AEC stands for ASEAN Economic Community which comprises 10 nations in Southeast Asia. The goal of establishing AEC is to transform the region into a single market and production base with a highly competitive advantage to make it a stable and prosperous region.
The 10 ASEAN member countries comprise Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia,
Myanmar, The Philippines, Thailand, Singapore and Vietnam.
At the 12th ASEAN Summit in January 2007, the Leaders of the 10 ASEAN member countries agreed to hasten the establishment of the AEC by 2015. The ASEAN Leaders adopted the ASEAN Economic Blueprint at the 13th ASEAN Summit on 20 November 2007 in Singapore to serve as a master plan.
The characteristics and elements of AEC :
A. Single Market and Production Base which shall comprise five core elements as follows:
1. Free flow of goods; 2. Free flow of services; 3. Free flow of investment; 4. Freer flow of capital;
5. Free flow of skilled labour.
B. Competitive Economic Region, according to the AEC blueprint:
1. Competition Policy; 2. Consumer Protection; 3. Intellectual Property Rights; 4. Infrastructure
Development; 5. Taxation; 6. E-Commerce.
C. Equitable Economic Development which shall comprise: SME Development; 2. Initiative for
ASEAN Integration
D. Integration into the Global Economy comprising :
1. Cooperative Approach towards External Economic Relations;
2. Enhance Participation in Global Supply Networks.
There is also an Implementation part in the Blueprint comprising:
A.Implementation Mechanism; B.Resources; C.Communications; D.Review
In each core element there are details of introduction and action plans many of which have timelines. A number of actions have already started and some have completed, but most are underway and have to be ready by 2015.
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