Consumer Protection Agreement - PowerPoint

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         Dr. Sothi Rachagan
    Vice President (Academic)
    Nilai International College /
     Consumers International
          Asia Pacific Office

    Economic Integration
    Impact on Consumers
    Previous Initiatives
    The European Union Model
    An ASEAN framework -
                      ii. Non-Governmental
Economic Integration in Southeast Asia

     1961   Association of Southeast Asia

     1963   MAPHILINDO

     1967   Association of Southeast Asian
             Nations-regional cooperation to
             accelerate economic growth,
             social progress and cultural
             development; and promote
             peace and stability.
Chronology of Admission into ASEAN

August 1967: Indonesia, Malaysia,
         Philippines, Singapore,Thailand

January 1984: Brunei

July 1995: Vietnam

July 1997: Myanmar, Laos PDR

April 1999: Cambodia
    Degree of Economic Integration

   Preferential Trading Area
   Free Trade Area
   Customs Union
   Common Market
   Economic and Monetary Union
   Complete Economic Integration

Wikipedia, The Free Encyclopedia -
Chronology of Economic Cooperation

1976: Declaration of ASEAN Concord, Bali
      Established framework for cooperation

1977: Agreement on ASEAN Preferential Trading
Chronology of Economic Cooperation

1992: Singapore Declaration

   Agreed to establish ASEAN Free Trade Area (AFTA)
    using the Common Effective Preferential Tariff (CEPT)
   Effective tariffs to be 0-5%
   15 year time frame beginning 1 Jan 1993
   15 groups of products: vegetable oils; cement;
    chemicals; pharmaceuticals; fertiliser; plastics; rubber
    products; leather products; pulp; textiles; ceramic and
    glass products; gems& jewellery; copper cathodes;
    electronics; wooden and rattan furniture.
Chronology of Economic Cooperation

Agreement on CEPT:

   Applies to all products, both manufactured and
    unmanufactured and processed agricultural
   Only exception - unprocessed agricultural products
   Eliminate all quantitative restrictions and non-tariff
    barriers within 5 years.
Chronology of Economic Cooperation

1994 5th Meeting of AFTA Council

   Accelerate realisation of AFTA from 15 to 10 years

   To include agricultural sector in CEPT scheme
Chronology of Economic Cooperation

1995 Bangkok Summit Declaration

   Agenda for Greater Economic Integration
   Focus on standards
   Green lane system
   ASEAN Framework Agreement on Services
Chronology of Economic Cooperation

 1997 ASEAN Vision 2020

 Accelerate the creation of the ASEAN Economic
 Region with free flow of goods, services and
 investments, and a freer flow of capital
 -Fully implement AFTA
 -Accelerate liberalisation of trade in services
 -ASEAN Investment Area by 2010
Chronology of Economic Cooperation

 1999 Hanoi Plan of Action

 Framework Agreement on the Facilitation of Goods in
 Framework Agreement on Mutual Recognition

 2000: e-ASEAN
 2002: Sectoral MRA for Electrical and Electronic
 2003: Agreement on Harmonised Cosmetic Regulatory
Chronology of Economic Cooperation

    2004 Vientiane Action Programme (2004-2010)

   Remove barriers to free flow of goods, servcies and
    skilled labour
   Freer flow of capital
   Put in place all essential elements for ASEAN to
    function as a single market and production base by
   11 priority sectors:Agro-based products, electronics,
    rubber based products, wood based products, e-ASEAN
    (ICT), Tourism, Automotive, Fisheries, Textiles and
    apparel, Air travel, Healthcare
Importance and Benefits of Consumer

    Main asset of AFTA is the enlarged market i.e. the
     500 million consumers.

    Success of AFTA dependent on consumer
     participation i.e giving consumer confidence and
     meeting consumer requirements.

