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Association of Southeast Asian Nations (ASEAN)

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Association of Southeast Asian Nations (ASEAN)

  1. 1. 1 INTRODUCTION The Association of South East Asian Nations (ASEAN) was preceded by an organization called the Association of Southeast Asia (ASA), an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961. The bloc itself, however, was established on 8 August 1967, when foreign ministers of five countries – Indonesia, Malaysia, the Philippines, Singapore, and Thailand – met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration. The five foreign ministers – Adam Malik of Indonesia, Narciso Ramos of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand – are considered the organization's Founding Fathers. The block grew when Brunei Darussalam became the sixth member on 8 January 1984, barely a week after gaining independence on 1 January. On 28 July 1995, Vietnam became the seventh member. Laos and Myanmar (Burma) joined two years later on 23 July 1997. Cambodia was to have joined together with Laos and Burma, but was deferred due to the country's internal political struggle. The country later joined on 30 April 1999, following the stabilisation of its government. East Timor submitted a letter of application to be the eleventh member of ASEAN at the summit in Jakarta in March 2011. Indonesia has shown a warm welcome to East Timor. Papua New Guinea was accorded Observer status in 1976 and Special Observer status in 1981. Papua New Guinea is a Melanesian state. ASEAN can be called the very first “regional” organization in Southeast Asia in the sense that it now represents all 10 Southeast Asian nations. ASEAN covers a land area of 4.46 million km², which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2012, its combined nominal GDP had grown to more than US$2.3 trillion. If ASEAN were a single entity, it would rank as the sixth largest economy in the world, behind the US, China, India, Japan and Germany. ASEAN contains several of the so called Asian “Tiger-Economies”, most of which have suffered in the Asian financial crisis. Its member nations lie close to the sea lanes between Europe and China and Japan. ASEAN is sometimes seen as political counter weight to China’s dominance in the region. ASEAN does not function as a regional trade agreement, but it has become an effective means for cooperation in economic matters and foreign affairs with Organisation for Economic Cooperation and Development (OECD). The economic growth rate of the ASEAN has been very high. This region is endowed with natural resources and account for larger share of the world’s natural rubber, palm oil and tin. Most of the countries of Southeast Asia
  2. 2. 2 belong to ASEAN. The cultural characteristics of South East Asia are not very similar. Also there are significant political and religious differences among the member countries of ASEAN. Despite their political, economic and cultural diversity, the countries of ASEAN are close neighbors. They recognize their mutual need to promote the regions developments while generally preferring to respect each other’s independence in internal politics. It is important to note that ASEAN is not a regional organization with legal obligations. This is because the Bangkok Declaration (Appendix I), which is the founding document signed by the Foreign Ministers of the member countries, was not a treaty with legal obligations. Nonetheless, after more than three decades, ASEAN has widened and deepened cooperation or integration among its member countries. ASEAN is facing many challenges from different sides. ASEAN is criticized for its poor record of democracy, human rights and fundamental freedom, economic reservation, poor human security status and maintenance of environmental well-being. These are the factors what will play the key role in determining the future of ASEAN with inevitable action and reaction of international politics. In 2007, ASEAN has celebrated its 40th anniversary since its inception, and 30 years of diplomatic relations with the US. On 26 August 2007, ASEAN stated that it aims to complete all its free trade agreements with China, Japan, South Korea, India, Australia and New Zealand by 2013, in line with the start of the ASEAN Economic Community by 2015. The Cebu Declaration on East Asian Energy Security was signed in Cebu on 15 January 2007, by ASEAN and the other members of the EAS (Australia, People's Republic of China, India, Japan, New Zealand, South Korea), which is in favour of energy security by finding energy alternatives to conventional fuels.
  3. 3. 3 HISTORY On 8 August 1967, five leaders - the Foreign Ministers of Indonesia, Malaysia, the Philippines, Singapore and Thailand - sat down together in the main hall of the Department of Foreign Affairs building in Bangkok, Thailand and signed a document. By virtue of that document, the Association of Southeast Asian Nations (ASEAN) was born. The five Foreign Ministers who signed it - Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand - would subsequently be hailed as the Founding Fathers of probably the most successful inter-governmental organization in the developing world today. And the document that they signed would be known as the ASEAN Declaration. It was a short, simply-worded document containing just five articles. It declared the establishment of an Association for Regional Cooperation among the Countries of Southeast Asia to be known as the Association of Southeast Asian Nations (ASEAN) and spelled out the aims and purposes of that Association. These aims and purposes were about cooperation in the economic, social, cultural, technical, educational and other fields, and in the promotion of regional peace and stability through abiding respect for justice and the rule of law and adherence to the principles of the United Nations Charter. It stipulated that the Association would be open for participation by all States in the Southeast Asian region subscribing to its aims, principles and purposes. It proclaimed ASEAN as representing "the collective will of the nations of Southeast Asia to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity." It was while Thailand was brokering reconciliation among Indonesia, the Philippines and Malaysia over certain disputes that it dawned on the four countries that the moment for regional cooperation had come or the future of the region would remain uncertain. And so in early August 1967, the five Foreign Ministers spent four days in the relative isolation of a beach resort in Bang Saen, a coastal town less than a hundred kilometers southeast of Bangkok. There they negotiated over that document in a decidedly informal manner which they would later delight in describing as "sports-shirt diplomacy." Yet it was by no means an easy process: each man brought into the deliberations a historical and political perspective that had no resemblance to that of any of the others. But with goodwill and good humor, as often as they huddled at the negotiating table, they finessed their way through their differences as they lined up their shots on the golf course and traded wisecracks on one another's game, a style of deliberation which would eventually become the ASEAN ministerial tradition. Now, with the rigors of negotiations and the informalities of Bang Saen behind them, with their signatures neatly attached to the ASEAN Declaration, also known as the Bangkok Declaration, it was time for some formalities. And that was how ASEAN was conceived, given a name, and born. It had been barely 14 months since Thanat Khoman brought up the ASEAN idea in his conversations with his Malaysian and Indonesian colleagues. In about three more weeks, Indonesia would fully
  4. 4. 4 restore diplomatic relations with Malaysia, and soon after that with Singapore. That was by no means the end to intra-ASEAN disputes, for soon the Philippines and Malaysia would have a falling out on the issue of sovereignty over Sabah. Many disputes between ASEAN countries persist to this day. But all Member Countries are deeply committed to resolving their differences through peaceful means and in the spirit of mutual accommodation. Every dispute would have its proper season but it would not be allowed to get in the way of the task at hand. And at that time, the essential task was to lay the framework of regional dialogue and cooperation. The two-page Bangkok Declaration not only contains the rationale for the establishment of ASEAN and its specific objectives. It represents the organization's modus operandi of building on small steps, voluntary, and informal arrangements towards more binding and institutionalized agreements. All the founding member states and the newer members have stood fast to the spirit of the Bangkok Declaration. Over the years, ASEAN has progressively entered into several formal and legally-binding instruments, such as the 1976 Treaty of Amity and Cooperation in Southeast Asia and the 1995 Treaty on the Southeast Asia Nuclear Weapon-Free Zone. Against the backdrop of conflict in the then Indochina, the Founding Fathers had the foresight of building a community of and for all Southeast Asian states. Thus the Bangkok Declaration promulgated that "the Association is open for participation to all States in the Southeast Asian region subscribing to the aforementioned aims, principles and purposes." ASEAN's inclusive outlook has paved the way for community-building not only in Southeast Asia, but also in the broader Asia Pacific region where several other inter-governmental organizations now co-exist. The original ASEAN logo presented five brown sheaves of rice stalks, one for each founding member. Beneath the sheaves is the legend "ASEAN" in blue. These are set on a field of yellow encircled by a blue border. Brown stands for strength and stability, yellow for prosperity and blue for the spirit of cordiality in which ASEAN affairs are conducted. When ASEAN celebrated its 30th Anniversary in 1997, the sheaves on the logo had increased to ten - representing all ten countries of Southeast Asia and reflecting the colors of the flags of all of them. In a very real sense, ASEAN and Southeast Asia would then be one and the same, just as the Founding Fathers had envisioned. This article is based on the first chapter of ASEAN at 30, a publication of the Association of Southeast Asian Nations in commemoration of its 30th Anniversary on 8 August 1997, written by Jamil Maidan Flores and Jun Abad.
