Introduction

The Association of Southeast Asian Nations (ASEAN) is a regional inter-governmental

organization comprising 10 member states. It was established by Indonesia, Malaysia, the
Philippines, Singapore and Thailand on August 8, 1967, and was later joined by Brunei
(1984), Vietnam (1995), Burma and Laos (1997) and Cambodia (1999). The objectives of
ASEAN are to accelerate economic growth, social progress and cultural development;
promote regional peace and stability, and respect for justice and the rule of law; and increase
collaboration across a vast range of economic, social, Economic Community and ASEAN
Social Cultural Community, by December 31, 2015.
Its

aims

include

accelerating economic

growth, social

progress, sociocultural

evolution among its members, protection of regional peace and stability, and opportunities for
member countries to discuss differences peacefully.
ASEAN covers a land area of 4.46 million km, 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.
In 2008, ASEAN members adopted the ASEAN Charter, which overhauled its management
structure, and officially created ASEAN as a legal entity and established several institutional
bodies, such as the bi-annual ASEAN Summit, the ASEAN Coordinating Council and the
ASEAN Community Council. The ASEAN Secretariat, located in Jakarta, Indonesia, and led
by the secretary-general, coordinates the work plans, projects and meetings of ASEANassociated bodies. The ASEAN Secretariat is also responsible for coordinating ASEANs
relationship with external partners, such as Canada.

History
The fundamental forces driving greater economic integration in East Asia included the forces
of economic expansion, geographical proximity, web of business network, and lower
transportation and transaction costs among countries in the region. Japan's emergence as a
world economic power, the reduction of the American presence in the region following the
Vietnam War (1973), and the subsequent Vietnamese aggressions in Indochina also played a
role.
During the 1960s, there were repeated unsuccessful attempts to create an association among
Southeast Asian nations. The Association of Southeast Asia (ASA) composed of Malaya, the
Philippines, and Thailand, was established in Bangkok on July 31, 1961. Originally, the
Philippines and Malaya had sought an organization similar to the European Economic
Community, but they assented to Thailand who insisted on an association with a looser
structure. Indonesia, as a supporter of nonalignment, did not wish to join an organization that
was either too strong in its political stance or which Indonesia had no role in creating. A new
organization was required.
Maphilindo, a combined name of Malaya, the Philippines, and Indonesia, was formally
established on July 1963. Maphilindo did not work well due to different interests of the
participating nations; The Philippines and Indonesia had territorial disagreement with Malaya.
Consequently, Maphilindo failed mainly because of military disputes.
There was the SEATO, or the South East Asia Treaty Organization (SEATO). It was an
international organization for defensive collaboration established on September 8, 1954. It
also failed due to lack of agreement because it required unanimity in order to pursue a policy
or express a stance on an issue. There were several other organizations such as the Asian
Pacific Council (ASPAC), or the Southeast Asian Association for Regional Cooperation
(SAARC), none of which were successful.
The division between countries, deprivation of diplomatic relations, and continuous political
disputes outweighed regional coordination. These issues stemmed from colonial times when
they were forced by the colonial powers to live without contact from neighbouring countries.
The era called for a new, effective organization, but many countries were sceptical about each
organization. ASEAN, when it was first created, was no exemption to the doubt.

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 intergovernmental organization in the developing world today. And the document that they signed
would be known as the ASEAN Declaration.
The motivations for the birth of ASEAN were so that its members governing elite could
concentrate on nation building, the common fear of communism, reduced faith in or mistrust
of external powers in the 1960s, and a desire for economic development.
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.
During the 1990s, the bloc experienced an increase in both membership and drive for further
integration. In 1990, Malaysia proposed the creation of an East Asia Economic
Caucus comprising the then members of ASEAN as well as the People's Republic of China,
Japan, and South Korea, with the intention of counterbalancing the growing influence of the
United States in the Asia-Pacific Economic Cooperation (APEC) and in the Asian region as a
whole. This proposal failed, however, because of heavy opposition from the United States and
Japan. Despite this failure, member states continued to work for further integration
and ASEAN Plus Three was created in 1997.
In 1992, the Common Effective Preferential Tariff (CEPT) scheme was signed as a schedule
for phasing tariffs and as a goal to increase the regions competitive advantage as a
production base geared for the world market. This law would act as the framework for
the ASEAN Free Trade Area. After the East Asian Financial Crisis of 1997, a revival of the
Malaysian proposal was established in Chiang Mai, known as the Chiang Mai Initiative,

which calls for better integration between the economies of ASEAN as well as the ASEAN
Plus Three countries (China, Japan, and South Korea).
Aside from improving each member state's economies, the bloc also focused on peace and
stability in the region. On 15 December 1995, the Southeast Asian Nuclear-Weapon-Free
Zone Treaty was signed with the intention of turning Southeast Asia into a Nuclear-WeaponFree Zone. The treaty took effect on 28 March 1997 after all but one of the member states
have ratified it. It became fully effective on 21 June 2001, after the Philippines ratified it,
effectively banning all nuclear weapons in the region.

