On June 2, 2021, the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) agreed to the world’s first bloc-to-bloc air transport agreement through the ASEAN-EU Comprehensive Air Transport Agreement (AE CATA).

The AE CATA, once formalized, will bolster connectivity between the EU and ASEAN, which has been decimated by the pandemic. The agreement allows airlines of ASEAN and EU countries to fly any number of non-stop passenger and cargo services between the two regions.

In addition, airlines will also be able to fly up to 14 weekly passenger services with one-stop within the other region to pick up passengers on the return leg. There is no limit for cargo flights. ASEAN and the EU hope the agreement will make their respective airlines more competitive as their international airline routes are currently dominated by carriers from the Middle East.

Importantly, the AE CATA can increase cooperation in technical areas, such as aviation safety, consumer protection, air traffic management, and environmental issues.

The AE CATA can improve trade between ASEAN and the EU

Besides the liberalization of air transport, the AE CATA can strengthen reciprocal prospects for trade and investment between ASEAN and the EU.

ASEAN is the EU’s third-largest trade partner (after China and the US) with over 189 billion Euros (US$223 billion) worth bilateral trade of goods recorded in 2020, and 93 billion Euros (US$110 billion) worth bilateral trade in services recorded in 2019.

The EU is by far the largest investor in ASEAN countries. Some 313.6 billion Euros (US$370 billion) in foreign direct investment (FDI) stocks went to ASEAN members throughout 2019. Further, ASEAN investments into the EU have also steadily increased to a total stock of 144 billion Euros (US$170 billion).

Source: ASEAN Briefing

Author: Ayman Falak Medina

Original published date: 15 July, 2021

Read full article here https://www.aseanbriefing.com/news/asean-eu-agree-to-worlds-first-bloc-to-bloc-air-transport-agreement/

Indonesia's exports of manufactured goods increased 33.45 percent to reach US$81.07 billion in the first half of 2021 as compared to the corresponding period last year, according to the Industry Ministry.

The manufacturing industry contributed 78.80 percent of Indonesia's total exports that reached US$102.87 billion in the first half of 2021.

"The government is making every effort to ensure that the industrial sector will remain productive and competitive to meet the market demand and contribute to easing the impact of the COVID-19 pandemic on the economy," Industry Minister Agus Gumiwang Kartasasmita noted in a written statement released on Sunday.

According to the Central Statistics Agency (BPS), despite the COVID-19 pandemic-induced pressure, the exports of manufactured goods rose 9.7 percent to reach US$14.08 billion in June 2021, from US$12.83 billion a month earlier.

The increase in exports of manufactured goods is expected to help expedite the national economic recovery.

The exports of manufactured goods, valued at US$14.08 billion in June 2021, contributed 75.91 percent of the national exports totaling US$18.55 billion.

The export performance suggested that the manufacturing industry remained the biggest contributor to the country's total exports in the first half of 2021.

"The large proportion of exports from the manufacturing industry shows a shift in Indonesia's exports, from primary commodities to manufactured goods that have high added value," he remarked.

Manufacturing industries that dominated exports in June 2021 comprised the iron and steel industry, with US$1.99 billion; animal and vegetable oil, with US$1.89 billion; electronic machine and appliances, with US$1 billion; vehicles and spare parts, with US$734.6 million; and rubber and rubber products, with US$605 million.

The improving export performance has led the country to record a trade surplus of US$11.86 billion in the first semester of 2021.

Source: Antara News

Reporter: Sella Panduarsa G, Suharto

Editor: Sri Haryati

Read full article here https://en.antaranews.com/news/179710/indonesias-manufactured-goods-exports-soar-in-first-half-of-2021

Philippine exports led the way to the continued expansion of global trade, spurred on by the gradual opening of major economies abroad as it contributed USD 5.89B to total trade or a 29.8% growth for May 2021, over the previous year’s USD 4.54B. This effectively shrunk the Balance of Trade by USD 329.9M from April 2021 figures, even as imports expanded 47.7% as demand for industrial inputs rose due to growing economic activity in the country.

The country’s total sale exports in May 2021 comes after an increase of 74.1% in the previous month.

“We are very optimistic that we can sustain this upward exports performance trajectory as our major trading partners continue opening up their borders and easing travel restrictions, given the success rate in their vaccination drive The same thing here in the country as we rollout the vaccination program and allowed 100% operating capacity even during the Enhanced Community Quarantine (ECQ) and Modified ECQ (MECQ) months of March and April of this year,” Trade Secretary Ramon M. Lopez said.

According to data from the Philippine Statistics Authority (PSA), electronic exports continue to be the Philippines’ top exports with a 61.3% share to total exports, growing at a hefty 22.3%. Fastest growing sectors are Medical/Industrial Instruments (240% growth), Consumer Electronics (216.2%), and Office Equipment (120.5%). Semiconductors, while only managing to grow 11.3%, are still the major contributor to the total electronics exports, with a share of 68.5%, valued at USD2.53 Billion.

Non-electronics products that performed beyond expectations include travel goods and handbags (884.1%), Christmas décor (433.6%), Basketworks (380.7%), ceramic tiles (420.8%), and fine jewelry (390.7%). The trade chief explained that this is an indication of the gradual recovery of the consumer market as more people resume their lives interrupted by the pandemic. Total non-electronics exports expanded 20% year-on-year (YOY).

“As we focus our efforts on the key export sectors of our country, we hope to regain our lost opportunities due to the COVID-19 pandemic and maintain the momentum of accelerating our export growth,” Sec. Lopez added.

China continues to be the Philippines’ top market with a market share of 16.2%, amounting to USD 954.3M, with growth tapering to 22.3%. The USA, Japan, Hong Kong, and Singapore complete the top five markets – comprising 64.8% of total exports to the world. The USA market, in particular, expanded an impressive 84.6%, and if this growth continues, it is poised to overtake China as the Philippines’ top market in succeeding months.

Global trade is expected to further rebound in Q2 according to UNCTAD’s outlook for 2021, largely dependent on subsiding pandemic restrictions. The UN agency expects the fiscal stimulus packages, particularly in developed countries, to strongly support the global trade recovery throughout 2021. Sectors expected to maintain growth include pharmaceuticals, communication and office equipment, minerals, and agri-food.

Date of Release: 9 July 2021

For the original release click here.

MANILA – A French company pledged ₱1.5 Billion in investments for a shipyard project in the Philippines that may potentially create 500-600 direct and indirect jobs.

This was revealed during the 9th Philippine-France Joint Economic Committee (JEC) meeting held last 2 July 2021 saw high-level economic discussions and commitments forged on bilateral cooperation covering agriculture, civil aviation, aeronautics and space, creative industries, electronics, energy and green technology, and infrastructure and transportation, and the maritime and shipbuilding sectors.

Through its Chief Executive Officer (CEO) Roland Joassard, OCEA, a shipbuilding company in northwest France, formally expressed in the presence of Department of Trade and Industry (DTI) Secretary Ramon M. Lopez, and French Minister for Foreign Trade and Economic Attractiveness Franck Riester, its intent to set up a shipyard in the country.

Secretary Lopez highlighted the strong relationship of the Philippines and France to the French investors present during the Philippines’ REBUILD Investment Virtual Forum last August 2020, which was organized by the Mouvement des Entreprises de France (MEDEF) International in Paris. As the trade chief exchanged information with Minister Riester on both countries’ macroeconomic performances, and their respective COVID-19 pandemic and recovery plans, he said, “This JEC meeting is a testament on how the Philippines and France are now rebuilding together, after global challenges faced during the early phase of the pandemic.”

During the JEC high-level bilateral economic dialogue which was hosted by the French Ministry for the Economy, Finance and Recovery (Bercy), both countries agreed to pursue specific IC Design collaboration projects given existing partnerships in the academe and between both countries’ electronics associations, Semiconductor and Electronics Industries in the Philippines, Inc. (SEIPI) and ACSIEL – Alliance Electronique, which have actively arranged business-to-business (B2B) meetings and academic engagements since their memorandum of understanding (MOU) was signed at the sidelines of the 2019 JEC hosted by DTI in Manila.

Minister Riester, who announced a visit to the Philippines before the end of 2021, also presented to Secretary Lopez three (3) letters of intent confirming financial support for upcoming projects with the DoTr, financial aid in support of a training boat contract for the Philippine Merchant Marine Academy (PMMA), and a possible maritime expert proposal.

On the other hand, Secretary Lopez handed over to the French Minister a letter from the Bases Conversion Development Authority (BCDA) for the next-phase study of the Clark Fresh Food Hub, and another letter conveying strong interest for the renewal of technical training programs from the Civil Aviation Authority of the Philippines addressed to the Directorate General of Civil Aviation (DGAC).