  5. 5. 5 Establishment and Development of ASEAN: One of the most significant events in the history of the Southeast Asia was the formation of Asian. The Association of Southeast Asian Nations (ASEAN) was formed in 1967 with the signing of the Bangkok Declaration by the five original member countries Indonesia, Malaysia, The Philippines, Singapore, and Thailand. The objective of the formation was twofold: 1. First one is, to promote peace and stability in the region. At that time, Southeast Asia was divided by ideological conflict and war. Territorial disputes and racial tensions between neighbors, there was a possibility that the differences could degenerate into a full blown armed conflict, leading to a lengthen fragmentation of Southeast Asia. 2. And the second one is, to contain the spread of communism to Southeast Asian countries. At this time china was openly adopted some policies towards the Southeast Asia to export communism with the association of some local rebel groups of Southeast Asia. These were led by the communist parties in Indonesia, Singapore, Malaysia and Thailand. In this respect, the origins of ASEAN were similar to those of the European Union (EU), in that the founding countries initially came together for political and security reasons, rather than a desire to benefit from economic integration. ASEAN MOTTO The motto of ASEAN is "One Vision, One Identity, One Community".
  6. 6. 6 AIMS AND PURPOSES As set out in the ASEAN Declaration, the aims and purposes of ASEAN are: 1. Economic growth and social progress: To accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations. 2. Regional peace and stability: To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations Charter. 3. Collaboration and assistance: To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific and administrative fields. 4. Training and research: To provide assistance to each other in the form of training and research facilities in the educational, professional, technical and administrative spheres; 5. Overall improvements: To collaborate more effectively for the greater utilisation of their agriculture and industries, the expansion of their trade, including the study of the problems of international commodity trade, the improvement of their transportation and communications facilities and the raising of the living standards of their peoples. 6. Studies: To promote Southeast Asian studies. 7. Cooperation: To maintain close and beneficial cooperation with existing international and regional organisations with similar aims and purposes, and explore all avenues for even closer cooperation among themselves.
  7. 7. 7 FUNDAMENTAL PRINCIPLES At the First Asian Summit in Bali in February 1976 the member countries signed the Treaty of Amity and Co-operation in Southeast Asia (TAC). It spelled out the basic principles for their relations with one another and the conduct of the association’s programme for co- operation. The fundamental principles are the following: 1. Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations; 2. The right of every State to lead its national existence free from external interference, subversion or coercion; 3. Non-interference in the internal affairs of one another; 4. Settlement of differences or disputes by peaceful manner; 5. Renunciation of the threat or use of force; and 6. Effective co-operation among themselves.
  8. 8. 8 ASEAN COMMUNITY The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th Anniversary of ASEAN, agreed on a shared vision of ASEAN as a concert of Southeast Asian nations, outward looking, living in peace, stability and prosperity, bonded together in partnership in dynamic development and in a community of caring societies. At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established. At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015. The ASEAN Community is comprised of three pillars, namely, (1) ASEAN Political- Security Community, (2) ASEAN Economic Community and (3) ASEAN Socio-Cultural Community. The general objective of the ASEAN Community is to build ASEAN into stronger and more close-knit intergovernmental organisation, but it will not become a super- national and closed organisation because it opens doors for cooperation with external partners. 1. ASEAN Security Community (ASC): The ASC shall 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. The members of the community pledge to rely exclusively on peaceful processes in the settlement of intra- regional differences. They regard their security as fundamentally linked to one another and bound by geographic location, common vision and objectives. In recognition of security interdependence in Asia-Pacific region, ASEAN established the ASEAN Regional Forum (ARF) in 1994. As on July 2007, there are 27 participants in the ARF. India is one of the participants in ARF. The objectives of ARF are to foster dialogue and consultation, and promote confidence-building and preventive diplomacy in the region. The ARF discusses major regional security issues in the region including relationship among the major powers, non-proliferation, counter-terrorism, and so on. 2. ASEAN Economic Community (AEC): Perhaps the most vital part of ASEAN's quest is to create a free, integrated market in its region, much like that of the European Union. The goal of AEC is to create a stable, prosperous and highly competitive ASEAN economic region in which there is a free flow of goods, services, investment and free flow of capital, equitable economic development and reduced poverty and socio-economic disparities in year 2020.
  9. 9. 9 3. ASEAN Socio-cultural Community: It envisages a Southeast Asia bonded together in partnership as a community of caring societies. The Community shall foster cooperation in social development aimed at raising the standard of living of disadvantaged groups and rural population. It shall also seek the active involvement of all the sectors of society, especially, women, youth, and local communities, ASEAN will intensify cooperation in the area of public health, including in the prevention and control of infections and communicable diseases. External Relations Another essential aspect of ASEAN’s activities today is the development of close partnerships with other countries. The simultaneous engagement of many important countries with an interest in South East Asia forms part of ASEAN’s strategy to remain in the driver’s seat in regional developments – ensuring that the region is stable and prosperous, and free from domination by any single external power. The main instruments of ASEAN’s relations with its partners are the promotion of norms of peace and conciliation, and the creation of a network of economic agreements in the region. Today, ASEAN has established official dialogue relations with ten external partners including Australia, Canada, China, the European Union, India, Japan, Korea, New Zealand, Russia, and the USA. ASEAN also has relations with the United Nations and a sectoral partnership with Pakistan. At the regional level, ASEAN is the driving force for forums including the ASEAN Regional Forum, ASEAN Plus Three (with China, Japan and Korea) and the East Asia Summit (with Australia, China, India, Japan, Korea and New Zealand). ASEAN CHAIR According to Article 31 of the ASEAN Charter, the Chairmanship of ASEAN shall rotate annually, based on the alphabetical order of the English names of Member States. A Member State assuming the Chairmanship shall chair the ASEAN Summit and related summits, the ASEAN Coordinating Council, the three ASEAN Community Councils, relevant ASEAN Sectoral Ministerial Bodies and senior officials, and the Committee of Permanent Representatives. Myanmar is the Chair of ASEAN for 2014 and the theme of its ASEAN Chairmanship is “Moving Forward in Unity to a Peaceful and Prosperous Community.”
  10. 10. 10 Structure of ASEAN There are a number of decision-making bodies that comprise ASEAN, spanning from international to the very local. The most important are listed below: Meeting of the ASEAN Heads of State and Government: The highest body made up of the heads of each respective government; meets annually. Ministerial Meetings: Coordinates activities in many areas including agriculture and forestry, trade, energy, transportation, science and technology, among others; meets annually. Committees for External Relations: Made up of diplomats in many of the world's major capitals. Secretary-General: The appointed leader of the organization empowered to implement policies and activities; appointed to five year term. Currently Surin Pitsuwan of Thailand. Not mentioned above are over 25 other committees and 120 technical and advisory groups.
