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Establishment of the East Asia Economic Community (EAEC)

Joint Statement for the ASEAN plus 3 Summit, November 2004

The 30th ASEAN-Japan Business Meeting (AJBM) adopted this joint statement and urges the leaders of ASEAN and Japan to consider and act favorably for an early conclusion of AJCEPA and the establishment of the EAEC. We hope that our recommendations will provide constructive input for the coming Vientiane ASEAN plus 3 Summit in November 2004.

  1. ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEPA) The 29th AJBM in Manila in October 2003 adopted a joint statement and urged the leaders meeting during the ASEAN-Japan Commemorative Summit in Tokyo in December 2003 to ensure the early implementation of the AJCEPA.
     
    The 30th AJBM reiterated strongly the early negotiation and implementation of AJCEPA.
  2. East Asia Economic Community (EAEC) It was agreed in the Commemorative Summit in December 2003 that ASEAN and Japan would strengthen their cooperation to pursue the formation of the East Asia Community and study the possibility of establishment of an East Asia Free Trade Area. The 30th AJBM strongly urged the ASEAN plus 3 Summit Ministers/Heads of Government to agree to the formation of an East Asia Economic Community, which would include China and South Korea, as early as possible.
     
    We, as ASEAN and Japanese business persons, have close business relations with China and South Korea and believe that cooperation among all the countries of East Asia (including China and South Korea) will give a great economic advantage to the member countries of EAEC. A number of free trade agreements (FTA) have already been reached between countries or with regional groups, such as the North America FTA. Though the Asia-Pacific Economic Cooperation (APEC) is promoting economic liberalization in the Asia-Pacific area, closer economic cooperation within East Asia is desirable and achievable.
     
    The formation of the East Asia Economic Community will be beneficial to all countries, including those of ASEAN and Japan. We have to anchor ourselves with the EAEC in order to achieve progress, considering international competition in a globalized market. The East Asia Economic Community will serve as another building block in the effort to increase the trade of goods and services and people exchange among member countries and enhance the functioning of the WTO international trade system.

Guidelines for Realization of East Asia Economic Community (EAEC)

  1. EAEC benefits could be realized earlier with the full implementation of AFTA (ASEAN FTA), AEC (ASEAN Economic Community), AJCEPA, and the ratification of bilateral FTAs or EPAs (Economic Partnership Agreements).
  2. EAEC should be in the form of a more comprehensive economic partnership which also includes mutual cooperation for people exchange, human resources development, coordinated currency and financial systems, technology transfer, environmental protection, natural resources and energy development, mutual recognition arrangements (MRA), etc.
  3. Japan should set an example in opening its markets, including sensitive fields such as movement of people and trade in agricultural products, and should also promote cooperation for capacity building of ASEAN countries including technology transfer, etc. Considering the fact that there are multiple contacts in the Japanese government for FTA and EPA negotiations, the Japanese government should consider appointing a Minister of State for EPA.
  4. ASEAN, both governments and enterprises, should continue to strengthen ASEAN relationships and pursue efforts to transform the members’ economic systems so as to improve the business climate and attract more investment.
  5. Each member country of the EAEC is expected to undergo some changes in law and economic structure in order to conform to the unified objectives of the East Asia Economic Community.