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Implications of ASEAN economic integration on services: a global computable general equilibrium analysis

The economies of the Association of Southeast Asian Nations (ASEAN) are aware of the key role services trade can play in development. And they have made services central to their integration agenda (ASEAN-World Bank 2015). At the 5th ASEAN Summit in Bangkok in 1995, ASEAN Economic Ministers (AEMs) signed the ASEAN Framework Agreement on Services (AFAS), which requires members to enhance market access and guarantee equal national treatment for service suppliers among ASEAN countries. Another landmark framework agreement related to services trade is the 2007 ASEAN Economic Community (AEC) Blueprint. ASEAN members agreed to subsequent rounds of AFAS negotiations and schedule liberalization commitments to 2015—based on the parameters and timelines outlined in the AEC Blueprint. Detailed targets were set for integrating services markets, culminating in the free flow of services, investment and skilled labor by 2015. AFAS would substantially eliminate restrictions on services trade among ASEAN countries to improve the efficiency and competitiveness of ASEAN services suppliers and to accelerate economic growth and job creation (ASEAN-World Bank 2015). The commitments cover services such as air transport, business, construction, distribution, education, the environment, finance, healthcare, maritime transport, telecommunications and tourism. The AEMs also concluded eight mutual recognition arrangements (MRAs) for architects, medical and dental practitioners, and engineering, nursing and tourism professionals along with framework agreements for surveyors and accountants. The MRAs enable professional service providers certified