  11. 11. 11 The ASEAN Way Since the post-independence phases of Southeast Asian states, efforts were made to implement regional foreign policies, but with a unifying focus to refrain from interference in domestic affairs of member states. There was a move to unify the region under what was called the ‘ASEAN Way’ based on the ideals of non-interference, informality, minimal institutionalisation, consultation and consensus, non-use of force and non-confrontation. ASEAN members (especially Singapore) approved of the term ‘ASEAN Way’ to describe a regional method of multilateralism. Thus the signing of the Treaty of Amity and Cooperation in Southeast Asia adopted fundamental principles:  Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations  The right of every State to lead its national existence free from external interference, subversion or coercion  Non-interference in internal affairs  Settlement of differences or disputes in a peaceful manner  Renunciation of the threat or use of force  Effective regional cooperation The ‘ASEAN way’ is said to contribute durability and longevity within the organisation, by promoting regional identity and enhancing a spirit of mutual confidence and cooperation. ASEAN agreements are negotiated in a close, interpersonal process. The process of consultations and consensus is designed to engender a democratic approach to decision making. These leaders are wary of any effort to legitimise efforts to undermine their nation or contain regional co-operation. Critical reception The ASEAN way can be seen as divergent from the contextual contemporary political reality at the formative stages of the association. A critical distinction is made by Amitav Acharya, that the ‘ASEAN Way’ indicates “a process of ‘regional interactions and cooperation based on discreteness, informality, consensus building and non-confrontational bargaining styles’ that contrasts with the adversarial posturing, majority vote and other legalistic decision- making procedures in Western multilateral organisations".
  12. 12. 12 However, critics argue that the ASEAN Way serves as the major stumbling-block to it becoming a true diplomacy mechanism. Due to the consensus-based approach every member has a veto, so contentious issues must remain unresolved until agreements can be reached. Moreover, it is claimed that member nations are directly and indirectly advocating that ASEAN be more flexible and allow discourse on internal affairs of member countries. Additionally, the preference for informal discussions to adversarial negotiations limits the leverage of diplomatic solutions within ASEAN. Michael Yahuda explains, in his book International Politics of the Asia Pacific (2003) second and revised edition, the limitations of the ASEAN way. In summary of his argument, unlike the European Union, ‘the ASEAN Way’ has made ASEAN members never aspired to an economic and political union. It was designed to sustain the independence and sovereignty of member states and to encourage regional and national stability. ASEAN differed in assessment of external threat and they operated within conditions in which legality and the rule of law were not generally consolidated within member states. ASEAN wasn’t a rule making body subjecting its members to the discipline of adhering its laws and regulations. It was operated through consensus and informality. Also, the member states avoided to confront certain issues if they were to result in conflicts. ASEAN Plus Three Leaders of each country felt the need to further integrate the region. Beginning in 1997, the bloc began creating organisations within its framework with the intention of achieving this goal. ASEAN Plus Three was the first of these and was created to improve existing ties with the People's Republic of China, Japan, and South Korea. This was followed by the even larger East Asia Summit, which now includes these countries as well as India, Australia, New Zealand, United States and Russia. The ASEAN Eminent Persons Group was created to study the possible successes and failures of this policy as well as the possibility of drafting an ASEAN Charter. In 2006, ASEAN was given observer status at the United Nations General Assembly. As a response, the organisation awarded the status of "dialogue partner" to the United Nations.
  13. 13. 13 CHARTER OF THE ASSOCIATION OF SOUTHEAST ASIAN NATIONS The ASEAN Charter serves as a firm foundation in achieving the ASEAN Community by providing legal status and institutional framework for ASEAN. It also codifies ASEAN norms, rules and values; sets clear targets for ASEAN; and presents accountability and compliance. The ASEAN Charter entered into force on 15 December 2008. A gathering of the ASEAN Foreign Ministers was held at the ASEAN Secretariat in Jakarta to mark this very historic occasion for ASEAN. With the entry into force of the ASEAN Charter, ASEAN will henceforth operate under a new legal framework and establish a number of new organs to boost its community-building process. In effect, the ASEAN Charter has become a legally binding agreement among the 10 ASEAN Member States. It will also be registered with the Secretariat of the United Nations, pursuant to Article 102, Paragraph 1 of the Charter of the United Nations. The importance of the ASEAN Charter can be seen in the following contexts:  New political commitment at the top level  New and enhanced commitments  New legal framework, legal personality  New ASEAN bodies  Two new openly-recruited DSGs  More ASEAN meetings  More roles of ASEAN Foreign Ministers  New and enhanced role of the Secretary-General of ASEAN  Other new initiatives and changes ENACTMENT: The Charter came into force in December 2008, thirty days after Thailand's delivery of the final instrument of ratification. Thailand's permanent representative to the United Nations, Ambassador Don Pramudwinai, deposited the document with ASEAN secretary-general, Surin Pitsuwan, at the Thai mission in New York on November 14. He issued a statement saying, "This is certainly an occasion to celebrate for the 570 million people of ASEAN. This
  14. 14. 14 means that when the ASEAN leaders gather at their annual summit in mid December, the ASEAN Charter will have come into force." He was referring to the charter coming into after the 14th Summit in Chiang Mai, Thailand, from December 13 to 18. In doing so he added that celebrations would follow not only for the full ratification of the charter but also the entering into force of the new basic law of ASEAN, "It will be a rules-based and people- oriented organisation with its own legal personality." LAUNCH: On December 15, 2008, the members of ASEAN met in the Indonesian capital of Jakarta to launch a charter, signed in November 2007, with the aim of moving closer to "an EU-style community". The charter turns ASEAN into a legal entity and aims to create a single free- trade area for the region encompassing 500 million people. Indonesian President Susilo Bambang Yudhoyono stated: "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 at a time when the international system is experiencing a seismic shift," he added, referring to climate change and economic upheaval. Southeast Asia is no longer the bitterly divided, war-torn region it was in the 1960s and 1970s." The charter's aims included:  "Respect for the independence, sovereignty and territorial integrity of member states"  "Peaceful settlement of disputes"  "Non-interference in member states' internal affairs"  "Right to live without external interference" However, the ongoing global financial crisis was stated as being a threat to the goals envisioned by the charter, and also set forth the idea of a proposed human rights body to be discussed at a future summit in February 2009. This proposal caused controversy, as the body would not have the power to impose sanctions or punish countries who violate citizens' rights and would therefore be limited in effectiveness. ENVIRONMENT At the turn of the 21st century, issues shifted to include a regional approach to the environment. The organisation started to discuss environmental agreements. These included the signing of the ASEAN Agreement on Transboundary Haze Pollution in 2002 as an attempt to control haze pollution in Southeast Asia. Unfortunately, this was unsuccessful due to the outbreaks of the 2005 Malaysian haze and the 2006 Southeast Asian haze. Other environmental treaties introduced by the organisation include the Cebu Declaration on East Asian Energy Security, the ASEAN Wildlife Enforcement Network in 2005, and the Asia- Pacific Partnership on Clean Development and Climate, both of which are responses to the potential effects of climate change. Climate change is of current interest.
  15. 15. 15 MEETINGS  ASEAN Summits The ASEAN Summit is an annual meeting held by the member of the Association of Southeast Asian Nations in relation to economic, and cultural development of Southeast Asian countries. The organisation holds meetings, known as the ASEAN Summit, where heads of government of each member meet to discuss and resolve regional issues, as well as to conduct other meetings with other countries outside of the bloc with the intention of promoting external relations. The ASEAN Leaders' Formal Summit was first held in Bali, Indonesia in 1976. Its third meeting was held in Manila in 1987 and during this meeting, it was decided that the leaders would meet every five years. Consequently, the fourth meeting was held in Singapore in 1992 where the leaders again agreed to meet more frequently, deciding to hold the summit every three years. In 2001, it was decided to meet annually to address urgent issues affecting the region. Member nations were assigned to be the summit host in alphabetical order except in the case of Burma which dropped its 2006 hosting rights in 2004 due to pressure from the United States and the European Union. By December 2008, the ASEAN Charter came into force and with it, the ASEAN Summit will be held twice in a year. The formal summit meets for three days. The usual itinerary is as follows:  Leaders of member states would hold an internal organisation meeting.  Leaders of member states would hold a conference together with foreign ministers of the ASEAN Regional Forum.  A meeting, known as ASEAN Plus Three, is set for leaders of three Dialogue Partners (People's Republic of China, Japan, South Korea)  A separate meeting, known as ASEAN-CER, is set for another set of leaders of two  Dialogue Partners (Australia, New Zealand).  During the fifth Summit in Bangkok, the leaders decided to meet "informally" between each formal summit. The First ASEAN summit was held in February 1976 in Bali. At this summit, ASEAN expressed its readiness to "develop fruitful relations" and mutually beneficial co-operation with other countries of the region. The ASEAN leaders signed the Treaty of Amity and Cooperation in Southeast Asia.