ASEAN Member States

Country
Name

Brunei

Cambodia

Indonesia

Laos

Capital City Money/Currency

Bandar Seri
Begawan

Brunei dollar
(BND)

Phnom Penh

Cambodian riel
(KHR)

Jakarta

Indonesian rupiah
(IDR)

Vientiane

Lao kip (LAK)

Official
languages

Leaders

Accession

Malay

Head of State and

Government:
Hassanal Bolkiah

Khmer

Head of
State: Norodom
Apr 30, 1999
Sihamoni Head of
Government: Hun Sen

Jan 7, 1984

Indonesian

Head of State and

Government:
Susilo Bambang
Yudhoyono

Aug 8, 1967

Lao

Head of
State: Choummaly
Sayasone Head of
Government:
Thongsing
Thammavong

Jul 23, 1997

Head of State: Abdul

Halim
Head of Government:
Najib Abdul Razak

Aug 8, 1967

Jul 23, 1997

Malaysia

Kuala
Lumpur

Malaysian ringgit
(MYR)

Malay

Myanmar

Naypyidaw

Myanmar kyat
(MMK)

Burmese

Head of State and

Government:
Thein Sein

Philippines

Manila

Philippine peso
(PHP)

Filipino,
English

Head of State and

Government: Benigno Aug 8, 1967
Aquino III

Singapore

Singapore dollar
(SGD)

Malay,
Chinese,
English,
Tamil

Head of State: Tony

Tan Keng Yam Head
of Government:
Lee Hsien Loong

Aug 8, 1967

Thai

Head of
State: Bhumibol
Adulyadej Head of
Government:
Yingluck Shinawatra

Aug 8, 1967

Singapore

Thailand

Vietnam

Bangkok

Thai baht (THB)

Hanoi

Vietnamese
(VND)

Vietnamese

Head of State: Truong

Tan Sang
Jul 28, 1995
Head of Government:
Nguyen Tan Dung

AIMS AND OBJECTIVES OF ASEAN

As set out in the ASEAN Declaration, the aims and objectives 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.

Fundamental Principles of ASEAN

At the First ASEAN Summit in Bali in February 1976, the member countries signed the
Treaty of Amity and Co-operation in Southeast Asia. It spelled out the basic principles for
their relations with one another and the conduct of the associations programme for cooperation; the ASEAN Member States have adopted the following fundamental principles:
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 cooperation among themselves.
The treaty envisaged these principles as the foundation of a strong Southeast Asian
Community. It stated that ASEAN political and security dialogue and co-operation should aim
to promote regional peace and stability by enhancing regional resilience. This resilience shall
be achieved by co-operation in all fields among the member countries.
7

The ASEAN Charter

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

ASEAN Communities
The three pillars of the ASEAN Community, namely the ASEAN Political-Security
Community (APSC), the ASEAN Economic Community (AEC) and the ASEAN SocioCultural Community (ASCC), are the most crucial areas deemed necessary for the progress
and evolution of ASEAN and its peoples.
9

Human rights seem to underpin all the three pillars of the ASEAN Community although they
may not be explicitly stated in the objectives, strategies or actions of the Blueprints. As
human rights encompass the principles of non-discrimination, equity, justice and human
dignity, it is therefore logical that human rights are directly or indirectly are pertinent to the
ASEAN Community. For instance, todays economic advancement depends heavily on human
resources and unless people have equal access to education, training and capacity building,
the country may be deprived of a large pool of creative thinkers and entrepreneurs. Therefore,
although human rights have much fewer mentions in the ASEAN Economic Community than
the other two pillars, nevertheless, human rights are at the heart of the ASEAN Economic
Community. This is indicated by the adoption of region of equitable economic development
as one of the four objectives of the ASEAN Economic Community.

ASEAN Member states are cognizant that in building a people-oriented, sharing and caring,
and rules-based ASEAN community through the ASEAN Political-Security Community, the
ASEAN Economic Community and the ASEAN Socio-cultural Community, the pertinence of
human rights cannot be ignored. However, the test is in the realization of the strategic
objectives through the actions articulated in the Blueprints by member states. The extent to
which the human rights-related objectives are achievable is difficult to predict because for
objectives such as equitable access requires change in mindset and commitment of member
states.