During the JEC, French space agency, Centre National d’Etudes Spatiale (CNES) extended an invitation for the newly-created Philippine Space Agency (PhilSA) to join the Space Climate Observatory Initiative, group of space agencies and international organizations, that endeavor collectively for “accurate assessment and monitoring of the consequences of climate change from observations and numerical models.”

In the virtual presence of its French partner, Centre National du Cinema (CNC), the Film Development Council of the Philippines (FDCP) proposed continuing projects in film and animation that have already seen Philippine-made content gain attention in top French animation trade fair events in Annecy, France this year through the local film council’s partnership with French creative groups.

Both countries also identified specific projects on dairy development, geographical indications, and control and eradication of African Swine Fever (ASF) in the agriculture sector, and areas for market access as the Philippines and France prepare for a future bilateral agriculture meeting.

Energy projects were also identified by both countries as they intend to explore alternative energy cooperation ventures.

Secretary Lopez also discussed with Minister Riester the positive impact of the Generalized Scheme of Preferences Plus or GSP+ which has strengthened market access for Philippine goods in the European Union (EU), with the Philippine official emphasizing the value of a future free trade agreement (FTA) with the region, while Minister Riester expounded on the French strategy towards Association of Southeast Asian Nations (ASEAN) and the Philippines.

Both economic officials also discussed their respective countries’ regional and multilateral development efforts including the Regional Comprehensive Economic Partnership (RCEP) and other regional trade agreements, and WTO reforms.

The JEC with France is the longest running high-level economic dialogue between the Philippines and a European country.

Both countries agreed to convene the 10th Philippines-France JEC in 2022 in Paris.

Date of Release: 7 July 2021

For original release, please click here.

The Department of Trade and Industry (DTI) launched on its website an automated system for easier submission of application, evaluation, and certification of local manufacturers. The microsite was also redesigned to provide more information, advisories, and announcements for its users and clients.

“Streamlining and automation are the only ways to move forward if we want to eliminate red tape in the bureaucracy. That is why even before the pandemic, we have been implementing digitalization efforts in government services as part of the Ease of Doing Business program,” said DTI Secretary Ramon M. Lopez.

“The launch of this microsite is our way of making government services more customer-centric for our people and more accessible with a tap on the screen or with a click of a button. This is also the realization of President Duterte’s declaration to eliminate long lines and to make all possible services online.” he added

The new user-friendly microsite features links to its online Domestic Bidder’s (DoBid) Preference Program application form, as well as access to verification of application and frequently asked questions (FAQs) regarding the DoBid Program.

Additionally, DoBid advisories and announcements are also posted on the website for easier access to the latest DoBid news.

The microsite was launched on 24 June 2021 and is continuously being updated and improved to keep its users posted on DoBid’s latest activities. The DoBid microsite may be accessed thru this link: https://www.dti.gov.ph/good-governance-program/domestic-bidders-program/.

Date of Release: 6 July 2021

For original release, please click here.

MANILA—Looking forward to the ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement and its eventual implementation, Department of Trade and Industry (DTI) Secretary Ramon M. Lopez expressed optimism that the trade agreement will not only facilitate the recovery efforts of the country but will also pave the way for the internationalization and deeper participation of micro, small, and medium enterprises (MSMEs) into Global Value Chains (GVCs).

“One big advantage of the RCEP Agreement is the wider cumulation area for raw materials. This means our MSMEs can source inputs from the 15 RCEP Parties, process the products here in the country, and export the same to the region at a preferential arrangement. So, a Philippine manufacturer can source raw materials from China, and export the finished product to Japan, South Korea, Australia or New Zealand,” Lopez explained.

The trade chief also stressed that having one set of simplified rules in trade will also facilitate trade transactions and will reduce administrative cost for exporters. In the process, this will encourage more production and manufacturing activities in the country. This means more jobs and business opportunities for the Filipinos.

“The RCEP region accounts to around 50% of Philippine exports and 68% of Philippine import sources. Hence, the country cannot afford not to be part of this free trade area,” Sec. Lopez added.

The RCEP Agreement is considered as the largest free trade deal in the world. The RCEP region makes up 29% (USD 25.8 trillion) of global GDP, 30% (2.3 billion) of the world’s population, and 25% (USD 12.7 trillion) of global trade in goods and services. 

