ESTABLISHMENT: The Association of Southeast Asian Nations or ASEAN was established on 8 August 1967 in Bangkok by the five original Member Countries, Singapore, namely, and Indonesia, Malaysia, July 1995, Philippines, Thailand. Brunei 23 July 1997,


joined on 8 January 1984, Vietnam on 28 Lao PDR and Myanmar on

and Cambodia on 30 April 1999. The Chair of ASEAN is rotated among the ASEAN

countries on an annual basis, and acts as host of the Summit and key ministerial meetings. Thailand is the current Chair of ASEAN.

MEMBER COUNTRIES: 1. 2. 3. 4. 5. Burma Brunei Darussalam Cambodia Indonesia Laos 6. Malaysia 7. Philippines 8. Singapore 9. Thailand 10. Vietnam

OBJECTIVES: The ASEAN Declaration states that the aims and

purposes of the Association are:

STRUCTURE OF ASEAN: ASEAN . To accelerate economic growth.  The ASEAN Vision 2020. outward looking.  To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter. bonded together in in the dynamic ASEAN development Leaders and in a an partnership  In 2003. community of caring societies. resolved that ASEAN Community shall ASEAN Economic be established comprising Community. social progress and cultural development in the region. living in stability and prosperity. namely. agreed concert of Leaders on the 30th on a shared vision of ASEAN as a peace. ASEAN Security Community Cultural Community. Socioand ASEAN three pillars. Southeast Asian nations. adopted by the ASEAN Anniversary of ASEAN.

transnational crime. among others. including the relationship amongst the major powers. Major integration-related economic activities of ASEAN include the following: . democratic manner.ASEAN Security Community ASEAN Economic community ASEAN Sociocultural ASEAN has emphasized regional cooperation in these “three pillars”. The ARF discusses major regional security issues in the region. investment and a free flow of capital. The regional grouping has made the most progress in economic integration. development of preventive diplomacy and elaboration of approaches to conflicts. THE ASEAN SECURITY COMMUNITY: It shall aim to ensure that countries in the region live at peace with one another and with the world in a just. equitable economic development and reduced poverty and socio-economic disparities in year 2020. counter-terrorism. services. ASEAN established the ASEAN Regional Forum (ARF) in 1994. prosperous and highly competitive ASEAN economic region in which there is a free flow of goods. non-proliferation. The ARF’s agenda aims to evolve the promotion of confidence building. In recognition of security interdependence in the Asia-Pacific region. South China Sea and the Korean Peninsula. THE ASEAN ECONOMIC COMMUNITY: Its goal is to create a stable.

and Population. and regional economic integration primarily in the CLMV (cambodia. Trans-ASEAN transportation network consisting of major inter-state highway and railway networks. liberalisation of financial services and currency cooperation. inland waterway transport. human resource development. which consist of the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline Projects. ASEAN Work Programme on HIV/AIDS. Roadmap for Integration of Air Travel Sector.• • • • • • • • Roadmap for Financial and Monetary Integration of ASEAN capital market development. Visit ASEAN Campaign and the private sector-led ASEAN Hip-Hop Pass to promote intra-ASEAN tourism. and major civil aviation links.. Trans-ASEAN energy networks. capital account liberalisation. lao pdr. Interoperability and interconnectivity of national telecommunications equipment and services. envisages a Southeast Asia bonded together in partnership as a community of caring societies and founded on a common regional identity. principal ports. and sea lanes for maritime traffic. information and communications technology. Initiative for ASEAN Integration (IAI) focusing on infrastructure. Myanmar and Vietnam) countries. in consonance with the goal set by ASEAN Vision 2020. . Among the on-going activities of ASEAN in this area include the following: • • ASEAN Work Programme for Social Welfare. ASEAN SOCIO-CULTURAL COMMUNITY: The ASEAN Socio-Cultural Community. and Agreement on the ASEAN Food Security Reserve. Family.

