ASEAN Free Trade

The Association of Southeast Asian Nations

Meaning of ASEAN

10

ASEAN is composed of _ Southeast Asian countries.

True

T or F: It was established on August 8, 1967, in Bangkok, Thailand.

• Promote political and economic cooperation.

• Regional stability

• Provide assistance to each other.

3 Objectives of ASEAN:

1. Brunei (Bandar Seri Begawan)

• It has an oil-rich sultanate & emerging economy.

2. Cambodia (Phnom Penh) 

• Has a developing economy, focusing on tourism and garments.

3. Indonesia (Jakarta) 

• Largest archipelago, focused on oil, manufacturing, and mining.

4. Laos (Vientiane) 

• It is a landlocked nation with a focus on hydropower & ecotourism.

5. Malaysia (Kuala Lumpur)

• Multicultural society, strong manufacturing & technology sectors.

6. Myanmar (Naypyidaw) 

• Geostrategically important, facing political & economic transitions.

7. Philippines (Manila)

• Archipelagic nation with a vibrant culture and a greater focus towards BPOs, electronics, and agriculture.

8. Singapore (Singapore)

• Highly developed city-state, focused on finance services and trade.

9. Thailand (Bangkok)

• High in tourism, diverse economy with rich agriculture and manufacturing.

10. Vietnam (Hanoi)

• A dynamic economy with a growing manufacturing & export sector.

The 10 ASEAN Member States

ASEAN Connectivity

It is a plan/initiative that seeks to further connect Southeast Asian countries, encompassing the physical, institutional, and people-to-people linkages.

1. Sustainable Infrastructure

2. Digital Innovation

3. Seamless Logistics

4. Regulatory Excellence

5. People Mobility

The 5 Strategic Areas of the Master Plan on ASEAN Connectivity (MPAC)

Sustainable Infrastructure

Attempts to coordinate existing resources to support full life cycles of infrastructure projects in ASEAN and proliferate “smart urbanization.”

Digital Innovation

Supports adoption of technology in business, improvement of financial access with technology, and accessibility of data among ASEAN states.

Seamless Logistics

To improve supply chains by lowering costs and increasing speed and reliability.

Regulatory Excellence

To harmonize standards and regulations, and limiting trade-distorting measures.

People Mobility

To support ease of travel, reconcile gaps in vocational skills, and increase the number of intra-ASEAN international students.

ASEAN Chapter

It is a legally binding agreement among the 10 ASEAN member states to establish ASEAN as an international organization and to detail and define its governance, operations, aims, principles, and rights.

• Provide ASEAN with legal personality and a rules-based framework.

• Codify ASEAN's core principles, norms, and values.

• Achieve the goals of the ASEAN Community. 

• Elevate ASEAN's standing and effectiveness on the global stage.

Purpose and Significance of ASEAN

ASEAN Structure

It is designed to facilitate cooperation to achieve harmony among its member states.

ASEAN Summit

• Composed of the Heads of State for each member state who convene twice a year to set the strategic direction for ASEAN.

• The last summit, held in Vientiane, focused on ASEAN cooperation, addressing issues such as economic integration, green finance, and regional security.

ASEAN Coordinating Council

• Composed of the Foreign Ministers of the member states, its primary role is to prepare for the ASEAN summit.

ASEAN Political-Security Community (APSC) Council

This aims to keep the region at peace with each other and with the rest of the world.

ASEAN Economic Community (AEC) Council

It is the body directing the overall implementation of the ASEAN Economic Community Blueprint, enforcing compliance of all measures agreed in the document.

ASEAN Socio-Cultural Community (ASCC) Council

It focuses on realizing the full potential of citizens by halting issues such as human capital development, social protection, among others, and urging sustainable progress.

ASEAN Sectoral Ministerial Bodies

• Made up of ministers from each member-state overseeing a particular sector, like economy or education. 

• These bodies convene regularly to discuss challenges, formulate policies, and execute cooperative projects, driving ASEAN’s agendas.

Committee on Permanent Representatives (CPR) 

Supports the work of the Coordinating Council and other ASEAN bodies by preparing the ground for high-level meetings, monitoring implementation of agreements, and ensuring unity within the organization.

ASEAN External Relations in International Business and Trade

• While originally formed to promote peace, stability, and cooperation among its member states, ASEAN has expanded its focus to encompass international business and trade. 

• By establishing Free Trade Agreements (FTAs), Comprehensive Economic Partnerships, and dialogue mechanisms, ASEAN seeks to reduce trade barriers, improve access to foreign markets, and stimulate cross-border economic activity.

1. China
   Has built one of the most significant trade relationships through the ASEAN-China Free Trade Area (ACFTA) and has facilitated massive trade volumes and investment flows.

2. United States
   The U.S. is one of ASEAN’s top investors, emphasizing digital economy development, infrastructure investment, cybersecurity, and clean energy cooperation.

3. European Union (EU)
   ASEAN’s relationship with the EU is defined by a Strategic Partnership that focuses on digital trade, sustainable development, climate action, and connectivity. 

Key examples of ASEAN's external relations with countries and trading blocs: