Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related...
Transcript of Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related...
![Page 1: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/1.jpg)
Investment Policy
Liberalization and Cooperation
in ASEAN: Thailand’s View
By Jaratrus Chamratrithirong
18 November 2010
Jakarta
![Page 2: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/2.jpg)
Roadmap
Investment Policy Liberalization and
Cooperation in ASEAN: An Overview
Thailand’s Investment Policy
Liberalization and Cooperation in
ASEAN
Concluding Remarks
![Page 3: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/3.jpg)
Investment Policy Liberalization and
Cooperation in ASEAN: An Overview
WTO: GATS/TRIMs
BITs
ACIA
![Page 4: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/4.jpg)
Multilateral Cooperation WTO
The Agreement on Trade in Services
(GATS)
supply of services by a foreign
company setting up operations in a
host country i.e. foreign investment
![Page 5: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/5.jpg)
Multilateral Cooperation WTO
Agreement on Trade-Related
Investment Measures (TRIMs)
prohibiting trade-related investment
measures which is inconsistent with
the provisions of GATT Article III
(national treatment) or Article XI
(quantitative restrictions) such as local content requirements
![Page 6: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/6.jpg)
Limitations ?
dispute settlement is limited to state-state dispute under the WTO;
limited scope of commitments;
lack of basic definition of investment;
not introduce disciplinary policies but
refers to GATT articles;
implementation difficulties due to
ambiguity
![Page 7: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/7.jpg)
Bilateral Cooperation BITs
BITs between developing countries
by region and decade, 1960-1999
![Page 8: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/8.jpg)
Examples of BITs between ASEAN countries
Cambodia
Malaysia date of signature 17 August 1994
Thailand date of signature 29 March 1995
Singapore date of signature 04 November 1996
Indonesia date of signature 16 March 1999
![Page 9: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/9.jpg)
Examples of BITs between ASEAN countries Indonesia
Singapore 28 August 1990
Viet Nam 25 October 1991
Malaysia 22 January 1994
Lao People's Democratic Republic 18 October 1994
Thailand 17 February 1998
Cambodia 16 March 1999 Malaysia
Viet Nam 21 January 1992
Indonesia 22 January 1994
Cambodia 17 August 1994
Myanmar
Philippines 17 February 1998
Philippines
Viet Nam 27 February 1992
Thailand 30 September 1995 Myanmar 17 February 1998
![Page 10: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/10.jpg)
BITs between ASEAN countries
to protect, promote, and facilitate
foreign investment
to create a favorable climate for
investment and contribute to the
creation of an investment-friendly
regulatory environment
to further strengthen the economic development in the host country
![Page 11: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/11.jpg)
BITs between ASEAN countries Limitations?
limited to cooperation between the two ASEAN members who are parties to the treaty;
not all ASEAN member States have BITs with all other ASEAN member States;
they are primarily if not entirely focused on investment protection issues
![Page 12: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/12.jpg)
Regional Cooperation ACIA
AEC
AEC Blueprint
Strategic schedule
ACIA
![Page 13: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/13.jpg)
Regional Cooperation ACIA
ACIA
IGA AIA
![Page 14: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/14.jpg)
Regional Cooperation ACIA
Key features Comprehensive investment liberalization and protection provisions;
Clear timelines for investment liberalization in line with the AEC Blueprint;
Benefits extended to foreign-owned ASEAN-based investors; and
A more liberal, facilitative, transparent and competitive investment regime
Source: ASEAN Investment Guidebook 2009
![Page 15: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/15.jpg)
Thailand’s Investment
Policy Liberalization and Cooperation in ASEAN
![Page 16: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/16.jpg)
Investment
Thailand
Liberalization
MOC
Protection
MFA Promotion
BOI
![Page 17: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/17.jpg)
FTAs
Ministry of Commerce
National Committee on Economic Policy
ACIA
Ministry of Foreign Affairs (MFA): head
of the negotiation
Board of Investment (BOI): reservation
list
BITs
Ministry of Foreign Affairs (MFA)
![Page 18: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/18.jpg)