10

ASEAN Member states are cognizant that in building a people-oriented, sharing and caring,
and rules-based ASEAN community through the ASEAN Political-Security Community, the
ASEAN Economic Community and the ASEAN Socio-cultural Community, the pertinence of
human rights cannot be ignored. However, the test is in the realization of the strategic
objectives through the actions articulated in the Blueprints by member states. The extent to
which the human rights-related objectives are achievable is difficult to predict because for
objectives such as equitable access requires change in mindset and commitment of member
states.
To concretise the ASEAN Vision 2020, the ASEAN Heads of States/Governments adopted the
Declaration of ASEAN Concord II (Bali Concord II) in 2003, which establishes an ASEAN
Community by 2020.

ASEAN POLITICAL-SECURITY COMMUNITY

Introduction:
The ASEAN Political-Security Community has its genesis of over four decades of close cooperation and solidarity. The ASEAN Heads of States/Governments, at their Summit in Kuala
Lumpur in December 1997 envisioned 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. co-operation and solidarity. The ASEAN
Heads of States/Governments, at their Summit in Kuala Lumpur in December 1997
envisioned a concert of Southeast Asian nations, outward looking, living in peace, stability
11

and prosperity, bonded together in partnership in dynamic development and in a community

of caring societies.
Conscious that the strengthening of ASEAN integration through accelerated establishment of
an ASEAN Community will reinforce ASEANs centrality and role as the driving force in
charting the evolving regional architecture, the ASEAN Leaders at the 12th ASEAN Summit
in the Philippines decided to accelerate the establishment of an ASEAN Community by 2015.

At the 13th ASEAN Summit in Singapore, the ASEAN Heads of States/Governments signed
the ASEAN Charter, which marked as ASEAN Member States commitment in intensifying
community building through enhanced regional cooperation and integration. In line with this,
they tasked their Ministers and officials to draft the APSC Blueprint, which would be adopted
at the 14th ASEAN Summit.

The APSC Blueprint is guided by the ASEAN Charter and the principles and purposes
contained therein. The APSC Blueprint builds on the ASEAN Security Community Plan of
Action, the Vientiane Action Programme (VAP), as well as relevant decisions by various
ASEAN Sectoral Bodies. The ASEAN Security Community Plan of Action is a principled
document, laying out the activities needed to realise the objectives of the ASEAN Political
Security Community, while the VAP lays out the measures necessary for 2004-2010. Both
documents are important references in continuing political and security cooperation. The
APSC Blueprint provides a roadmap and timetable to establish the APSC by 2015. The APSC
Blueprint would also have the flexibility to continue programmes/activities beyond 2015 in
order to retain its significance and have an enduring quality.
To build on what has been constructed over the years in the field of political and security
cooperation, the ASEAN Leaders have agreed to establish the ASEAN Political-Security
Community (APSC). The APSC 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 and regard their security as fundamentally linked to
one another and bound by geographic location, common vision and objectives. It has the

12

following components: political development; shaping and sharing of norms; conflict

prevention; conflict resolution; post-conflict peace building; and implementing mechanisms.
The APSC Blueprint envisages ASEAN to be a rules-based Community of shared values and
norms; a cohesive, peaceful, stable and resilient region with shared responsibility for
comprehensive security; as well as a dynamic and outward-looking region in an increasingly
integrated and interdependent world.
The APSC Blueprint is guided by the ASEAN Charter and the principles and purposes
contained therein. It provides a roadmap and timetable to establish the APSC by 2015. It also
leaves room for flexibility to continue programmes/activities beyond 2015 in order to retain
its significance and have an enduring quality.
The APSC Blueprint was adopted by the ASEAN Leaders at the 14th ASEAN Summit on 1
March 2009 in Cha-am/Hua Hin, Thailand.

Focus and Objectives of ASEAN Political Security Community

13

ASEAN Political Security

Community
ASEAN
Ministerial
Meeting
(AMM)

ASEAN
Regional
Forum
(ARF)

Defence

Law

Transition
al Crime

A. ASEAN Ministerial Meeting

ASEAN Ministerial Meeting is a meeting held annually, with informal meets and
retreats in between. The last meeting i.e the 46th ASEAN Ministerial Meeting (AMM)
was held in Brunei Darussalam, 27 June 2 July 2013.
B. ASEAN Regional Forum
The Twenty-Sixth ASEAN Ministerial Meeting and Post Ministerial Conference,
which were held in Singapore on 23-25 July 1993, agreed to establish the ASEAN
Regional Forum (ARF). The inaugural meeting of the ARF was held in Bangkok on
25 July 1994.
The objectives of the ASEAN Regional Forum are outlined in the First ARF
Chairman's Statement (1994), namely:
- to foster constructive dialogue and consultation on political and security issues of
common interest and concern; and
- to make significant contributions to efforts towards confidence-building and
preventive diplomacy in the Asia-Pacific region.

