of the White Paper does, however, recognise that the political context of transport in the EU has changed. Enlargement has in fact given the EU a continental dimension. Europe is more diverse in transport infrastructure and each Member State finds itself in different and sometimes even contrasting situations, which include congestion in the West and accessibility problems in the East. To cope with the difficulties, the Commissioner states: 10 Ibid 107

11 This diversity requires differentiated solutions; the transport industry has changed. Consolidation is taking place at the European level, especially in the aviation and maritime sectors. In addition, globalization has led to the creation of large logistics companies with worldwide operations. European transport policy must take this new situation into account; transport is fast becoming a high technology industry. Research and innovation have a fundamental role to play. Some of the most pressing and promising areas include: intelligent transport systems involving communication, navigation and automation, engine technology with increased fuel efficiency and the promotion of alternative fuels; international environmental commitments, including those under the Kyoto Protocol, must be integrated into transport policy; transport policy must continue to attain the objectives of the European energy policy: transport accounts for 30% of total energy consumption in the EU, with oil dependency reaching 98%. High oil prices influence the sector and promote improved energy efficiency; the international context has changed. 11 When every consideration is brought up for revision, security and legal infrastructures are among those that also need to be changed: The threat of terrorism has impacted on the transport sector. At the same time, economic globalisation has affected trade flows and increased demand, particularly in emerging 11 Ibid at 4 108

12 economies; European governance is evolving. The basic legal framework of the internal market has largely been established, and much now rests on its effective implementation in the field. The European Commission is also seeking to simplify the rules. 12 Specificity of new problem areas: A new challenge to the EU s Transport Policy in the new era The White Paper points out that while the most pressing challenges identified in 2001 were the imbalance between different modes of transport and congestion, the situation has developed subsequently. More activities in transport sectors lead to problems, such as the use of more fossil fuels. It is pointed out that road congestion has escalated and is now costing the EU 1% of GDP. Overall, domestic transport accounts for 21% of greenhouse gas emissions, and these emissions have risen by around 23% since Long range planning for the EU is to achieve a universal approach to sustainable transport with a 20 to 40 year timescale. In short, despite its past success, the EU is now looking for a broader, more flexible instrument for action for the future, and they explain it as follows: Detail of Transport Sector Reform As mentioned earlier, the EU s transport policy is divided into four areas, which are called pillars mobility, protection, innovation and relations with third countries. It will 12 Ibid at 5 109

13 be worthwhile to look into some of the details of the pillars, particularly the problems that each of them tries to address. FIRST PILLAR: MOBILITY Road transport Although international road transport in the EU has been liberalised, at the national level it is still largely protected. It is quite natural to learn that member states would still protect their own transport territories. Various barriers were found among the member states, for example professional qualifications and working conditions vary greatly by Member State, and excessive differences in fuel tax levels create the impact on competition, etc. The European Commission notes the needs to establish common rules relating to professional qualifications and working conditions. Moreover, the EU is recommended to implement some form of measures to narrow the current excessive differences in fuel tax levels. Rail transport After the liberalisation of freight transport, whose legal framework is due for completion this year (2007), the EU is now preparing for its third package, which aims at the opening up of international passenger transport. The European Commission recommends: measures on access to the market and the profession; address the issue of excessive differences in excise duty levels; implement the acquis with the support of regulatory bodies in Member States; step up efforts to remove technical and operational barriers to international traffic; establish a network dedicated to rail freight within the 110

14 political framework of transport logistics ; organise rail market monitoring using a scoreboard mechanism. 13 Air transport The European Commission will add further activities to the sector, such as enlarge the internal market and extend its positive contributions to external aviation relations; complete the creation of the single European sky in order to increase the efficiency of EU air transport; invest to increase airport capacity, clarify regulations relating to charges; and, reduce environmental effects caused by the rapid rise in air traffic. Maritime transport The European Commission identifies the maritime sector as an alternative to overland transport. The European Commission is planning to create a common European maritime space and expand its port capacity to deal with the estimated growth in maritime transport. Member states are encouraged and supported to invest in ports with the help of competition and the introduction of clear rules and regulations for public sector contributions. SECOND PILLAR: PROTECTION Employment and working conditions A developed transport profession is not new to Europe. Yet, with the expansion of infrastructure human resources and security, more is needed to be done. The European Commission is now focusing on training and encouraging more young people to choose jobs in the transport profession. Regarding 13 Ibid at 9 111