  16. 16. 16 On 2nd ASEAN summit held on Kuala Lumpur, Malaysia in 1977 was the occasion for the first summit meeting between Japan and ASEAN. Japan expressed its intention to promote co-operation with ASEAN. On 9th ASEAN Summit: A meeting on 7 October 2003 on Bali, Indonesia. The leaders of the member nations signed a declaration known as the Bali Concord II in which they agreed to pursue closer economic integration by 2020. According to the declaration, "an ASEAN Community" would be set upon three pillars, "namely political and security cooperation, economic cooperation, and socio-cultural cooperation; For the purpose of ensuring durable peace, stability and shared prosperity in the region." The plan envisaged a region with a population of 500 million and annual trade of US$720 billion. Also, a free trade area would be established in the region by 2020. ASEAN's leaders also discussed setting up a security community alongside the economic one, though without any formal military alliance. During the same meeting, the People's Republic of China and ASEAN have also agreed to work faster toward a mutual trade agreement, which will create the world's most populous market, with 1.7 billion consumers. Japan also signed an agreement pledging to reduce tariff and non-tariff barriers with ASEAN members. On the 11th ASEAN summit last 12-14 December 2005 in Kuala Lumpur, Malaysia. Seven main issues were discussed during the Summit. The issues are:  the spread of bird flu  southern Thailand conflict  democracy in Myanmar  crude oil prices fluctuation and poverty  investment and trade  ASEAN Charter Immediately after the summit ended, the inaugural East Asia Summit was held. The 12th ASEAN summit last 12-15 January 2007. Cebu Metropolitan Area (composed of Cebu City, Mandaue City, Talisay City, and Lapu-Lapu City) jointly hosted varied events of the summit. The actual conference was held at the Cebu International Convention Centre in Mandaue City while the Shangri-La Mactan Island Resort & Spa in Lapu-Lapu City provided accommodations for delegates and venues for smaller meetings. At the 12th ASEAN Summit, the member countries of ASEAN signed five agreements pertaining to continuing integration of ASEAN and enhancing political, economic and social cooperation in the region:  Cebu Declaration towards a Caring and Sharing Community.  Cebu Declaration on the Blueprint for the ASEAN Charter.
  17. 17. 17  Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015.  ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers.  ASEAN Convention on Counter Terrorism. The 13th ASEAN Summit was held from 18-22 November 2007, in Singapore. The theme was "One ASEAN at the Heart of Dynamic Asia". The key theme of the discussions was set to be on "Energy, Environment, Climate Change and Sustainable Development". In line with the theme, the ASEAN Leaders' Declaration on Environmental Sustainability was signed at the 13th ASEAN Summit and a proposal to work on a Singapore Declaration on the Environment was issued at the 3rd East Asia Summit. The leaders had endorsed the ASEAN Economic Community Blueprint which will help chart concrete targets for establishing a single market and production base in the ASEAN region by 2015. The summit marking the 30th anniversary of ASEAN-EU ties was held on November 22. The 16th ASEAN Summit held in Ha Noi, Vietnam 9 April 2010 “Towards the ASEAN Community: from Vision to Action". The 17th ASEAN Summit was held in October 2010 in Vietnam Ha Noi. Indonesian President Susilo Bambang Yudhoyono did not attend the opening ceremony of the Summit this afternoon. He had to cut short his trip and returned home to oversee the rescue operation in the disaster-stricken area, after arriving here on Tuesday for a state visit prior to attending the Summit. The 18th ASEAN Summit in Jakarta capital of Indonesia. The 19th ASEAN Summit in Bali, Indonesia at November 2011.  East Asia Summit The East Asia Summit (EAS) is a pan-Asian forum held annually by the leaders of 18 countries in the East Asian region, with ASEAN in a leadership position. Membership was initially all 10 members of ASEAN plus China, Japan, South Korea, India, Australia, and New Zealand, but expanded to include the United States and Russia at the Sixth EAS in 2011. The first summit was held in Kuala Lumpur on 14 December 2005 and subsequent meetings have been held after the annual ASEAN Leaders’ Meeting. The summit has discussed issues including trade, energy and security and the summit has a role in regional community building.
  18. 18. 18  Commemorative summit A commemorative summit is a summit hosted by a non-ASEAN country to mark a milestone anniversary of the establishment of relations between ASEAN and the host country. The host country invites the heads of government of ASEAN member countries to discuss future cooperation and partnership.  Regional Forum The ASEAN Regional Forum (ARF) is a formal, official, multilateral dialogue in Asia Pacific region. As of July 2007, it consists of 27 participants. ARF objectives are to foster dialogue and consultation, and promote confidence-building and preventive diplomacy in the region. The ARF met for the first time in 1994. The current participants in the ARF are as follows: all the ASEAN members, Australia, Bangladesh, Canada, the People's Republic of China, the European Union, India, Japan, North Korea, South Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, Russia, East Timor, United States and Sri Lanka. The Republic of China (also known as Taiwan) has been excluded since the establishment of the ARF, and issues regarding the Taiwan Strait are neither discussed at the ARF meetings nor stated in the ARF Chairman's Statements.  Other Meetings Aside from the ones above, other regular meetings are also held. These include the annual ASEAN Ministerial Meeting as well as other smaller committees. Meetings mostly focus on specific topics, such as defence or the environment, and are attended by Ministers, instead of heads of government.  Asia–Europe Meeting The Asia–Europe Meeting (ASEM) is an informal dialogue process initiated in 1996 with the intention of strengthening cooperation between the countries of Europe and Asia, especially members of the European Union and ASEAN in particular. ASEAN, represented by its Secretariat, is one of the 45 ASEM partners. It also appoints a representative to sit on the governing board of Asia-Europe Foundation (ASEF), a socio-cultural organisation associated with the Meeting.  ASEAN–Russia Summit The ASEAN–Russia Summit is an annual meeting between leaders of member states and the President of Russia.  ASEAN Foreign Ministers Meeting The 44th annual meeting was held in Bali on 16 to 23 July 2011. Indonesia proposed a unified ASEAN travel visa to ease travel within the region for citizens of ASEAN member states. The 45th annual meeting was held in Phnom Penh, Cambodia. For the first time in the history of ASEAN there was no diplomatic statement issued by the bloc at the end of the
  19. 19. 19 meeting. This was due to tensions over China's claim of ownership over near the entirety of the South China Sea and the counterclaim to such ownership by neighbouring states. TRADE IN SERVICES An ASEAN Framework Agreement on Trade in Services was adopted at the ASEAN Summit in Bangkok in December 1995. Under AFAS, ASEAN Member States enter into successive rounds of negotiations to liberalise trade in services with the aim of submitting increasingly higher levels of commitments. The negotiations result in commitments that are set forth in schedules of specific commitments annexed to the Framework Agreement. These schedules are often referred to as packages of services commitments. At present, ASEAN has concluded seven packages of commitments under AFAS. SINGLE AVIATION MARKET The ASEAN Single Aviation Market (ASEAN-SAM), is the region's major aviation policy geared towards the development of a unified and single aviation market in Southeast Asia by 2015. The aviation policy was proposed by the ASEAN Air Transport Working Group, supported by the ASEAN Senior Transport Officials Meeting, and endorsed by the ASEAN Transport Ministers. The ASEAN-SAM is expected to fully liberalise air travel between member states in the ASEAN region, allowing ASEAN countries and airlines operating in the region to directly benefit from the growth in air travel around the world, and also freeing up tourism, trade, investment and services flows between member states. Since 1 December 2008, restrictions on the third and fourth freedoms of the air between capital cities of member states for air passengers’ services have been removed, while from 1 January 2009, full liberalisation of air freight services in the region took effect. On 1 January 2011, full liberalisation on fifth freedom traffic rights between all capital cities took effect. The ASEAN Single Aviation Market policy will supersede existing unilateral, bilateral and multilateral air services agreements among member states which are inconsistent with its provisions. FREE-TRADE AGREEMENTS WITH OTHER COUNTRIES ASEAN has concluded free trade agreements with China (expecting bilateral trade of $500 billion by 2015), Korea, Japan, Australia, New Zealand, and India. ASEAN-India bilateral trade crossed the $70 billion target in 2012 (target was to reach the level only by 2015). The agreement with People's Republic of China created the ASEAN–China Free Trade Area (ACFTA), which went into full effect on 1 January 2010. In addition, ASEAN is currently negotiating a free trade agreement with the European Union. Republic of China (Taiwan) has also expressed interest in an agreement with ASEAN but needs to overcome diplomatic objections from China.
