Project

Programme

Based in Beijing, PR China, The “Support of Regional Economic Cooperation in Asia” (SRECA) Project, commissioned by the Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, works with Cambodia, Lao PDR, Mongolia, PR China and Viet Nam in the context of sub-regional cooperation mechanisms such as the Greater Tumen Initiative (GTI) in Northeast Asia or the ASEAN-China Free Trade Area (ACFTA) in Southeast Asia.

Objective

The objective of the project is to improve the conditions for regional and global trade in selected focus countries – Cambodia, Lao PDR and Vietnam in the framework of ACFTA, and Mongolia in the framework of GTI – with the PR China, to ensure the equal inclusion of the countries’ interests in regional and global integration processes. Special focus is put on agricultural products.

Approach

The SRECA Project operates in three areas: 1) enhancing the access of small and medium enterprises (SMEs) to trade-related services; 2) strengthening the structures for cross-border (sub-)regional cooperation between the focus countries and China; 3) fostering regional and/or trilateral measures for knowledge exchange and experience among the focus countries and/or with China in the field of regional economic cooperation. In these closely interlinked areas, emphasis is put on trade facilitation and private sector development as tools of regional cooperation by providing assistance such as capacity building measures, facilitation of exchange mechanisms or sector studies.

Results achieved so far

The project builds on the results of the predecessor projects Regional Economic Cooperation (RCI) in Asia as well as Support for Economic Cooperation in Sub-Regional Initiatives in Asia (SCSI).

To support private sector development within ACFTA, the project and partners strengthened Cambodian and Vietnamese businesses in exporting of agricultural goods to the Chinese market. Seven product specific export guidelines were issued and introduced to the business community and public sector. They are utilised for training and are further updated by partners like the Vietnam Trade Promotion Agency (VIETRADE).

Sanitary and phytosanitary (SPS) issues between the focus countries and China were adressed in regional exchanges as well as reports. Upcoming interventions like trainings are in coordination between SRECA and other stakeholders in the sector.

The projects supported the introduction and implementation of trade promotion measures, such as Authorized Economic Operator (AEO) in Mongolia. In cooperation with the Asian Development Bank (ADB) and Korean Customs Service (KCS), regional experiences with the AEO system from the Republic of Korea were incorporated into a bill to renew the Mongolian Customs Act.

The GTI Trade and Investment Committee AEO Working Group was supported in drafting a regional GTI AEO mutual recognition agreement (MRA) among all member customs.

Training and advice to the GTI Secretariat led to further professionalisation in communication and project implementation. Continuous support to Mongolian GTI stakeholders increased the implementation capacity and inclusion of Mongolia in regional projects .

Greater Tumen Initiative

The Greater Tumen Initiative (GTI) is an intergovernmental cooperation mechanism which had been initiated by the United Nations Development Programme (UNDP) in 1991 and was subsequently founded in 1995 under the name Tumen River Area Development Programme. It has been aimed at strengthening economic and technical cooperation, as well as attaining greater growth and sustainable development in North-East Asia (NEA) in general and the Greater Tumen Region in particular. After the withdrawal of the DPRK in 1999, the four remaining founding members (People’s Republic of China, Mongolia, Republic of Korea (RoK), and Russian Federation) continued to cooperate under the GTI framework in order to achieve their common strategic objectives in the areas of transportation, trade and investment, tourism, energy, environment, local cooperation, and legal transition. While the establishment of a dialogue platform in the politically sensitive environment of the Tumen River area in itself is already a tremendous success, the GTI member countries agreed to further enhance their cooperation which is why the organisation is currently in the process of transferring itself into an independent legal entity. This process will lift the initiative to a recognised international organisation.

ASEAN-China Free Trade Area

The ASEAN–China Free Trade Area (ACFTA) is the largest free trade area in terms of population and third largest in terms of nominal GDP.  It is also the third largest in trade volume after the European Economic Area (EEA) and the US- Mexico-Canada Trade Area (USMCA – former NAFTA). The Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China (the ACFTA Agreement) was signed in November 2002 and came into effect in 2010. The ACFTA Agreement included provisions on economic cooperation and identified further areas for cooperation. In November 2015, all Parties agreed to sign on the Protocol to amend the Framework Agreement on Comprehensive Economic Cooperation and certain agreements thereunder between the ASEAN and the People’s Republic of China. ACFTA has since it came into effect eliminated a large part of all tariffs in the trade with China but stays underutilised in smaller economies. Awareness and knowledge exchange on trade facilitation mechanisms needs to be improved and facilitated within the private sector as well as among respective national Ministries and private business associations. SRECA implements activities in Cambodia, Lao PDR, and Viet Nam to promote SME development and improve agricultural exports to China.