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RobertoRabel,KieranIreland
Thiscompetitionissignificantbecausemanufacturing,comprisingover70%ofex-
ports,dominatesASEAN’snon-oilexports,galvanisedbytheglobalrelocationofthesector
todevelopingEastAsianstates.
73
Thishasaffectedthesectorialimplementationof
economicintegration:a2014surveyfoundthatNTMsintheelectronic,automotive,
andconsumergoodssectors-theoutsourcedtasksattheheartofexport-oriented
development-remainunaddressed,stallingtheintegrationprocessasthesemeasures
supersedetariffsastoolsofprotectionism.74
Furthermore,theAEC’ssweepinggoalsofeliminatingallintra-regionaldutiesand
establishingacommonmarketdonotmeanswiftprogressislikely,asthelow-hanging
fruitoftradeliberalisationhasbeenpickedclean.
75
Thetoughestissuessurrounding
thecompetitivesectorsofmanufacturedexportsremainunaddressed,andthereluctance
ofmanymemberstatestoaddressthemofferslittlehopefortheconsensus-based
approachofASEANtoresolvethemquickly.Indeed,thereexistmanydisincentivesfor
theremovaloftariffsandNTMs.Forinstance,Singapore’szero-tariffapproachtotrade
meansaremovalofintra-ASEANtariffswouldbetantamounttoASEANopeningitself
toglobalcompetitionentirely,asothermemberscouldtranshipextra-regionalexports
throughSingaporetoevadetheirowntariffsondirectexportstonon-ASEANstates.76
Thisraisesthequestionofwhetherthe4ASEANWay’ofeschewingformal,legalistic
rulesinfavourofnon-bindingdecision-makingcanprovideaneffectivefoundationfor
regionaleconomicintegration,giventheinherentuncertaintyofanintegrationproject
whichimplicitlyallowsitsmemberstooptoutwhenevertheyplease.77Thisdilemmais
particularlyacutewhereintegrationaffectscontentiousdomesticissues,asinIndonesia,
wherethereisstrongresistancetoprovisionsregardingintra-regionallabourmobility
duetodomesticfearsofaninfluxofskilledworkersfromSingaporeandMalaysiataking
Indonesianjobs,stokedbylocalnationalistsseekingelection.
78
PresidentWidodo’s
stateddesiretoseeIndonesiaassertitsowninterestsoverthoseofASEAN,where
differencesexist,onlyexacerbatesthistendency.
79
Consequently,progressonlabour
mobilityatthesupranationallevelisparalysed-asisthecaseforareasoftheservices
sector.Flexibilityhindersanintegrationagendadependentuponconsistentenforcement
ofregulationsandinstitutionalarrangements,astherearefewsanctionstoincentivise
compliance.80Unlessconfronted,thisproblemwillonlydeepenasASEANeconomies
becomemoreservices-driven.
73
P.-C.Athukorala,4SoutheastAsianCountriesinGlobalProductionNetworks’,inB.Jetin,M.Mikic
(eds),ASEANEconomicCommunity:AModelforAsia-wideRegionalIntegration?,NewYork:Palgrave
Macmillan,2016,p.84.
74
J.Menon,A.C.Melendez,op.cit.,pp.685-686.
75
76
77
78
J.Pang,op.cit.,p.1.
L.Jones,op.cit.,p.656.
J.Dosch,op.cit.,pp.30,44-45.
A.Makin,op.cit.,pp.326-327.
79
M.Davies,4ASEANcentrality…’,op.cit.
80
J.Menon,A.C.Melendez,op.cit.,p.699.
