ASEAN

2.  Established on 8 August 1967 in Bangkok, Thailand, with the signing of the
ASEAN Declaration.
 Founding Fathers of ASEAN are Indonesia, Malaysia, Philippines,
Singapore and Thailand.
 Member Countries are Brunei Darussalam, Cambodia, Indonesia, Laos,
Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam, Australia
and New Zealand.
AIMS AND PURPOSES:-
 To accelerate the economic growth, social progress, cultural and scientific
development by active collaboration and mutual assistance
 To promote regional peace.

3. Focus: ASEAN-Australia-New Zealand
(Free Trade Area)
 On 27 Feb 2009, the trade ministers of all ten ASEAN
members, Australia and New Zealand signed the Agreement
Establishing the ASEAN-Australia-New Zealand Free Trade
Area (AANZFTA).

4.  It is a geo-political and economic organization of ten countries .
 Covers a land area of 4.46 million km², 3% of the total land area of
Earth, with a population of approximately 600 million people, 8.8%
of the world population.
 GDP(PPP)-US$ 3,084 billion
 The average of economic growth of ASEAN-5 during 1989–2009
were Singapore with 6.73 percent, Malaysia 6.15 percent, Indonesia
5.16 percent, Thailand 5.02 percent and the Philippines 3.79 percent.

5.  ASEAN has concluded free trade agreements with China
(expecting bilateral trade of $500 billion by 2015), Korea,
Japan, Australia, New Zealand and most recently India. The
agreement with People's Republic of China created the
ASEAN–China Free Trade Area (ACFTA)

6. ASEAN STATISTICS

7. Department of Commerce
COUNTRY WISE ASEAN EXPORT
Export :: Region-wise all countries Dated: 2/1/2012
Region: ASEAN Values in US$ Million
S.No. Country 2009-2010 2010-2011 %Growth
1 INDONESIA 3,063.36 6,245.33 103.87
2 MYANMAR 207.97 334.42 60.81
3 THAILAND 1,740.16 2,792.80 60.49
4 VIETNAM 1,838.95 2,659.56 44.62
5 CAMBODIA 45.54 63.91 40.33
6 MALAYSIA 2,835.41 3,956.98 39.56
7 SINGAPORE 7,592.17 10,302.71 35.7
8 AUSTRALIA 1,384.96 1,717.03 23.98
9 PHILIPPINES 748.77 882.74 17.89
10 BRUNEI 24.44 25.29 3.48
11 LAO PD RP 16.93 14.06 -16.94
12 NEW ZEALAND 255.17 194.00 -23.97

8. Department of Commerce
COUNTRY WISE ASEAN IMPORT
Import :: Region-wise all countries Dated: 2/1/2012
Region: ASEAN Values in US$ Million
S.No. Country 2009-2010 2010-2011 %Growth
1 VIETNAM 521.81 1,064.90 104.08
2 CAMBODIA 5.05 8.01 58.57
3 THAILAND 2,931.52 4,272.09 45.73
4 PHILIPPINES 313.07 429.39 37.15
5 NEW ZEALAND 499.21 625.21 25.24
6 MALAYSIA 5,176.78 6,523.58 26.02
7 INDONESIA 8,656.66 9,918.63 14.58
8 SINGAPORE 6,454.57 7,139.31 10.61
9 AUSTRALIA 12,407.37 10,789.00 -13.04
10 MYANMAR 1,289.80 1,017.67 -21.1
11 BRUNEI 428.65 234.17 -45.37
12 LAO PD RP 20.05 0.22 -98.91
Total 25,797.96 30,607.96 18.64

9. Department of Commerce
COMMODITY WISE ASEAN EXPORT
Export :: Region-wise all commodities
Dated: 2/1/2012
Values in US$ Million
Sorted on HSCode
Region: ASEAN
S.No. HSCode Commodity 2009-2010 2010-2011 %Growth
RESIDUES AND WASTE FROM THE FOOD INDUSTRIES;
23 23 752.63 882.84 17.3
PREPARED ANIMAL FODER.
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF
27 27 THEIR DISTILLATION; BITUMINOUS SUBSTANCES; 4,080.74 8,286.34 103.06
MINERAL WAXES.
29 29 ORGANIC CHEMICALS 894.03 1,290.81 44.38
NATURAL OR CULTURED PEARLS,PRECIOUS OR
71 71 SEMIPRECIOUS STONES,PRE.METALS,CLAD WITH 973.29 948.26 -2.57
PRE.METAL AND ARTCLS THEREOF;IMIT.JEWLRY;COIN.
NUCLEAR REACTORS, BOILERS, MACHINERY AND
83 84 919.66 1,150.05 25.05
MECHANICAL APPLIANCES; PARTS THEREOF.
VEHICLES OTHER THAN RAILWAY OR TRAMWAY ROLLING
86 87 370.31 1,321.55 256.87
STOCK, AND PARTS AND ACCESSORIES THEREOF.
88 89 SHIPS, BOATS AND FLOATING STRUCTURES. 1,539.91 2,396.62 55.63

