Date: 12 March 2008
Time: 9:00 AM - 5:00 PM
Venue: Sofitel Philippine Plaza Hotel, Pasay City, Philippines
International Conference on the Implications
of the ASEAN Charter for East Asian Integration
On 4 February 2005, the combined efforts of the AIM Policy Center, Fidel V. Ramos Research Chair in Policy Studies, and the Japan Economic Foundation (JEF), paved the way for an insightful discussion on the prospects for regional integration through bilateral and regional free trade agreements (FTAs). The high-level conference, entitled An Integrated Roadmap to an East Asian Free Trade Agreement (EAFTA), brought together leading Asian personalities championing the discussion of FTAs.
After three years, and in light of recent developments in the region, the AIM Policy Center and the Fidel V. Ramos Research Chair in Policy Studies aimed to build on the success of the 2005 conference, and convened the "International Conference on the Implications of the ASEAN Charter for East Asian Integration". The event was held in partnership with the Konrad Adenauer Stiftung, Ramos for Peace and Development Foundation (RPDev), UP Asian Center, and the Philippine Business Leaders Forum. The AIM-World Bank Global Distance Learning Center, BusinessMirror, and BusinessWorld were also co-sponsors of the event.
The Conference sought to explore and explain current developments in the process towards regional integration, particularly in the context of the newly crafted ASEAN Charter. Three sessions of speakers, the last being a videoconference linking ASEAN officials in Singapore with the Philippine audience, were capped with the keynote address of Former President Fidel V. Ramos.
Session One
"The Changing Environment of Asian Economic Integration", began with a presentation on “Global Economic Trends” by Mr. Bert Hofman, Country Director of World Bank – Philippines. Mr. Hofman discussed the impact of positive and negative trends in the global economy on Asian economies. He cited several reasons for the good economic performance of developing countries, including sound macro-economic policies, trade liberalization, rapid technological diffusion, and a more positive attitude towards globalization and integration. Though happening in the short term only, negative trends are being experienced as well. Mr. Hoffman pointed to the credit crunch and the sub-prime crisis in the United States, and the general slowdown of projected growth rates in developed economies. ASEAN faces tough challenges, he concluded, but it can use its Charter as an instrument to face these challenges and begin the change process.
Philippine Trade Undersecretary Thomas G. Aquino presented “Recent Developments in Regional and Bilateral Free Trade Agreements (FTAs)”, focusing particularly on the reasons for the Philippines’ active participation in bilateral and multilateral economic engagements. He cited the benefits to be derived from FTAs and the challenges to be confronted in trade liberalization. But the bottom line, Mr. Aquino underscored, is that trade liberalization, whether gradual or rapid, will have consequences on the lives of people. And these consequences, he added, will have to be addressed by governments to ascertain that the ultimate goal of improving peoples’ lives is achieved.
Dr. Ponciano S. Intal, Jr., Executive Director of the De la Salle University-Angelo King Institute for ASEAN Economic Integration, in his discussion on “ASEAN in East Asian Economic Integration,” underscored three concepts that underpin successful regional trade and that will assure robust collective productivity growth: complementation, competition and cooperation. ASEAN, he said, is the fulcrum of East Asia regional integration, and as such can expect to reap large gains from the dynamic transformation of China and East Asia, plus India. The key ASEAN response to the “China Challenge”, he stressed, is to deepen integration within ASEAN and in the rest of Asia, and to accelerate industrial upgrading and adjustment. And the way to go forward, he concluded, is and ASEAN integration strategy that links government-led and private sector-led efforts and activities.
Session Two
"Opportunities for and Obstacles to East Asian Integration", Ambassador Rosario G. Manalo recalled “Lessons from the European Union Integration”, drawing parallels and contrasts between the experiences of the European Union in integrating the sovereignties and economies of its member states and the efforts towards economic and political integration that the ASEAN is currently undertaking. The European Union can be an inspiration, she said, but not necessarily a model for East Asia. Ambassador Manalo emphasized, however, that despite the lack of a clear goal for political integration, ASEAN and East Asian countries have economic considerations that bind them, such as narrowing the development gap among and within countries in the region and addressing poverty, because economic development is also a precondition for regional and national peace and security.
Dr. Wilfrido V. Villacorta, for his part, tackled the role of “Business and Civil Society as Drivers for Deeper Integration”, noting that to enhance the involvement of the business sector, we need to reduce the burden on international trade through standardization and harmonization, develop infrastructure and enhance collaboration among member states. As for civil society, its role is in reference to the issues of human rights, social justice, freedoms and democracy, and particularly defined in the newly crafted ASEAN Charter. The goal of making the ASEAN community a reality is the responsibility not only of governments or ministers, Dr. Villacorta concluded; the business sector and civil society have unique and distinct roles to play in achieving this dream.
