DECLARATION ON THE

ASEAN ECONOMIC COMMUNITY BLUEPRINT

DETERMINED to achieve higher levels of
economic dynamism, sustained prosperity,
inclusive
growth and integrated development of ASEAN
!"NS!I"#S of the increasing interdependence of
the ASEAN economies within the region as well
as with the rest of the world and stressing the
importance of narrowing the development gap for
accelerating the ASEAN Economic !ommunity $y
%&'(
RE!")NISIN) that different levels of development
within ASEAN re*uire some fle+i$ility as ASEAN
moves towards a more integrated and
interdependent future
REA,,IRMIN) our collective commitment, made at
the '%th ASEAN Summit in !e$u, the -hilippines,
on '. /anuary %&&0, to accelerate the
esta$lishment of the ASEAN !ommunity, including
its AE!
pillar, to %&'(
!")NISANT of the need to have a strengthened
institutional framewor1 and a unified legal
identity as set forth in the ASEAN !harter $y
putting in place rules2$ased systems to realise the
esta$lishment of the AE! $y %&'(
E3-RESSIN) satisfaction at the overall progress
made and commitment shown $y ASEAN in
developing the AE! 4lueprint and to ensure its
timely implementation
REA,,IRMIN) the ASEAN Economic Ministers
5AEM6 as the coordinator of all ASEAN economic
integration and cooperation issues
conomic
!ooperation 7 8or1ing together to the same end
Integration 7 !om$ining into a whole
Economic cooperation 7 the lowest form of
economic
integration
Economic Integration 7 the highest form of
economic cooperation
!haracteristics of AE!
'9 The coordination and esta$lishment of a
highly competitive and glo$ally integrated
AE! involves the Single Mar1et and
-roduction 4ase
2 to strengthen the implementation of
its e+isting economic initiatives, accelerating
regional integration in the priority sectors,
facilitating movt of $usiness persons, s1illed
la$or and talents, and strengthening the
institutional mechanism of ASEAN
2 This involves the free flow of
goods, free flow of services, free flow of
investments, free flow of capital and free
flow of s1illed la$or9
free flow of goods : a single mar1et for
goods and services will facilitate the
development of production networ1s in the
region and enhance ASEANS capacity to
serve as a glo$al production centre or as a
part of the glo$al supply chain
free flow of services : there will $e
su$stantially no restriction to ASEAN
services in providing services and in
esta$lishing companies across national
$orders within the region9 The negotiation of
some services sectors such as financial
services and air transport are carried out $y
their respective Ministerial $odies
free flow of investments : this serves as a
1ey to enhancing ASEAN;s competitiveness
in attracting foreign direct investment 5,DI6
as well as intra2ASEAN investment9
Sustained inflows of new investments and
reinvestments will promote and ensure
dynamic development of ASEAN economies
2 The ASEAN !omprehensive Investment
Agreement 5A!IA6 will cover the following pillars<
'9 -rovide enhance protection to all investors
and their investments to $e covered under
the comprehensive agreement
%9 There will $e more transparent, consistent
and predicta$le investment rules,
regulations, policies and procedures
.9 It will also promote ASEAN as an integrated
investment and production networ1
=9 There is progressive li$erali>ation of
ASEAN Mem$er !ountries; investment
regime to achieve free and open investment
$y %&'(
free flow of capital : there is strengthening
of the ASEAN !apital Mar1et Development
and Integration
2 Achieve grater
harmoni>ation in capital mar1et standards in
ASEAN in the areas of offering rules for de$t
securities, disclosure re*uirements and distri$ution
rules
,ree flow of s1illed la$our : ASEAN is
wor1ing to facilitate the issuance of visas
and employment passes for ASEAN
professionals and s1illed la$our who are
engaged in cross2$order trade and
investment related activities
2 There is
enhancement of cooperation amon ASEAN
#niversity Networ1 5A#N6 mem$ers to increase
mo$ility for $oth students and staff within the region
%9 The esta$lishment of a highly competitive and
glo$ally integrated AE! also involves !ompetitive
Economic Region
Diff, elements<
!ompetition policy : its o$?ective is to foster
a culture of fair competition9 Instituions and
laws related to competition policy have $een
esta$lished in some ASEAN Mem$er
!ountries9
!onsumer protection : the $uilding of an
integrated economic region with a people2
centered approach in this region has made
ASEAN mindful that consumers cannot $e
precluded in all measures ta1en to achieve
this integration
Intellectual property rights 5I-R6 :
intellectual property policy can serve as a
powerful stimulus to a cultural, intellectual
and artistic creativity and their
commerciali>ation9 In serves as a stimulus
also to the efficient adoption and adaptation
of more advanced technologies9
Infractracture development 2 a secure and
connected information is important for
