better realisation of economies of scale, collective
efficiency and the organic formation of regional
innovation systems.
Regional value chains are not mutually
exclusive from GVCs. However, the development
and strengthening of regional value chains, as
facilitated by the formation of a highly integrated
and cohesive economy, is a key way to enhance
ASEAN’s GVC participation but is not an
alternative.
For newer ASEAN Member States, participation
in regional value chains can also act as a stepping
stone to their integration into GVCs. For more
developed ASEAN Member States, becoming
leaders in regional value chains is a stepping
stone towards leading at the global level.
The other elements in Characteristics 1 and
2 could contribute to enhancing ASEAN Member
States’ GVC participation either through the
removal of formal restrictions (market access
and discriminatory measures) or better trade
facilitation and regulatory coherence. A more
strategic approach to GVCs can also be pursued
through specific initiatives such as:
(i) Regional branding, road shows and other
joint marketing strategies;
(ii) Trade facilitation initiatives focusing on
both imports and exports;
(iii) Harmonisation with international
standards and support capacity building
for standards compliance;
(iv) Better information sharing; and
(v) Greater focus on connectivity, lessening
the trade restrictive effect and cost of
non-tariff measures (NTMs), and domestic
regulatory reform.
Sustainable Economic Development
ASEAN recognises the importance of sustainable
economic development as an integral part of
the region’s growth strategy. Protection of the
environment and natural resources supports
economic growth and vice versa. ASEAN will
actively promote green development by developing
a sustainable growth agenda that promotes the
use of clean energy and related technologies,
including renewable energy through green
technology, as well as enhances sustainable
consumption and production and including it in
national development plans.
Strategic measures include the following:
(i) Foster policies supportive of renewable
energ y and set collective targets
accordingly;
(ii) Develop a framework to support the
deployment and utilization of efficient
and low carbon technologies, and call for
international support to ensure ASEAN
access to mechanisms that foster low
carbon technologies more affordably;
(iii) Promote the use of biofuels for
transportation. This includes ensuring
free trade in biofuels within the region and
investment in R&D on third-generation
biofuels;
(iv) Enhance connectivity within ASEAN,
including through multilateral electricity
trade under the framework of the ASEAN
Power Grid (APG) and greater liquefied
natural gas (LNG) co-operation under the
Trans-ASEAN Gas Pipeline (TAGP);
(v) Identif y infrastructure investment
requirements to increase production and
reduce post-production losses to meet
projected future demand and ensure
food security, review existing investment
programmes and address investment
needs in the food and agricultural sectors;
(vi) D e v e l o p n e w a n d a p p r o p r i a t e
technologies, best practices and
management systems to ensure food
safety and address health/disease and
environmental issues, particularly in the
fast growing aquaculture, liv \