Leaders of the Association of Southeast Asian Nations lauded the entry into force of the Asean Comprehensive Investment Agreement (ACIA).
The officials voiced their support for the agreement at the 20th Asean Summit held March 30-April 4 in Phnom Penh, Cambodia.
ACIA is the result of the merger of the Asean Investment Area (AIA) and Investment Guarantee Agreements (IGA) into a single comprehensive Asean investment agreement. It was signed three years ago and took effect on March 1, 2012.
ACIA aims to create a freer and more open investment regime to achieve Asean economic integration. “ACIA is envisioned to facilitate the transformation of Asean into an investment hub that would be able to compete effectively with other emerging economies,” Asean said in an April 4 statement.
Building upon the two previous agreements, ACIA reaffirms the national treatment and most-favored-nation treatment obligations, provides for enhanced protection elements, and incorporates new and forward-looking provisions.
Dr. Surin Pitsuwan, Secretary-General of ASEAN, said, “This will definitely provide for investor confidence and support the notion for Asean to be not only an attractive investment hub but also becomes elected as an investment destination of choice.”
ACIA adopts negative listing for its reservation and provides for further progressive reduction or elimination of reservations and improvement of investment regimes. The ACIA Reservation Lists (also called the ACIA Schedule) has been endorsed by the AIA Council Ministers.
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