Association of Southeast

Asian Nations

Anurag Singh, Manpria Singh, Sanya Bisht, Rohit Choudhary, Tesfaye, Tekaign

WHAT IS ASEAN?
Political and economic organisation of 10 countries
Formed on 8 August 1967
Founding members Indonesia, Malaysia, Philippines, Singapore
and Thailand
Present members Vietnam, Cambodia, Brunei, Laos and
Myanmar plus 5 founding members.
Land area - 4.4million square kilometres
ASEAN territorial waters - Three times larger than its land
counterpart
combined population - 625 million people (approx), 8.8% of the
world's population
Combined GDP - more than 2.6trillion US$
ASEAN as a single entity - Seventh largest economy in the world
HDI - 0.669b ((2013))
Head quarter Jakarta, Indonesia

PURPOSE ASEAN
DECLARATION
To accelerate economic growth, social progress, and cultural
development in the region
To promote regional peace and stability
To promote collaboration and mutual assistance on matters of
common interest
To provide assistance to each other in the form of training and
research facilities
To collaborate for the better utilisation of agriculture and industry
to raise the living standards of the people
To promote Southeast Asian studies
To maintain close, beneficial co-operation with existing
international organisations with similar aims and purposes.

REASON FOR
ASEAN
FORMATION

Common
fear of
communis
m

Thirst for
economic
developm
ent

FORUMS,
ASSOCIATION,
COMMUNITY,
UNIONS
ASEAN
CAPITAL MARKETS FORUM (ACMF)
REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP
(RCEP)
MONETARY UNION
COMMON EFFECTIEV PREFERENTIAL TARIFF (CEPT)
ASEAN FREE TRADE AGREEMENT(AFTA)
ASEAN CHARTER
ASEAN REGIONAL FORUM
ASEAN ECONOMIC COMMUNITY (AEC)
ASEAN POLITICAL-SECURITY COMMUNITY (APSC)
ASEAN POLITICAL-SECURITY COMMUNITY (APSC)

ASEAN CAPITAL MARKETS FORUM (ACMF)

Objectives:

Integration of
ASEAN stock
exchanges so as to
compete with
international
exchanges

Collaboration
among the seven
stock exchanges
ofMalaysia,
Indonesia,
Philippines,
Thailand,
Vietnam(2
exchanges),andSi
ngapore.

It includes 70% of
the transaction
values of the
seven ASEAN stock
exchanges.

REGIONAL COMPREHENSIVE
ECONOMIC PARTNERSHIP (RCEP)

10 ASEAN countries plus six countries (China, Japan, South

Korea, Australia, India, New Zealand) which have trade
agreement with ASEAN countries.

RCEP covers 45% of world population and about a third of

world's total GDP.

For example,New Zealandexports about 60% of its exports to

RCEP countries.

MONETARY UNION
The concept of an Asian Currency Unit (ACU) like European Currency
Unit
Asian Development Bank is exploring the feasibility and construction of
the basket.
Objective - financial stability of a regional economy, including price
stability.
Lower cost of cross-border business through the elimination of
currency risk for the members of the monetary union.
Greater flows of intra-regional trade would put pressure on prices,
resulting in cheaper goods and services.
Individuals benefit not only from the lowering of prices, savings by not
having to change money when travelling within the union.
Intra-ASEAN trade is growing, partly as a result of the ASEAN Free
Trade Area (AFTA) and the ASEAN Economic Community.

MONETARY UNION: Problems

ASEAN currently trades more with other

countries (80%) than among its member
countries (20%).

ASEAN member countries have different

levels of economic development, capacity and
priorities that translate into different levels of
interest and readiness.

ASEAN THREE PLUS

Created in 1997
China, Japan and South Korea
To improve the ties with China, Japan and South Korea
To counter balance the US influence in Asian Regio

ASEAN SIX PLUS

India, Australia, New Zealand, China, Japan, and South Korea

EAST ASIA SUMMIT 2011

US and Russia

COMMON EFFECTIEV PREFERENTIAL TARIFF

(CEPT)
Adopted in 1992
Phasing out tariffs
Goal to increase the region's competitive advantage as a
production base.
ASEAN
FREE TRADE
AGREEMENT(AFTA)
Laid the foundation
of AFTA
Signed on 28 January 1992 in Singapore

Agreement To Create

Free flow of goods between member states

Single market and production base
Competitive economic region
Region of equitable economic development
Region fully integrated into the global economy