sustaining the region;s economic growth
and competitiveness9 This facilitated high2
speed connection among all national
information infrastructure $y %&'& and
implement I!T measures as identified in the
@A-
2 Sta1eholders were
also encouraged to participate in utilisation and
development of I!T applications and services
Ta+ation : its action is to complete the
networ1 of $ilateral agreements on
avoidance of dou$le ta+ation among all
Mem$er !ountries $y %&'&
E2!ommerce : to lay the policy and legal
infrastructure for electronic commnerce and
ena$le in2line trade in goods
.9 EA#ITA4BE E!"N"MI! DE@EB"-MENT
2 The elements that compromise it is SME
development and Initiative for ASEAN Integration
5IAI6
SME development : it accelerate the pace
of SME development,
2 it enhance the
competitiveness and dynamism of ASEAN SMEs
$y facilitation their access to information, mar1et,
human resource development and s1ilss, finance
and technology9
2 it also increases the
contri$ution of SMEs to the overall economic
growth and development of ASEAN as a region
Initiative for ASEAN Integration 5IAI6 : the
IAI will $e enhance to serve as the platform
for identifying and implementing technical
assistance and capacity $uilding
programmes for $oth pu$lic and private
sectors in AM!9
=9 Integration into the )lo$al Economy
- the ASEAN shall wor1 towards maintaining
ASEAN !entrality in its e+ternel economic
relation $y esta$lishing a system enhanced
coordination and arriving at common
approaches in ASEAN;s e+ternal economic
relations
- The ASEAN also enhance participation in
glo$al supply networ1s $y continuing the
adoption of international $est practices and
standards in production and distri$ution
AE!<4RIE, CIST"RI!AB 4A!D)R"#ND
As what the Duala Bumpur Declaration of
'E0' had envisioned, the ASEAN region in
%&%& will $e a Fone of -eace, ,reedom and
Neutrality9
2 4y the year %&%&, ASEAN shall
esta$lished a peaceful and sta$le Southeast Asia
where each nation is at peace with itself and where
the causes for conflict have $een eliminated,
through a$iding respect for ?ustice and the rule of
law and through the strengthening of national and
regional resilience9
- The vision of ASEAN as a concert of
Southeast Asian nations, outward loo1ing,
living in peace, sta$ility and prosperity,
$onded together in partnership in dynamic
development and in a community of caring
societies9
According to the 4ali !oncord II adopted in
%&&., what ASEAN leaders were
committing themselves in pledging to
esta$lish as ASEAN Economic !ommunity
was far from clear9
2 the concept of Economic !ommunity suggested a
su$stantially deeper economic integration than had
$een achieved through the implementation of A,TA
over the previuos decade9
2 The ASEAN Economic !ommunity shall esta$lish
ASEAN as a single mar1et and production $ase,
turning the diversity that characteri>es the region
into opportunities for $usiness complementation
ma1ing the ASEAN a dynamic and stronger
segment of the glo$al chain9
The Association of Southeast Asian Nations,G=H
commonly a$$reviated ASEAN 5 I si9 nI ah2see2
ahn,G(H rarely I >i9 nI ah2>ee2ahn6,GJHG0H is a
geo2political and economic organi>ation of ten
countries located in Southeast Asia, which was
formed on K August 'EJ0 $y Indonesia, Malaysia,
the -hilippines, Singapore and Thailand9GKH Since
then, mem$ership has e+panded to include 4runei,
4urma 5Myanmar6, !am$odia, Baos, and @ietnam9
Its aims include the acceleration of economic
growth, social progress, cultural development
among its mem$ers, the protection of the peace
and sta$ility of the region, and to provide
opportunities for mem$er countries to discuss
differences peacefully9GEH
ASEAN covers an area of =9=J million 1mL, .M of
the total land area of Earth, with a population of
appro+imately J&& million people, K9KM of the world
population9 In %&'&, its com$ined nominal )D- had
grown to #SN'9K trillion9G'&H If ASEAN was a single
entity, it would ran1 as the ninth largest economy in
the world9
ASEAN was preceded $y an organisation called the
Association of Southeast Asia, commonly called
ASA, an alliance consisting of the -hilippines,
Malaysia and Thailand that was formed in 'EJ'9
The $loc itself, however, was esta$lished on K
August 'EJ0, when foreign ministers of five
countries : Indonesia, Malaysia, the -hilippines,
Singapore, and Thailand : met at the Thai
Department of ,oreign Affairs $uilding in 4ang1o1
and signed the ASEAN Declaration, more
commonly 1nown as the 4ang1o1 Declaration9 The
five foreign ministers : Adam Mali1 of Indonesia,
Narciso Ramos of the -hilippines, A$dul Ra>a1 of
Malaysia, S9 Ra?aratnam of Singapore, and Thanat
Dhoman of Thailand : are considered the
organisationOs ,ounding ,athers9G''H
The motivations for the $irth of ASEAN were so that
its mem$ers; governing elite could concentrate on
nation $uilding, the common fear of communism,
reduced faith in or mistrust of e+ternal powers in
