Debated in Parliament on 9 Jul 2013.
Mr R Dhinakaran asked the Minister for Trade and Industry (a) what is the progress of the ASEAN Framework Agreement on Services (AFAS) and whether it can be completed in totality by the 2015 deadline; and (b) which sectors within services has Singapore committed to for complete foreign equity participation.
Mdm Speaker, to date, Member States of the Association of Southeast Asia Nations (ASEAN) have completed eight out of 10 packages of services liberalisation under the ASEAN Framework Agreement on Services (AFAS). The eighth package was completed in August 2012, and ASEAN Member States are currently working to finalise the ninth package by the end of 2013 and the tenth package by 2015. ASEAN Member States remain fully committed to meet the eventual level of liberalisation that they have pledged to meet by 2015.
As of the eighth AFAS package of services liberalisation, Singapore has committed to open 71 sub-sectors under 10 services sectors for complete
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foreign equity participation.
Mdm Speaker, I thank the Minister for the response. Which of these sectors include Mutual Recognition Agreement (MRA) to recognise the professionals in ASEAN?
Mdm Speaker, the AFAS packages involve, in the jargon of the trade negotiators, Mode 1, 2 and 3. Mode 1 means providing services across borders; Mode 2 means you partake of services overseas; Mode 3 is opening up of markets, whether it is foreign equity participation, market access or national treatment; Mode 4 is what we call movement of natural persons, meaning allowing people to enter your country to provide services. Under AFAS, we have taken out Mode 4 for separate negotiations. Currently, ASEAN is negotiating an agreement on the movement of natural persons. Therefore, when we talk about Mutual Recognition Agreements (MRAs) to recognise professional and people in different sectors, that come under Mode 4. So far, we have been very careful in granting MRAs for very selective professional groups. The future negotiations will then come under this ambit, Mode 4 or the agreement for the movement of natural persons, and under which we will then have MRAs for different professions. This is on-going and it is not covered under the AFAS currently.
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