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ASEAN

BY DEEPAK DIVYA EKTA GAGANDEEP

Regional Inter-governmental Organization

10 members 4.5million sq kms 570million people (growth1.5%)

Overview
8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) Founding Fathers of ASEAN: 5 Foreign Ministers Adam Malik (Indonesia), Narciso R. Ramos ( Philippines), Tun Abdul Razak (Malaysia), S. Rajaratnam (Singapore) and Thanat Khoman (Thailand)

ASEAN (Association of South East Asian Nations)


Establishment: 8 August 1967  Members: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam  Total Population: 567 million (2005)  Total Area: 4.5 mil. sq. kilometers (2005)  Combined GDP: US$1.07 trillion (2005)  Total Trade: US$1.44 trillion (2005)

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ASEAN BRIEF HISTORY


    

   

1967 ASEAN established 1976 Regional economic cooperation launched 1976-83 major projects ( AIP, AIC, PTA & AIJV) implemented but all failed. 1984 Brunei joined ASEAN 1989 A breakthrough in ASEAN economic cooperation as ASEANs strategy for collective FDI- dependent & export-oriented industrialization established. 1992 AFTA established and later AFTA-Plus. (1995 1999) Vietnam, Laos, Myanmar & Cambodia as members 1998 Hanoi Plan of Action (to achieve Vision 2020) 1998 2000 Going beyond AFTA (AFTA Plus, AIA)
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Bangkok Declaration


cooperation in the economic, social, cultural, technical, educational and other fields, promotion of regional peace and stability through abiding respect for justice and the rule of law and adherence to the principles of the UN Charter. Representing the collective will of the nations of Southeast Asia to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity

Fundamental Principles


Feb. 1967 - Treaty of Amity and Cooperation (TAC) : Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations The rights of every state to lead its national existence free from external interference, subversion, and coercion Non-interference in the internal affairs of one another Settlement of differences or disputes by peaceful manner Renunciation of the threat or use of force; and Effective cooperation among themselves.

ASEAN Community
 ASEAN

Political-Security Community Economic Community

 ASEAN  ASEAN

Socio-Cultural Community

WORK OF ASEAN SECURITY COMMUNITY


    

ZONE OF PEACE,FREEDOM AND NEUTRALITY DECLARATION ,KUALA LAMPYR 1971 TREATY OF AMITY AND COOPERATIONIN SOUTH EASTASIA,BALI,1976 ASEAN DECLARATION ON THE SOUTH CHINA SEA ,MANILA 1992 DECLARATION ON ASEAN CONCORD,BALI,1976 TREATY ON THE SOUTHEAST ASIA NUCLEAR FREE ZONE 1997

WORK OF ASEAN ECONOMIC COMMUNITY


     

ASEAN FREE TRADE AREA TRANS ASEAN TRANSPORTATION NETWORK ROADMAP FOR FINANCIAL AND MONETARY INTEGRATION OF ASEAN IN 4 AREAS TRANS ASEAN ENERGY NETWORK WHICH CONSIST OF THE POWER GRID AND THE TRANS AEAN GAS PIPELINE PROJECT AGRREMENT ON THE ASEAN FOOD SCURITY RESRVE INTEROPERABILITY AND INTERCONNECTIVITY OF NATIONAL TELECOMMUNICATION EQUIPMENT AND SERVICES INCLUDING THE ASEAN TELECMMUNICATION REGULATORS COUNCIL SECTORAL MUTUAL RECOGNITION ARRANGEMENT ON CONFIRMITY ASSESMENT FOR TELECOMMUNICATION EQUIPMENT

ASEAN SOCIO CULTURAL COMMUNITY


       

ASEAN WORK PROGRAMME FOR SOCIAL WELFARE,FAMILY AND POPULATION WORK PROGRAMME ON HIV AIDS ASEAN OCCUPATIONAL SAFETY AND HEALTH NETWORK ASEAN UNIVERSITY NEWORK COLLABORATING AMONF SEVENTEEN MEMBER UNIVERSITIES THE ANNUAL ASEAN CULTURAL WEEK,ASEAN YOUTH CAMP AND ASEAN QUIZ ASEAN MEDIA EXCHANGE PROGRAMME ASEAN STUDENTS EXCHANE PROGRAMME,YOUTH CULTURAL FORUM AND ASEAN YOUNG SPEKERS FORUM WORK PROGRAMME ONCOMMUNITY BASED CARE FOR THE ELDERLY

ASEANs Structure
      

ASEAN Summit ASEAN Coordinating Council ASEAN Community Councils ASEAN Sectoral Ministerial Bodies Secretary General ASEAN Secretariat ASEAN National Secretariat

