Speech by Minister Chan Chun Sing at the 50th AEM and related meetings press conference

​REMARKS BY MINISTER CHAN CHUN SING AT THE 50TH ASEAN ECONOMIC MINISTERS’ (AEM) MEETING AND RELATED MEETINGS PRESS CONFERENCE ON SATURDAY 1 SEPT 2018, 5.45PM AT SHANGRI-LA HOTEL SINGAPORE

Friends of the Media,

Ladies and Gentlemen,

1.             Thank you for joining us on this Saturday afternoon.

2.             We’ve come to the end of the 50th ASEAN Economic Ministers Meeting and Related Meetings.

a.    During this past week, ASEAN Ministers convened for the 50th AEM Meeting, and also the 32nd ASEAN Free Trade Area Council Meeting and 21st ASEAN Investment Area Council Meeting. It has been quite an intense week for all of us. 

b.    ASEAN Ministers also met with our counterparts from Australia, Canada, China, India, Japan, Korea, New Zealand, Russia and the US, either bilaterally or in larger formats, such as the ASEAN+3 Meeting, East Asia Summit Economic Ministers Meeting, and the Regional Comprehensive Economic Partnership (RCEP) Ministerial Meeting. 

3.             Overall, I would say that we have achieved good outcomes this week and we are pleased to have done so during Singapore’s Chairmanship of ASEAN this year.

4.             At the beginning of the year, we envisioned ASEAN as a region of seamless economic activity and growing opportunities supported by strong trading networks. Our efforts to integrate our economies will make this a reality, and to this end, the ASEAN Economic Ministers have: 

a.    Signed the Protocol to Implement the 10th Package of Commitments under the ASEAN Framework Agreement on Services (AFAS) to enable our businesses to access new services sectors with increased degree of services liberalisation; and

We have also signed the First Protocol to Amend the ASEAN Trade in Goods Agreement (ATIGA) that legally incorporates the ASEAN-wide Self-Certification scheme. With this scheme, certified exporters can self-declare the country of origin for their goods on permitted commercial documents. This will certainly save cost and time for many of our businesses, particularly the Small and Medium Enterprises (SMEs). For Singapore-based exporters, this translates to potential annual savings of approximately half a million dollars once AWSC is implemented and this number is expected to grow in the future.

b.    In addition to these, ASEAN Ministers also:

i.    Endorsed ASEAN Member States’ commitment to transition their ASEAN Comprehensive Investment Agreement (ACIA) Reservation Lists to a two-annex negative list structure. Investors will henceforth enjoy greater transparency and confidence when making their investment decisions; 

ii.    Endorsed the ASEAN Agreement on e-Commerce. ASEAN consumers stand to potentially benefit as AMS reaffirm the need to lower cost and improve the speed and reliability of supply chain in cross-border e-commerce transactions; and

iii.       Endorsed the ASEAN Digital Integration Framework (DIF) to monitor the progress of ASEAN’s digital integration. 

5.            We also recognise the need to continue to work with our external partners on economic cooperation which will further liberalise trade and enhance economic integration.

a.    We are pleased to have concluded the negotiations between ASEAN and China for Product Specific Rules of Origin under the ASEAN-China Free Trade Agreement.

b.    Ministers from ASEAN, Australia and New Zealand also endorsed the recommendations from the General Review of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) Agreement, which will guide negotiations to upgrade this Agreement; 

c.     We also had good discussions and outcomes with other Dialogue Partners including Canada, India, Japan, Korea, Russia, the US, the Plus Three Ministers, East Asia Summit Economic Ministers and RCEP Ministers. 

6.             RCEP Ministers reaffirmed the shared goal of substantially concluding the RCEP by end-2018.

a.    Good progress was made at this round, with most RCEP Participating Countries demonstrating flexibility by accommodating each other’s needs, where possible. 

b.    This resulted in the narrowing of gaps, and paved the way forward for negotiators to engage on key outstanding issues. 

c.     Broad agreement is in sight. However, all RCEP Participating Countries must exercise shared and strong collective will and shoulder the common responsibility to bring negotiations to substantial conclusion by end-2018. 

d.    Negotiations are now at a critical phase, and considerable work remains to be done in the next few months to bring us to substantial conclusion. This is the most challenging stage of our work thus far.

7.             In particular, to get the RCEP to substantial conclusion, all RPCs will now need to do three things:

a.    First, to secure the necessary political mandates to instruct their negotiators to engage constructively and with a solutioning-focussed mindset;

b.    Second, we must intensify negotiations with one another to close the respective differences, especially the differences at the bilateral level between countries without existing FTAs within themselves; and 

c.     Last but not least, all the countries must demonstrate flexibility in accommodating each other’s specific needs, concerns and interests. 

8.             As ASEAN Chair, Singapore will continue to work closely with the RCEP Country Coordinator – Indonesia – and all RPCs to push towards substantial conclusion.

9.             With the close cooperation of our fellow Member States and Dialogue Partners, we’ve achieved outcomes by closing some longstanding issues on ASEAN’s agenda and also break new ground. Through our collective efforts, we have shaped ASEAN as a resilient and innovation region, while creating new opportunities for all ASEAN countries.

a.    All in all, these deliverables represent a successful year for regional economic integration, which ASEAN Member States continuously pursue while maintaining ASEAN centrality.

b.    We believe these initiatives will result in a more interconnected, open and facilitative business environment, and expand the opportunities for our people and businesses – both at home and abroad.

c.     This brings about tangible benefits to our communities and people, through new business opportunities and the creation of skilled jobs.

d.    We will also be able to tap on each other’s resources and complementary comparative advantages, through free, open and facilitated markets and linkages, which trading nations such as Singapore, ASEAN, and our Dialogue Partners depend on. 

10.          While all these deliverables mark a significant milestone for ASEAN and our chairmanship, there are a few months more before we hand the gavel to our Thai friends for 2019.

a. In the meantime, Singapore will continue to work closely with our fellow ASEAN Member States to press on with ASEAN’s regional economic integration objectives in the upcoming meetings – including by signing some of the agreements that we’ve endorsed this week.

Come 2019, we look forward to supporting Thailand’s chairmanship. Thank you.

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