According to Assistant Secretary (Asec.) Allan B. Gepty, the country’s RCEP Lead Negotiator, the Philippines will benefit from an economic policy that is open to trade and investment under a rules-based system. “The RCEP Agreement is a testament on the need to further open the markets for trade and investments, and improve rules and disciplines in addressing the evolving business environment such as e-commerce, intellectual property, and competition policies.,” he said.

The RCEP region is already the main GVC hubs of three emerging economies (i.e. Japan, South Korea, and China) and contributing 50% of the global manufacturing output.

“If you further strengthen the region with rules and discipline then you create an environment of trust, and this will encourage more investments and deeper economic integration. In addition, the creation of the RCEP free trade area strengthens economic integration in the region, and balances global power and influence especially with the growing trend in protectionism,” Asec. Gepty added.

The RCEP Agreement is comprised of the ten (10) ASEAN Member States, Australia, China, Japan, South Korea, and New Zealand. It is targeted to be implemented in January 2022.

Date of Release: 6 July 2021

For the original release, please click here.

The newly-established Cambodia Business Council (CBC) in Bangkok and Thai Subcontracting Promotion Association (Thai Subcon) will join forces to enhance trade and investment between the two ASEAN neighbours, and build momentum for the implementation of Cambodia’s 2021-2023 Economic-Diplomacy Strategy.

A memorandum of understanding (MoU) was signed in this regard by CBC president Sambath Sothea and his Thai Subcon counterpart Kiattisak Jirakajonvong on July 13 via video link, in a ceremony presided over by Cambodian ambassador to Thailand Ouk Sorphorn and witnessed by commercial attache Heng Sovannarith.

The deal will provide support for marketing channels and activities to promote business and investment opportunities, cultural exchanges and social connectivity.

According to the Thai Ministry of Commerce, trade between Cambodia and Thailand reached $7.236 billion last year, tumbling 23.17 per cent from 2019, primarily due to the economic disruption of the Covid-19 pandemic. 

Author: May Kunmakara

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 14 July 2021

The Council of the Ministers approved the new investment law draft last week in order to attract increased investment flow to the country and enhance the nation’s economic diversification and competitiveness.

The new draft consists of 12 chapters and 42 articles.  It was approved by the Council of the Ministers at a meeting chaired by Prime Minister Hun Sen on Friday July 9.

The draft law sets the strengthening procedures on monitoring and checking from relevant ministries and institutions through joint one-time inspection as well as sets incentives to qualified investment projects, both tax and non-tax preference, to attract flow-in investment to sectors that Cambodia needs specifically in the context of economic diversification and increasing competitiveness.

It also includes international obligations undertaken by Cambodia to show investors the commitment of the government to protecting investment and providing assurances in accordance with international law. Additionally, it shortens the period of certificate issuing from 31 to 20 working days for business registrations made via the single portal, Single Window Service.

In the first six months of 2021, the Council for the Development of Cambodia approved 87 investment projects worth $3 billion, up 10 percent from the first half of 2020.

Author: Chea Vanyuth

Source: The PhnomPenh Post

For full Article, please read here. 

Original published date: 12 July 2021

As COVID-19 continues to impact most parts of Asia Pacific, digitising the food system has never been more important. Food safety, hygiene and storage management had already been fundamental to the success of food supply chain systems prior to the pandemic. Consumers have become even more concerned with the source, quality, and safety of their food, leading to an increased need for food safety and accountability.

Consumers across the region have been rethinking their eating habits after the pandemic and shifting away from an ‘on-the-go lifestyle’ to more of a ‘safe in-home consumption’ trend. As a result, food manufacturers are confronted with the issues of food supply chain transparency. At the same time, they need to meet food safety standards, avoid recalls, maintain compliance, and earn customer trust and loyalty.

Food supply chains will need to bear increased pressure to deliver quality and safe food from the farm, to the factory and finally to the consumer’s table. Due to continually increasing consumer demands, food safety will need to be taken more seriously, with increased collaboration between the food industry, regulators, and tech companies to create a safer, more traceable food system. Many of these changes will be led by technology-enabled solutions that can garner additional trust and ease business operations by tracing each food item throughout the supply chain.

Ultimately, this increased traceability will reduce recalls and food waste, protect consumers by preventing lapses in food safety, and speed up crackdowns on contaminated food.

Prioritising consumer care and trust

Tracking and traceability also protect brands from damage to their reputations following a food safety incident. Industry decision-makers can look to technology solutions to ease the strain of curb side and e-commerce deliveries, and at every touchpoint, by improving traceability, safeguarding food items, and mitigating food supply disruptions.