the 'EJ&s, and a desire for economic development
not to mention Indonesia;s am$ition to $ecome a
regional hegemon through regional cooperation
and the hope on the part of Malaysia and
Singapore to constrain Indonesia and $ring it into a
more cooperative framewor19
In 'E0J, the Melanesian state of -apua New
)uinea was accorded o$server status9G'%H
Throughout the 'E0&s, the organisation em$ar1ed
on a program of economic cooperation, following
the 4ali Summit of 'E0J9 This floundered in the
mid2'EK&s and was only revived around 'EE' due
to a Thai proposal for a regional free trade area9
The $loc grew when 4runei Darussalam $ecame
the si+th mem$er on K /anuary 'EK=, $arely a
wee1 after gaining independence on ' /anuary9G'.H
GeditH!ontinued e+pansion
See also< Enlargement of Association of Southeast
Asian Nations
"n %K /uly 'EE(, @ietnam $ecame the seventh
mem$er9G'=H Baos and 4urma 54urma6 ?oined two
years later on %. /uly 'EE09G'(H !am$odia was to
have ?oined together with Baos and 4urma, $ut was
deferred due to the countryOs internal political
struggle9 The country later ?oined on .& April 'EEE,
following the sta$ilisation of its government9G'(HG'JH
During the 'EE&s, the $loc e+perienced an increase
in $oth mem$ership and drive for further
integration9 In 'EE&, Malaysia proposed the
creation of an East Asia Economic !aucusG'0H
comprising the then mem$ers of ASEAN as well as
the -eopleOs Repu$lic of !hina, /apan, and South
Dorea, with the intention of counter$alancing the
growing influence of the #nited States in the Asia2
-acific Economic !ooperation 5A-E!6 and in the
Asian region as a whole9G'KHG'EH This proposal
failed, however, $ecause of heavy opposition from
the #nited States and /apan9G'KHG%&H Despite this
failure, mem$er states continued to wor1 for further
integration and ASEAN -lus Three was created in
'EE09
In 'EE%, the !ommon Effective -referential Tariff
5!E-T6 scheme was signed as a schedule for
phasing tariffs and as a goal to increase the
region;s competitive advantage as a production
$ase geared for the world mar1et9 This law would
act as the framewor1 for the ASEAN ,ree Trade
Area9 After the East Asian ,inancial !risis of 'EE0,
a revival of the Malaysian proposal was esta$lished
in !hiang Mai, 1nown as the !hiang Mai Initiative,
which calls for $etter integration $etween the
economies of ASEAN as well as the ASEAN -lus
Three countries 5!hina, /apan, and South Dorea69
G%'H
Aside from improving each mem$er stateOs
economies, the $loc also focused on peace and
sta$ility in the region9 "n '( Decem$er 'EE(, the
Southeast Asian Nuclear28eapon2,ree Fone
Treaty was signed with the intention of turning
Southeast Asia into a Nuclear28eapon2,ree Fone9
The treaty too1 effect on %K March 'EE0 after all
$ut one of the mem$er states have ratified it9 It
$ecame fully effective on %' /une %&&', after the
-hilippines ratified it, effectively $anning all nuclear
weapons in the region9G%%H
Early %&'', East Timor plans to su$mit a letter of
application to the ASEAN Secretariat in Indonesia
to $e the eleventh mem$er of ASEAN at the
summit in /a1arta9 Indonesia has shown a warm
welcome to East Timor9
GeditHEnvironment and democracy
At the turn of the %'st century, issues shifted to
involve a more environmental perspective9 The
organisation started to discuss environmental
agreements9 These included the signing of the
ASEAN Agreement on Trans$oundary Ca>e
-ollution in %&&% as an attempt to control ha>e
pollution in Southeast Asia9G%JH #nfortunately, this
was unsuccessful due to the out$rea1s of the %&&(
Malaysian ha>e and the %&&J Southeast Asian
ha>e9 "ther environmental treaties introduced $y
the organisation include the !e$u Declaration on
East Asian Energy Security,G%0H the ASEAN 8ildlife
Enforcement Networ1 5ASEAN28EN6 in %&&(,G%KH
and the Asia2-acific -artnership on !lean
Development and !limate, $oth of which are
responses to the potential effects of climate
change9 !limate change is of current interest9
Through the 4ali !oncord II in %&&., ASEAN has
su$scri$ed to the notion of democratic peace,
which means all mem$er countries $elieve
democratic processes will promote regional peace
and sta$ility9 Also, the non2democratic mem$ers all
agreed that it was something all mem$er states
should aspire to9G%EH
The leaders of each country, particularly Mahathir
Mohamad of Malaysia, also felt the need to further
integrate the region9 4eginning in 'EE0, the $loc
$egan creating organisations within its framewor1
with the intention of achieving this goal9 ASEAN
-lus Three was the first of these and was created
to improve e+isting ties with the -eopleOs Repu$lic
of !hina, /apan, and South Dorea9 This was
followed $y the even larger East Asia Summit,
which included these countries as well as India,
Australia, and New Fealand9 This new grouping
acted as a prere*uisite for the planned East Asia
!ommunity, which was supposedly patterned after
the now2defunct European !ommunity9 The