  20. 20. 20 INTRA-ASEAN TRAVEL With the institutionalisation of visa-free travel between ASEAN member states, intra- ASEAN travel has boomed, a sign that endeavours to form an ASEAN Community shall bear fruit in years to come. In 2010, 47 percent or 34 million out of 73 million tourists in ASEAN member-states were from other ASEAN countries. INTRA-ASEAN TRADE Until end of 2010, Intra-ASEAN trade were still low which mainly of them were mostly exporting to countries outside the region, except Laos and Myanmar were ASEAN-oriented in foreign trade with 80 percent and 50 percent respectively of their exports went to other ASEAN countries. EDUCATION AND HUMAN DEVELOPMENT As the "collective entity to enhance regional cooperation in education", the ASEAN Education Ministers have determined four priorities that ASEAN efforts toward improved education would address: (1) Promoting ASEAN awareness among ASEAN citizens, particularly youth; (2) Strengthening ASEAN identity through education; (3) Building ASEAN human resources in the field of education; and (4) Strengthening ASEAN university networking. Nations such as Malaysia, Singapore, Indonesia, Thailand, and the Philippines have experienced rapid development over the past 20 years, and this has been visibly evident in their educational systems. Each country has developed unique - yet interconnected through ASEAN initiatives - human and physical infrastructure to provide youth education, a primary determinant in future capabilities and sustained economic growth for the entire region. Various programmes and projects have been and are currently in the process of being developed to fulfill these directives and to reach these future goals. At the 11th ASEAN Summit in December 2005, ASEAN Leaders set new directions for regional education collaboration when they welcomed the decision of the ASEAN Education Ministers to convene the ASEAN Education Ministers’ Meetings (ASED) on a regular basis. The Leaders also called for ASEAN Education Ministers to focus on enhancing regional cooperation in education.[108] The ASEAN Education Ministers Meeting, which meets annually, oversees ASEAN cooperation efforts on education at the ministerial level. With regard to implementation, such programmes and activities resulting from such efforts are for the most part carried out by the ASEAN Senior Officials on Education (SOM-ED), which reports to the ASEAN Education Ministers Meeting. SOM-ED also manages cooperation on higher education through the ASEAN University Network (AUN). The AUN was established to assist ASEAN in (1) promoting cooperation among ASEAN scholars, academics, and scientists in the region; (2) developing academic and professional human resources in the region; (3) promoting information dissemination among the ASEAN academic community; and (4) enhancing the awareness of regional identity and the sense of "ASEAN-ness" among members.
  21. 21. 21 Education indicators outlined hereafter belong to primary, secondary, and tertiary levels. Primary education is generally defined as the level of education where children are provided with basic reading, writing, and mathematical skills together with elementary understanding of such subjects as history, geography, natural science, social science, art, and music. Secondary education continues to build up on the knowledge provided by primary education and aims at laying the foundations for lifelong learning and human development with more advanced material and learning mechanisms. Tertiary education, whether or not leading to an advanced research qualification, requires minimally the successful completion of secondary education for admission and entails the level of education within some college or university. SPORTS  Southeast Asian Games The Southeast Asian Games, commonly known as the SEA Games, is a biennial multi-sport event involving participants from the current 11 countries of Southeast Asia. The games is under regulation of the Southeast Asian Games Federation with supervision by the International Olympic Committee (IOC) and the Olympic Council of Asia.  ASEAN Para Games The ASEAN Para Games is a biennial multi-sport event held after every Southeast Asian Games for athletes with physical disabilities. The games are participated by the 11 countries located in Southeast Asia. The Games, patterned after the Paralympics Games, are played by physically challenged athletes with mobility disabilities, visual disabilities.  ASEAN 2030 FIFA World Cup bid January 2011: As a result of ASEAN Foreign ministers at Lombok meeting, they agreed bid to host the FIFA World Cup in 2030 as a single entity. ASEAN competitions  SEA Games  ASEAN University Games  ASEAN School Games  ASEAN Para Games  ASEAN Football Championship
  22. 22. 22 FREE TRADE On 27 February 2009 a Free Trade Agreement with the ASEAN regional block of 10 countries and Australia and its close partner New Zealand was signed, it is believed that this FTA would boost combine GDP across the 12 countries by more than US$48 billion over the period 2000–2020. ASEAN members together with the group’s six major trading partners – Australia, China, India, Japan, New Zealand and South Korea – have began the first round of negotiations on 26–28 February 2013 in Bali, Indonesia, on establishment of the Regional Comprehensive Economic Partnership. ASEAN Defence Industry Collaboration Indonesia, Malaysia, Singapore and Thailand have established defence industries. To cut cost and plan to be self-sufficient by 2030, Indonesia and Malaysia have agreed to promote the creation of the ASEAN Defence Industry Collaboration (ADIC). The United States military reportedly has said that ADIC could have additional benefits beyond cost savings for ASEAN members, including facilitating a set of standards, similar to NATO, that will improve interoperability among ASEAN and U.S. militaries and increase the effectiveness of regional response to threats to Asia-Pacific peace and stability. Criticism Non-ASEAN countries have criticised ASEAN for being too soft in its approach to promoting human rights and democracy in the junta-led Burma. Despite global outrage at the military crack-down on unarmed protesters in Yangon, ASEAN has refused to suspend Burma as a member and also rejects proposals for economic sanctions. This has caused concern as the European Union, a potential trade partner, has refused to conduct free trade negotiations at a regional level for these political reasons. Head of the International Institute of Strategic Studies – Asia, Tim Huxley cites the diverse political systems present in the grouping, including many young states, as a barrier to far- reaching cooperation outside the economic sphere. He also asserts that in the absence of an external threat to rally against with the end of the Cold War, ASEAN has begun to be less successful at restraining its members and resolving border disputes such as those between Burma and Thailand and Indonesia and Malaysia. During the 12th ASEAN Summit in Cebu, several activist groups staged anti-globalisation protests. According to the activists, the agenda of economic integration would negatively affect industries in the Philippines and would cause thousands of Filipinos to lose their jobs.