Committee Permanent Representatives (CPR )

ASEAN SUMMIT
Comprise the heads of States  Supreme policy-making body of ASEAN  Deliberate, provide policy guidance and take decisions on key issues pertaining to the realization of the objectives of ASEAN  Address emergency situations affecting ASEAN


)AS
   

ASEAN COORDINATING COUNCIL

Comprise the ASEAN Foreign Ministers, meet twice a year Prepare the meetings of the ASEAN Summit Coordinate the implementation of agreements and decisions of the ASEAN Summit Coordinate with the ASEAN Community Councils to enhance policy coherence, efficiency and cooperation among them

ASEA Com


ASEAN COMMUNITY COUNCIL

Comprise the ASEAN Political-Security Community Council, ASEAN Economic Community Council, ASEAN Socio-Cultural Community Council Each ASEAN Community Council shall have under its purview the relevant ASEAN Sectoral Ministerial Bodies Each Member State shall designate its national representation for each ASEAN Community Council meeting

ASEAN SECTORAL MINISTERIAL BODIES


    

Shall function in accordance with their respective established mandates Implement the agreements and decisions of the ASEAN summit under their respective purview Strengthen cooperation in their respective fields in supports of ASEAN integration and community building Submit reports and recommendations to their respective Community Councils Such as Senior Official Meeting (SOM), Senior Official Meeting on Social Welfare and Development (SOMSWD), ASEAN Committee on Women

SECRETARY General of ASEAN


  

Appointed by the ASEAN Summit for a nonreneweable term of office of the 5 years Carry out the duties and responsibilities of the office in accordance with the ASEAN charter Facilitate and monitor progress in the implementation of ASEAN agreements and decisions, and submit an annual report Participate in meetings of the ASEAN Summit, the ASEAN Community Councils, the ASEAN Coordinating Council and ASEAN Sectoral Ministerial Bodies and other relevant meetings

AS


ASEAN Secretariat

Uphold the highest standards of integrity, efficiency, and competence in the duties performance  Not seek or receive instructions from any government or external party outside of ASEAN  Refrain from any action which might reflect on their position as ASEAN secretariat officials

Com COMMITEE of PERMANENT REPRESENTATIVES




    

Each ASEAN Member State shall appoint a Permanent Representative to ASEAN with the rank of Ambassador based in Jakarta Support the work of the ASEAN Community Councils and ASEAN Sectoral Ministerial Bodies Coordinate with ASEAN National Secretariat and ASEAN Sectoral Ministerial Bodies Liaise with SG of ASEAN and the ASEAN Secretariat on all subjects relevant to the work Facilitate ASEAN Cooperation with external partners Perform such other function

ASEAN National Secretariat


     

Serve as the national focal point Be the repository of information on all ASEAN matters at the national level Coordinate the implementation of ASEAN decisions at the national level Coordinate and support the national preparations of ASEAN meetings Promote ASEAN identity and awareness at the national level Contribute to ASEAN community building

ASEAN FREE TRADE AREA (AFTA)


What are objectives of AFTA?
1.

2.

AFTA was to liberalize of trade in Asean by progressively removing intra-regional tariffs and, ultimately, non-tariff barriers. AFTA would attract FDI to the region by

3.

presenting a larger coordinated market. AFTA will adapt ASEAN to changing international economic conditions, in particular the rise of regional trading arrangements (RTA) in the developed world.
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ASEAN FREE TRADE AREA (AFTA)


What is the framework of AFTA ?
 

The Common Effective Preferential Tariff (CEPT) Scheme is the centerpiece of the AFTA. A cooperative arrangement among ASEAN members that would reduce intra-regional tariff and remove NTBs (Non-Tariff Barriers) over a 15 year period starting from January 1, 1993. It covers all manufacturing products, including capital goods and processed agricultural products and those outside the definitions of agricultural products as defined in Article1 (7) of the agreement.
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Intra-Asean Trade: Exports (1995-2004)


1995 1997 1998 2000 2003 2004 Brunei 1,119.6 1,333.9 685.2 533.3 735.1 870.0 Cambodia ---855.4 1.211.5 4,089.0 Indonesi 36,435.2 36,266.7 22.777.6 26,733.6 24,520.4 34,838.0 Laos ----373.0 455.0 Malaysia 58,917.3 62,148.3 48,036.4 63,712.6 65,761.6 79,104.2 Myanmar ---1,106.1 875.4 981.9 Philipp 19,150.8 31,059.7 27,231.0 26,432.0 31,098.4 35,683.4 Singapore85,577.7 105,575.8 77.848.3 101,388.8 96,664.2 125,868.8 Vietnam ---14,483.0 20,176.0 26,660.0 Thailand ---67,889.0 78,105.0 94,041.0

(US$ mil.)