ASEAN Eminent -ersons )roup was created to
study the possi$le successes and failures of this
policy as well as the possi$ility of drafting an
ASEAN !harter9
In %&&J, ASEAN was given o$server status at the
#nited Nations )eneral Assem$ly9G.&H As a
response, the organisation awarded the status of
Pdialogue partnerP to the #nited Nations9G.'H
,urthermore, on %. /uly that year, /osQ Ramos2
Corta, then -rime Minister of East Timor, signed a
formal re*uest for mem$ership and e+pected the
accession process to last at least five years $efore
the then2o$server state $ecame a full mem$er9G.%H
G..H
In %&&0, ASEAN cele$rated its =&th anniversary
since its inception, and .& years of diplomatic
relations with the #nited States9G.=H "n %J August
%&&0, ASEAN stated that it aims to complete all its
free trade agreements with !hina, /apan, South
Dorea, India, Australia and New Fealand $y %&'.,
in line with the esta$lishment of the ASEAN
Economic !ommunity $y %&'(9G.(HG.JH In
Novem$er %&&0 the ASEAN mem$ers signed the
ASEAN !harter, a constitution governing relations
among the ASEAN mem$ers and esta$lishing
ASEAN itself as an international legal entity9
Gcitation neededH During the same year, the !e$u
Declaration on East Asian Energy Security was
signed in !e$u on '( /anuary %&&0, $y ASEAN
and the other mem$ers of the EAS 5Australia,
-eopleOs Repu$lic of !hina, India, /apan, New
Fealand, South Dorea6, which promotes energy
security $y finding energy alternatives to
conventional fuels9Gcitation neededH
"n %0 ,e$ruary %&&E a ,ree Trade Agreement with
the ASEAN regional $loc1 of '& countries and New
Fealand and its close partner Australia was signed,
it is estimated that this ,TA would $oost aggregate
)D- across the '% countries $y more than #SN=K
$illion over the period %&&&:%&%&9G.0HG.KH
GeditHThe ASEAN way
In the 'EJ&s, the push for decolonisation promoted
the sovereignty of Indonesia and Malaysia among
others9 Since nation $uilding is often messy and
vulnera$le to foreign intervention, the governing
elite wanted to $e free to implement independent
policies with the 1nowledge that neigh$ours would
refrain from interfering in their domestic affairs9
Territorially small mem$ers such as Singapore and
4runei were consciously fearful of force and
coercive measures from much $igger neigh$ours
li1e Indonesia and Malaysia9 PThrough political
dialogue and confidence $uilding, no tension has
escalated into armed confrontation among ASEAN
mem$er countries since its esta$lishment more
than three decades agoP9G.EH
The ASEAN way can $e traced $ac1 to the signing
of the Treaty of Amity and !ooperation in
Southeast Asia9 P,undamental principles adopted
from this included<
mutual respect for the independence, sovereignty,
e*uality, territorial integrity, and national identity of
all nations
the right of every State to lead its national e+istence
free from e+ternal interference, su$version or
coercion
non2interference in the internal affairs of one
another
settlement of differences or disputes $y peaceful
manner
renunciation of the threat or use of force and
effective cooperation among themselvesP9G=&H
"n the surface, the process of consultations and
consensus is supposed to $e a democratic
approach to decision ma1ing, $ut the ASEAN
process has $een managed through close
interpersonal contacts among the top leaders only,
who often share a reluctance to institutionalise and
legalise co2operation which can undermine their
regimeOs control over the conduct of regional co2
operation9 Thus, the organisation is chaired $y the
secretariat9G='H
All of these features, namely non2interference,
informality, minimal institutionalisation, consultation
and consensus, non2use of force and non2
confrontation have constituted what is called the
ASEAN 8ay9 This ASEAN 8ay has recently
proven itself relatively successful in the settlements
of disputes $y peaceful manner realm, with
!hinese and ASEAN officials agreeing to draft
guidelines ordered to avert tension in the South
!hina Sea, an important milestone ending almost a
decade of deadloc19G=%HG=.H
Despite this success, some academics continue to
argue that ASEANOs non2interference principle has
worsened efforts to improve in the areas of 4urma,
human rights a$uses and ha>e pollution in the
region9 Meanwhile, with the consensus2$ased
approach, every mem$er in fact has a veto and
decisions are usually reduced to the lowest
common denominator9 There has $een a
widespread $elief that ASEAN mem$ers should
have a less rigid view on these two cardinal
principles when they wish to $e seen as a cohesive
and relevant community9
GeditH-olicies
Apart from consultations and consensus, ASEAN;s
agenda2setting and decision2ma1ing processes can
$e usefully understood in terms of the so2called
Trac1 I and Trac1 II9 Trac1 I refers to the practice of
diplomacy among government channels9 The
participants stand as representatives of their
respective states and reflect the official positions of