• ASEAN Occupational Safety and Health Network. The objective of AFTA is to increase the ASEAN region’s competitive advantage as a production base geared for the world market.ASEAN Work Programme on Community-Based Care for the Elderly. 12.6%. • ASEAN University Network (AUN) promoting collaboration among seventeen member universities ASEAN. 11.3% and 3. 9. • ASEAN Work Programme on Preparing ASEAN Youth for Sustainable Employment and Other Challenges of Globalisation. the US.5%. the European Union and China and Korea continued to be ASEAN’s largest trading partners. The ASEAN Heads of State and Government decided to establish an ASEAN Free Trade Area or AFTA in 1992. • ASEAN TRADE PERFORMANCE: There was an increase in the ASEAN trade performance over the years. . • ASEAN Media Exchange Programme. • ASEAN Students Exchange Programme. Japan. Youth Cultural Forum. The share of ASEAN trade (exports + imports) with these countries in overall ASEAN trade in were 12.2%. respectively. and the ASEAN Young Speakers Forum. ASEAN Youth Camp and ASEAN Quiz. • The Annual ASEAN Culture Week.9 %. and • Framework for Environmentally Sustainable Cities (ESC) and ASEAN Agreement on Transboundary Haze Pollution.

To support the conduct of ASEAN’s external relations. Member Countries are working towards the total elimination of import duties on all products to achieve the ultimate objective of a free trade area. the expansion of intra-regional trade is giving the ASEAN consumers wider choice and better quality consumer products. STRUCTURES AND MECHANISMS: The highest decision-making organ of ASEAN is the Meeting of the ASEAN Heads of State and Government. Furthermore.A vital step in this direction is the liberalization of trade through the elimination of tariffs and non-tariff barriers among the ASEAN members. The AFTA Council has agreed that the target dates to achieve this objective will be in 2015 for the six original ASEAN Member Countries and 2018 for the newer Members. The ASEAN Ministerial Meeting (Foreign Ministers) is held annually. ASEAN promotes dialogue and consultations with professional and business organisations with related aims and purposes. there are 58 NonGovernmental Organizations (NGOs). This activity has begun to serve as a catalyst for greater efficiency in production and long-term competitiveness. EXTERNAL RELATIONS: . which have formal affiliations with ASEAN. The ASEAN Summit is convened every year. Moreover. ASEAN has established committees composed of heads of diplomatic missions.

ASEAN maintains contact with other inter-governmental organisations. and the Republic of Korea (ROK) within the ASEAN Plus Three process. culture and the arts. Consistent with its resolve to enhance cooperation with other developing regions. energy. tourism. China. finance and monetary. political issues and military concerns". THE FUTURE OF ASEAN: ASEAN is widely recognized in the international community as an exemplar of enlightened and successful regionalism. Japan. information and communication technology. and rural development and poverty eradication. social welfare and development. trade and investment. science and technology. ASEAN Plus Three relations continue to expand and deepen in the areas of security dialogue and cooperation. cooperation between the Southeast and Northeast Asian countries has accelerated with the holding of an annual summit among the leaders of ASEAN. health.The ASEAN Vision 2020 affirmed an outward-looking ASEAN playing a pivotal role in the international community and advancing ASEAN’s common interests. ASEAN today is the only subregional organization in Asia that provides a political forum where Asian countries and the world Powers can discuss and consider problems related to security. youth. environment. Building on the Joint Statement on East Asia Cooperation of 1999. labour. agriculture and forestry. There are now thirteen ministerial-level meetings under the ASEAN Plus Three process. . transnational crime.

and Sweden joined the EU. Subsequently these nations were joined by Denmark. Portugal. shall nourish a caring and cohesive ASEAN community. ASEAN faces the future with confidence. and Netherlands. 10 more countries were added. the United Kingdom. In 1991 the governments of the 12 member states signed the Treaty on European Union (commonly called the Maastricht Treaty). EUROPEAN UNION (EU): ESTABLISHMENT: The European Union was formally established on November 1. Finland.The expansion of ASEAN shall pave the way for a new synergy. The original members of the EC were Belgium. bringing the . Ireland. Italy. France. Greece. Its strong foundation and remarkable achievements will serve ASEAN well as it pursues higher goals at the dawn of the new millennium. and Spain. whose strength lies in fostering a common regional identity and a shared vision for the future. In 1995 Austria. The Maastricht Treaty transformed the EC into the EU. which became the European Community (EC) in 1967. It is the most recent in a series of cooperative organizations in Europe that originated with the European Coal and Steel Community (ECSC) of 1951. which was then ratified by the national legislatures of all the member countries. West Germany (now part of the united Germany). Economically. 1993. ASEAN shall move towards greater economic integration with emphasis on sustainable and equitable growth. In May 2004. Luxembourg. maximizing the cooperation potential for growth of the entire region".