  23. 23. 23 ASEAN-INDIA India has been following a “Look East Policy” since 1990s. India became a sectoral dialogue partner of ASEAN in 1992, which was upgraded to full dialogue partnership in 1996. Since 2002, we have had annual Summits with ASEAN. To mark the 20th anniversary of our dialogue-level partnership and the 10th anniversary of our Summit-level partnership with ASEAN, India would be hosting the ASEAN-India Commemorative Summit on the theme “ASEAN-India Partnership for Peace and Shared Prosperity” in New Delhi on December 20- 21, 2012. ASEAN-India functional cooperation is diverse and includes cooperation across a range of sectors, such as trade, science & technology, human resource development, space sciences, agriculture, new and renewable energy, information and communication technology, telecommunications, transport and infrastructure, tourism and culture. At the 7th ASEAN-India Summit in October, 2009, India announced a contribution of USD 50 million to the ASEAN-India Co-operation Fund to support ASEAN-India projects across the range of sectors mentioned above. In addition, India has set up an ASEAN-India Science &Technology Development Fund with an initial corpus fund of USD 1 million and a USD 5 million ASEAN-India Green Fund for pilot projects to promote adaptation and mitigation technologies in the field of climate change. The ASEAN-India Trade-in-Goods Agreement signed in August 2009 at the ASEAN-India Economic Ministerial Meeting held in Bangkok became fully operational from August 2011 when the process of ratification by all the ASEAN countries was completed. In 2011-12, the total trade between India and ASEAN increased by 37% to reach USD 79.86 billion thereby surpassing the trade target of USD 70 billion by 2012, ahead of time. Negotiations for an ASEAN-India FTA in Services and Investments are currently underway. Co-operation between India and ASEAN is being intensified, including in the cultural, educational and academic fields, through the promotion of people-to-people contacts, and initiatives such as Youth Exchange Programmes, Special Training Courses for ASEAN Diplomats, Media Exchange Programmes and the ASEAN-India Network of Think Tanks Meeting. India has established Centres for English Language training (CELT) and Entrepreneurship Development Centres (EDC) in Cambodia, Lao PDR, Myanmar and Vietnam (CLMV countries). An Indian Parliamentary delegation attended the 31st General Assembly of ASEAN Inter Parliamentary Assembly (AIPA) held in Hanoi, Vietnam from 20-25 September, 2010, where India was accorded “Observer Status” by AIPA. The Indian Parliamentary delegation also attended the 32nd General Assembly of AIPA held in Phnom Penh, Cambodia from 18-24 September 2011 and extended an invitation to an AIPA delegation to visit India. An AIPA delegation led by the President of AIPA and Speaker of Speaker of the House of Representatives of Indonesia, Dr. Marzuki Alie visited India from July 29 to August 1, 2012.
  24. 24. 24 An ASEAN-India Eminent Persons Group (AIEPG) has been set up to draft a new ASEAN- India Vision – 2020 document to be adopted at the Commemorative Summit. Three meetings of the AIEPG have been held in Phnom Penh from 2-3 August, 2011, New Delhi from 20-21 October, 2011 and Kuala Lumpur from 9-10 March, 2012. The fourth and final meeting is scheduled to be held in Kochi from 16-17 September, 2012. Delhi Dialogue IV on the theme “India and ASEAN: Partners for Peace, Progress and Stability” was held from February 13-14, 2012 in New Delhi which also flagged off ASEAN-India Commemorative Year celebration. The visit of the ASEAN Committee of Permanent Representatives (CPR)s to India from February 12-17, 2012 coincided with Delhi- Dialogue IV. At the 8th ASEAN-India Summit held in Hanoi, Vietnam, in October, 2010, Prime Minister announced the extension of Visa on Arrival facility to Cambodia, Vietnam, Philippines and Laos with effect from January 1, 2011. Visa on arrival facility now stands extended to 7 ASEAN countries (Lao PDR, Cambodia, Vietnam, Myanmar, Singapore, Indonesia and the Philippines). A MoU on Strengthening Tourism Co-operation between India and ASEAN was signed at the ASEAN-India Ministerial Meeting on Tourism on January 12, 2012, in Manado, Indonesia. The 9th ASEAN-India Summit was held in Bali, Indonesia on 19 November, 2011. The Leaders took stock of the progress made in the ASEAN-India relationship and agreed to enhance co-operation on a range of issues, including trade, maritime security, food and energy security, and physical and people-to-people connectivity. They reaffirmed their commitment to further strengthen ASEAN-India cooperation, through the implementation of the Plan of Action 2010-15, in the run-up to the Commemorative Summit. The 10th ASEAN- India Summit would be held in Cambodia on November 19-20, 2012.
  25. 25. 25 ASEAN–India Free Trade Area: The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and India. The initial framework agreement was signed on 8 October 2003 in Bali, Indonesia. and the final agreement was on 13 August 2009. The free trade area came into effect on 1 January 2010. India hosted the latest ASEAN-India Commemorative Summit in New Delhi on December 20–21, 2012. Background: The ASEAN–India Free Trade Area emerged from a mutual interest of both parties to expand their economic ties in the Asia-Pacific region. India's "Look East" policy was reciprocated by similar interests of many ASEAN countries to expand their interactions westward. After India became a sectoral dialogue partner of ASEAN in 1992, India saw its trade with ASEAN increase relative to its trade with the rest of the world. Between 1993 and 2003, ASEAN-India bilateral trade grew at an annual rate of 11.2%, from US$ 2.9 billion in 1993 to US$ 12.1 billion in 2003.Much of India's trade with ASEAN is directed towards Singapore, Malaysia, and Thailand, with whom India holds strong economic relations. In 2008, the total volume of ASEAN-India trade was US$ 47.5 billion. ASEAN’s export to India was US$ 30.1 billion – a growth of 21.1 per cent in comparison with that of 2007. ASEAN’s imports from India were US$ 17.4 billion – a growth of 40.2 per cent in comparison to that of 2006. As for foreign direct investment (FDI), the inflow from India to ASEAN Member States was US$ 476.8 million in 2008, accounting for 0.8 per cent of total FDI in the region. Total Indian FDI into ASEAN from 2000 to 2008 was US$ 1.3 billion. Acknowledging this trend and recognizing the economic potential of closer linkages, both sides recognized the opportunities for deepening trade and investment ties, and agreed to negotiate a framework agreement to pave the way for the establishment of an ASEAN–India Free Trade Area (FTA). History: At the Second ASEAN-India Summit in 2003, the ASEAN-India Framework Agreement on Comprehensive Economic Cooperation was signed by the Leaders of ASEAN and India. The Framework Agreement laid a sound basis for the eventual establishment of an ASEAN-India Regional Trade and Investment Area (RTIA), which includes FTA in goods, services, and investment. ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on 13 August 2009, after six years of negotiations. The ASEAN-India TIG Agreement entered into force on 1 January 2010. The 7th ASEAN-India Summit in Cha-am Hua Hin, Thailand on 24 October 2009 agreed to revise the bilateral trade target to 70 billion USD to
  26. 26. 26 be achieved in the next two years, noting that the initial target of USD 50 billion set in 2007 may soon be surpassed. ASEAN-India trade grew at over 22 percent annually during the 2005-2011 period. Trade between India and ASEAN in 2011-2012 increased by more than 37 percent to $79 billion, which was more than the target of $70 billion set in 2009. At the 10th ASEAN-India Summit in New Delhi on December 20, 2012, India and ASEAN concluded negotiations for FTAs in services and investments. The two sides expect bilateral trade to increase to $100 billion by 2015, and $200 billion within a decade. ASEAN and India are also working on enhancing private sector engagement. Details on the re-activation of the ASEAN-India Business Council (AIBC), the holding of the ASEAN- India Business Summit (AIBS) and an ASEAN-India Business Fair (AIBF), are being worked out by officials. On 27 April 2010, India informed the ASEAN Secretariat that the Federation of Indian Chambers of Commerce and Industry (FICCI) would be organizing the ASEAN Trade and Industrial Exhibition at the Pragati Maidan in New Delhi on 8–11 January 2011, at the sidelines of the AIBF. The Fourteenth ASEAN Transport Ministers (ATM) Meeting on 6 November 2008 in Makati, Metro Manila, Philippines adopted the ASEAN-India Aviation Cooperation Framework, which will lay the foundation for closer aviation cooperation between ASEAN and India. The ASEAN-India Air Transport Agreement (AI-ATA) is being negotiated with the implementation timeline of 2011.In tourism; the number of visitor arrivals from ASEAN to India in 2006 was 277,000, while the number of visitor arrivals from India to ASEAN in 2008 was 1.985 million. At the Sixth ASEAN-India Summit held on 21 November 2007 in Singapore, India proposed to set a target of 1 million tourist arrivals from ASEAN to India by 2010. The 2nd Meeting of ASEAN and India Tourism Ministers (ATM +India) held on 25 January 2010 in Bandar Seri Begawan positively responded to India’s proposal to develop an ASEAN-India Tourism Cooperation Agreement and requested the ASEAN-India Tourism Working Group to further discuss and prepare the draft agreement. The Ministers also supported the establishment of the ASEAN Promotional Chapter for Tourism in Mumbai as an important collaborative platform for ASEAN National Tourism Organizations (NTOs) to market Southeast Asia to the Indian consumers and, at the same time, create mutual awareness between ASEAN Member States and India. Tariffs: The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs – a market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion. The ASEAN-India FTA will see tariff liberalisation of over 90 percent of products traded between the two dynamic regions, including the so-called “special products,” such as palm oil (crude and refined), coffee, black tea and pepper. Tariffs on over 4,000 product lines will be eliminated by 2016, at the earliest.