C. Defence
The ASEAN Security Community (ASC) Plan of Action, adopted at the 10 th ASEAN
Summit, held in Vientiane on 29 November 2004, stipulates that ASEAN shall work
towards the convening of an annual ADMM. Against this background, the Inaugural
meeting of the ADMM was held in Kuala Lumpur on 9 May 2006.
14

The ASEAN Defence Ministers' Meeting (ADMM) is the highest defence consultative
and cooperative mechanism in ASEAN. The ADMM aims to promote mutual trust and
confidence through greater understanding of defence and security challenges as well
as enhancement of transparency and openness.
Cooperation in the ASEAN defence sector has grown steadily since its inception in
2006. In particular, cooperation in the issue of humanitarian assistance and disaster
relief (HADR) has been progressing significantly in the ADMM. The ASEAN
Defence Ministers have adopted concept papers to advance the cooperation in this
area and conducted series of activities including Workshops on the ASEAN Defence
Establishments and CSOs Cooperation in Non-Traditional Security and a Table-Top
Exercise on HADR.
D. Law
The ASEAN Law Ministerial Meeting was established in 1986. It is held once in 36
months. The ASEAN Law Ministerial Meeting was last held in Phnom Penh, 4-5
November 2011. The
E. Transitional Crime
The ASEAN Transitional Crime Ministerial Meeting was established in 1997. The
ASEAN Transitional Crime Ministerial Meeting is held in every two years. The last
meeting in Bali, Indonesia, 9-13 October 2011.
A key purpose of ASEAN is to respond effectively and in a timely manner, in
accordance with the principles of comprehensive security, to all forms of threats,
transnational crimes and transboundary challenges.

Characteristics and Elements of the ASEAN Political-Security Community

1. It is envisaged that the APSC will bring ASEANs political and security cooperation to
a higher plane. The APSC will ensure that the peoples and Member States of ASEAN
live in peace with one another and with the world at large in a just, democratic and
harmonious environment.
2. The APSC shall promote political development in adherence to the principles of
democracy, the rule of law and good governance, respect for and promotion and
protection of human rights and fundamental freedoms as inscribed in the ASEAN
15

Charter. It shall be a means by which ASEAN Member States can pursue closer
interaction and cooperation to forge shared norms and create common mechanisms to
achieve ASEANs goals and objectives in the political and security fields. In this
regard, it promotes a people-oriented ASEAN in which all sectors of society,
regardless of gender, race, religion, language, or social and cultural background, are
encouraged to participate in, and benefit from, the process of ASEAN integration and
community building. In the implementation of, the Blueprint, ASEAN should also
strive towards promoting and supporting gender-mainstreaming, tolerance, respect for
diversity, equality and mutual understanding.
3. At the same time, in the interest of preserving and enhancing peace and stability in the
region, the APSC seeks to strengthen the mutually beneficial relations between
ASEAN and its Dialogue Partners and friends. In doing so, it also maintains the
centrality and proactive role of ASEAN in a regional architecture that is open,
transparent and inclusive, while remaining actively engaged, forward-looking and
non-discriminatory.
4. The APSC subscribes to a comprehensive approach to security, which acknowledges
the interwoven relationships of political, economic, social-cultural and environmental
dimensions of development. It promotes renunciation of aggression and of the threat
or use of force or other actions in any manner inconsistent with international law and
reliance of peaceful settlements of dispute. In this regard, it upholds existing ASEAN
political instruments such as the Declaration on Zone of Peace, Freedom and
Neutrality (ZOPFAN), the Treaty of Amity and Co-operation in South East Asia
(TAC) and the Treaty on the Southeast Asian Nuclear Weapon-Free Zone
(SEANWFZ), which play a pivotal role in the area of confidence building measures,
preventive diplomacy and pacific approaches to conflict resolution. It also seeks to
address non traditional security issues.
5. Based on the above, the ASEAN Political-Security Community envisages the
following three key characteristics:
a. A Rules-based Community of shared values and norms;
b. A Cohesive, Peaceful, Stable and Resilient Region with shared responsibility
for comprehensive security; and
c. A Dynamic and Outward-looking Region in an increasingly integrated and
interdependent world.
d.
16

6. These characteristics are inter-related and mutually reinforcing, and shall be pursued
in a balanced and consistent manner. To effectively realise the APSC, the APSC
Blueprint is in action-oriented document with a view to achieving results and
recognises the capacity and capability of ASEAN Member States to undertake the
stipulated actions in the Blueprint.
7.

ASEAN Economic Community

Introduction
The ASEAN Economic Community (AEC) shall be the goal of regional economic integration
by 2015. AEC envisages the following key characteristics: (a) a single market and production
base, (b) a highly competitive economic region, (c) a region of equitable economic
development, and (d) a region fully integrated into the global economy.
The AEC areas of cooperation include human resources development and capacity building;
recognition of professional qualifications; closer consultation on macroeconomic and
17

financial policies; trade financing measures; enhanced infrastructure and communications

connectivity; development of electronic transactions through e-ASEAN; integrating industries
across the region to promote regional sourcing; and enhancing private sector involvement for
the building of the AEC. In short, the AEC will transform ASEAN into a region with free
movement of goods, services, investment, skilled labour, and freer flow of capital.
The ASEAN Leaders at their Summit in Kuala Lumpur in December 1997 decided to
transform ASEAN into a stable, prosperous, and highly competitive region with equitable
economic development, and reduced poverty and socio-economic disparities (ASEAN Vision
2020). At the Bali Summit in October 2003, ASEAN Leaders declared that the ASEAN
Economic Community (AEC) shall be the goal of regional economic integration (Bali
Concord II) by 2020. In addition to the AEC, the ASEAN Security Community and the
ASEAN Socio-Cultural Community are the other two integral pillars of the envisaged
ASEAN Community. All the three pillars are expected to work in tandem in establishing the
ASEAN Community in 2020 Subsequently, the ASEAN Economic Ministers Meeting (AEM)
held in August 2006 in Kuala Lumpur, Malaysia, agreed to develop a single and coherent
blueprint for advancing the AEC by identifying the characteristics and elements of the AEC
by 2015 consistent with the Bali Concord II with clear targets and timelines for
implementation of various measures as well as pre-agreed flexibilities to accommodate the
interests of all ASEAN Member Countries.

At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment
to accelerate the establishment of an ASEAN Community by 2015 as envisioned in the
ASEAN Vision 2020 and the ASEAN Concord II, and signed the Cebu Declaration on the
Acceleration of the Establishment of an ASEAN Community by 2015. In particular, the
Leaders agreed to hasten the establishment of the ASEAN Economic Community by 2015
and to transform ASEAN into a region with free movement of goods, services, investment,
skilled labour, and freer flow of capital.

18

Goals and Focus of ASEAN Economic Community

ASEAN Economic
Community

ASEAN
Econom
ic
Minister
s (AEM)

Science
ASEA Energ
Finan Investm
&
Agricultu
N
y
ce ent Area Technolo
re
Free
gy
Trade
Area

Touris
m

19

A. ASEAN Economic Ministers:

ASEAN Economic Ministers is a meeting held annually. The last meeting i.e the 46 th
ASEAN Economic Ministers (AEM) was held Nay Pyi Taw, Myanmar, 2014.
B. ASEAN Free Trade Area:
The ASEAN Free Trade Area (AFTA) has now been virtually established. ASEAN
Member Countries have made significant progress in the lowering of intra-regional
tariffs through the Common Effective Preferential Tariff (CEPT) Scheme for AFTA.
More than 99 percent of the products in the CEPT Inclusion List (IL) of ASEAN-6,
comprising Brunei Darussalam, Indonesia, Malaysia, the Philippines, Singapore and
Thailand, have been brought down to the 0-5 percent tariff range.
C. Energy:
The ASEAN Ministers on Energy Meeting (AMEM), held in Langkawi in July 2003,
called for intensified cooperation in the development and exploitation of the energy
resource potentials in the ASEAN region, as well as in attracting private sector
participation and investment in the ASEAN energy sector. The Ministers agreed to
work collectively in moving forward the Trans-ASEAN Gas Pipeline (TAGP) and the
ASEAN Power Grid Projects to provide greater stability and security of energy supply
in the ASEAN region. The Ministers also agreed to enhance the ASEAN
Energy Business Forum (AEBF) as an important platform for facilitating business
interaction, technology exchange and project financing opportunities between ASEAN
energy authorities and the private sector.
D. Agriculture and Forestry:
ASEAN cooperation in the agriculture sector dated back as early as 1968, with
cooperation in food production and supply. In 1977, the scope of cooperation was
broadened to include the greater area of agriculture and forestry as the needs have
increased. Currently, the specific areas under the ASEAN cooperation in food,
agriculture and forestry includes food security, food handling, crops, livestock,
fisheries, agricultural training and extension, agricultural cooperatives, forestry and
joint cooperation in agriculture and forest products promotion scheme.
E. Finance:
At the 14th ASEAN Finance Ministers Meeting (AFMM) in Nha Trang, Viet Nam, in
April 2010, the Ministers committed themselves to further promote financial stability
in the region. Despite the regions dynamism, robustfinancial system and strong
economic frameworks, the Ministers agreed to remain vigilant against the
uncertainties in major advanced economies and committed to maintain growth
20

momentum in order to achieve a stable, efficient and resilient financial system in the
region. The Ministers also reaffirmed their commitment to implement policies that
favour strong and sustainable growth as well as promote domestic demand, boost
productivity and enhance the integration of ASEANs markets.
F. Investment Area:
A key element to establishing ASEAN as a single market and production base is
having a free and open investment regime where (a) non-discriminatory treatment is
extended to ASEAN and ASEAN-based investors, save for limited exceptions that are
also due for progressive elimination; (b) rules and regulations are made transparent;
and (c) investors and their investments (i.e. covered investments) enjoy
protection.ASEAN is achieving these via the implementation of the ACIA, which took
effect on 29 March 2012. The ACIA, as one of the economic instruments for realising
regional economic integration, aims to create a liberal, facilitative, transparent and
competitive investment environment in ASEAN.
G. Science and Technology:
Science, technology and innovation can be powerful determinants and enablers of
economic development, educational programmes and protection of the environment.
This view is shared by the ASEAN Leaders who have recognised science and
technology (S&T) as a key factor in sustaining economic growth, enhancing
community well-being and promoting integration in ASEAN. The Leaders have
envisioned that by 2020 that ASEAN will be technology competitive, competent in
strategic and enabling technologies, with an adequate pool of technologically qualified
and trained manpower, and strong networks of scientific and technological institution
and centres of excellence.
The current S&T cooperation in ASEAN focuses on nine programme areas, namely (i)
food science and technology (ii) biotechnology, (iii) meteorology and geophysics, (iv)
marine science and technology, (v) non-conventional energy research, (vi)
microelectronics and information technology, (vii) material science and technology,
(viii) space technology and applications, and (ix) S&T infrastructure and resources
development. To coordinate and implement activities in each area, a Sub-Committee is
established.
H. Tourism:
The implementation of the ASEAN Tourism Strategic Plan (ATSP) 2011-2015 has
been well progressing, where 75% measures for 2013 have been duly completed. In
further promoting sustainable tourism to support timely realization of the ASEAN
21

Economic Community, measures under ASTP were updated to ensure its relevance to
its on-going efforts.
Significant progress was made in facilitating free flow of services and skilled labor
within

ASEAN

through

implementation

of

the

ASEAN Mutual

Recognition Arrangement (MRA) on Tourism Professionals including the completion

of 144 toolboxes for hotel divisions (e.g., front office, food and beverage services,
food production and housekeeping), and the ASEAN Tourism Qualifications
Equivalent Matrix as key references for tourism industry and training institutions in
delivering the programme under the said MRA. Pilot projects for housekeeping
division would be carried out in 2014 given the readiness of the supporting
infrastructure for such an undertaking. The terms of reference (TOR) for the
establishment of a Regional Secretariat in Indonesia in 2015 was adopted to support
implementation of the MRA at the regional level.

Benefits of ASEAN Economic Community:

It will open more regional cooperation and will improve the scale efficiencies,
dynamism and competitiveness of Asean members. AEC will enable easier movement
of goods, services, investment, capital and people. Ultimately, it will offer new ways
of coordinating supply chains, or access to new markets for established products.

All Asean countries are more important to foreign investors if they are considered
as one node in a larger regional market of nearly 600 million people - a single market.
The Asean Free Trade Agreement will be expanded to zero tariffs on almost all goods
by 2015. Asean plans to remain engaged with the global economy through regionallevel free trade agreements - today, Asean has such agreements with China, Japan,
Korea, India, Australia and New Zealand.

The

USITC's

Asean:

Regional

Trends

in

Economic

Integration,

Export

Competitiveness, and Inbound Investment for Selected Industries Report noted that
22

the AEC is coming at a time when it is recognized that investment in emerging

markets is more desirable than in the US and Europe. "There will be no shortage
of funding coming from within Asean, the Asia Pacific or even the US and Europe.
These investments can bring about badly needed capital for some countries, allowing
them to leapfrog from the 20th century into the 21st in terms of competition in mature
countries such as Thailand and Malaysia", said the report.

SMEs accounted for 96% of enterprises and between 50-85% of domestic

employment across Asean. Integrating these SMEs and supporting them in the inital
period will be a challenge throughout ASEAN but particularly in the lesser developed
ASEAN countries. Recently I was in Singapore and it is obvious that the Singapore
government fully realizes the challenge and the opportunity that the AEC will
represent to SMEs and is putting both the planning talent and the resources to better
support their SMEs. I was also in Vietnam and Thailand and although both countries
are starting to verbalize and meet to develop more effective plans for SME integration
and support, it is obvious that these plans are probably behind where they need to be.
In countries, such as Cambodia, Laos and Myanmar (Burma), plans are even further
behind and more in need of support and resources.

Tourism opportunity. Asians travels more in the region and there are more travelers
from other countries that have begun to reach out to Asia as new visitors. The trends
were evident at the recent Hub City Forum, held by the Pacific Asia Tourism
Association (Pata), where more than 100 travel industry executives discussed the
tourism potential, government's spending to upgrade facilities both for leisure
attractions like museums; and also MICE facilities such as convention centers,
reported the newspaper. MICE tourism opportunities are particularly large and
hopefully countries that have the most experience in this area such as Thailand and
SIngapore will render their assistance to those with weak MICE experience - recent
examples of this are Thailand with Vietnam and also some talk in Thailand about
rendering assistance in Laos and possibly Cambodia.

Internationalization of health care under the AEC. Health care is one of the
sectors to be internationalized. This is definitely a big challenge as it is more
complicated than just the popularity of Singapore and Thailand's "medical tourism"
that patients travel from one country to another seeking better care at lower cost. The
23

legal and licensing frameworks are still needed to be worked out.

However, it offers

potentials for the free-flow of health services, etc. in the region. Recent examples
here were noted in the Bangkok Post in mid-March which noted programs by
Thailand's largest medical service BGH and other Thai hospital groups to step-up the
pace of mergers and acquisitions and joint ventures in other AEC countries to help
give them a better platform to better take care of developing AEC opportunities.

Aims and Objectives of ASEAN Economic Community

1. Single Market and Production Base: An ASEAN single market and production base
shall comprise five core elements:
a. Free flow of goods- Free flow of goods is one of the principal means by which
the aims of a single market and production base can be achieved. A single
market for goods (and services) will also facilitate the development of
production networks in the region and enhance ASEANs capacity to serve as
a global production centre or as a part of the global supply chain.
b. Free flow of services - Free flow of trade in services is one of the important
elements in realising ASEAN Economic Community, where there will be
substantially no restriction to ASEAN services suppliers in providing services
and in establishing companies across national borders within the region,
subject to domestic regulations. Liberalisation of services has been carried out
through rounds of negotiation mainly under the Coordinating Committee on
Services. Negotiation of some specific services sectors such as financial
24

services and air transport are carried out by their respective Ministerial bodies.
In liberalising services, there should be no back-loading of commitments, and
pre-agreed flexibility shall be accorded to all ASEAN Member Countries.
c. Free flow of investment- A free and open investment regime is key to
enhancing ASEANs competitiveness in attracting foreign direct investment
(FDI) as well as intra-ASEAN investment. Sustained inflows of new
investments and reinvestments will promote and ensure dynamic development
of ASEAN economies.
d. Freer flow of capital- Strengthening ASEAN Capital Market Development and
Integration.
2. Competitive Economic Region:
a. Competition Policy- The main objective of the competition policy is to foster a
culture of fair competition. Institutions and laws related to competition policy
have recently been established in some (but not all) ASEAN Member Countries
(AMCs) There is currently no official ASEAN body for cooperative work on
CPL to serve as a network for competition agencies or relevant bodies to
exchange policy experiences and institutional norms on CPL.
b. Consumer Protection- The building of an integrated economic region with a
people-centred approach in this region has made ASEAN mindful that
consumers cannot be precluded in all measures taken to achieve this
integration. Consumer protection measures are already being developed in
tandem with the proposed economic measures to address the already emerging
consumer protection.
c. Intellectual Property Rights (IPR)- In principle, intellectual property (IP) policy
can serve as a powerful stimulus to (a) cultural, intellectual and artistic
creativity and their commercialisation; (b) efficient adoption and adaptation of
more advanced technologies; and (c) continuous learning to meet the everrising threshold of performance expectations.
d. Infrastructure Development- An efficient, secure and integrated infrastructure
in ASEAN is vital for realising the full potential of the ASEAN Free Trade
Area as well as in enhancing the attractiveness of the region as a single
production, tourism and investment destination and narrowing development
gaps. ASEAN transport is also critical in linking ASEAN with the neighbouring
Northeast and South Asian countries.
3.