their governments during negotiations and
discussions9 All official decisions are made in Trac1
I9 Therefore, PTrac1 I refers to intergovernmental
processesP9G==H Trac1 II differs slightly from Trac1 I,
involving civil society groups and other individuals
with various lin1s who wor1 alongside
governments9G=(H This trac1 ena$les governments
to discuss controversial issues and test new ideas
without ma1ing official statements or $inding
commitments, and, if necessary, $ac1trac1 on
positions9
Although Trac1 II dialogues are sometimes cited as
e+amples of the involvement of civil society in
regional decision2ma1ing process $y governments
and other second trac1 actors, N)"s have rarely
got access to this trac1, meanwhile participants
from the academic community are a do>en thin12
tan1s9 Cowever, these thin12tan1s are, in most
cases, very much lin1ed to their respective
governments, and dependent on government
funding for their academic and policy2relevant
activities, and many wor1ing in Trac1 II have
previous $ureaucratic e+perience9G==H Their
recommendations, especially in economic
integration, are often closer to ASEAN;s decisions
than the rest of civil society;s positions9
The trac1 that acts as a forum for civil society in
Southeast Asia is called Trac1 III9 Trac1 III
participants are generally civil society groups who
represent a particular idea or $rand9G=JH Trac1 III
networ1s claim to represent communities and
people who are largely marginalised from political
power centres and una$le to achieve positive
change without outside assistance9 This trac1 tries
to influence government policies indirectly $y
lo$$ying, generating pressure through the media9
Third2trac1 actors also organise andIor attend
meetings as well as conferences to get access to
Trac1 I officials9
8hile Trac1 II meetings and interactions with Trac1
I actors have increased and intensified, rarely has
the rest of civil society had the opportunity to
interface with Trac1 II9 Those with Trac1 I have
$een even rarer9
Boo1ing at the three trac1s, it is clear that until now,
ASEAN has $een run $y government officials who,
as far as ASEAN matters are concerned, are
accounta$le only to their governments and not the
people9 In a lecture on the occasion of ASEAN;s
.Kth anniversary, the incum$ent Indonesian
-resident Dr9 Susilo 4am$ang Rudhoyono
admitted<
SAll the decisions a$out treaties and free trade
areas, a$out declarations and plans of action, are
made $y Ceads of )overnment, ministers and
senior officials9 And the fact that among the
masses, there is little 1nowledge, let alone
appreciation, of the large initiatives that ASEAN is
ta1ing on their $ehalf9
East Asia Summit
-articipants of the East Asia Summit<
ASEAN
ASEAN -lus Three
Additional mem$ers
"$server
Main article< East Asia Summit
The East Asia Summit 5EAS6 is a pan2Asian forum
held annually $y the leaders of 'J countries in East
Asia and the region, with ASEAN in a leadership
position9 The summit has discussed issues
including trade, energy and security and the summit
has a role in regional community $uilding9
The mem$ers of the summit are all '& mem$ers of
ASEAN together with !hina, /apan, South Dorea,
India, Australia and New Fealand who com$ined
represent almost half of the worldOs population9 At
the "cto$er %&'& EAS, Russia and the #nited
States were $oth formally invited to participate as
full mem$ers, and each country will $e participating
at the head of state level in %&''9G(&H
The first summit was held in Duala Bumpur on '=
Decem$er %&&( and su$se*uent meetings have
$een held after the annual ASEAN Beaders;
Meeting9
East Asia Summit
ASEAN
ASEAN -lus Three
Additional mem$ers
"$server
Main article< East Asia Summit
The East Asia Summit 5EAS6 is a pan2Asian forum
held annually $y the leaders of 'J countries in East
Asia and the region, with ASEAN in a leadership
position9 The summit has discussed issues
including trade, energy and security and the summit
has a role in regional community $uilding9
The mem$ers of the summit are all '& mem$ers of
ASEAN together with !hina, /apan, South Dorea,
India, Australia and New Fealand who com$ined
represent almost half of the worldOs population9 At
the "cto$er %&'& EAS, Russia and the #nited
States were $oth formally invited to participate as
full mem$ers, and each country will $e participating
at the head of state level in %&''9G(&H
The first summit was held in Duala Bumpur on '=
Decem$er %&&( and su$se*uent meetings have
$een held after the annual ASEAN Beaders;
Meeting9
Regional ,orum
The ASEAN Regional ,orum 5AR,6 is a formal,
official, multilateral dialogue in Asia -acific region9
As of /uly %&&0, it is consisted of %0 participants9
AR, o$?ectives are to foster dialogue and
consultation, and promote confidence2$uilding and
preventive diplomacy in the region9G((H The AR,
met for the first time in 'EE=9 The current
participants in the AR, are as follows< all the
ASEAN mem$ers, Australia, 4angladesh, !anada,
the -eopleOs Repu$lic of !hina, the European
#nion, India, /apan, North Dorea, South Dorea,
Mongolia, New Fealand, -a1istan, -apua New
)uinea, Russia, East Timor, #nited States and Sri
Ban1a9G(JH The Repu$lic of !hina 5also 1nown as
Taiwan6 has $een e+cluded since the
esta$lishment of the AR,, and issues regarding the
Taiwan Strait are neither discussed at the AR,
meetings nor stated in the AR, !hairmanOs
Statements9
GeditH"ther meetings
Aside from the ones a$ove, other regularG(0H
meetings are also held9G(KH These include the
annual ASEAN Ministerial MeetingG(EH as well as
other smaller committees, such as the Southeast
Asian ,isheries Development !enter9GJ&H Meetings
mostly focus on specific topics, such as
defenceG(0H or the environment,G(0HGJ'H and are
attended $y Ministers, instead of heads of
government9
GeditHAnother Three
The ASEAN -lus Three is a meeting $etween
ASEAN, !hina, /apan, and South Dorea, and is
primarily held during each ASEAN Summit9
GeditHAsia2Europe Meeting
The Asia2Europe Meeting 5ASEM6 is an informal
dialogue process initiated in 'EEJ with the intention
of strengthening cooperation $etween the countries
of Europe and Asia, especially mem$ers of the
European #nion and ASEAN in particular9GJ%H
ASEAN, represented $y its Secretariat, is one of
the =( ASEM partners9 It also appoints a
representative to sit on the governing $oard of
Asia2Europe ,oundation 5ASE,6, a socio2cultural
organisation associated with the Meeting9
GeditHASEAN2Russia Summit
The ASEAN2Russia Summit is an annual meeting
$etween leaders of mem$er states and the
-resident of Russia9
GeditHASEAN ,oreign Ministers Meeting
The ==th annual meeting will $e held in 4ali on 'J
to %. /uly %&''9 Indonesia will propose a unified
ASEAN travel visa to ease travel within the region
for citi>ens of ASEAN mem$er states9GJ.H
GeditHEconomic !ommunity
ASEAN has emphasised regional cooperation in
the Sthree pillarsT of security, sociocultural and
economic integration9GJ=H The regional grouping
has made the most progress in economic
integration, aiming to create an ASEAN Economic
!ommunity 5AE!6 $y %&'(9GJ(H The average of
economic growth of ASEAN2( during 'EKE:%&&E
were Singapore with J90. percent, Malaysia J9'(
percent, Indonesia (9'J percent, Thailand (9&%
percent and the -hilippines .90E percent9 It were
$etter than average A-E! economic growth with
%9K. percent which all of ASEAN countries were
included9GJJH
GeditH,rom !E-T to AE!
A !ommon Effective -referential Tariff 5!E-T6
scheme to promote the free flow of goods within
ASEAN lead the ASEAN ,ree Trade Area 5A,TA69
GJ(H The ASEAN ,ree Trade Area 5A,TA6 is an
agreement $y the mem$er nations of ASEAN
concerning local manufacturing in all ASEAN
countries9 The A,TA agreement was signed on %K
/anuary 'EE% in Singapore9GJ0H 8hen the A,TA
agreement was originally signed, ASEAN had si+
mem$ers, namely, 4runei, Indonesia, Malaysia, the
-hilippines, Singapore and Thailand9 @ietnam
?oined in 'EE(, Baos and 4urma in 'EE0, and
!am$odia in 'EEE9 The latecomers have not fully
met the A,TAOs o$ligations, $ut they are officially
considered part of the A,TA as they were re*uired
to sign the agreement upon entry into ASEAN, and
were given longer time frames in which to meet
A,TAOs tariff reduction o$ligations9GJKH
The ne+t step is ASEAN Economic !ommunity
5AE!6 with main o$?ectives are to create a<
single mar1et and production $ase
highly competitive economic region
region of e*uita$le economic development
region fully integrated into the glo$al economy
Since %&&0, the ASEAN countries gradually lower
their import duties among them and targeted will $e
>ero for most of the import duties at %&'(9GJEH
Since %&'', AE! has agreed to strengten the
position and increase the competitive edges of
small and medium enterprises 5SME6 in the ASEAN
region9G0&H
asean$logger9com has agreed to set up online
ASEAN community with aim to raise peopleOs
awareness on the issue of AE! $y %&'(9 The
content of the portal currently consisted of su$?ects
varying from security to culinary and in the future
will also touch tourist sites and local culture9G0'H
GeditH!omprehensive Investment Area
The ASEAN !omprehensive Investment Area
5A!IA6 will encourage the free flow of investment
within ASEAN9 The main principles of the A!IA are
as followsG0%H
All industries are to $e opened up for investment,
with e+clusions to $e phased out according to
schedules
National treatment is granted immediately to
ASEAN investors with few e+clusions
Elimination of investment impediments
Streamlining of investment process and procedures
Enhancing transparency
#nderta1ing investment facilitation measures
,ull realisation of the A!IA with the removal of
temporary e+clusion lists in manufacturing
agriculture, fisheries, forestry and mining is
scheduled $y %&'& for most ASEAN mem$ers and
$y %&'( for the !BM@ 5!am$odia, Bao -DR,
4urma, and @ietnam6 countries9G0%H
GeditHTrade in Services