  27. 27. 27 Criticism: While there are many benefits to the ASEAN-India FTA, there is concern in India that the agreement will have several negative impacts on the economy. As previously stated, the two regions aim to reduce their tariffs on a majority of their traded goods. This will allow them to increase the market access of their products. It is criticized, however, that India will not experience as great an increase in market access to ASEAN countries as ASEAN will in India. The economies of the ASEAN countries are largely export-driven, maintaining high export-to-GDP ratios (in 2007, Malaysia had a ratio of almost 100%). Considering this, as well as the global financial crisis and India's expansive domestic market, the ASEAN countries will look eagerly towards India as a home for its exports. Since the early 2000s, India has had an increasing trade deficit with ASEAN, with imports exceeding exports by more than US$6 billion in 2007-2008. It is feared that a gradual liberalization of tariffs and a rise in imported goods into India will threaten several sectors of the economy, specifically the plantation sector, some manufacturing industries, and the marine products industry. As a dominant exporter of light manufacturing products, ASEAN has competitive tariff rates that make it difficult for India to gain access to the industry market in ASEAN countries. Before the agreement was signed, the Chief Minister of Kerala, V.S. Achuthanadan, led a delegation to the Indian Prime Minister protesting against the FTA. The state of Kerala is an important exporter in the national export of plantation products. It fears that cheap imports of rubber, coffee, and fish would lower domestic production, adversely affecting farmers and ultimately its economy. Kerala has already experienced a flooding of its market with inexpensive imports under the South Asia Free Trade Agreement of 2006. Cheap coconuts from Sri Lanka and palm oil from Malaysia has since hindered Kerala's coconut cultivation. To alleviate the losses that arise from the initial stages of trade, the Government of India must be able to effectively redistribute some of the wealth to those industries who suffer from the increased competition with ASEAN markets. This way, total welfare gains in India would increase and India would ultimately benefit from trade with ASEAN.
  28. 28. 28 ASEAN-INDIA STUDENTS EXCHANGE PROGRAMME Theme: BUILDING YOUTH PARTNERSHIPS THROUGH ENTREPRENEURSHIP “India hosted a group of 100 students from ASEAN countries in September 2011. Based on the positive feedback, we will increase this number to 250 students per year.” Dr. Manmohan Singh, Prime Minister of India, at the 9th ASEAN-INDIA Summit, November 19, 2011, Bali, Indonesia The ASEAN-India Students Exchange Program was envisaged by the Prime Minister of India, Dr Manmohan Singh, in 2007 as a familiarization tool to build greater cultural and economic understanding between the two dynamic regions of Asia. Three such visits have already been held successfully, jointly conducted by the Ministry of External Affairs, India, and the Confederation of Indian Industry (CII). The tours have included historical, cultural, leadership and economic components, enabling ASEAN students to learn more about the modern vibrant India. Apart from visits to prominent heritage sites across the country, groups have also met with a cross-section of top government leaders and senior officials of central and state governments, heads of premier corporate houses, members of prestigious academic institutions and a number of Indian students and youth entrepreneurs. As per the feedback, this program has been enriching for the students personally and has facilitated broader bilateral engagement and understanding by building enhanced connectivity among the next generation of leaders from both sides. The primary objectives of the Exchange Program are as below:  To build closer people-to-people links between India and ASEAN, particularly among youth of both sides, in accordance with the aims laid out by Hon. Dr Manmohan Singh, Prime Minister of India  To inculcate greater awareness and knowledge of India among ASEAN youth and bridge information gaps  To create next-generation connectivity between Indian and ASEAN youth that will facilitate increasing mutual understanding of the two vibrant and dynamic Asian regions  To apprise ASEAN youth about fast-growing sectors of the Indian economy particularly in the knowledge industries in order to foster mutually beneficial future interaction  To enable greater economic and academic cooperation between businesses and entrepreneurs of the two sides in preparation for meeting emerging imperatives of
  29. 29. 29 closer Asian partnership.  To highlight the rich and ancient cultural heritage of India and the historical symbiosis between civilizations of the two sides as reflected in age-old travel, trade and cultural interchanges  To provide Indian youth an opportunity to learn about ASEAN member nations through direct interaction with ASEAN students on multimodal platforms The Program The Student Exchange Program is targeted at graduate and post-graduate students in the age- group of 20-28 years. Ten students from each of the ten ASEAN member nations are selected from among those who have displayed academic interest in India. The first Program was organized in 2007 with a tour of 100 students to Kolkata, Chennai, Bangalore, New Delhi, Jaipur and Agra. The second tour took place in 2008 comprising 50 students who traveled to Bangalore, Chennai, Kolkata, New Delhi, Agra and Jaipur. In 2009, the third batch of 50 students visited Chennai, Hyderabad, Mumbai, New Delhi, Agra and Jaipur. In 2011, the fourth batch of 100 students visited Chennai, Bangalore, Hyderabad, Mumbai, New Delhi and Agra. Previous editions of the ASEAN-India Students Exchange Program have greatly enlarged learning of ASEAN students, providing them with new insights and perspectives on modern India. In particular, the vast diversity of India’s regions, people, and cultures has enthralled students, offering a glimpse into the way the country manages variegated issues. Students have been appreciative of the challenges faced by India as it progresses on the path to development in an inclusive manner.
