ASEAN-led free trade agreements (FTAs) have been generally underused bythe region’s small and medium-sized enterprises (SMEs) although thereare currently 92 FTAs involving the association and its member states(AMSs).
These FTAs are either already in full swing, signed butnot in effect, under negotiation or still under consultation and study.While the majority are pursued bilaterally between the AMSs and theirkey strategic economic partners, five have been implemented under theASEAN framework, including those with China, Japan, the Republic ofKorea, Australia, New Zealand and India.
According to a survey conducted by Deni Friawan from the Indonesia-basedCentre for Strategic and International Studies (2012), although the useof the Certificate of Origin in Indonesia has been on the rise inrecent years, only 16-17 percent of Indonesian-based firms were usingFTAs pursued by the country and/or ASEAN.
Malaysia, Vietnam andThailand have somewhat higher rates: 24 percent (in 2012), 31 percent(in 2011), and 61.3 percent (in 2011) respectively.
Notably, the utilisation rates of bilateral FTAs pursued by anindividual AMS are generally higher in comparison to those carried outunder the ASEAN framework.
Indonesian-basedfirms’ utilisation of the Indonesia-Japan Economic Partnership Agreementwas at 32 percent, compared to the utilisation of the abovementionedASEAN-led FTAs in 2012 (ranging from two percent for theASEAN-Australia-New Zealand FTA to 23 percent for the ASEAN-China FTA).
Itappears that bilateral FTAs offer more attractive preferences for keyproducts and have simpler rules of origin compared to ASEAN-led FTAs.
Unsurprisingly, firms capable of making use ofASEAN-led FTAs are predominantly large multinationals. The promise ofthe potential benefits from ASEAN-led FTAs has not apparently reachedthe region’s SMEs.
Based on the survey carriedout by the ASEAN Business Advisory Council (ASEAN-BAC) in 2012, the lackof information on ASEAN-led initiatives and the lack of opportunitiesto network regionally appear to be the major barriers to theirengagement in regional and international trade.
In 2012, the utilisation of the ASEAN-Australia-New Zealand FTA byPhilippine-based firms reached 76.1 percent, in comparison to Thailand(24.6 percent), Vietnam (15.9 percent), and Indonesia (a mere onepercent).-VNA
These FTAs are either already in full swing, signed butnot in effect, under negotiation or still under consultation and study.While the majority are pursued bilaterally between the AMSs and theirkey strategic economic partners, five have been implemented under theASEAN framework, including those with China, Japan, the Republic ofKorea, Australia, New Zealand and India.
According to a survey conducted by Deni Friawan from the Indonesia-basedCentre for Strategic and International Studies (2012), although the useof the Certificate of Origin in Indonesia has been on the rise inrecent years, only 16-17 percent of Indonesian-based firms were usingFTAs pursued by the country and/or ASEAN.
Malaysia, Vietnam andThailand have somewhat higher rates: 24 percent (in 2012), 31 percent(in 2011), and 61.3 percent (in 2011) respectively.
Notably, the utilisation rates of bilateral FTAs pursued by anindividual AMS are generally higher in comparison to those carried outunder the ASEAN framework.
Indonesian-basedfirms’ utilisation of the Indonesia-Japan Economic Partnership Agreementwas at 32 percent, compared to the utilisation of the abovementionedASEAN-led FTAs in 2012 (ranging from two percent for theASEAN-Australia-New Zealand FTA to 23 percent for the ASEAN-China FTA).
Itappears that bilateral FTAs offer more attractive preferences for keyproducts and have simpler rules of origin compared to ASEAN-led FTAs.
Unsurprisingly, firms capable of making use ofASEAN-led FTAs are predominantly large multinationals. The promise ofthe potential benefits from ASEAN-led FTAs has not apparently reachedthe region’s SMEs.
Based on the survey carriedout by the ASEAN Business Advisory Council (ASEAN-BAC) in 2012, the lackof information on ASEAN-led initiatives and the lack of opportunitiesto network regionally appear to be the major barriers to theirengagement in regional and international trade.
In 2012, the utilisation of the ASEAN-Australia-New Zealand FTA byPhilippine-based firms reached 76.1 percent, in comparison to Thailand(24.6 percent), Vietnam (15.9 percent), and Indonesia (a mere onepercent).-VNA