15 legal infrastructure, the European Commission is examining rules on working conditions to reduce variations in labour costs. The European Commission also has established talks with a view to applying the International Labour Organization Convention in the maritime sector. The European Commission divides the concept of protection into the following categories: Passenger rights The European Commission is now examining ways of promoting an improved quality of service and the assurance of basic passenger rights in all modes of transport, particularly for passengers with reduced mobility. Safety The European Commission claims the success of the creation of a blacklist of dangerous airlines. Yet the European Commission admitted that there is more to be accomplished, such as to finalise safety rules with the third maritime legislative package as well as road rules. Security In this important and sensitive area, the European Commission reacted promptly to refine the acquis with measures to prevent and protect transport terrorism, as it is both a target and an instrument of terrorism. Its actions are to propose amendments and broaden the scope of safety rules to include land and inter modal transport, as well as critical infrastructure. THIRD PILLAR: INNOVATION 112

16 It is well known that the strength of Europe lies in its inexhaustible supply of innovation. The EU contends that it has been broadly assimilating innovation in transport policy in order to hasten the development of relevant solutions. These transport innovations include intelligent safety features, new means of communication, and traffic management, etc. EU Transport and Energy The EU recognizes that transport sectors use a great deal of energy. Therefore any promotion of improved energy efficiency on a European scale, as well as supporting research, demonstration, and the market introduction of promising new technology, are set as the areas of priority. Transport Infrastructure The implementation of co modal logistics chains is a solution to congestion and pollution. It is said that some areas in the mid West of the EU are affected by congestion and pollution. By 2020, 60 big airports are expected to be overcongested and a similar trend is observed in ports. Consequently the EU is concentrating on planning ahead for the construction of new infrastructure or to improve existing ones. Mobilising sources of financing The most important factor for any modern development is financing the project. The EU is not very clear on this aspect. The possibility is that new types of financial engineering will be developed by the EU. Intelligent mobility 113

17 Sophisticated means of communication, navigation, and automation, relying in particular on a satellite system (for Europeans it called the Galileo system) are the aims of the EU s transport scientists. The EU is developing and implementing intelligent transport systems relentlessly. For example, the Intelligent Car and SESAR programmes are used for air transport, ERTMS for the rail industry, and RIS for waterborne transport. Similar initiatives in the maritime sector (emaritime programme) are now taking shape. Financing the intelligent transport is partly done through charges for the use of transport infrastructure, as used in London or on specific motorways. The EU has also adopted a Directive establishing a framework for toll motorways. Cost absorption by users seems to be the best way to realize the transport potential. The EU Commission states: These tariff systems aim to finance infrastructure, whilst helping to optimise traffic. The European Commission has to propose, no later than 2008, a universal, transparent and comprehensible model for the assessment of all external costs, which must serve as the basis for calculations of infrastructure charges. The European Commission also calls for a process of reflection, which encompasses the other modes of transport, in order to identify how intelligent charging can help improve the functioning of the sector. 14 Logistics is another issue that the European Commission is now concerned with. At present, the EU is drawing up a strategic framework, followed by consultation leading to an action plan for common logistic strategies. 14 Ibid at

18 FOURTH PILLAR: RELATIONS WITH THIRD COUNTRIES The European Commission does not limit its transport concerns within its Union boarders. The EU has thought of other parts of the world as well. To be an international actor on transport worldwide it must integrate its policy to be part of a broader relationship with non member countries. The policy of the EU is very clear on this aspect, as the Commission explains, citing the reason that the transport sector is inherently connected to international issues. The convergence of EU and international standards opens export markets for European technology. EU transport companies are often hampered by the maintenance of import or investment barriers in non member countries. The EU is now developing cooperation policies and industrial dialogue with its main trading partners and regional groupings, in particular by concluding agreements. It also wishes to draw up a strategic framework for extending the main axes of the internal transport market and creating a network with neighbouring countries as well. 15 In short EU transport policy is designed to, ultimately, be global in scope. The following section discusses the integration efforts of ASEAN on transport policy. ASEAN Transport Integration 15 Ibid at

