The implementation of the ASEAN Economic Community (AEC) will take place in late 2015. It will set the stage for a single market and production base allowing for the free movement of goods, services, investment, capital and skilled labor.
Also on the agenda is jointly realizing the development of a competition policy, the protection of intellectual property, the facilitation of e-commerce, and the introduction of a more comprehensive investment protection and dispute resolution system.
Apart from the reduction of tariffs, ASEAN tax coordination is limited to the elimination of certain withholding taxes and the completion of the network of double tax treaties among all ASEAN countries. This leaves increased tax competition between ASEAN countries in order to attract foreign direct investment promoting further regional and global integration of businesses.
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In this rapidly changing environment, global businesses need to closely monitor the ASEAN developments and consider their trade and investment opportunities further optimizing their global supply chains.
Five fundamental freedoms leading to real business impactThe principles of AEC provide for fundamental freedoms relevant for international business, to ensure a single AEC market and opening of an AEC single production base.
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