  30. 30. 30 ASEAN INTEGRATION 2015 Initially launched in the 4th ASEAN Summit held in Singapore in November 2000 as an "Initiative for ASEAN Integration" (IAI) by then Prime Minister Goh Chok Tong which created a framework for human resource development programs and the integration of the new member States - Vietnam, Lao PDR, Myanmar and Cambodia. The IAI has set-up four human resource development training centers in the new member States and by 2002 there were more than 10,000 participants in the program in various fields such as English Language, Information and Communication Technology, Trade and Tourism. During the 12th ASEAN summit held in Cebu, Philippines in 12–15 January 2007, the member States signed the 5 agreements aimed in further strengthening the integration of ASEAN and further enhancing political, economic and social cooperation in the region. Among those issues drafted in the agreement includes the "Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015." On the 13th ASEAN Summit in Singapore, from 18–22 November 2007 with the theme "One ASEAN at the Heart of Dynamic Asia" leaders of the member States endorsed the ASEAN Economic Community Blueprint on a plan to establish a single market and production base in the ASEAN region by 2015. ONE MARKET ECONOMY The ASEAN Integration 2015 will see member-nations converge with one market economy, where trade is done with fewer restrictions (like no tariffs). The business playing field is flowing with goods (raw materials and products) and services (manpower). Nationalities are given a wide array of product choices which range from low end to high end. The integration encourages competition (showcasing the best) and complementarity (providing unique products). Member-nations will place the right infrastructure to keep up with the fast changing ASEAN economic landscape. It also poses challenges, especially to member-nations like the Philippines whose economy is starting to boom. Journalist-businessman Wilson Lee Flores in his column titled Bull Market, Bull Sheet interviewed tycoons and identified different challenges that ASEAN businessmen face. They are the challenge of size or scale (family businesses can survive or flourish by becoming big or remaining small); the challenge of competitive spirit (market players should work harder); the challenge of speed (increase in transactions and productivity and developing new ideas); the challenge of efficiency (investment in technology and human resources); and the challenge of having a global mindset (thinking the international way). Manila Bulletin writer Reynaldo Lugtu Jr. in his article titled ASEAN 2015 — challenges and opportunities adds “Entry of imported products” and “The challenge to innovate” as the
  31. 31. 31 other challenges entrepreneurs in the region will face when the integration is fully implemented next year. The former will see local manufacturers compete in the market share, where cheaper and competitive products are made available. On the other hand, the latter will see companies invest “in research and development, market research, and new technologies of production.” This is inevitable and expected since the business sector needs to deliver goods to consumers in a faster way (The challenge of speed). As Lugtu Jr. shares the ASEAN single market comprises 600 million consumers and with $1.9 trillion in combined Gross Domestic Product (GDP). On top of these challenges, he sees opportunities such as “Access to a bigger market,” and “Supply of human capital,” where member-nations with large population, like the Philippines whose population is now at 100 million and most members of workforce speak English, can take advantage. INDIA SIGNS FREE TRADE AGREEMENT IN SERVICES, INVESTMENTS WITH ASEAN India signed a free trade pact in services and investment with the 10-member Association of Southeast Asian Nations (ASEAN) on 9th September, 2014. The accord is aimed at allowing freer movement of professionals and encouraging investment. Negotiations for the deal had begun in 2005. "The agreement will help provide market access to Indian professionals in the ASEAN region including those from the IT/ITES (information technology enabled services) sector," a commerce department official said. India signed a free trade agreement (FTA) in goods with the bloc in 2009. India was keen on the services deal as it did not gain much from the pact on goods due to already lower tariffs in the region. ASEAN — comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam — and India are targeting $100 billion in trade by 2015. Nine out of 10 ASEAN countries have signed the accord, while the Philippines is expected to do so soon after completing domestic procedures. The services pact signed with ASEAN covers issues such as transparency, domestic regulations, recognition, market access, national treatment, increasing participation of developing countries, joint committee on services, review, dispute settlement and denial of benefits, a commerce department official said. The Agreement on Services & Investment had been scheduled to be signed in Myanmar, during the ASEAN Economic Ministers (AEM) meeting last month. However, commerce and industry minister Nirmala Sitharman had to cancel her visit to Myanmar due to the national launch of the Prime Minister's Jan Dhan Yojana financial inclusion programme.
  32. 32. 32 India then proposed a circulation process, with each member separately signing the agreement. The deal will come into effect only after all members have signed the pact. India is also part of the Regional Comprehensive Economic Partnership (RCEP) negotiations between ASEAN and six partner countries. RCEP is a 16-member grouping of 10 ASEAN countries and six others - Australia, China, India, Japan, South Korea and New Zealand - that have free trade agreements with it. The grouping accounts for 40% of world trade. Benefits to Singapore after joining ASEAN In the 1970s through the 1990s, Singapore experienced sustained economic growth. Along with Hong Kong, South Korea, and Taiwan, it was called one of the “Four Tigers” of Asian economic prosperity. Labor-intensive industries were relocated to other ASEAN nations and were replaced by high-technology industries and services. The PAP developed a stable and corruption-free government, marked by strong central development planning and social policies. Despite paternalistic and at times authoritarian governmental practices and one- party dominance, the PAP maintained its large popular mandate. A Singaporean identity, distinct from that of the Malay and Chinese, emerged as the nation increasingly integrated itself into the global economy. The Asian economic crisis of 1997–98 was not the major setback for Singapore that it was for other Southeast Asian nations; the regional economic downturn did bring fluctuating growth rates to Singapore but no serious problems. Except for oil-rich Brunei, Singapore remained the most prosperous nation in the region. The ASEAN Trade in Goods Agreement (ATIGA) entered into force in May 2010. With its wide-ranging tariff cuts on goods produced within the ASEAN region, the ATIGA presents significant opportunities for exporters. The perspective of businesses in Indonesia, the agreement opens up trade with two of Singapore’s most important economic partners: Malaysia and Indonesia. The ASEAN-China Free Trade Agreement (ACFTA) is the world’s largest FTA in terms of population and the third largest in terms of GDP. Under the Trade in Goods Agreement of the ACFTA, the average tariff level on ASEAN-China trade has already declined to 4.5 per cent, nearly half the rate before the agreement was signed. The agreement provides significant opportunities for firms in Singapore, as China is the third biggest destination for Singaporean exports. Indeed, total trade between China and Singapore was valued at more than US$60 billion in 2010, with the balance of trade slightly favoring Singapore (Ministry of Commerce, China, 2010).
  33. 33. 33 ACHIEVEMENTS AND CRITICISMS OF ASEAN  After 40 years, many consider ASEAN to be very successful in part because of the ongoing stability in the region. Instead of worrying about military conflict, its member countries have been able to focus on development of their political and economic systems.  The group has also made a strong stance against terrorism with regional partner, Australia. In the wake of the terrorist attacks in Bali and Jakarta in the past eight years, ASEAN has refocused its efforts to prevent incidents and capture perpetrators.  In November 2007 the group signed a new charter that established ASEAN as a rule- based entity that would promote efficiency and concrete decisions rather than simply a large discussion group it has sometimes been labeled. The charter also commits members to advocate democratic ideals and human rights.  ASEAN is often criticized for saying on the one hand that democratic principles guide them, while on the other allowing human rights violations to occur in Myanmar, and socialism to rule in Vietnam and Laos. Protesters of free market who fear the loss of local jobs and economies have appeared all over the region, most notably at the 12th ASEAN summit in Cebu in the Philippines.  Despite any objections, ASEAN is well on its way to full economic integration and is making great strides to fully assert itself on the world market.
  34. 34. 34 CONCLUSION ASEAN remains an important symbol of political and economic stability in Southeast Asia. The institution will continue to exist in for the foreseeable future. ASEAN is an organisation that has run up against its own inherent limitations. These limitations have always been present and consistent in their institution. The member nations of ASEAN have succeeded in overcoming their limitations. ASEAN’s greatest potential for realm development is in the realm of regional economies. The objectives that they pursue have always reflected their own particular agendas and concerns and have determined mostly by its domestic and political and economic considerations. The member nations of ASEAN, Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, are rapidly approaching a new milestone: the implementation of the ASEAN Economic Community (AEC) at the end of 2015. The AEC is expected to have far-reaching economic consequences, by significantly promoting intra- and extra- ASEAN trade and investment and strengthening the global importance of the ASEAN as an economic block
  35. 35. 35 BIBLIOGRAPHY 1. Economies of Global Trade and Finance author P.A. Johnson, A.D. Mascarenhas publisher Manan Prakashan. 2. ASEAN- Rodolfo Severino- Institute of Southeast Asian Studies- 1st January, 2008- ISEASPublications 3. Lee, Yoong Yoong, ed. (2011), ASEAN Matters! Reflecting on the Association of Southeast Asian Nations, Singapore: World Scientific Publishing 4. ASEAN and Free Trade Area Cover China, Japan, India by S. Pushpanathan for The Jakarta Post, 14 November 2002 on Tuesday, 24 July 2012. Posted in Published Articles Print 5. 6. 7. 8. wiki/Association_of_Southeast_Asian_Nations 9. 10. India signs free trade agreement in services, investments with ASEAN - economic-ministers-trade-agreement-rcep- 9th September, 2014 11. Taking Advantage of ASEAN’s Free Trade Agreements - By Paige McClanahan, Alexander Chandra, Ruben Hattari and Damon Vis-Dunbar January 2014- International Institute of Sustainable Development