An ASEAN ,ramewor1 Agreement on Trade in
Services was adopted at the ASEAN Summit in
4ang1o1 in Decem$er 'EE(9G0.H #nder A,AS,
ASEAN Mem$er States enter into successive
rounds of negotiations to li$eralise trade in services
with the aim of su$mitting increasingly higher levels
of commitments9 The negotiations result in
commitments that are set forth in schedules of
specific commitments anne+ed to the ,ramewor1
Agreement9 These schedules are often referred to
as pac1ages of services commitments9 At present,
ASEAN has concluded seven pac1ages of
commitments under A,AS9G0=H
GeditHSingle Aviation Mar1et
The ASEAN Single Aviation Mar1et 5SAM6,
proposed $y the ASEAN Air Transport 8or1ing
)roup, supported $y the ASEAN Senior Transport
"fficials Meeting, and endorsed $y the ASEAN
Transport Ministers, will introduce an open2s1y
arrangement to the region $y %&'(9G0(H The
ASEAN SAM will $e e+pected to fully li$eralise air
travel $etween its mem$er states, allowing ASEAN
to directly $enefit from the growth in air travel
around the world, and also freeing up tourism,
trade, investment and services flows $etween
mem$er states9G0(HG0JH 4eginning ' Decem$er
%&&K, restrictions on the third and fourth freedoms
of the air $etween capital cities of mem$er states
for air passengers services will $e removed,G00H
while from ' /anuary %&&E, there will $e full
li$eralisation of air freight services in the region,
whileG0(HG0JH 4y ' /anuary %&'', there will $e
li$eralisation of fifth freedom traffic rights $etween
all capital cities9G0KH
GeditH,ree Trade Agreements 8ith "ther !ountries
ASEAN has concluded free trade agreements with
!hina 5e+pecting $ilateral trade of N(&& $illion $y
%&'(6,G=.H Dorea, /apan, Australia, New Fealand
and most recently India9G0EH The agreement with
-eopleOs Repu$lic of !hina created the ASEAN:
!hina ,ree Trade Area 5A!,TA6, which went into
full effect on ' /anuary %&'&9 In addition, ASEAN is
currently negotiating a free trade agreement with
the European #nion9GK&H Repu$lic of !hina
5Taiwan6 has also e+pressed interest in an
agreement with ASEAN $ut needs to overcome
diplomatic o$?ections from !hina9GK'H
GeditHASEAN si+ ma?ors
ASEAN si+ ma?ors refer to the si+ largest
economies in the area with economies many times
larger than the remaining four ASEAN countries9
The si+ ma?ors are< )D- nominal %&'& $ased on
IM, data9 The figures in parentheses are )D-
---9
Indonesia< JE( $illions 5',&%0 $illions6
Thailand< .'% $illions 5(K= $illions6
Malaysia< %'K $illions 5='% $illions6
Singapore< %'0 $illions 5%E' $illions6
-hilippines< 'KE $illions 5.(& $illions6
@ietnam< '&' $illions 5%0( $illions6
GeditH,rom !MI to AMR"
Due to Asian financial crisis of 'EE0 to 'EEK and
long and difficult negotiations with International
Monetary ,und, ASEANU. agreed to set up a
mainly $ilateral currency swap scheme 1nown as
the %&&& !hiang Mai Initiative 5!MI6 to anticipate
another financial crisis or currency turmoil in the
future9 In %&&J they agreed to ma1e !MI with
multilateralisation and called as !MIM9 "n . May
%&&E, they agreed to ma1e a currency pool consist
of contri$ution N.K9= $illion each $y !hina and
/apan, N'E9% $illion $y South Dorea and totally N%=
$illion $y all of ASEAN mem$ers, so the total
currency pool was N'%& $illion9GK%H A 1ey
component has also newly $een added, with the
esta$lishment of a surveillance unit9GK.H
The ASEANU. Macroeconomic and Research
"ffice 5AMR"6 will start its operation in Singapore
in May %&''9GK=H It will perform a 1ey regional
surveillance function as part of the N'%& $illion of
!hiang Mai Initiative Multilateralisation 5!MIM6
currency swap facility that was esta$lished $y
,inance Minister and !entral 4an1 )overnors of
ASEAN countries plus !hina, /apan and South
Dorea in Decem$er %&&E9GK(H
According to some analysts, the amount of N'%&
$illion is relatively small 5cover only a$out %&
percent of needs6, so coordination or help from
International Monetary ,und is still needed9GKJH
GeditH,oreign Direct Investment
In %&&E, reali>ed ,oreign Direct Investment 5,DI6
was N.09E $illion and increase $y two2fold in %&'&
to N0(9K $illion9 %% percent of ,DI came form the
European #nion, followed $y ASEAN countries
themselves $y 'J percent and then followed $y
/apan and #S9 European #nion and #S has de$t
pro$lems, while /apan should ma1e tsunami
recovery9 !hina who helped Asia lead the glo$al
post2%&&K recovery still grapples with .2years high
inflation9 So, in the longterm all of the pro$lems will
give negative impact to ASEAN indirectly9 There
are possi$ility to push some programs of ASEAN
Economic !ommunity $efore %&'(9GK0H
GeditH!harter
"n '( Decem$er %&&K the mem$ers of ASEAN
met in the Indonesian capital of /a1arta to launch a
charter, signed in Novem$er %&&0, with the aim of
moving closer to Pan E#2style communityP9GKKH The
charter turns ASEAN into a legal entity and aims to
create a single free2trade area for the region
encompassing (&& million people9 -resident of