total number of EU member countries to 25. Bulgaria 4. The 10 new members were Cyprus. Greece 12. Cyprus 5. Finland 9. Lithuania. and Turkey. France 10. The Czech Republic 6. Hungary. Belgium. Hungary 13. Germany 11. Republic of Ireland 14. 26. Latvia. Romania Slovakia Slovenia Spain Sweden The United Kingdom There are three official candidate countries. 24. 19. 2007. 20. Estonia 8. As of 2008 there were 27 countries in the EU.Austria 2. 18. MEMBER STATES: The European Union is composed of 27 independent sovereign countries which are known as member states: 1. Poland. Croatia. 17. Belgium 3. The European Union headquarters is located In Brussels. Italy 15. Denmark 7. Malta. Estonia. Latvia Lithuania Luxembourg Malta The Netherlands Poland 21. and Serbia are officially recognised as potential candidates. The disputed region of Kosovo has been granted similar status. 27. Portugal 22. Two more countries In eastern Europe— Romania and Bulgaria—joined the EU on January 1. 25. the western Balkan countries of Albania. Czech Republic. Slovakia. 16. 23. and Slovenia. . Montenegro. the Republic of Macedonia. Bosnia and Herzegovina.

OBJECTIVES. by reducing economic differences among its richer and poorer members. the European Regional Development Fund. These agencies provide money through loans or grants to promote development in the economically disadvantaged areas of the EU. FEATURES AND POLICIES OF THE EU:  Its principal goal is to promote and expand      cooperation among member states in economics and trade. and the European Investment Bank (EIB). which is equivalent to about 1 percent of the gross domestic product (GDP) of all the member states. However. foreign policy. apart from activities of the EIB. FUNDAMENTAL RIGHTS: . A major goal of the EU has been to establish a single market in which the economies of all the EU member states are unified. security and defense. The EU has sought to meet this objective in three ways: by defining a common commercial policy. and judicial matters. The EU has attempted to address regional economic differences through agencies such as the European Social Fund. this funding is limited by the size of the EU’s overall budget. and by stabilizing the currencies of its members. the Cohesion Fund. social issues.

little progress was made until an increase in oil prices brought about the worldwide economic depression of the 1970s. nonetheless. called pillars. social insurance. was reactivated. and similar matters. While the EU may be said to have an unwritten fundamental rights code. which had originally been established by the Rome treaty. At that time. REDUCING ECONOMIC DIFFERENCES: Under the 1957 Rome treaty that created the EEC. The original . the European Regional Development Fund was created and the moribund European Social Fund. there have. been efforts to establish a written catalogue. However. the signatories pledged to standardize policies regarding working conditions. GOVERNANCE: The EU is often described as being divided into three areas of responsibility. The Charter is not legally binding at present but would become so if the Lisbon Treaty comes into force. However the European Court of Justice does give judgements on fundamental rights derived from the "constitutional traditions common to the Member States.At present the EU does not have a codified catalogue of fundamental rights against which its legal acts might be judged. In 2000 the EU drew up the Charter of Fundamental Rights. In 1994 the EU established the more comprehensive Cohesion Fund for reducing the economic gap between its richest and poorest areas." and may even invalidate EU legislation based on its failure to adhere to these fundamental rights.

The main provisions of the treaty are: (1) The free movement of people. (2) The adoption by the EFTA of EU rulings relating to consumer protection. while the second consists of Common Foreign and Security Policy. Community pillar. business law. education. capital. Most activities of the EU come under the first. the only member of EFTA that did not join the EEA. and goods within the EEA. and Norway. research. and . services. maintains observer status. EUROPEAN ECONOMIC AREA: It is an association formed to establish a single market and free-trade area among countries of the European Union (EU) and the European Free Trade Association (EFTA). and social policy. comprising the 27 EU countries plus Iceland. however owing to changes introduced by the Amsterdam and Nice treaties. it currently only consists of Police and Judicial Co-operation in Criminal Matters. (3) The gradual liberalization of the EFTA’s agricultural policy. in 1992 and went into effect in 1994. The EEA is the one of the largest free-trade zones in the world. The third pillar originally consisted of Justice and Home Affairs. It has 30 members. Switzerland. Liechtenstein. The treaty forming the EEA was signed in Porto (Oporto).European Community policies form the first pillar. Portugal. the environment.