Since 2007, ASEAN countries have gradually lowered their import

duties with member nations. The target is zero import duties by
2016.
New members have not fully met AFTA's obligations, but they are

FREE TRADE AGREEMENTS

Free trade agreements with China, Korea, Japan, Australia, New
Zealand, and India.
ASEAN-India - bilateral trade crossed the US$70 billion target in 2012
(target was to reach the level only by 2015).
ASEAN - China (expecting bilateral trade of $500billion by 2015).
The agreement with China created the ASEANChina Free Trade
Area(ACFTA), which went into full effect on 1 January 2010.
In addition, ASEAN is currently negotiating a free trade agreement with
theEuropean Union.
Taiwan has also expressed interest in an agreement with ASEAN but
needs
to
overcome
diplomatic
objections
from
China.

ASEAN CHARTER
Signed in 2007
Launched in 2008
Turns ASEAN into a legal entity like an EU-style community

Single free-trade area for the region encompassing 500 million

people

President of Indonesia- Susilo Bambang Yudhoyono :This is a

momentous development when ASEAN is consolidating,
integrating and transforming itself into a community. It is achieved
while ASEAN seeks a more vigorous role in Asian and global affairs
and concluded "Southeast Asia is no longer the bitterly divided,
war-torn region it was in the 1960s and 1970s"

SINGLE AVIATION MARKET

Unified and single aviation marketinSoutheast Asia.

Expected to liberalise air travel between member-states in

the ASEAN region.

The ASEAN Single Aviation Market policy supersedes

existing unilateral, bilateral and multilateral air services
agreements among member states which are inconsistent
with its provisions.

1 January 2009, full liberalisation of air freight services in

the region took effect.

ASEAN VISION 2020

Realisation of a single ASEAN community
Sees Southeast Asia to become a concert of nations which are
"outward looking, living in peace, stability and prosperity.
Provisions on peace and stability, being nuclear-free, closer
economic
integration,
human
development,
sustainable
development, cultural heritage, being drug-free, environment,
among others.
The Vision also aimed to "see an outward-looking ASEAN playing a
pivotal role in the international forums, and advancing ASEAN's
common interests.

ASEAN REGIONAL FORUM

Set up in 1994
ARF is a formal, official, multilateral dialogue in Asia Pacific region.
Multilateral forum for official consultations on peace and security
issues.
Characterized by minimal institutionalization, decision making by
consensus, and the use of both official and non-official diplomacy.
Objectives are to foster dialogue and consultation, and promote
confidence-building and preventive diplomacy in the region.
Australia was a founding member of the ARF
Australia has been supportive of efforts for the ARF to develop
preventive diplomacy tools, including as a key drafter of the ARF
Work Plan for Preventive Diplomacy.
Consists of 27 participants (July 2007) 10 ASEAN members, 10

 Enhancing
competitiveness for
economic
growth
and
development
through
closer
economic
integration,
characterized
by:
Single market &
production
base,
Equitable economic
development
&
Global integration

ASEAN SocioCultural
Community (ASCC)

Enhancing
peace,
stability,
democracy
and prosperity
in the region
through
comprehensiv
e political and
security
cooperation

ASEAN Economic
Community (AEC)

ASEAN Political-Security
Community (APSC)

ASEAN Community: The

3 Pillars
Nurture human,
cultural
and
natural
resources
for
sustained
development in
a harmonious
and
peoplecentred ASEAN

ASEAN POLITICAL-SECURITY COMMUNITY (APSC)

Aim - To ensure that countries in the region live at peace with
one another and with the world in a just, democratic and
harmonious environment.
Peaceful processes in the settlement of intra-regional
differences
APSC shall promote :
Political development;
Conflict prevention; conflict resolution;
Post-conflict peace building; and
Implementing mechanisms.
Shaping and sharing of norms
- Non-alignment;
- Fostering of peace-oriented attitudes of ASEAN Member
- Conflict resolution through non-violent means;
- Renunciation of nuclear weapons and other weapons of
mass
destruction and avoidance of arms race in Southeast
Asia

ASEAN POLITICAL-SECURITY COMMUNITY (APSC)

ASEAN Political-Security Community envisages the following
key
characteristics:
A Rules-based Community of shared values and norms;
A Cohesive, Peaceful, Stable and Resilient Region with shared
responsibility for comprehensive security
A Dynamic and Outward-looking Region in an increasingly
integrated and interdependent world.

