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Association of Southeast Asian Nations

Anurag Singh, Manpria Singh, Sanya Bisht, Rohit Choudhary, Tesfaye, TekaignWHAT IS ASEAN?

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

Source Wikipedia (6th September 2015)

PURPOSE ASEAN DECLARATIONTo 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.

ASEAN CAPITAL MARKETS FORUM (ACMF)

Objectives:

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.

REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP (RCEP)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 UNIONMONETARY UNION: ProblemsASEAN THREE PLUS

Created in 1997China, Japan and South KoreaTo improve the ties with China, Japan and South KoreaTo counter balance the US influence in Asian RegioASEAN SIX PLUS

India, Australia, New Zealand, China, Japan, and South Korea EAST ASIA SUMMIT 2011

US and RussiaCOMMON EFFECTIEV PREFERENTIAL TARIFF (CEPT)

Adopted in 1992Phasing out tariffsGoal to increase the region's competitive advantage as a production base.Laid the foundation of AFTA

ASEAN FREE TRADE AGREEMENT(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 officially considered part of the AFTA.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 Dialogue partners and Pakistan, Bangladesh, Sri Lanka, Mogolia, Timor-Leste, PNG, DPRK

ASEAN Community: The 3 PillarsASEAN 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-Renunciation of the use of force.

ASEAN POLITICAL-SECURITY COMMUNITY (APSC)

ASEAN Political-Security Community envisages the following keycharacteristics:

A Rules-based Community of shared values and norms; A Cohesive, Peaceful, Stable and Resilient Region with shared responsibility for comprehensive securityA 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 integrationAims 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 LiberalisationProgressive liberalisation of ASEAN Member Countries investment regime to achieve free and open investment by 2015. Strengthening ASEAN Capital Market Development and IntegrationASEAN Single Window

Key characteristics: a single market and production base, (b) a highly competitive economic region, (c) a region of equitable economic development, and (d) a region fully integrated into the global economy.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 statesRespect for the different cultures, languages, and religions of the peoples of ASEAN

ASCC envisages the following characteristics: Human DevelopmentSocial Welfare and ProtectionSocial Justice and RightsEnsuring Environmental Sustainability Building the ASEAN IdentityNarrowing the Development 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 ASEAN626 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 ASEANOver $1 trillion of infrastructure investment is needed in ASEAN through 2020

IMPORTANCE OF ASEANASEANIndia 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+JourneyASEAN AND INDIAThe 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, cyber-security, 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 MATTERS FOR AMERICA ASEAN AND UNITED STATES

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.

ASEAN AND EUROPEAN UNION

Thank you