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Intra-Asean Trade: Imports (1995-2004)


(US$ mil)
Brunei Cambodia Indonesia Laos Malaysia Myanmar Philippine Singapore Thailand Vietnam 1995 1997 1,013.0 2,848.6 --4,218.9 5,413.0 --12,522.6 14,840.1 --2,489.1 4,872.8 24,537.6 30,396.1 8,820.8 8,121.6 --1998 2000 2003 2004 591.1 534.4 616.9 644.5 -549.1 1,694.1 673.5 4,559.2 6,781.2 8,030.3 11,686.0 -535.0 500.0 600.0 12,940.0 15,934.8 14,329.5 26,195.1 -1,113.3 967.8 951.1 4,461.0 4,955.4 6,398.1 8,355.9 23,674.6 33,291.3 31,226.5 37,456.0 5,438.1 10,306.4 12,616.3 15,834.6 -- 15,637.0 24,776.0 31,600.0

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AFTA Plus
AFTA is for tariff reduction only and tariff reduction is not enough  Need to expand liberalization from goods & and capital to services  Various measures beyond trade liberalization is needed such as increase in cooperation in - banking, finance, transport & telecoms, harmonization of standards, harmonization of customs procedures, removal of obstacles to FDI, rules for fair competition, etc. Since 2000/01, it spread to the following areas: - services (liberalization, facilitation,& cooperation) - industry (AICO, SMEs. IPR) - Infrastructure (transport, energy and telecoms) - Finance (CMI, ASEAN Surveillance Process, etc.) - ICT, tourism, GMS, food, and agriculture This AFTA Plus pushes on feasibility of Aseans economic cooperation and pointing to how it is made possible.

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ASEAN Investment Area (AIA)


 

- Created in 1995 and inaugurated in 1998 - Why AIA? Trade alone is not enough; decline in FDI after the regional crisis, and competition for FDI from China

Objectives:
 

  

- To realize goals to increase FDI flows in 2010 to make the region competitive, open and liberal investment area - Seeks private sector participation, free flow of capital, skilled labour & technology among members, transparency of investment policies, rules, procedures & administrative processes, coordinated ASEAN investment cooperation, facilitation & promotion - To give national treatment to all investors - To establish FDI statistics and monitor & Investment Portal - To organize FDI road shows
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OTHER FREE TRADE AREAS


ASEAN AUSTRALIA NEWZELAND FREE TRADE AREA  ASEAN CHINA FREE TRADE AREA  ASEAN INDIA FREE TRADE AREA  ASEAN JAPAN FREE TRADE AREA  ASEAN REPUBLIC OF KOREA FREE TRADE AREA


Real Economic Growth 2000-2008

India became a sectoral dialogue partner of ASEAN in 1992. The sectors were trade, investment, tourism and science and technology. Mutual interest led ASEAN to invite India to become a full dialogue partner of ASEAN during the fifth ASEAN summit in Bangkok in 1995 and a member of the ASEAN Regional Forum (ARF) in 1996. India signed an agreement in October 2003 for a free trade area (FTA) with Thailand. Under the agreement, 84 items can be imported from Thailand from April 2004 at 50 percent of the normal rate of duty prevailing in India.

In 2003, India acceded to the Treaty of Amity and Cooperation (TAC) in South-East Asia, signed a declaration to combat international terrorism, and agreed on comprehensive economic cooperation to step up their current trade turnover of $12 billion. The deepening of ties is beginning to show in the intra-country trade figures. India-ASEAN trade in 2002-03 was about $9.76 billion, about four times the 1993-94-trade figure of $2.5 billion. India's exports to ASEAN were $4.61 billion while imports came to about $5.15 billion in this period. Growth in India's exports to ASEAN in recent years has been much higher in comparison to other destinations. India's trade with the world in 2003 stood at $114.13 billion, ASEAN accounting for 8.56 percent of India's global trade.

Relative Importance of India's Trade with ASEAN Figures in $ million, for the year 2002-03
India's total global trade 114,131.56 India's total trade with ASEAN 9,768.71 Percentage share of India's trade with ASEAN 8.56%

Indias total global export 52,719.43

Indias total export to ASEAN 4618.54 Indias total import to ASEAN 5150.17

8.76%

Indias total global import 61,412.13

8.39%

Source: Export Import Data Bank

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