ASEAN ECONOMIC COMMUNITY (AEC)

Scheduled for implementation in December 2015.
Goal of regional economic integration
Aims to create one of the largest single market economies in
the world.
Facilitating the free movement of goods, services, and
professionals.
Achieve higher levels of economic dynamism, sustained
prosperity, inclusive growth and integrated development of
ASEAN;
Tariff Liberalisation
Progressive liberalisation of ASEAN Member Countries
investment regime to achieve free and open investment by
2015.
Strengthening ASEAN Capital Market Development and
Integration
ASEAN Single Window
Key characteristics:

ASEAN SOCIO-CULTURAL COMMUNITY (ASCC)

Focuses on nurturing the human, cultural and natural resources for
sustained development in a harmonious and people-oriented ASEAN.
Lift the quality of life of member states
Respect for the different cultures, languages, and religions of the
peoples of ASEAN
ASCC envisages the following characteristics:
(a) Human Development
(b)Social Welfare and Protection
(c) Social Justice and Rights
(d)Ensuring Environmental Sustainability
(e) Building the ASEAN Identity
(f) Narrowing the Development

IMPORTANCE OF ASEAN
ASEAN commands far greater influence on Asia-Pacific trade,
political, and security issues than its members could achieve
individually.
$2.6 Trillion Economy - 3rd in Asia and 7th largest in the world.
2nd fastest growing economy in Asia

IMPORTANCE OF ASEAN
626 million Population - One of the largest market in the world
Geostrategic importance - Member countries located around Pacific
Ocean from where large shares of global trade pass through.

IMPORTANCE OF ASEAN
Over $1 trillion of infrastructure investment is needed in ASEAN
through 2020

ASEAN AND INDIA

ASEANIndia Free Trade Area(AIFTA) came into effect
from 1st January 2010

Commerce, Culture and Connectivity are the three pillars of

Indias robust engagement with ASEAN

Bilateral trade - $80 billion (approx by 2014)

ASEAN investments in India - USD 27.9 billion

Indian investments in ASEAN - $32.4 billion.

Look East Policy to Act East Policy

Source - http://www.mea.gov.in/in-focus-article.htm?
24216/Act+East+Indias+ASEAN+Journey

ASEAN AND UNITED STATES

The US and ASEAN are established economic partners
The United States became a Dialogue Partner country of ASEAN in
1977.
Almost $100 billion of US goods and services exports go to ASEAN

ASEAN AND UNITED STATES

7% of US jobs from exports are supported by exports to ASEAN More than 560,000 American jobs are directly or indirectly supported
by goods and services exports to ASEAN.

ASEAN AND UNITED STATES

ASEAN is the number one destination for US investment in Asia
Growth of investment in US from ASEAN has highest in the world

ASEAN AND UNITED STATES

Tourism

ASEAN AND UNITED STATES

Population growth of ASEAN Americans averages about 40% by
ethnicity.
In July 2009, Secretary Clinton signed the Treaty of Amity and
Cooperation in Southeast Asia (TAC) which has greatly enhanced U.S.
political relations with ASEAN.
The US-ASEAN Trade and Investment Framework Agreement (TIFA),
signed in 2006.
The US-Singapore Free Trade Agreement (FTA), implemented in 2007,
is Americas first FTA in Asia.
Cooperation - Governance and sustainable development, cybersecurity, education, English language training, disaster
management, human rights, nuclear non-proliferation, and maritime
security.
The United States is active in many ASEAN-led regional institutions
including the East Asia Summit (EAS), the ASEAN Regional Forum
(ARF), and the ASEAN Defence Ministers Meeting-Plus (ADMM-Plus).

ASEAN AND EUROPEAN UNION

EU has been actively engaged with the ASEAN
Negotiations with Singapore and Malaysia were launched in 2010,
with Vietnam in June 2012 and with Thailand in March 2013.
The European Commission finalised the negotiation of a bilateral F
T A with Singapore in October 2014.
ASEANrepresents the EU's 3rd largest trading partner outside
Europe (after the US and China) in 2013.

ASEAN AND EUROPEAN UNION

The EU isASEAN3rd largest trading partner after China and
Japan, accounting for around 13% of ASEANtrade.
The EU is by far the largest investor in ASEAN countries. EU
companies have invested an average 14.8 billion annually in
the region (2006-2013).
The EU's main exports toASEANare chemical products,
machinery and transport equipment.
The main imports fromASEANto the EU are machinery and
transport equipment, agricultural products as well as textiles
and clothing.

Thank you