10. Department of Commerce
COMMODITY WISE ASEAN IMPORT
Import :: Region-wise all commodities
Dated: 2/1/2012
Values in US$ Million
Sorted on HSCode
Region: ASEAN
S.No. HSCode Commodity 2009-2010 2010-2011 %Growth
ANIMAL OR VEGETABLE FATS AND OILS AND THEIR
15 15 CLEAVAGE PRODUCTS; PRE. EDIBLE FATS; ANIMAL OR 4,233.83 4,766.26 12.58
VEGETABLE WAXEX.
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR
27 27 6,374.28 7,581.19 18.93
DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES.
29 29 ORGANIC CHEMICALS 1,323.55 1,934.53 46.16
39 39 PLASTIC AND ARTICLES THEREOF. 706.45 1,100.53 55.78
NUCLEAR REACTORS, BOILERS, MACHINERY AND
83 84 2,353.14 2,775.61 17.95
MECHANICAL APPLIANCES; PARTS THEREOF.
ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS
THEREOF; SOUND RECORDERS AND REPRODUCERS,
84 85 2,375.56 3,151.28 32.65
TELEVISION IMAGE AND SOUND RECORDERS AND
REPRODUCERS,AND PARTS.

12. REGION – WISE SHARE OF INDIA’S
EXPORT (2010-2011)

13. REGION – WISE SHARE OF INDIA’S
IMPORT (2010-2011)

14. GROWTH RATE (%) IN INDIA’S TRADE
WITH MAJOR REGIONS (2010-2011)

15. INDIA’S TRADE WITH MAJOR REGIONS
OF THE WORLD (2010-2011)

17. Market Access Initiative
(MAI)
Objectives:
• To promote India’s Export on sustained basis during 10th five year plan.
• To evolve specific strategy for enhancement of export accessing new market or
increasing share in existing market.
• Specific market, specific product approach through market study/survey.
Scope:
• To identify priorities of research relevant to Dept. of Commerce and sponsor studies
consistent with priorities;
• WTO studies for evolving WTO compatible strategy
• To support EPCs/Trade Promotion Organizations in undertaking market
studies/survey for evolving proper strategy;
• To support marketing projects abroad on Focus Product – Focus country basis.

18. Funded Marketing Activities
-Opening of showrooms.
- Opening of warehouses.
- Display in international Dept. stores.
- Publicity campaign and Brand promotion.
- Participation in trade fair.
- Research & Product development.
- Reverse visits of the prominent buyers from project focus countries.
- Export potential survey of the states.
- Registration charges for product registration abroad for pharmaceuticals, bio-
technology and agro-chemicals.
- Testing charges for engineering products abroad.
- Support cottage and handicrafts units.
- Support recognized associations in industrial clusters for marketing aboard.

19. Financial Assistance
Financial assistance may be given to:
• Departments of Central Government and organization of Central/ State
Governments
• Export Promotion Councils
• Registered Trade Promotion Organizations
• Commodity Boards
• Apex Trade Bodies recognized under EXIM-Policy of Government of
India
• Recognized Industrial clusters
• Individual exporters (only for testing charges of engineering products
abroad and registration charges of pharmaceuticals, bio-technology and
agro-chemicals)

20. Marketing Development Assistance
(MDA)
 It is operated under Department of Commerce to stimulate and diversify
the country’s export trade, through below mentioned activities:
(i) Assist exporters for export promotion activities abroad.
(ii) Assist Export Promotion Councils (EPCs) to undertake export promotion activities
for their product(s) and commodities.
(iii) Assist approved organizations/trade bodies in undertaking exclusive
nonrecurring innovative activities connected with export promotion efforts for their
members.
(iv) Assist Focus export promotion programmes in specific regions broad like Focus
(LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN + 2) programmes.
(v) Residual essential activities connected with marketing promotion efforts abroad.