    Consumer considerations promote healthy

    Protects community welfare and raises standards
     of living.
Impact of AFTA on Consumers

Product Safety and Labelling

   Dumping, double standards, product recalls
   NTBs, and health, safety, environment
   Standards
   MRAs – certification and testing in one country
    to be recognised by others
   ASEAN Cosmetic Directive
   Labeling - language, symbols and requirements
   Information on products
Impact of AFTA on Consumers


   Sectoral approach: Air Transport, Business
    Services, Construction, Financial Services,
    Maritime Transport, Telecommunication, Tourism
   MRAs for Professional Services
   Minimum Common Competency Standards for
    Tourism Professionals.
   ASEAN Tourism Agreement: to ensure safety and
    security of travelers.
   ASEAN Cooperation in Tourism: to eliminate
    barriers impeding tourism growth.
Impact of AFTA on Consumers

Electronic Commerce

   E-ASEAN: Economy, Society, Government.
   E-ASEAN Framework Agreement:
    -   put in place national laws and policies
    -   facilitate mutual recognition of digital
    -   facilitate secure e-transactions
    -   promote personal data protection and
    consumer privacy
    -   encourage use of ADR
Impact of AFTA on Consumers

Health and Food

   Health Without Frontiers:
    -   access to affordable health care
    -   impact of trade liberalisation on health sector
    -   harmonisation of standards and regulations
    -   coordinate with policy makers in trade sector
    -   formulate ASEAN food safety policy
   Harmonisation of Maximum Residue Limits of
   ASEAN General Guidelines on the Release of
    Agriculture-Related GMOs.
Impact of AFTA on Consumers

Nothing found on advertising

Measures are aimed at assisting private sectors
and SMEs to adapt to the new economic

Banking / Consumer Credit / Insurance
Focus is on economic recovery of region.
Cooperation at business to consumer level is
Impact of AFTA on Consumers

Sustainable Consumption & Utilities

   Strategic Plan of Action on the Environment 1994-
    -   Study implications of AFTA on the
    environment and how to integrate trade policies
    with environmental policies.

   ASEAN Plan of Action for Energy Cooperation
Impact of AFTA on Consumers

Law and Redress

   Consumer redress system.
   There is a dispute settlement system at government
    -   legal unit at ASEAN Secretariat
    -   ASEAN Consultation to Solve Trade and
    Investment Issues
    -   ASEAN Compliance Body
   ASEAN Legal Information Authority
   ASEAN Legal Information Network System
Impact of AFTA on Consumers

   Consumer Protection Agencies /
    Consumer Organisations / Consumer
    Education and Information

    There are no Consumer Protection Agencies or
    Consumer Organisations at the ASEAN level
    and consequently there are no efforts on
    consumer education and information at the
    ASEAN level.
Impact of AFTA on Consumers

Consumer Representation

   Governments under increasing pressure to
    succumb to corporate dictation
   Strong corporate representation in ASEAN
   No independent, unbiased consumer
Previous Initiatives

  Seventh ASEAN Ministerial Meeting, Jakarta 7-9
    May 1974, Joint Communique

    “The Ministers also noted several projects
    launched by the various committees which
    would bring direct benefits to the people of
    ASEAN. Notable among these projects are the
    ASEAN Consumers Protection Agency to ensure
    against misrepresentation and sub-standard
    quality of goods improted into the ASEAN
Previous Initiatives

    23rd Session of ASEAN Secretaries-General, 7-9
    February 1974, Kuala Lumpur

    Agreed to recommend to ASEAN Ministerial
    Conference the setting up of an ASEAN
    Consumer Protection Agency

    Objective: Protect ASEAN consumers       from
    substandard imported goods.
Previous Initiatives

  Eighth ASEAN Ministerial Meeting, Kuala Lumpur
    13-15 May 1975, Joint Communique

    “The Meeting endorsed the continuation of
    ASEAN cooperation with Australia through such
    projects as ASEAN Consumers agency, training
    and education and trade promotion.”
Previous Initiatives

  First Meeting on the Establishment of an ASEAN
  Consumers Protection Agency, Kuala Lumpur, 8-10
  July 1975, Report:
  The Meeting also recommended certain long-term
  (a) A permanent agency for ASEAN consumers’
  protection in the ASEAN region shall be established in
  an ASEAN capital. This agency shall have an advisory
  role among other things, through dissemination of
  information to member countries in order to promote
  effective   protection   programmes      for    ASEAN
  consumers in relation to goods and, later services
  from outside the ASEAN region.
Previous Initiatives

