Forum spells out need for firm partnership

H.E. Mr. Lee Yi Shyan, Singapore Minister of State, Ministry of Trade and Industry, Ministry of Manpower, opened the Forum jointly with H.E. Mr. Pushpanathan Sundram, deputy secretarygeneral of ASEAN subsequent to the introduction and welcome remarks by Mrs. Le Chau Giang, president of the ASEAN Cosmetics Association. High level trade policy makers of the ASEAN secretariat and of several Member States attended and provided strategic perspectives and progress on the establishment of the ASEAN Economic Community, as well as the progress in Free Trade Agreements between ASEAN and its trading partners. Executives from suppliers and producers of cosmetics, members of the ACA also presented their thoughts and suggestions on how the private sector could play a better role in the economic integration of ASEAN. The conference emphasised the urgent need for a stronger and more concrete partnership in fostering a free flow of cosmetics products not only in ASEAN but in Asia. The industry specifically expressed its concern over the implementation of the ASEAN Cosmetic Directive - the first harmonised technical regulation in the region, given the increasing trend of country-specific requirements. The industry called for the urgent attention and speedy action from ASEAN governments to address this challenge in order to ensure the free movement of cosmetic products in the region as spelt out as one of the objectives of the Directive. The industry also emphasised the need for ASEAN to adopt more streamlined and holistic control procedures and promote international practices of the supply chain. This, in return, can contribute a great deal to cost savings and generate benefits to consumers. Also agreed upon was the need to hold regular consultations between the industry and governments at ministerial and senior officer level in the future. In conclusion, the participants expressed the confidence that the ASEAN Economic Community will be realised if public and private sectors continue to work hand in hand. Participants expressed appreciation to the government of Singapore in supporting the Forum and to the ACA for playing a proactive role in promoting Public Private Partnership.

Alain Khaiat – Chairman of ASEAN Cosmetics Association

We have heard about the ASEAN Economic Community and its path to integration. The priority in 2011 will be set on further helping SMEs as they form the fabric of the ASEAN economy. The ASEAN Cosmetics Association has 70% of its membership among SMEs, clearly taking their point of view into consideration. As has been said before, cosmetics are among the safest consumer products placed in the market. This is thanks to the tight collaboration between ingredient suppliers and product manufacturers, to the sound cosmetic regulation (the ASEAN Cosmetic Directive) which controls ingredients that are banned or restricted and to the training given to all industry players (big and small) to help them develop safe products. The ASEAN Cosmetic Directive is the first harmonised regulation within ASEAN. It was signed in 2003 with an implementation between 2008 and 2011. It serves as a model to the other sectors on how harmonisation is possible. Nevertheless, we are faced today with some country-specific requirements that are not aligned with the ACD. As has been stated throughout the Forum, the industry has been expressing their expectation of stronger support from the ASEAN secretariat and ASEAN policy makers to prevent this de-harmonisation process. The addition of most of the requirements would add millions of dollars in cost to the industry and will not make the products safer for the consumers. Many speakers at the Forum highlighted the need for a strong partnership between the private sector and the public regulators and expected ACA to play a stronger role in this partnership. We would like to be a catalyst of a mindset change from country-specific dialogues to ASEAN-focused dialogues. The economic integration in ASEAN is owned by all economic players, public and private, industry and regulators. By creating this strong partnership we can ensure a fast integration, we can ensure that all regulations can and will be fully implemented by the industry and that ASEAN consumers will benefit from safer products of higher quality. That trade between ASEAN and the rest of the world will increase for the benefit of all. We heard on investment policies in Indonesia, Thailand and Vietnam, and these can be linked to a broader, holistic consideration. Investors have to feel welcome in the country where they consider investing. This includes visa procedures, immigration procedure at airports, the strict enforcement of the ACD without additional requirements, customs procedures, intellectual property, the investment policies and many others. ACA would like to encourage a stronger coordination among the various government agencies in all countries in order to simplify these procedures and make the investors feel welcome. In the ASEAN integration into the global trade, ASEAN has engaged in FTAs with six countries. We are very pleased that there is an on-going mechanism to engage the private sector in countries and that the ASEAN secretariat will consider developing a regional mechanism to engage the private sector at regional level. It is also very encouraging to know that we can use the FTA as a platform to raise the issues faced by the ASEAN industry in exporting to some of the trading partners. Through the Forum, it is clear that our policy makers have asked ACA to list the issues its members are facing, prioritise and submit them to the ASEAN secretariat and ASEAN policy makers for them to help find out solutions. Our policy makers also support the need to have more regular public and private dialogue where specific concerns of the industry can be raised and discussed. They also expressed the need to help develop a road show to communicate consumer protection and how the ACD is playing a role in giving consumers more choice, safer products, higher quality products for the wellbeing of ASEAN consumers.