21. Eligible activities under Focus Area Programs
S.No. Permissible items of expenditure under Percentage of funding under
MDA MDA
1. Participation in International Fairs/exhibitions organized As applicable in non-focus area with
by EPCs etc. ceiling of Rs. 10 lakhs.
Sponsoring BSMs/Trade delegations abroad by EPCs etc.
2. Reverse trade visits of prominent foreign buyer / delegates
/ journalists to India for participation in BSMs/exhibitions
etc.
i) Return air-fare travel expenses in economy excursion i) 100% (subject to a ceiling of Rs.
class upto the entry point in India. 60,000/-
ii) Venue charges (ii)&(iii) As applicable in non-focus area
iii) All other organizing expenditure with ceiling of Rs. 10 lakhs.
All other expenses relating to stay, per diem allowance,
local travel etc. of delegates invited from abroad are to be
met by the EPC or by sharing between the organizers and
delegates.
3. Translation facilities in foreign languages and vice versa. 60%
4. Product catalogue in CD ROM 60%

22. INDIA & ASEAN
 India became a sectoral dialogue partner of ASEAN in 1992.
 In August 2009, India signed a Free Trade Agreement (FTA) with the
ASEAN members in Thailand.
 India’s trade with ASEAN countries has increased from US$ 30.7
billion in 2006-07 to US$ 45.34 billion in 2009-10.
 Singapore continues to be the single largest investor in India amongst
the ASEAN countries with foreign direct investment (FDI) inflows into
India, totaling US$ 2.4 billion in 2009-10.

23.  Singapore total exports into India was US$ 10,302.71 million in the year
2010-11, an increase of 30.48% as compared to year 2009-10,
comprising mainly of mineral fuels and oils, ships, boats and floating
structures and natural pearls, gems and jewelry.
 In case of imports it was US$ 9,918.63 million in the year 2010-11 which
shows an increase of 10.6 % as compared to year 2009-10.
 Indonesia is the second largest FDI investor amongst the ASEAN
countries. FDI inflows from Indonesia into India was US$ 604.28 million
during April 2000-March 2010.
 Thailand FDI inflow during the period April 2000-March 2010 into India
was US$ 77.97 million.
 Myanmar FDI inflows into India totaled US$ 8.96 million in the period
April 2000-March 2010.

24. INDIA ASEAN TRADE
• Asia and ASEAN region is India’s largest trading partner.
During the period April- September 2010-11, Asia and ASEAN
region accounted for about 58% of India’s trade (exports and
imports). Europe and America, together, account for around 31% of
India’s trade.
• Major Commodities of Export & Import – ASEAN
The Principal Commodities of export include :
 Petroleum Products, Oil Meals, Gem and Jewellery, Electronic
Goods, Cotton Yarn/RMG Cotton, Machinery and Instruments, etc.
The major commodities imported from this region are:
 Coal/Coke/Briquettes, Vegetable oils, Petroleum Oils, Electronic
Goods, Organic Chemicals, Machinery except Electrical Machinery,
etc.

25. Export House/Trading House
Certification
• The objective of the scheme is to recognise established
exporters as Export House, Trading House, Star Trading
House and Super Star Trading House with a view to
build marketing infrastructure and expertise required for
export promotion.
• Merchant as well as Manufacturer exporters, service
providers, Export Oriented Units (EOUs)/ units located in
Export Processing Zones (EPZs)/ Electronic Hardware
Technology Parks (EHTPs)/ Software Technology Parks
(STPs) shall be eligible for such recognition.

26. • The eligibility criterion for such recognition shall be either
on the basis of the FOB/Net Foreign Exchange (NFE)
value of export of goods and services, including software
exports made directly as well as services.
• The exports made by a subsidiary of a limited company
shall be counted towards export performance of the
limited company for the purpose of recognition. For this
purpose, the company shall have the majority share
holding in the subsidiary company.

27. ZERO DUTY EPCG SCHEME
• The scheme has been introduced in the new Foreign
Trade Policy 2009-14 for specified sectors.
• New sectors included under zero duty EPCG Scheme
w.e.f 23.08.2010 are paper & paperboard and articles
thereof, ceramic products, glass & glassware, rubber &
articles thereof, plywood and allied products, marine
products, sports goods and toys added.
• Validity is for 9 months , export obligation is of 6 years
and can be extended to 2 years only.

