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AEC Blueprint Implementation Performance and Challenges: Service Liberalization

Author

Listed:
  • Dionisius A. NARJOKO

    (Economic Research Institute for ASEAN and East Asia, Indonesia)

Abstract

This paper examines the progress of liberalization of the ASEAN Framework Agreement in Services (AFAS). It measures the changes in the rate of liberalization of the AFAS commitments from the 7th to the 8th package negotiations. The comparisons show only marginal improvement in the depth of services liberalization rate between the two packages, albeit significant increase in the number of subsectors covered in the 8th package. Deeper examination of the commitments suggests that many ASEAN Member States utilized a facility under AFAS (Flexibility Rule) to put a number of sensitive subsectors which are not subject to liberalization commitments. Mode 3 liberalization rate of package 8 increases significantly when the Flexibility Rule is considered. This suggests that many subsectors do not pass the threshold set by package 8.

Suggested Citation

  • Dionisius A. NARJOKO, 2015. "AEC Blueprint Implementation Performance and Challenges: Service Liberalization," Working Papers DP-2015-39, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2015-39
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    References listed on IDEAS

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    1. Archanun KOHPAIBOON & Juthathip JONGWANICH, 2015. "Use of FTAs from Thai Experience," Working Papers DP-2015-02, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Deardorff, Alan V, 2001. "International Provision of Trade Services, Trade, and Fragmentation," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 233-248, May.
    3. Dionisius A. NARJOKO, 2015. "AEC Blueprint Implementation Performance and Challenges: Non-Tariff Measures and Non-Tariff Barriers," Working Papers DP-2015-36, Economic Research Institute for ASEAN and East Asia (ERIA).
    4. Junianto James Losari, . "Searching for an Ideal International Investment Protection Regime for ASEAN+ Dialogue Partners (RCEP): Where Do We Begin?," Chapters, in: Lili Yan Ing (ed.), East Asian Integration (First Edition), chapter 8, pages 225-260, Economic Research Institute for ASEAN and East Asia (ERIA).
    5. Erlinda M. Medalla, . "Towards an Enabling Set of Rules of Origin for the Regional Comprehensive Economic Partnership," Chapters, in: Lili Yan Ing (ed.), East Asian Integration (First Edition), chapter 4, pages 93-120, Economic Research Institute for ASEAN and East Asia (ERIA).
    6. Kazunobu HAYAKAWA & Tadashi ITO, 2015. "Tariff Pass-through of the World-wide Trade: Empirical Evidence at Tariff-line Level," Working Papers DP-2015-34, Economic Research Institute for ASEAN and East Asia (ERIA).
    7. Venkatachalam ANBUMOZHI, 2015. "Low Carbon Green Growth in Asia: What is the Scope for Regional Cooperation?," Working Papers DP-2015-29, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Kazunobu HAYAKAWA & Nuttawut LAKSANAPANYAKUL & Shujiro URATA, 2015. "Firm-level Impact of Free Trade Agreements on Import Prices," Working Papers DP-2015-33, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Alan V. Deardorff, 2001. "International Provision of Trade Services, Trade, and Fragmentation," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 233-248, May.
    10. Venkatachalam ANBUMOZHI & Alex BOWEN & Puthusserikunnel Devasia JOSE, 2015. "Market-Based Mechanisms to Promote Renewable Energy in Asia," Working Papers DP-2015-30, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Misa OKABE, 2015. "Impact of Free Trade Agreements on Trade in East Asia," Working Papers DP-2015-01, Economic Research Institute for ASEAN and East Asia (ERIA).
    12. Kazunobu Hayakawa & Tadashi Ito & Fukunari Kimura, 2016. "Trade Creation Effects of Regional Trade Agreements: Tariff Reduction versus Non-tariff Barrier Removal," Review of Development Economics, Wiley Blackwell, vol. 20(1), pages 317-326, February.
    13. Erlinda M. MEDALLA, 2015. "Towards an Enabling Set of Rules of Origin for the Regional Comprehensive Economic Partnership," Working Papers DP-2015-03, Economic Research Institute for ASEAN and East Asia (ERIA).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Jayant Menon & Anna Cassandra Melendez, 2017. "Realizing An Asean Economic Community: Progress And Remaining Challenge," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(03), pages 681-702, June.
    2. Gajanan B. Panchal & Hassan Mirzahosseinian & Sunil Tiwari & Ajay Kumar & Sachin Kumar Mangla, 2023. "Supply chain network redesign problem for major beverage organization in ASEAN region," Annals of Operations Research, Springer, vol. 324(1), pages 1067-1098, May.

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    More about this item

    Keywords

    AFAS; AEC; services liberalization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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