Indonesia Susilo 4am$ang Rudhoyono stated that
PThis is a momentous development when ASEAN
is consolidating, integrating and transforming itself
into a community9 It is achieved while ASEAN
see1s a more vigorous role in Asian and glo$al
affairs at a time when the international system is
e+periencing a seismic shift,P he added, referring to
climate change and economic upheaval9 Southeast
Asia is no longer the $itterly divided, war2torn
region it was in the 'EJ&s and 'E0&s9P PThe
fundamental principles include<
a6 respect for the independence, sovereignty,
e*uality, territorial integrity and national identity of
all ASEAN Mem$er States
$6 shared commitment and collective responsi$ility
in enhancing regional peace, security and
prosperity
c6 renunciation of aggression and of the threat or
use of force or other actions in any manner
inconsistent with international law
d6 reliance on peaceful settlement of disputes
e6 non2interference in the internal affairs of ASEAN
Mem$er States
f6 respect for the right of every Mem$er State to
lead its national e+istence free from e+ternal
interference, su$version and coercion
g6 enhanced consultations on matters seriously
affecting the common interest of ASEAN
h6 adherence to the rule of law, good governance,
the principles of democracy and constitutional
government
i6 respect for fundamental freedoms, the promotion
and protection of human rights, and the promotion
of social ?ustice
?6 upholding the #nited Nations !harter and
international law, including international
humanitarian law, su$scri$ed to $y ASEAN
Mem$er States
16 a$stention from participation in any policy or
activity, including the use of its territory, pursued $y
and ASEAN Mem$er State or non2ASEAN State or
any non2State actor, which threatens the
sovereignty, territorial integrity or political and
economic sta$ility of ASEAN Mem$er States
l6 respect for the different cultures, languages and
religions of the peoples of ASEAN, while
emphasising their common values in the spirit of
unity in diversity
m6 the centrality of ASEAN in e+ternal political,
economic, social and cultural relations while
remaining actively engaged, outward2loo1ing,
inclusive and non2discriminatory and
n6 adherence to multilateral trade rules and
ASEANOs rules2$ased regimes for effective
implementation of economic commitments and
progressive reduction towards elimination of all
$arriers to regional economic integration, in a
mar1et2driven economyP9GKEH
Cowever, the ongoing glo$al financial crisis was
stated as $eing a threat to the goals envisioned $y
the charter,GE&H and also set forth the idea of a
proposed human rights $ody to $e discussed at a
future summit in ,e$ruary %&&E9 This proposition
caused controversy, as the $ody would not have
the power to impose sanctions or punish countries
who violate citi>ensO rights and would therefore $e
limited in effectiveness9GE'H The $ody was
esta$lished later in %&&E as the ASEAN
Intergovernmental !ommission on Cuman Rights
5AI!CR69
!riticism
Non2ASEAN countries have criticised ASEAN for
$eing too soft in its approach to promoting human
rights and democracy in the ?unta2led 4urma9G'&'H
Despite glo$al outrage at the military crac12down
on peaceful protesters in Rangon, ASEAN has
refused to suspend 4urma as a mem$er and also
re?ects proposals for economic sanctions9G'&%H This
has caused concern as the European #nion, a
potential trade partner, has refused to conduct free
trade negotiations at a regional level for these
political reasons9G'&.H International o$servers view
it as a Ptal1 shopP,G'&=H which implies that the
organisation is P$ig on words $ut small on actionP9
G'&(H Cead of the International Institute of Strategic
Studies : Asia, Tim Cu+ley cites the diverse
political systems present in the grouping, including
many young states, as a $arrier to far2reaching
cooperation outside the economic sphere9 Ce also
asserts that in the a$sence of an e+ternal threat to
rally against with the end of the !old 8ar, ASEAN
has $egun to $e less successful at restraining its
mem$ers and resolving $order disputes such as
those $etween 4urma and Thailand and Indonesia
and Malaysia9G'&JH
During the '%th ASEAN Summit in !e$u, several
activist groups staged anti2glo$alisation and anti2
Arroyo rallies9G'&0H According to the activists, the
agenda of economic integration would negatively
affect industries in the -hilippines and would cause
thousands of ,ilipinos to lose their ?o$s9G'&KH They
also viewed the organisation as imperialistic that
threatens the countryOs sovereignty9G'&KH A human
rights lawyer from New Fealand was also present
to protest a$out the human rights situation in the
region in general9G'&EH
ASEAN has $een critici>ed, in the past, of $eing a
mere tal1ing shop9G''&H Cowever, leaders such as
the -hilippinesO ,oreign Affairs Secretary, Al$erto
Romulo, said it would $e a wor1shop not a tal1
shop9G'''H "thers have also e+pressed similar
sentiment9G''%H