TIMELINE

iNSTITUTIONALIZATION OF ECONOMIC
COOPERATION IN ASEAN REGION

ESTABLISMENT OF FREE TRADE

1970's
ASEAN member countries raised the idea of establishing free
trade/commerce area.

LIFTING OF TARIFF

1987
Tariff was lifted to establish a free trade area among ASEAN
member countries which was officially recorded in Manila
Declaration (1987) (Mahiwo et. al, 2013)

SIGNING OF AFTA AND CEPT

1992
Establishment of ASEAN Free Trade Area (AFTA)
January 28, the Common effective Preferential tariff (CEPT)
signed.

CEPT IMPLEMENTATION

1994
The CEPT implementation was extended for new member
countries (Vietname - 2006, Myanmar - 2008, Cambodia - 2010).

AFAS
1995
The ASEAN framework Agreement on trade and Services was
adopted which aims to liberalize trade and services. (Mahiwo et.
al, 2013).

AICO
1996
Asean countries adopted the program called ASEAN Industrial
Cooperation. The program aims to create partnership that aims
to create an enticing environment with low tariff privileges.

ASEAN 201
 TIMELINE

iNSTITUTIONALIZATION OF ECONOMIC
COOPERATION IN ASEAN REGION

ASEAN INVESTMENT AGREEMENT

1998
Adopted the ASEAN Investment Agreement framework which aims to
enhance the region's competitiveness in attracting direct investments.
(Mahiwo et. al, 2013)

Semptember 1998, ASEAN 6 agreed to shorten the AFTA implementation

duration by one year (2003 to 2002).

AHTN

2003
August 7, 2003, Protocol signing of ASEAN Harmonized Tariff
Nomenclature (AHTN)

CEPT RULES OF ORIGIN

2004
jANUARY 1, CEPT rules of origin and its operational certification
procedures have been revised and implemented.

AEC BLUEPRINT
2007
ASEAN adopted the Comprehensive Plan of the ASEAN Economic
community (AEC blueprint) with the aim of speeding up regional
integration by 2015

FOREIGN DIRECT INVESTMENT

2008
ASEAN attracted 60 Billion USD worth of Foreign Direct
Investment.

ASEAN COMPREHENSIVE INVESTMENT

AGREERMENT
2009
Signed the ASEAN Comprehensive Investment Agreement
which covers liberalization, protection, facilitation and
promotion (Mahiwo et. al, 2013).
Major Trading partners were China and Hongkong, the EU,
Japan, and the U.S. (Ramachandra, 2011 in Mahiwo et. al 2013).

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iNSTITUTIONALIZATION OF ECONOMIC
COOPERATION IN ASEAN REGION

ATIGA
2010
May 17, the ASEAN trade in Goal Agreement (ATIGA) took
effect.
FDI is estimated to have acquired nearly 70 Billion USD.
The Nominal GDP of ASEAN was more than 1,843 Billion which
ranked 9th in the World and 3rd in Asia (Mahiwo et. al, 2013)

Impact of Globalization in ASEAN Economy

Globalization has definitely created an enormous effect in ASEAN economy both
positive and negative. The positive effects of globalization in the region has definitely
uplifted the economy of ASEAN. The increase in FDI, knowledge transfer, improvement
in the technology and facilities, fostering and openness in relationship within ASEAN and
outside of the region etc., are some of the benefits that the ASEAN economy benefitted f
from. However, there are also negative effects of globalization with in ASEAN such as
increase in foreign debts, unfair competition (both within the member countries and
outside of the ASEAN), The more advance economy with in the ASEAN has definitely has
clear advantage over those who are less advance. Globalization can also lead to over-
dependence on Foreign Direct Investments which is unstable for the economy in the
long term. ASEAN countries needs to strengthen its political and economic institutions
in order for the countries to fully enjoy the benefits of globalization.

REFERENCES:

Mahiwo S., Aros M. , Thi Thu Huang, N., Truy N.,Binh, C.H.,Dung, N.X. Tang, L. Q., (2013).
ASEAN Studies I: Introduction to ASEAN Studies. University of the Philippines Open University.
The Philippines.

ASEAN 201
SUBMITTED BY: CRISTOPHER C. SALINAS
SUBMITTED TO: DR. ROLANDO TALAMPAS,
PROFESSOR, INTRODUCTION TO ASEAN