To further liberalise trade in services in ASEAN, Member Countries have decided to adopt two approaches to guide the current third round of negotiations, which started in 2002 and will be completed by 31 December 2004.  These approaches are the modified common sub-sector approach and the application of the ASEAN-X formula. 

Under the modified common sub-sector approach, a particular sub-sector would be identified as a common sub-sector if three or more Member Countries make commitments in this particular sector under the General Agreement on Trade in Services (GATS) or the ASEAN Framework Agreement on Services (AFAS).  The identified common sub-sector would be subjected to removal of all limitations for modes 1 (cross-border supply) and 2 (consumption abroad) and to progressive liberalisation for mode 3 (commercial presence) and mode 4 (presence of natural person). 

Under the ASEAN-X formula, two or more Member Countries may conduct negotiations and agree to liberalise trade in services for specific sectors or sub-sectors, while other countries may join at a later stage whenever they are ready.  This approach would be used to expand and deepen negotiations in all sectors and sub-sectors among Member Countries who are ready and willing to do so.  At their meeting, held on 12 September 2002 in Bandar Seri Begawan, the ASEAN Economic Ministers (AEM) endorsed the set of parameters to guide the implementation of the ASEAN-X formula under the AFAS.  As a follow-up, ASEAN Coordinating Committee on Services (CCS) is currently working to amend the AFAS to incorporate this formula for signing at the coming 35th AEM scheduled in September 2003. 

With a view to facilitate free flow of professional services in the ASEAN region by the year 2020, ASEAN leaders, at their 7th Summit held on 5 November 2001 in Bandar Seri Begawan, instructed officials to commence negotiations on Mutual Recognition Arrangements (MRAs) for Professional Services.  The CCS agreed to adopt a sectoral approach to develop MRAs for each professional service and is currently working with respective professional bodies in ASEAN Member Countries to come up with the appropriate modality for concluding MRA for each professional services.