Association of Southeast Asian

Nations(ASEAN)

Amritansh
1804305003
MBA(ITLM)
International Business
The Establishment of
ASEAN

Bangkok, 8 August 1967

Location of ASEAN countries
Flag Of ASEAN
 Goals of ASEAN
• To accelerate the economic growth, social progress
and cultural development in the region.
• To provide assistance to each other in the form of
training and research facilities in the educational,
professional, technical and administrative spheres.
• To promote regional peace and stability based on
rules of law and the principle of united charter.
• To maintain close and beneficial cooperation with
existing international and regional organizations.
 About ASEAN
ASEAN has 10 dialogue partners –
• Australia
• Canada
• China
• the European Union
ASEAN +3
• India
ASEAN +6
• Japan
• Russia
• New Zealand
• South Korea
• the United States.
 Pillars of ASEAN
ASEAN

SOCIO-CULTURAL
COMMUNITY

COMMUNITY

COMMUNITY
ECONOMICS
SECURITY

In 2003, the group agreed on the pursuit of three pillars or community

 ASEAN Security Community

• Based on the conviction that outstanding

territorial disputes should not escalate into
armed confrontation.

• The ASEAN Regional Forum (ARF), which was

established in 1994, is the organization that
carries out coordination of security & Foreign
policy.
 ASEAN Economic Community

• To create a common market & production base

within ASEAN states & to aid social & economic
development in the region.

• ASEAN has focused on creating a Free Trade Area

(FTA) for investment, labor & services.
 ASEAN Socio-cultural Community

• Human Development
• Social welfare and protection
• Environmental Sustainability
• ASEAN Identity
• Social Justice and rights
 ASEAN Free Trade Area
Launched in January 1992

• Eliminating tariff barriers among the southeast Asian

countries.
• Integrating the ASEAN economies into a single
production base .
• Creating a regional market of over 500 million people.
• ASEAN cooperation has resulted in greater regional
integration.
• Within three years from the launching of AFTA, exports
among ASEAN countries grew from us$ 43.26 billion to
almost us $80billion in 1996.
 ASEAN-China Free Trade Area

•The Agreement on Trade in Goods was signed in 2004

and implemented in July 2005 by all the member
countries.

• Under the agreement, the six original ASEAN

members and China decided to eliminate tariffs on 90
percent of their products by 2010, while Cambodia,
Lao PDR, Myanmar, and Vietnam – commonly known
as CLMV countries, had until 2015 to do so.
•Since the signing of the agreement, China has
consistently maintained its position as ASEAN’s
largest trading partner.

•By 2020, ASEAN and China are committed to

achieving a joint target of US$1 trillion in trade and
US$150 billion in investment through ACFTA.
 ASEAN-Republic of
Korea Free Trade Area
• The ASEAN-Korea Trade in Goods Agreement was
signed in 2006 and entered into force in 2007.

• It sets out the preferential trade arrangement in

goods among the ASEAN Member States and
South Korea, allowing 90 percent of the products
being traded between ASEAN and Korea to enjoy
duty-free treatment.
•The Agreement provides for progressive reduction
and elimination of tariffs by each country on almost all
products.

•Under the Trade in Goods Agreement, ASEAN-6

including Brunei Darussalam and Korea have
eliminated more than 90 percent of tariffs by January
2010.
ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

• The ASEAN–Japan Comprehensive Economic

Partnership (AJCEP) came into force in December
2008.

• The Agreement covers trade in goods, trade in

services, investment, and economic cooperation.

• The FTA provides for the elimination of duties on

87 percent of all tariff lines and includes a dispute
settlement mechanism
 ASEAN-India Free
Trade Area

• The ASEAN-India Trade in Goods Agreement

entered into force on January 1, 2010.

• The signing of the agreement paved the way

for the creation of one of the world’s largest
free trade area market, creating opportunities
for over 1.9 billion people in ASEAN and India
with a combined GDP of US$4.8 trillion.
•AIFTA creates a more liberal, facilitative market access,
and investment regime among the member countries.

•The tariffs on over 4,000 product lines were agreed to

be eliminated by 2016, at the earliest.
 ASEAN-Australia-New Zealand Free Trade
Area

•The agreement establishing the ASEAN-Australia- New

Zealand Free Trade Area (AANZFTA) entered into force in
January 2010.

•The FTA is the most comprehensive agreement

covering a wide range of issues including trade in goods
and services, investment, intellectual property,
competition as well as economic cooperation.
•Since its inception, the AANZFTA has encouraged
trade in goods and services by removing barriers and
reducing transaction costs for companies wanting to
do business in member countries.

•According to the agreement, 99 percent of the

Australia-New Zealand trade in goods with Indonesia,
Malaysia, the Philippines, and Vietnam will be duty-
free by 2020.

•Upon full implementation in 2025, almost all trade

between the member countries will be free of tariff,
helping businesses save millions of dollars in tariff
duties each year.
 Export & Import data
(Asean with India )
50000
44457
42308
41516
40000 37885
31294
30000
26428
20000

10000

0
Export (USD Million) Import (USD Million)

2015 2016 2017

 ASEAN Formal Summits
No. Date Country Host city Host
leader

23–24
1st February  Indonesia Bali President
1976  Suharto

11–15
33 rd
November Prime
2018 Minister
Singapore Singapore  
Lee Hsien Loo
ng
Prime
34th April/May  Thailand Chiang Mai Minister
2019  Prayut
Chan-o-ch
a
 Invitation to ASEAN Leaders in
26.01.2018(Republic day) of India

• https://timesofindia.indiatimes.com/india/india-to-in
vite-heads-of-10-asean-nations-for-republic-day-cele
btations/articleshow/59497883.cms
 References
• www.aseanexchanges.org
• www.aseanmarketplace.net
• emerging-markets-research.hktdc.com
• ASEAN Connectivity - ASEAN | ONE VISION ONE IDENTITY ONE COMMUNITY
asean.org
• Association of South East Asian Nations (ASEAN) - Trade - European Commissio
n
ec.europa.eu
• 4 ASEAN infographics: population, market, economy - ASEAN UPaseanup.com
• WTO | Publications - Trade Agreements in Southeast Asiawww.wto.org
• Economy & Trade Archives - ASEAN Business Newswww.aseanbriefing.com
• ASEAN: Latest News on ASEAN | Top Stories & Photos on Economictimes.com
economictimes.indiatimes.com
• (PDF) Association of Southeast Asian Nations (ASEAN)www.researchgate.net
• The role of Asia Trade in the international economy | Asia Houseasiahouse.org
 Conclusion
• With the establishment of ASEAN the economy of the
countries became strengthen.

• ASEAN is only sub-regional organization in Asia that

provide a political forum where Asian countries and the
world power can discuss their political issues, securities
related problems and military concerns.

• As we move towards the year 2020, ASEAN will have

derived its strength not only from unity among
governments but unity among its diverse peoples.
Thank you