ASEAN 2015 and beyond Benchmarking on the EU Integration

1. ASEAN 2015 and beyondBenchmarking on the EU Integration Henry J. Schumacher VP for External Affairs European Chamber of Commerce of the Philippines

2. Three things… • My views on AEC • The requested benchmarking on the EU integration • How does European business in ASEAN look at the ASEAN integration and what kind of recommendations are we making.

3. My view on AEC Every business has to include the AEC into its business plan and look at opportunities and be aware of the challenges that come with the integration

4. Benchmarking on the EU integration The world was a very different place in 1950 Geopolitics is also important

5. ASEAN vs. EU Mandate: Strictly intergovernmental vs. Hybrid supra-national / intergovernmental Parliament: No parliament vs. Elected parliament

6. ASEAN vs. EU Judicial:No ASEAN law vs. EU law of higher order than national law Political: Myriad political systems vs. Democracy a prerequisite for entry

7. ASEAN vs. EU Monetary: No plan for monetary union vs. Single monetary union / Euro Zone Economic : Economic Community 2015 vs. One common market

8. ASEAN vs. EU Enforcement: Non-enforceable agreements vs. Enforceable agreements

9. ASEAN vs. EU Enormous differences in the two systems and consequently we will have to have different expectations. But - the EU has changed enormously from the beginnings in the 1950s to where it is today.

10. Lessons for ASEAN • - EU leaders call for simpler EU after poll setback • - Too big, too bossy, too interfering • - Europe should concentrate on what matters – growth -- and jobs – and not try to do so much • - The EU must be more focused on its priorities, show --- - more efficiency where it is needed and not add to - -- - things where it is unnecessary • - It is simplification that is called for • - The answer to the vote is less rules and less • meddling from Brussels

11. EU Business ICT Position Paper Network Readiness Index rankings 2012. Of 142 countries: Singapore 2 Malaysia 29 Brunei 54 Thailand 77 Indonesia 80 Vietnam 83 Philippines 86 Cambodia 108 Laos and Myanmar – not available

12. EU Business ICT Position Paper • Recommendationsmade: • The telecoms sector needs the right structure; fair and equal treatment, ideally all operators under the same license conditions from a single regulator where foreign investment is encouraged. • Modify laws and rules to support the free movement of skilled people and invest more in education and training in ICT areas. • Modify rules and practices to meet the three dimensions of an independent • National Regulatory Authority.

13. EU Business ICT Position Paper • Recommendationsmade: • 4. Changes to Internet usage are not conducive to the continuation of the positive contribution of the Internet. • 5. Data Management / Data Protection / Cyber Security need legal regimes; there are benefits in having a regional model which also provides a workable regime to cross border flows.

14. EU Business ICT Position Paper • Issues that need to be addressed in the Philippines: • - The Data Privacy Act needs to be implemented; • - The Cybercrime Prevention Act needs to be implemented; • - Having only two telcos / cellcos needs to be watched by -- the Office for Competition; the acquisition of Sun by - -- - PLDT should not have been allowed; • - Bandwidth needs to be increased / a DICT is still desirable - to move the ICT / BPM / KPM sector forward; • - Education needs to be reformulated towards • this sector.

15. President Fidel V. Ramos ‘RP-EU Relations: Into the next millennium’ ‘HAND-IN-HAND WE CAN WORK TO OVERCOME COMMON CHALLENGES AND SHARED OBSTACLES. SHOULDER-TO-SHOULDER WE CAN WORK TO COMPLEMENT EACH OTHER AND ENHANCE ONE ANOTHER’S PROSPERITY.’