Sharing the business perspective, Dr. Michael Clancy presented an “Assessment of ASEAN Competitiveness and its Readiness for East Asian Economic Integration”. A major benchmark Dr. Clancy used to assess ASEAN competitiveness and readiness for integration was exports. China’s role as destination of ASEAN exports continues to grow in importance. Although the US still has impact in the ASEAN, Dr. Clancy said China now plays a role for the intermediate products from Asia. He also projected that China will become a source of primary products driving merchandise trade to America. The other half of the picture, however, shows that intra-ASEAN trade is on the downturn, and in this respect, the role of the ASEAN Charter should be to facilitate a sharp increase in the flow of goods from one ASEAN country to another. The challenge to ASEAN, Dr. Clancy concluded, is for it to experience intrinsic growth and not to merely depend on the growth of China’s economy.
Session Three
“The ASEAN as Precursor of East Asian Integration”, featured a videoconference with former ASEAN Secretary-General Rodolfo C. Severino Jr., who spoke on “The ASEAN Charter and the Dynamics of East Asian Regionalism”, providing first an overview of what is the ASEAN Charter is and how it further promotes ASEAN as a regional hub. He traced the history of the ASEAN and discussed the platforms that the ASEAN makes use of in its role as a regional hub. He also discussed the dynamics of East Asian integration as a reality in the future.
Focusing on the Philippines, Ambassador Severino underscored the country’s stake in both the ASEAN and the East Asian integration processes, stressing that it would be a pity if the Philippines were to be the last to ratify the Charter considering the role it has played in its drafting.
Dr. Denis Hew, Senior Fellow and Coordinator for Regional Economic Studies of ISEAS Singapore, in his presentation on “The ASEAN Charter, East Asian Summit, and the ASEAN Community”, focused on the ASEAN integration that has been moved forward to 2015. Dr. Hank Lim, Director of the Singapore Institute of International Affairs, for his part, tackled “The Vagueness of the ASEAN Charter”, asking “Is ASEAN a customs union, a common market, or an economic union?”
The Keynote Address, “The ASEAN Charter and East Asian Integration”, delivered by former Philippine president, Fidel V. Ramos, dealt lengthily on the achievements of the ASEAN through the years and how the organization has evolved and coped with the changes in geopolitics, technological advancements and changes in the world in general.
First in the list of achievements that gets it going for ASEAN is the role it has played and continues to play as a very important forum for political dialogue and engagement in its part of the world. The dialogue not only involves the ASEAN member countries, but also countries in other Asian sub-regions as well as the Western powers.
The second achievement cited by Mr. Ramos is the ability of ASEAN to foster cooperation, even unity, in a region comprised of diverse cultures, historical experiences and political systems. The ASEAN, in its recognition of these important elements, is in that unique position of forging regional cooperation the Asian way.
The main challenge, Mr. Ramos underscored, lies in strengthening ASEAN’s decision-making style and capability for a more dynamic and progressive intra-regional trading. As to the first challenge, ASEAN leaders should now go beyond consensus-making and move further towards enforcing agreements. In the aspect of trading, ASEAN should be poised to eventually transform itself into a strong regional trading bloc like its counterpart in Europe.
Keynote Address
The ASEAN Charter and East Asian Integration (.pdf)
H.E. Fidel V. Ramos
Chairman, Ramos Peace and Development Foundation, Inc. (RPDev)
Former President, Republic of the Philippines
Welcome Remarks (.pdf)
Mr. Klaus Preschle
Country Representative, Konrad Adenauer Stiftung (KAS), Philippines
Opening Remarks (.pdf)
Hon. Alberto G. Romulo, Represented by Acting Secretary Franklin M. Ebdalin
Department of Foreign Affairs (DFA)
The Changing Environment of Asian Economic Integration
Global Economic Trends (.pdf)Dr. Bert Hofman
Country Director, World Bank (WB), Philippines
Recent Developments of Regional and Bilateral Free Trade Agreements (FTAs) (.pdf)
Hon. Thomas G. Aquino
Senior Undersecretary, Department of Trade and Industry (DTI)
Framework of ASEAN’s Integration with Dialogue Partners (.pdf)
Dr. Ponciano S. Intal, Jr.
Executive Director, De La Salle University - Angelo King Institute (DLSU - AKI)
Opportunities For and Obstacles to East Asian Integration
Opportunities for and Obstacles to East Asian Integration: Lessons from the European Union (.pdf)Amb. Rosario G. Manalo
Director, European Studies Program, Ateneo de Manila University
Chairman of the High Level Task Force on the Drafting of the ASEAN Charter
Business and Civil Society as Drivers of Deeper Integration (.pdf)
Dr. Wilfrido V. Villacorta
Adviser to the President, Asian Institute of Management (AIM)
Former Deputy Secretary-General, ASEAN
Assessing ASEAN Competitiveness and its Readiness for East Asian Economic Integration (.pdf)
Assessing ASEAN Competitiveness (.pdf)
Dr. Michael Clancy
Chairman, Philippine Business Leaders Forum (PBLF)
The ASEAN Charter as a Precursor of East Asian Integration
The ASEAN Charter and East Asian Regionalism: The Philippine Stake (.pdf)(via videoconference with World Bank, Singapore)
Amb. Rodolfo C. Severino, Jr.
Visiting Senior Research Fellow, Institute of Southeast Asian Studies (ISEAS)
Former Secretary General, ASEAN