Current Position of Thailand
covers 5 non-service sectors:
manufacturing, fishery, agriculture,
forestry and mining and quarrying
other three modes of services (other
than mode 3 ) will be covered in
services chapters/agreements
positive list approach to liberalization
![Page 19: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/19.jpg)
Current Position of Thailand
the scope of ‘investment’ covers only
FDI
prohibit only TRIMS-based
performance requirements
measures to safeguard the balance of
payments / measures for macro
economic stability
![Page 20: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/20.jpg)
Foreign Direct Investment net inflow to
ASEAN and ASEAN Member States as a percentage of GDP
![Page 21: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/21.jpg)
Thailand’s Cooperation
ASEAN Framework Agreement Services (AFAS)
ASEAN Industrial Cooperation Scheme (AICO)
ASEAN Investment Area (AIA)
ASEAN Investment Guarantee Agreement (IGA)
ASEAN Comprehensive Investment Agreement (ACIA)
![Page 22: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/22.jpg)
Thailand’s Investment Cooperation
ASEAN FTA with dialogue partners:
ASEAN-Australian-New Zealand
ASEAN-China
ASEAN-Republic of Korea
ASEAN-India (currently under
negotiations)
ASEAN-Japan (currently under negotiations)
![Page 23: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/23.jpg)
Thailand’s Investment Cooperation
Separate investment agreements:
Thai- India
Thai-EU (forthcoming)
Investment Chapters:
Thailand-Australia FTA (TAFTA)
Thailand-New Zealand Closer Economic Partnership (CEP) Agreement
Japan-Thailand Economic Partnership Agreement (JTEPA)
![Page 24: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/24.jpg)
Thailand’s Investment Cooperation BITs: as of 27 October 2010
36 BITs have entered into force
e.g. Argentina, Turkey, Luxemburg, Cambodia, Canada, China, Croatia, Korea, Egypt, Finland, Germany, Hong Kong, Hungary, India, and Indonesia
5 have concluded and yet to be entered into force e.g. Myanmar, Kuwait
6 in the process of negotiations
e.g. France, Iran, Italy, Morocco, Russia, Tunisia
38 in the process of changing drafts
e.g.Armenia, Pakistan, Kenya, Cuba, Ukraine, Bosnia, Latvia, Mongolia, Austria, Sudan, Qatar, Oman
![Page 25: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/25.jpg)
Thailand’s Investment Cooperation
Thailand has BITs with 6 ASEAN
Countries
Cambodia signed in 1995
Indonesia signed in 1998
Laos signed in 1990
Myanmar signed in 2008
Philippines signed in 1995
Vietnam signed in 1991
![Page 26: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/26.jpg)
Thailand’s Investment Cooperation
WTO/TRIMS/GATS
World Bank Multilateral Investment
Guarantee Agency (MIGA)
Convention on the Recognition and
Enforcement of Foreign Arbitral
Awards (the New York Convention)
ICSID Convention and is in the process of ratifying the Convention
![Page 27: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/27.jpg)
Recent Development
The Constitution of Thailand 2007 and
Investment Cooperation in ASEAN
Section 190 paragraph 2 Section 305 paragraph (5)
![Page 28: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/28.jpg)
Recent Development
The negotiation framework for BITs: May 2010 cabinet approval
September 2010 parliamentary approval Main elements of Thailand’s negotiation framework: e.g.
The scope of BIT will be limited to foreign direct investment: FDI by protecting investors in accordance with rules and regulations stipulated by the Thai Government; MFN and NT; Fair and equitable treatment;Compensation for expropriation; Subrogation; Free transfer;ISDS and State-to-State dispute settlement
![Page 29: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/29.jpg)
Recent Development
ACIA
negotiation framework: the AEC
blueprint which has already been
approved by the National Legislative
Assembly on14 November 2007
signed on 26 February 2009 in Cha-am,
Thailand
Current status
![Page 30: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/30.jpg)
Concluding Remarks
![Page 31: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/31.jpg)
Benefits
Multi-layer cooperation
Deeper integration
![Page 32: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/32.jpg)
Keys to success
Flexibility
Partnership
![Page 33: Investment Policy Liberalization and Cooperation in ASEAN ... · Agreement on Trade-Related Investment Measures (TRIMs) prohibiting trade-related investment measures which is inconsistent](https://reader036.fdocuments.net/reader036/viewer/2022071019/5fd38f7803de5d54925caa94/html5/thumbnails/33.jpg)
Challenges
Meeting the deadline The implementation of the ACIA