19 History of ASEAN Regional Transport The true transport integration in ASEAN started when the First ASEAN Transport Ministers Meeting 16 was held in Bali, Indonesia on March The Meeting was preceded by at least two ASEAN Senior Transport Officials Meetings held in the same year. At this meeting the ASEAN Ministers signed the first legal document the Ministerial Understanding on ASEAN s Cooperation in Transportation which identified priority areas for cooperation, a mechanism for coordination, and implementation pertaining to ASEAN cooperation in transport. Similar to the EU transport policy, the Ministerial Understanding laid down four ASEAN transport integration objectives: 1. to establish and develop a harmonised and integrated regional transport system in order to provide a safe, efficient and innovative transportation infrastructure network; 2. to enhance cooperation in the Transport sector amongst Member States in order to contribute towards the achievement of the objectives of the ASEAN Free Trade Area (AFTA); 3. to establish a mechanism to coordinate and supervise cooperation projects and activities in the transport sector; and 4. to promote interconnectivity and interoperability of national networks and access thereto taking particular account of the need to link islands, land locked, and peripheral regions with the national and global economies See, Joint Press Release For The First ASEAN Transport Ministers Meeting Bali, March Ibid. 116

20 Subsequently, two bodies at the intergovernmental level were established to facilitate the integration. They are the ASEAN Transport Ministers (ATM), who meet twice a year on a rotational basis to discuss issues of common interest and to set policy directions in the transport sector, and the ASEAN Senior Transport Officials Meeting (STOM), which is the executive body to supervise, coordinate, and review programmes and directions set by the ASEAN Transport Ministers. The STOM is also the consultative body to develop consensus of transportation issues in almost every area of common interest. According to the Ministerial Memorandum, the executive body the STOM is very instrumental in carrying out ASEAN s transport initiatives. It meets regularly and reports to the ASEAN Transport Ministers Meeting. In fact it must: provide a mechanism to promote and enhance participation from the private sector and non governmental organisations; work closely with the ASEAN Secretariat in the initiation, coordination and implementation of ASEAN transport policies and programmes; and as and when necessary, establish working groups and invite experts from the regional and international organisations in the transport sector to assist it in carrying out its functions. 18 In the beginning, the very promising ASEAN Plan of Action on Transport and Communication was devised, and, at the same meeting, the Ministers agreed that member countries shall endeavour to complete the implementation of the Plan of Action, which includes the following theme issues: a. Development of Multi modal Transport and Trade Facilitation; b. Development of ASEAN Interconnectivity in 18 Joint Press Release, Note 16, supra at article

21 Telecommunications, including Fixed and Mobile Voice and Data and EDI Services for Trade and Business Communications, and to Enhance Land, Sea, and Air Transport; c. Harmonisation of Road Transport Laws, Rules, and Regulations in ASEAN; d. Improvement of Air Space Management in ASEAN; e. Safety of Maritime Transport and Prevention of Pollution from Ships; f. Human Resources Development in Transport and Communications; and g. Developing a Competitive Air Services Policy which may be a gradual step towards an Open Skies Policy in ASEAN. Since then senior transport officials have been actively participating in the negotiations under the ASEAN Framework Agreement on Services, especially in the area of maritime and air transport. At one point there was a very ambitious plan to develop an electric railway from Singapore to the northernmost part of ASEAN, where the Laos border would be connected to the city of Kunming in Southeast China. It is to be noted, however, that the plan to materialize the regional transport network was supported initially by the government of Japan, rather by ASEAN itself. 19 ASEAN Transport Infrastructure It can be noted that the era of transport integration of ASEAN started officially in To date, ASEAN member countries have concluded nine regional transport agreements for the mutual 19 ASEAN Fact Sheet (EAC ) AEC 010.pdf 118