EUROPEAN FREE TRADE ASSOCIATION: The operation of the free-trade area among the EFTA states is the responsibility of the EFTA Council. This system was designed to reduce the amount that the currencies of member states could fluctuate against each other. it was hoped. sets the organization’s budget. a body that oversees the implementation of EEA policies in the EFTA states that joined the EEA. Among other things. would provide the foundations for a future monetary union and a single currency among member states. By evening out exchange rate fluctuations and stabilizing currencies. the ERM was intended to stimulate trade and investment among EU members. and to help prevent inflation by linking weaker national currencies to the strong and stable German national currency. Stabilizing Currencies: The European Monetary System (EMS) The European Monetary System (EMS) is the exchange rate structure of the EU. the deutsche mark. It was established in 1979 to stabilize exchange rates among members at a time when currencies were fluctuating dramatically because of the economic recession of the 1970s. The promotion of stable currencies. and handles relations with the European Union. The core of the EMS and the engine of stabilization is the Exchange Rate Mechanism (ERM).(4) The establishment of an EFTA surveillance authority. the council manages relations among EFTA members. which meets twice yearly and is made up of representatives from each member nation. .

The headquarters of the EFTA is in Geneva. EFTA is also served by a secretariat that deals with matters relating to the EEA. Mercosur takes its name from Mercado Comun Del Sur (Spanish for “Common Market of the South”). The organization has its origins in a trade . The EU failed to present a coherent front in either the Persian Gulf War or the former Yugoslavia when required to move from a common policy position to a common action. It is also sometimes referred to as the Southern Cone Common Market. A reluctance to cede national authority has been most pronounced in security policy. with spurts of activity separated by dormant periods. assist the council in its operations. The desire of some countries to build a common defense policy is resisted by others that insist that at best a European defense force can only be supportive of and subordinated to NATO. and cooperation with European statistical agencies. relations with countries outside Western Europe. such as the Budget Committee and the Economic Committee. THE FUTURE OF THE EUROPEAN UNION: Its progress.Several standing committees. Uncertainties about the future of the EU are underlined by concerns among member states over the potential loss of their ability to act independently. regional trade organization formed in 1991 to establish a common market and a common trade policy towards outside nations. has been uneven. Switzerland. however. MERCOSUR: ESTABLISHMENT: Mercosur.

Venezuela became a full member of Mercosur after being an associate member since 2004. Paraguay 3. Chile. Venezuela’s entry raised the combined annual gross domestic product of Mercosur to $1 trillion. In 2006. Peru. In 1990 these countries joined with Uruguay and Paraguay to form a free-trade zone. Ecuador. MEMBER COUNTRIES: 1. which allows unrestricted trade between the four countries. Venezuela Associate Members: Bolivia. Colombia. Brazil 5. in which they agreed to reduce or eliminate trade barriers between member countries and adopt a common trade policy toward outside nations. .treaty signed by Argentina and Brazil in 1986. Uruguay 4. In 1995 the member nations formed a customs union. Argentina 2.

monetary system.OBJECTIVES: Free transit of production of goods. Fixing of a common external tariff (TEC) and adopting of a common trade policy with regard to nonmember states or groups of states. industry. and depends on equal rights and duties being granted to all signatory countries. in order to ensure free competition between member states. a common market. then customs unification and. MERCOSUR initially targeted free-trade zones. transport and communications. TRADE: Most of South America's trade is intercontinental. where in addition to customs unification the free movement of manpower and capital across the member nations' international frontiers is possible. Western Europe. and Japan the major . the elimination of customs rights and lifting of nontariff restrictions on the transit of goods or any other measures with similar effects. taxes. and The commitment by the member states to make the necessary adjustments to their laws in pertinent areas to allow for the strengthening of the integration process. finally. services and factors between the member states with inter alia. and the coordination of positions in regional and international commercial and economic meetings. and any others they may agree on. with the United States. Coordination of macroeconomic and sectorial policies of member states relating to foreign trade. customs. services. exchange and capital. agriculture.

