Areas of Cooperation
ASEAN Framework Agreement on Services (AFAS)
Recognising the growing importance of trade in services, ASEAN Member States had commenced their joint effort to work towards free flow of trade in services within the region through the ASEAN Framework Agreement on Services (AFAS), signed on 15 December 1995 by ASEAN Economic Ministers (AEM) during the 5thASEAN Summit in Bangkok, Thailand.
AFAS provides broad guidelines for ASEAN Member Countries to progressively improve Market Access, and ensures equal National Treatment for services suppliers in ASEAN. All AFAS rules are consistent with international rules for trade in services provided by the General Agreement on Trade in Services (GATS) of the World Trade Organisation (WTO). AFAS aims at substantially eliminating restrictions to trade in services among ASEAN Member States to improve the efficiency and competitiveness of ASEAN services suppliers. Liberalisation of services trade under AFAS is also directed to achieve commitments beyond Member States’ commitments under the GATS.
Since the signing of AFAS, officials of ASEAN Member States have been working to achieve the objective of AFAS to create a freer trade in services within the region. This was implemented through rounds of negotiations, each resulting in packages of commitments, which stipulates the commitments of each ASEAN Member State in various services sector/sub-sector and mode of supply.
The ASEAN Economic Community (AEC) Blueprint adopted by ASEAN Leaders at the 13th ASEAN Summit on 20 November 2007 in Singapore, formalised and stepped up ASEAN’s effort to further liberalise towards the goal of free flow of services through bi-annual targets and thresholds laid out under this AEC Blueprint, which were further supplemented by additional parameters set forth by the Ministers.
AFAS has been updated with a new, more modern and comprehensive Agreement, namely the ASEAN Trade in Services Agreement (ATISA), which has been concluded and is expected to be signed by all AMS within 2020.
Movement of Natural Persons (MNP)
In November 2012, ASEAN Economic Ministers (AEM) signed the ASEAN Agreement on Movement of Natural Persons (MNP) in Phnom Penh, Cambodia. The MNP Agreement provides for streamlined and transparent procedures for applications for immigration formalities for the temporary entry or temporary stay of natural persons, and therefore is intended to facilitate the movement of natural persons engaged in the conduct of trade: in goods, trade in services and investment between Member States.
The schedules of commitment under the MNP Agreement supersede Mode 4 commitments of the earlier AFAS packages. The MNP Agreement enters into force on 14 June 2016 following completion of its ratification by all AMS. Pursuant to Article 7 of this Agreement, discussions on the updating of the schedules of commitments under this Agreement are currently on-going.
Mutual Recognition Arrangements (MRAs)
Mutual Recognition Arrangements (MRAs) forms another important area of ASEAN cooperation on trade in services. MRAs are enabling tools to allow mutual recognition of qualifications of professional services suppliers by signatory ASEAN Member States to facilitate mobility of professional services providers in the region.
At present, ASEAN has concluded MRAs in 7 (seven) professional services signed by the ASEAN Economic Ministers (AEM):
- MRA on Engineering Services signed on 9 December 2005 in Kuala Lumpur, Malaysia;
- MRA on Nursing Services signed on 8 December 2006 in Cebu, the Philippines;
- MRA on Architectural Services and Framework Arrangement for the Mutual Recognition of Surveying Qualifications
both signed on 19 November 2007 in Singapore; - MRA on Medical Practitioners signed on 26 February 2009 in Cha-am, Thailand;
- MRA on Dental Practitioners signed on 26 February 2009 in Cha-am, Thailand;
- MRA Framework on Accountancy Services signed on 26 February 2009 in Cha-am, Thailand, which is subsequently superseded by MRA on Accountancy Services signed on 13 November 2014 in Nay Pyi Taw, Myanmar.
ASEAN Member States are actively implementing these MRAs. The websites of the MRA Implementing Bodies are as follows:
- ASEAN Chartered Professional Engineers Coordinating Committee (ACPECC)
- ASEAN Architect Council (AAC)
- ASEAN Chartered Professional Accountant Coordinating Committee (ACPACC)
- ASEAN Healthcare Services Website
Details on the three MRAs related to the healthcare sector (i.e. nursing, medical practitioners and dental practitioners) can also be found in the Healthcare Services page.
ASEAN Qualifications Reference Framework (AQRF)
Another ASEAN initiative to facilitate mobility of people is the ASEAN Qualification Reference Framework (AQRF). AQRF is a common reference framework to compare qualifications throughout all education and training sectors across all AMS. With AQRF, countries could reference their national-level qualifications framework or system to this ASEAN-level framework. In this way, AQRF supports and enhances each country’s National Qualification Framework (NQF) as well as promotes transparency and higher quality qualifications systems. Further information is available on the AQRF page here.
External Engagements
In addition to the internal ASEAN integration efforts, ASEAN expands its area of cooperation to include its Dialogue Partners through Free Trade Agreements. These include the ASEAN-Australia-New Zealand FTA (AANZFTA), the ASEAN-China FTA (ACFTA), the ASEAN-Hong Kong, China FTA (AHKFTA), the ASEAN-India FTA (AIFTA), the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) and the ASEAN-Korea FTA (AKFTA). ASEAN is also negotiating the Regional Comprehensive Economic Partnership (RCEP).
