Framework for Commitments under AFAS at 52nd WC-FSL Meeting
The 52nd WC-FSL Meeting in February 2017 in Davao City endorsed the AEC 2025 Strategic Action Plan for Financial Integration, focusing on progressive liberalization of financial services under AFAS. The meeting discussed a request-offer approach and common targets for commitments. Previous meetings agreed on exploring a shading system and benchmarks for commitments. The co-chairs proposed a 5-color code system to reflect ownership limits and progress made in commitments.
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Presentation Transcript
FRAMEWORK FOR COMMITMENTS UNDER AFAS 52ndWC-FSL Meeting, 6 -7 February 2017, Davao City, Philippines 1
BACKGROUND The 2nd AFMGM in April 2016 endorsed the AEC 2025 Strategic Action Plan (SAP) for Financial Integration 2016 2025 Progressive liberalisation of financial services under AFAS/ATISA Review the request-offer approach Scope for common target for the level of commitments for 2016 2017 2
RECAP FROM 51ST WC-FSL MEETING The 51st WC-FSL Meeting in November 2016 agreed to: Explore a four-colour shading system Colour code the SOCs of each AMS Use both the 6th and 7th Packages in filling up the coolmap Present the coolmap to the 3rd AFMGM in April 2017 The 50th WC-FSL Meeting had agreed to continue exploring how to implement Option 1* after the coolmap has been developed * explore new benchmarks to implement the principle that an AMS new commitments should only apply to other AMS with new commitments in the same round or other AMS which have already similarly liberalised 3
CO-CHAIRS PROPOSED EDITS: 5-COLOUR CODE Helps to better portray progress made Reflects equity ownership limits where applicable Colour Category 1. None Or <= 100% foreign equity ownership limit (where there are such limits) 2. None except Or <= 75% foreign equity ownership limit (where there are such limits) 3. Unbound except 4. Other/specific measures Or <= 49% foreign equity ownership limit (where there are such limits) 5. Unbound Or <= 25% foreign equity ownership limit (where there are such limits) 4
CO-CHAIRS PROPOSED EDITS: * & DESCRIPTION Reflect commitments in the latest package with * and brief explanation in the coloured SOC Ensures all new commitments are reflected, even if there is no change in colour Cell Description in coloured SOC * e.g. Country A fully liberalised Mode 1 MAT insurance in 7th AFAS Protocol (change from Unbound to Unbound except in the SOC) * 5
EXAMPLE OF CO-CHAIRS PROPOSED EDITS Snapshot of consolidated coolmap Singapore Country A ... Limitations on MA 1 Limitations on NT 1 Limitations on MA 1 Limitations on NT 1 Modes of Supply Sector or Sub-sector A. Insurance and insurance related services 2 3 2 3 2 3 2 3 a) Life insurance including annuity, disability income, accident and health insurance services * (b) Non-life insurance services including disability income, accident and health insurance and contracts of fidelity bonds, performance body or similar contracts of guarantee. (c) Reinsurance and retrocession (d) Insurance intermediation comprising broking and agency services * e) Services auxiliary to insurance, comprising actuarial, loss adjustors, average adjustors and consultancy services 6
EXAMPLE OF CO-CHAIRS PROPOSED EDITS Snapshot of full MAT insurance liberalisation in coloured SOC Limitations on MA Limitations on NT Commitments made in this round *Full Liberalisation of MAT insurance (b) Non-life insurance services including disability income, accident and health insurance and contracts of fidelity bonds, performance body or similar contracts of guarantee. 1) Unbound except that insurers which are authorised or licensed to provide non-life insurance services in a Member State may provide insurance of maritime, aviation and transit ( MAT ) risks comprising: 1) As indicated in the MA column* (a) maritime shipping and commercial aviation and space launching and freight (including satellites), with such insurance to cover any or all of the following: the goods being transported, the vehicle transporting the goods and any liability arising therefrom; and (b) goods in international transit* 2) None except that compulsory insurance of Motor Third Party Liability and Workmen s Compensation may only be purchased from licensed insurance companies in Singapore 2) None 3) None except that foreign parties can only acquire equity stakes of up to 49% in aggregate in locally-owned insurance companies provided the acquisition does not result in any foreign party being the largest shareholder; and insurance companies must establish as branches or subsidiaries. 3) None 7
COMMENTS FROM MEMBERS Elements Co-Chairs Proposal Thailand Indonesia Colour-coding Five categories Five categories with more specific definitions Three categories None None except Unbound except Other/specific measures Unbound Mode 4 Not included, as WC-FSL has not been negotiating Mode 4 Propose to include Propose to include AFAS Packages Colour SOCs using commitments in 6th, 7th and future packages - Include commitments from 2nd AFAS package 8
PROPOSED NEXT STEPS Members submit further written comments, if any, by 14 February 2017 Co-Chairs circulate revised coolmap to members by 21 February 2017 Members fill up coolmap and coloured SOCs by 7 March 2017 Members finalise coolmap at 53rd WC-FSL Meeting on 14 March 2017 Submit coolmap to AFMGM on 6 April 2017 9