Brazil and Venezuela dominate the continent's export trade. Petroleum and its derivatives are the principal components of foreign trade. and Brazil accounts for much of the imports. fish meal. and oilseed.trading partners. coffee. South America contributes significantly to world trade in petroleum. bauxite. The continent's external trade in agricultural and mining commodities remains more important than the internal trade of these commodities. . copper. trade in these and other primary goods is essential to the underwriting of the continent's economic development.

the products from the free-trade zones can have the more favorable tax treatment established under MERCOSUR. industrial free-trade zones. In this way. the domestic tariff prevailing in each individual state. or. Safeguards Products produced or marketed in the free-trade zones of each member nation will be eligible for the safeguard system whenever this entails an increase not provided for in imports. Tariffs The member states can assess merchandise from these areas with the common external tariff used for MERCOSUR merchandise. can have the normal customs treatment prevailing in each nation. export processing zones. in the case of certain special products. all of which target providing merchandise marketed or produced in these areas with treatment different from that afforded in their respective customs territories. Incentives . in the case of certain special products. given to the merchandise produced in the normal customs zones of each member state or. but capable of causing damages or threatened damages to the importer country.FREE TRADE ZONES: Scope The member nations can have commercial free-trade zones. and special customs areas.

Brazil. but services. investment and government procurement markets for goods.In the event of the producing nation's granting special incentives for production from the free-trade zones that are not compatible with the corresponding guidelines established under the General Agreement on Tariffs and Trade .GATT. These two free-trade zones may continue normal operations until 2013. services and works. the member nation can make any adjustments needed to return the situation to equilibrium. going beyond the respective WTO obligations of both sides. EXTERNAL RELATIONS: Negotiations for an inter-regional Association Agreement between the EU and the Mercosur were launched in April 2000. The agreement is based on a region-to region approach and aims to be both comprehensive and ambitious. Argentina. No sector will be excluded from liberalisation. effective competition policies and will include a special agreement on sanitary and . Manaus and Tierra del Fuego Free-trade Zones: The actual implementation of MERCOSUR will not affect the special Manaus. In line with all modern EU FTAs. free-trade zones organized in light of their special geographic situations. and Tierra del Fuego. The agreement will cover not just goods. the EU-Mercosur FTA aims to ensure adequate protection of intellectual property rights. although product and sectoral sensitivities on both sides will be taken into account.

Latin America also faces a choice in its future. 16 negotiating rounds have been conducted. As of 2008. The other course is to concentrate on regional integration. These can be competing or complementary. Recognising the close ties between this negotiation and any outcome of the WTO Doha Development Agenda. Mercosur. It will also establish an effective and binding dispute settlement mechanism to help resolve trade frictions in the EU-Mercosur relationship. The European Union is the best example of this today. proponents for Mercosur have had a more difficult time arguing its benefits. As the global economy began lagging at the turn of the century. Mercosur made large gains in regional trade during its initial years. Begun in 1991 as an economic agreement between four nations in the Southern Cone. negotiations have only taken place at a technical level since 2004. With greater clarity on the likely result of the Doha Round it should be possible to relaunch full negotiations. there are two tracks of foreign diplomatic and economic policy that nation-states can pursue.phytosanitary standards. it could emerge stronger and continue to expand along the same lines . FUTURE OF MERCOSUR: With the absence of a bipolar international system and the rise of globalization. the "Common Market of the South" is an economic initiative that offers promise of economic development. Should Mercosur survive this test. The first is global integration.

What is it and will it derail Mercosur? The answer may be startling to some. The final chapter will focus on economic nationalism.politically and militarily as the European Union. The next chapter will focus on the problems the Common Market has faced since its inception and how the actors have dealt with them. The conclusion will summarize the arguments made and make a prediction on the future of Mercosur. This thesis will open by examining the evolution of Mercosur compared to the model of the European Union. . It will offer the corrective steps necessary for the project to succeed.

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