1. On 24 August 2015, the third day of the 47th ASEAN Economic Ministers (AEM) Meeting and Related Meetings held in Kuala Lumpur, the ASEAN Economic Ministers had consultations with their counterparts from the United States and East Asia Summit Economic Ministers.

AEM – USTR Consultations

2. The AEM-USTR Consultations was co-chaired by YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry, and H.E. Michael Froman, the US Trade Representative. 

3. The US is the 3rd largest investor in ASEAN and ASEAN’s 4th largest trading partner. The US investments in the region from 2010-2014 amounted to US$54.0 billion or about US$10 billion per annum. Many US companies have already established their operations in the region and view the formation of a large single market under the ASEAN Economic Community as providing huge opportunities for them. ASEAN-US trade amounted to US$212.4 billion, representing 8.4 % of ASEAN’s global trade. 

4. The Ministers noted the progress of activities under the ASEAN-US Trade and Investment Framework Arrangement (TIFA) and Expanded Economic Engagement (E3) Initiatives Work Plan for 2015. The Ministers noted the on-going discussions on the proposed Shared Principles for International Investment, the Trade Principles on Information and Communications Technology (ICT), and ASEAN-US Best Practices on Transparency and Good Regulatory Practices which is aimed at enhancing investment relations and providing a more conducive investment environment for both sides. 

5. The Ministers welcomed the hosting of the first series of workshop under the ASEAN-US Trade and Environment Dialogue by Malaysia. The workshop, which will focus on illegal, unreported and unregulated (IUU) fishing, is scheduled to be held in October 2015 in Kuala Lumpur.

6. The Ministers agreed that ASEAN will need to continue to engage the US business community on a regular basis to update them on the efforts by ASEAN to create a borderless region for trade and investment. In this context, the ASEAN ministers agreed to undertake the 3rd AEM Roadshow to the US in early 2016. 

7. The Ministers also met with the US-ASEAN Business Council (USABC). The USABC shared with the Ministers the sentiments of the US’ businesses in the region. By and large, the US business community in the region welcomed the realisation of the ASEAN Economic Community by the end of 2015 while at the same time cautioned that more needs to be done to ensure smoother flows of goods and services, and movement of capital and skilled workers and professionals across the region. The USABC called on ASEAN countries to accelerate the pace of integration. It said this would not only attract more big corporations to set-up business in the region but will also promote the development of MSMEs within the region.

3rd EAS Economic Ministers Meeting

8. The Meeting was chaired by YB Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry and attended by Economic Ministers of all the ASEAN Member States, Australia, China, India, Japan, Republic of Korea, New Zealand, Russia and the United States.

9. During the Meeting, the Ministers exchanged views on the regional and global economic developments, including the establishment of the AEC by end-2015. The Ministers also exchanged views on further activities that can be explored to enhance economic cooperation among the EAS participating countries.

10. The Ministers also discussed the issues highlighted in the Economic Research Institute for ASEAN and East Asia (ERIA) report, particularly its Comprehensive Asia Development Plan (CADP) 2.0: Infrastructure for Connectivity and Innovation, and collaboration with UNCTAD to improve database on non-tariff measures (NTMs) for ASEAN countries. The Ministers commended ERIA for its efforts in highlighting various gaps and proposals to improve connectivity in the region. The Ministers endorsed the proposals by ERIA actionable points that can be considered for implementation by ASEAN Member States and their EAS partners.

11. The Ministers also noted the latest activities under the regulatory management system in the EAS region. A workshop on the ERIA and New Zealand Institute of Economic Research on Regulatory Management Systems in ASEAN and EAS countries is scheduled to be held on 22 October 2015 in Jakarta, Indonesia to discuss the findings of the study and policy recommendations. The Meeting further noted that the ROK is inviting for participation from EAS countries to an international seminar on 27 October 2015 to discuss the changes of business environment from the AEC 2015 as well as the role of business and governments. 

12. The EAS Economic Ministers agreed that this is an important forum that the future agenda for the EAS to be more extensive in coverage and to identify recommendations that are implementable across the 18 countries. 
     

List of Ministers

1. The Hon. Pehin Dato Lim Jock Seng, Second Minister of Foreign Affairs and Trade, Brunei Darussalam;

2. H.E. Pan Sorasak, Secretary of State for Commerce, Cambodia;

3. Mrs. Sondang Anggraini, Adviser to the Minister on Trade and Diplomacy, Ministry of Trade, Indonesia;

4. H.E. Mrs. Khemmani Pholsena, Minister of Industry and Commerce, Lao PDR;

5. H.E. Dato’ Sri Mustapa Mohamed, Minister of International Trade and Industry, Malaysia;

6. H.E. Dr. Kan Zaw, Union Minister for National Planning and Economic Development, Myanmar;

7. H.E. Gregory L. Domingo, Secretary of Trade and Industry, the Philippines;

8. Mrs. Ow Foong Pheng, Permanent Secretary, Ministry of Trade and Industry, Singapore;

9. Mr. Thawatchai Sophastienphong, Director General of the Department of Trade Negotiations, Ministry of Commerce, Thailand;

10. H.E. Nguyen Cam Tu, Deputy Minister of Industry and Trade, Viet Nam;

11. H.E. Le Luong Minh, Secretary-General of ASEAN;

12. The Hon. Andrew Robb AO MP, Minister for Trade and Investment, Australia;

13. H.E. Gao Hucheng, Minister of Commerce, People’s Republic of China;

14. H.E Mrs. Nirmala Sitharaman, Minister of State for Commerce and Industry (Independent Charge), India;

15. H.E. Daishiro Yamagiwa, State Minister of Economy, Trade and Industry, Japan;

16. H.E. Yoon Sang-jick, Minister of Trade, Industry and Energy, Republic of Korea;

17. H.E. Timothy Groser, Minister of Trade, New Zealand;

18. H.E. Alexey V. Ulyukaev, Minister of Economic Development, the Russian Federation;

19. H.E. Michael Froman, United States Trade Representative.

Additional Information

ASEAN-US

• Combined GDP and Market Size: ASEAN-US has a combined market of 941.4 million populations, with a GDP of approximately US$19.99 trillion in 2014.

• Trade: ASEAN-US trade was valued at US$212.4 billion in 2014, an increase of 2.7% compared with US$206.9 billion recorded in 2013. The US is ASEAN’s 4th largest trading partner.

• Investment: FDI inflows from the US to ASEAN were amounted to US$13.0 billion in 2014 (2013: US$4.9 billion). The US was the 3rd largest source of FDIs for ASEAN in 2014.

 

ASEAN-EAS

• Combined GDP and Market Size: ASEAN-EAS has a combined market of 4.58 billion and a combined GDP of approximately US$46.3 trillion in 2014 (2013:US$44.7 trillion)

• Trade: ASEAN trade with EAS was amounted to US$1.12 trillion in 2014 (2013:US$1.11 trillion)

• Investment: FDI inflows from the EAS countries to ASEAN were amounted to US$47.8 billion in 2014 (2013: US$43.9 billion).