28. Favorable Factors
 Low wages.
 High productivity growth.
 Diverse production conditions.
 Proximity to large Asian markets.
 Regions liberalising trade policy agreements.

29. Non Favorable Factors
 Shortage of skilled labor & professionals.
 Inadequate physical & institutional infrastructure ( such as
Roads & transportation facilities , communication , trade
facilitation measures , Intellectual property rights protection
measures).
 Lack of developed system for setting product standards &
conformity assessment procedures.
 Volatility in exchange rates.

30.  Computer Components
While the ASEAN region is the world’s second largest
exporter of computer components, it faces a major challenge
from China.
 Cotton Woven Apparel
Tariff reductions have helped facilitate a small but growing
amount of integrated production of cotton woven apparel
among ASEAN countries. However, trade programs such as
free trade agreements have more heavily influenced regional
integration.

31.  Hardwood Plywood and Flooring
Access to legally sourced and sustainable wood
supplies is an important competitive factor affecting
integration, export competitiveness, and inbound
investment in the ASEAN hardwood plywood and
flooring industry.
 Healthcare Services
Growth of private healthcare firms in the ASEAN
market has generated increased trade and
investment in healthcare services.

32. Motor Vehicle Parts
ASEAN has been successful at meeting critical
Roadmap targets and facilitating regional integration
within the automotive sector. Despite these
achievements, the regional automotive industry and
market have yet to fully integrate.
Palm Oil
The Roadmap for Integration of Agro-based Products
has had far less impact on the structure of the ASEAN
palm oil industry than have multinational corp. and
international groups.

33. CHINA
A THREAT TO ASEAN COUNTRIES
China is a major competitor of ASEAN countries in
attracting foreign investment and in integrating
regional production chains. However, ASEAN
recently concluded an FTA with China, because
China has become an important hub in Asian supply
chains. ASEAN countries hope the FTA will offer
better opportunities to participate in these networks.
ASEAN offers an alternative production location to
China for multinational firms wanting to diversify
their operations to reduce business and political
risks.

34. • Brunei Darussalam October 10, 1995
• Cambodia December 31, 1969
• Indonesia April 15, 1954
• Lao People's Democratic Republic (Laos) July 5, 1961
• Malaysia March 7, 1958
• Myanmar (Burma) January 3, 1952
• Philippines December 27, 1945
• Singapore August 3, 1966
• Thailand (Siam) May 3, 1949
• Vietnam Sept. 21, 1956
Source: www.imf.org

35. • Brunei Darussalam Oct 10, 1995
• Cambodia Jul 22, 1970
• Indonesia Apr 13, 1967
• Lao People's Democratic Republic Jul 5, 1961
• Malaysia Mar 7, 1958
• Myanmar Jan 3, 1952
• Philippines Dec 27, 1945
• Singapore Aug 3, 1966
• Thailand May 3, 1949
• Vietnam Sep 21, 1956

36. WTO MEMBERS
• Brunei Darussalam January 1, 1995
• Cambodia October 13, 2004
• Indonesia January 1, 1995
• Lao People's Democratic Republic February 19. 1998
(Observer Government)
• Malaysia January 1, 1995
• Myanmar (Burma) January 1, 1995
• Philippines January 1, 1995
• Singapore January 1, 1995
• Thailand January 1, 1995
• Vietnam January 11, 2007

37. RECENT NEWS ARTICLES
 “ADB to tie up with India and China for ASEAN
Infrastructure Fund”
Multilateral funding agency, Asian Development Bank
(ADB), is keen to rope in India and China in the newly
created Association of Southeast Asian Nations (ASEAN)
Infrastructure Fund for funding infrastructure projects in the
region.
Jan 21, 2012, www.business-standard.com

38.  “ASEAN, World Bank reaffirms partnership”
The World Bank has reaffirmed its support for ASEAN's
economic integration, particularly at a time when the
Asia-Pacific region is rapidly expanding, a press
statement from the ASEAN Secretariat said.
February 09, 2012, www.asean-society.org

39.  “Better job scope for Indian pros in Asean
countries”
Come next financial year, and India and Asean
(Association of Southeast Asian Nations) are set to
facilitate an easier and more regular movement of
professionals between them.
The agreement is expected to open up greater job
opportunities for Indian professionals in the IT,
healthcare, designing, research and other sectors.
Feb 19, 2012, www.business-standard.com