22 recognition of commercial vehicle inspection certificates, ASEAN highway network development, goods in transit facilitation and its five implementing Protocols, and for air freight services liberalization. Agreements, Implementing Protocols, Action Plans and other documents on Transportation and Communication are as follows 20 : Protocol to Implement the Fifth Package of Commitments on Air Transport Services under the ASEAN Framework, Bangkok, 8 February Protocol to Amend the ASEAN Memorandum of Understanding on Air Freight Services, Bangkok, 8 February Protocol 1 Designation of Transit Transport Routes and Facilities and its Annex of List of Transit Transport Routes, Bangkok, 8 February ASEAN Japan Ministerial Declaration on Transport Security, Bangkok, 9 February ASEAN framework Agreement on Multimodal Transport (2005) Protocol to Implement the Fourth Package of Commitments on Air Transport Services under the ASEAN Framework Agreement on Services Memorandum of Understanding between the Governments of the Member Countries of the Association of Southeast Asian Nations and 20 Documents are published in ASEAN Document Series pdf 119

23 the Government of the People s Republic of China on Transport Cooperation, Vientiane, 27 November ASEAN Memorandum of Understanding on Air Freight Services, Jakarta, Indonesia, 19 September 2002 Manila Declaration 2002 Ministerial Understanding on ASEAN Cooperation in Telecommunications and Information Technology Ministerial Understanding on the Development of the ASEAN Highway Network Project (1999) ASEAN Framework Agreement on the Facilitation of Goods in Transit, Ha Noi, 16 December 1998 Agreement on The Recognition of Commercial Vehicle Inspection Certificates For Goods Vehicles and Public Service Vehicles Issued by ASEAN Member Countries (1998) Integrated Implementation Programme for the ASEAN Plan of Action in Transport and Communications (1997) Ministerial Understanding on ASEAN Cooperation in Transportation (1996) ASEAN Plan of Action in Transport and Communications ( ) 120

24 Agreement on the Recognition of Domestic Driving Licences Issued by ASEAN Countries (1985) Agreement for the Facilitation of Search of Ships in Distress and Rescue of Survivors of Ship accidents (1975) Agreement for the Facilitation of Search for Aircrafts in Distress and Rescue of Survivors of Aircraft Accidents (1972) Multilateral Agreement on Commercial Rights of Non-Scheduled Services among ASEAN (1971) ASEAN Reality The ASEAN Secretariat points out that there are many other areas of integration efforts, such as cooperation roadmaps for Transport Infrastructure Integration, Transport Facilitation, and Competitive Air Services. The Secretariat adds: In the overall, there are now clear and well defined regional transport infrastructure development and integration plans in place, which have been the basis for continued cooperation in actual physical connection activities. A number of regional policy framework plans and agreements have been concluded to guide the ASEAN transport cooperation and liberalization agenda. These plans/initiatives have been incorporated into the national development agenda of ASEAN Member Countries. Technical standards, rules and procedures have been/are being harmonized and standardized to facilitate cross border movement of goods and people. Implementation of capacity building programs benefited hundreds of transport policy makers and technical personnel ASEAN Secretariat, ASEAN Transport Action Plan

25 It is possible that the Secretariat s statement above is too optimistic. The Secretariat relies on national reports, which in many instances do not include obstacles and local reality of transport. As our survey results indicated, the Thai Laos new bridge still needs more attention as one of the ASEAN cross boarder transport endeavours. Despite all of the efforts at the regional level, the bridge s cross boarder infrastructure is left in the hands of local authorities. Our survey team did not find any evidence that gave an indication of the significance of a regional level of integration resulting from the completion of the physical infrastructure. It is quite understandable that ASEAN policy is in a much earlier stage of development where basic infrastructures are yet to be put in place. However, when examine closely, ASEAN s long range policy does not indicate the awareness of future problems which the region may face. Conclusion Lessons from the EU transport policy may not be applicable to the ASEAN model as the level of integration and the ability to perform and implement the policy is a world apart. Yet what lies in the future of ASEAN is not so unpredictable when taking EU experiences into account. In the next section, a verbatim report on the seminar is shown to enlighten the predictability of the trans boarder problems to come. 122

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