ASEAN 2015: Free market begins

It's barely two and a half years left before ASEAN becomes a "free-for-all" market for its 10-member countries. By this time, ASEAN countries are expected to be on their final stretch already in the implementation of measures toward this end, meaning industries have been prepped up and businessmen fully aware of what the market be like in 2015.

The ASEAN Economic Community (AEC), which was accelerated by the ASEAN Leaders in 2007 to 2015 instead of 2020, is the realization of the end goal of economic integration based on a convergence of interests of member countries to deepen and broaden economic integration through existing and new initiatives.

The AEC will establish ASEAN as a single market and production base making ASEAN more dynamic and competitive. As a single market and production base, it shall comprise with five core elements: free flow of goods, free flow of services, free flow of investment, freer flow of capital, and free flow of skilled labor. In addition, the single market and production base also include two important components, namely, priority integration sectors, and food, agriculture and forestry.

While ASEAN is a regional arrangement, it acknowledges that there is a superior body the WTO making it "consistent with multilateral rules as well as adherence to rules-based system for effective compliance and implementation of economic commitments."

It was six years in the making and preceded by phased liberalization in trade in goods and other measures to prepare the 10-member countries for this vision. AEC is the culmination of all these years of efforts.

But the Philippines, ASEAN's brightest star and fastest growing economy, is nowhere near there yet. Domestic industries almost cry in unison, "We are not ready". But when shall we be ready?

The agriculture sector, for instance, is the most obvious that even those not directly related would easily say this sector is ill-prepared for ASEAN 2015.

No less than Agriculture Secretary Proceso Alcala declared, "At this point in time, we cannot say that we are ready for the ASEAN Economic Community."

The country's agricultural exports include rice, corn, coconut, banana, pineapple, sugarcane and some vegetable crops. In 2012, agriculture and fisheries made up 11.5% of the gross domestic product and employed 32.2% of Filipinos or around 12.1 million people.

Farmers fear they cannot compete with products from other Southeast Asian neighbors which benefit from advanced farming technology and generous government support. In the case of rice, the cost of production for one kilo of unmilled rice or palay in Thailand is only P8 compared with the Philippines' P11 per kilo. Thailand, the world's largest rice exporter, has good infrastructure for irrigation and they produce their own fertilizer. The Thai government also provides huge subsidies for its agricultural sector.

In contrast, the Philippines, the word's largest rice importer to feed its over 100 million population, has no proper irrigation infrastructure and relies on imported fertilizer for rice.

The DA is just starting to make the necessary preparations to ensure regional and global competitiveness. Among the Philippines' strongest sectors are the banana, pineapple, mango and coconut industries.

Jollibee Foods Inc., the country's largest fastfood chain and perhaps one of the country's largest consumer of chicken, has joined calls to delay the country's participation in the ASEAN 2015.

"It is better to delay something for which we do not know and avoid the consequences," said JFC chief finance officer Ysmael Baysa.

Baysa stressed this as he raised the issue of the country's apparent lack of irrigation to farm production areas, technology and fertilizer issues when compared to the levels of development in the agricultuAir Jordan IV 4 Retro Denim