  (b) The agency for consumer protection shall
  encourage each member country to establish an
  effective National Consumer Protection Agency. They
  will liaise with the ASEAN Agency and exchange
  information and research findings. In each ASEAN
  member country, policies and regulations for
  consumers’ protection may be enforced in the light
  of the flow of information provided by the ASEAN
Previous Initiatives

  (c)Ultimately, the ASEAN Agency may undertake
  measures to rationalize and harmonise procedures
  relating to the adoption of regional standards and
  specifications of goods and related servcies imported
  into the ASEAN region.
Previous Initiatives

 Meeting of the ASEAN Directors-General and
 Officials of the Australian Government, Surakata,
 24-25 May 1977

 The Meeting noted with satisfaction the program
 made in the Joint Projects which had been agreed
 upon earlier. These include establishment of a
 Consumers Protection Agency.
Previous Initiatives

 Fifth ASEAN-Australia Forum, Jakarta, 16-17 April
 1980, Joint Press Release

 The Forum noted with satisfaction the program that
 had been achieved in the projects under the AAECP,
 particularly in the following:…ASEAN Consumers
 Protection Agency
Previous Initiatives

 Fourteenth ASEAN Ministerial Meeting, Manila, 17-18
 June 1981, Joint Communique:

 53. The Meeting noted with satisfaction the steady
 progress in ASEAN-Australia cooperation…The
 Meeting welcomes Australia’s decision to extend the
 ASEAN Protein Project for another three years and
 the continuing assistance to the Consumer
 Protection Agency Project....
Previous Initiatives

 1980: March-ASEAN Consumer Experts visit
       Australia to study consumer protection
       October-ASEAN Seminar on Consumer
       Protection by CI(IOCU) and University of
       Philippines proposed extended scope for the
       ASEAN Consumer Protection Agency
       Standards & testing, research

 1983: 2nd ASEAN Consumer Protection Seminar
Inter-Governmental Framework
                The European Union Model

 • Consumer policy is part of the EU’s strategic
 objectiove of improving the quality of life of all its
 • 450 million citizens in 25 nations benefit from the
 same high level of consumer protection
 • Consumer policy first emerged in the 1970’s
 • Treaty of Rome silent.
 • Paris Summit 1972 - Heads of State called for
 political action.
 • 1975 - First action programme on consumer policy
The European Union Model

 Five categories of fundamental rights form basis of
 community legislation:

 • Right to protection of health & safety
 • Right to protection of economic interests
 • Right to damages
 • Right to information & education
 • Right to representation
The European Union Model

 The Single European Act 1987- introduced notion of
 consumer into Treaty: Article 100A entitles
 Commission to propose measures designed to protect
 consumers, taking as a base “high level of protection”.
 Maastricht Treaty 1993 - enshrined consumer
 protection as a full fledged Community policy. Article
 129a provided legal framework for consumer policy.
 Resulted in EU Directives and Green Papers.
 Treaty of Amsterdam 1999-fresh impetus to consumer
 policy to protect health, safety and economic interests
 of consumers, promote right to information, education
 & organise themselves to safeguard their interests.
 Also consumer protection to be taken into account in
 defining and implementing other policies.
The European Union Model

 Consumer Policy Strategy 2002-2006
 3 objectives:

 •High common level of consumer protection
 •Effective enforcement of consumer protection
 •Involvement of consumer organisations in EU
The European Union Model

Proposal for a programme of Community action in health
and consumer protection programme 2007-2013
Brings together public health and consumer protection
policies under one framework- 3 objectives:
• Protect citizens from risks and threats beyond control of
individuals and cannot be tackled by member states alone
e.g health threats, unsafe products, unfair commercial
• Increase ability of citizens to take better decisions about
health and consumer interests;
• Mainstream health and consumer policy objectives across
all Community policies.
The European Union Model