Enhancing traceability in the supply chain

Areas that could benefit from devices and technologies include: compliance with food safety and quality guidelines; ensuring proper food handling, transportation and storage; tracking product perishability; intake of raw materials and ingredients; and faster and more efficient lot recall. Technologies such as RFID tags, rugged handheld mobile computers with scanners, and thermal printers, can track items quickly throughout the supply chain and help increase food product traceability.

The implementation of these solutions is projected to rise and it is apparent that companies are recognising the benefits of including these technologies in their operations. Also, Predictive analytics powered by the visibility provided by these technologies will allow decision-makers to improve their strategies, optimise transportation efficiency, and tighten loopholes in tracking and traceability.

Future-proof the supply chain with robust digital solutions

Improving food safety is now more challenging more than ever due to the increasing demand and rise of consumers’ expectations. Globalisation also brings new challenges to food supply chain optimisation

As international trade grows, particularly in a post-pandemic world, so does the necessity for consistent data, reporting and transparency throughout the supply chain. With traceability and transparency, the future of food safety and food supply seems bright.

Companies in Southeast Asia that can demonstrate robust and effective traceability and transparency capabilities will increase business efficiency, protect their consumers and businesses, and ultimately improve customer confidence and loyalty, giving them an edge over their competitors in this rapidly evolving market.

Source: e27

Read the full article here

The Ministry of Economy and Finance is set to deploy Phase II of its Businesses Registration Platform, also known as the “Single Portal”, next month, following more than a year of smashing success since its debut.

Plans for the upcoming launch were presented at a virtual inter-ministerial meeting on July 12, led by ministry secretary of state Phan Phalla.

Industry ministry director-general for Small and Medium Enterprises and Handicraft Chhea Layhy told The Post on July 13 that his ministry was ready to integrate into the Single Portal, a process he said was 90-95 per cent complete.

Layhy said the second phase of the portal was a strategic government plan to further streamline procedures for businesses in Cambodia, especially small- and medium-sized enterprises (SME).

“I urge all those in the SME sector to understand the advantages of priority registration, in order to receive benefits from the government that’ll make it easier to do business,” he said.

The electronic platform requires companies to complete just a one-time business registration form, cutting fees by up to 40 per cent and taking a maximum of eight days. 

Author: Thou Vireak

Photo credit: Hean Rangsey

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 13 July 2021

The Singapore Coffee Association (SCA) will team up with the Asean Coffee Federation (ACF) to open an Asean Coffee Institute in Singapore by the end of this year.

The institute will train and certify baristas and offer certified coffee grader programmes, the SCA said. It will also introduce an Asean Coffee Excellence Programme, which aims to set an Asean standard for grading speciality coffee.

The institute will be a hub for countries in the region to upskill and expand the scope of jobs in the coffee industry.

This is part of the SCA's efforts to turn Singapore into a key regional trading hub for speciality coffee.

It aims to potentially double Singapore's coffee industry in coming years, which is currently worth more than $270 million.

SCA president Victor Mah, who is also president of the ACF, outlined the plans in his speech yesterday at the Singapore Speciality Coffee (Micro-Lot) Auction 2021 at Marina Bay Sands.

The auction offered speciality coffee from 15 countries that was selected by Asean coffee graders.

The guest of honour, Minister for Manpower and Second Minister for Trade and Industry Tan See Leng, said: "Singapore is well positioned to be a global trading hub for speciality coffee in the region.

"We are fortunate to be situated between fast-growing consumer markets in the Asia-Pacific and some of the world's major coffee producing nations such as Vietnam and Indonesia.

"This makes Singapore a convenient location for agri-commodities companies which wish to participate in the global value chain through activities such as roasting, packaging, grading and certification."

Also present at the event were 21 ambassadors and high commissioners from countries including Indonesia, Brunei, Japan, Rwanda and Ukraine.

The global coffee market was valued at US$102 billion (S$138 billion) last year, with the speciality coffee sector making up almost a third of the market.

Speciality coffee is set to more than double its value to over US$80 billion by 2025.

Source: The Straits Times

Author: Syarafana Shafeeq

Original published date: 14 July, 2021

Read full article here https://www.straitstimes.com/singapore/making-spore-a-key-trading-hub-for-speciality-coffee

Video link https://www.channelnewsasia.com/news/singapore/singapore-aims-to-become-key-regional-specialty-coffee-trading-15213264

By Heidi Ng