EU Consumer Protection Work Programme:

1.Protection of Consumers Economic and Legal Interests
• European Consumer Consultative Group
• Legal Redress and the settlement of disputes
• Electronic Commerce
• Contracts
• Transport
• Financial services
The European Union Model

EU Consumer Protection Work Programme:

2. Consumer Safety
• Consumer health
• Genetically Modified Organisms
• Product Safety
• Quality of Goods and Services
The European Union Model
EU Consumer Protection Work Programme:
3. Consumer Information
• Systems of Information - European Consumer Centres
Network (ECC Net), RAPEX: system for rapid exchange of
information, JAI-European Judicial Network, etc.
• Packaging of products
• Labeling of food, non-food and dangerous products
• Special indications
• Indication of prices
• Advertising
• Ecology
• Supplementary information
The European Union Model

   European Consumer Consultative Group
   • Replaced the Consumer Committee from 9
   January 2003
   • Commission seeks its opinion on consumer
   problems at Community level
   • Comprises - one member representing
   national consumer organisation of each
   member state and one member from each
   European consumer organisation.
European Consumers Organisations

  Members: 40 independent European National
  Consumer Organisations

  Mission: Making voice of European consumers

  Policy Development: BEUC team and members
European Consumers Organisations
                 BEUC Structure

  General Assembly: All BEUC members
                     : Meet twice a year
                  : Approves policy objectives
                        and work programme
  Executive Board: 8 members
                   : Elected by General Assembly
                      every 2 years
                    : Appoints BEUC Director
  Finance           : 50% member fees
               : 50% European Union

Guidelines for ASEAN Relations with NGOs
5th Meeting on the 19th ASEAN Standing
Committee, Manila, 16-18 June 1986

A non-profit association of ASEAN persons,
natural or juridical, organised to promote,
strengthen and help the aims and objectives of
ASEAN cooperation in the political, economic,
social,  cultural,    scientific, medical and
technological fields.


Objective of Affiliation:
1. To draw NGOs into mainstream of ASEAN
activities, kept informed of major policies,
directives and decisions of ASEAN and given the
opportunity of participating in ASEAN activities.

2. To ensure interaction and fruitful relationship
with ASEAN bodies.


Process of Affiliation:
1. ASEAN Secretariat receives and processes
applications for affiliation.
2. Secretary General refers them to ASEAN
National Secretariats which respond within 2
3. Secretary General presents applications to
ASEAN Standing Committee


Privileges of Affiliation:
1. Use the name “ASEAN”, display official ASEAN
2. Submit written statements or recommen-
dations and views on policy matters or regional or
international concerns to the ASEAN Standing
3. Submit project proposals for third party
funding though ASEAN Secretariat.


Privileges of Affiliation:
4.   Initiate   programmes     of    activities   for
presentation to its link body for appropriate
5. Attend meetings of the link body for
6. Access ASEAN documents.
7. Use facilities of ASEAN Secretariat for official
meetings and other official activities in Jakarta.
         No. of ASEAN Affiliated NGOs

Year                               No.
1979-1980                           4
1981-1985                          20
1986-1990                          11
1991-1995                           7
1996-2000                          12
2001-2003                           4
TOTAL                              58

These are mainly the professional and business

Public Interest NGOs affiliated to ASEAN

SEARICE - Southeast Asian Regional Institute for
Community Empowerment
Quezon City, Philippines
Approved 2nd Meeting of the 31st ASEAN Standing Committee

AsiaDHRRA    -   Asian  Partnership   for    the
development of Human Resources in Rural Asia
Quezon City, Philippines
Approved: 3rd Meeting      of   the   37th   ASEAN   Standing
Need for conference to focus on:
- ASEAN Consumer Protection Agency
- Model Law / Harmonisation
- Consultative Group of government agencies and
   consumer organisations

2. Government Consumer Protection Agencies
-Inter-agency Consumer Protection Network
-Product Alerts

3. Consumer Organisations
-ASEAN Consumer Council affiliated to ASEAN
Thank You!

Description: Consumer Protection Agreement document sample