Equitable Economic Development

25

a. SME development-The ASEAN Policy Blueprint for SME Development

(APBSD) 2004-2014 outlines the framework for SME development in the
ASEAN region. It comprises strategic work programmes, policy measures and
indicative outputs.
b. Initiative for ASEAN Integration (IAI)- Given the different levels of
development among ASEAN Member Countries, there arises the need to
ensure the deepening and broadening integration of ASEAN is accompanied
by technical and development cooperation to address the development divide
and accelerate the economic integration of the less developed ASEAN Member
Countries so that the benefits of ASEAN integration are shared and enjoyed by
all ASEAN Member Countries. This would allow ASEAN Member Countries
to move in a unified manner.
4. Integration into the Global Economy
ASEAN operates in an increasingly global environment, with interdependent markets
and globalised industries. In order to enable ASEAN businesses to compete
internationally, to make ASEAN a more dynamic and stronger segment of the global
supply chain and to ensure that the internal market remains attractive for foreign
investment, it is crucial for ASEAN to look beyond the borders of AEC. External rules
and regulations must increasingly be taken into account when developing policies
related to AEC.

Implementation of ASEAN
A strategic schedule that includes key milestones for a comprehensive and deeper economic
integration shall form an integral part of this Blueprint. Consultations have been made with
relevant bodies/stakeholders to invite their inputs and coordinating conferences were held to
jointly review the Blueprint and its strategic schedule among all stakeholders to ensure
consistency of the above measures, programmes and milestones across sectors and promote
greater sense of ownership of the Blueprint.
Relevant ASEAN sectoral bodies will coordinate the implementation of the above
programmes and measures while relevant government agencies will be responsible for
overseeing the implementation and preparation of more detailed action plans at the national
level. Partnership arrangements with the private sector, industry associations and the wider
community at the regional and national levels will also be actively sought where required to
ensure participation of all stakeholders in the integration process.
26

For the successful implementation of these programmes and measures, the necessary
institutions or mechanisms, resources, capacity and political will be accorded to the
Community building process.

Conclusion
The AEC is definitely a work in progress. Some efforts will go faster and bear quicker fruit
than others; others will face more challenges and may be less crisply implemented. Still, we
believe the future is clearly in favour of the AEC and that it offers clear opportunities and
challenges that all businesses need to be thinking about and preparing for. Those who fail to
do so, have no one to blame but themselves for missing out on a wonderful new opportunity
for sales, investment and engagement with Asia.

ASEAN Socio-Cultural Community

Introduction
The ASEAN Socio-Cultural Community aims to contribute to realising an ASEAN
Community that is people-oriented and socially responsible with a view to achieving
enduring solidarity and unity among the peoples and Member States of ASEAN. It seeks to
forge a common identity and build a caring and sharing society which is inclusive and where
the well-being, livelihood, and welfare of the peoples are enhanced.ASCC is focused on
nurturing the human, cultural and natural resources for sustained development in a
harmonious and people-oriented ASEAN.
The ASEAN Leaders adopted the Declaration of ASEAN Concord II (Bali Concord II) in
Bali, Indonesia on 7 October 2003 to establish an ASEAN Community by 2020. The ASEAN
Community shall be established comprising three pillars, namely political and security
community, economic community, and socio-cultural community that are closely intertwined
and mutually reinforcing for the purpose of ensuring durable peace, stability, and shared
prosperity in the region.
At the 12th ASEAN Summit on 13th January 2007 in Cebu, the Philippines the Leaders,
affirming their strong commitment to accelerate the establishment of the ASEAN Community

27

by 2015, signed the Cebu Declaration on the Acceleration of an ASEAN Community by

2015.
The 13th ASEAN Summit held in Singapore on 20th November 2007, agreed to develop an
ASCC Blueprint to ensure that concrete actions are undertaken to promote the establishment
of an ASEAN Socio-Cultural Community (ASCC).
The ASCC Blueprint represents the human dimension of ASEAN cooperation and upholds
ASEAN commitment to address the region's aspiration to lift the quality of life of its peoples.
The goals of the ASCC are envisaged to be achieved by implementing concrete and
productive actions that are people-centred and socially responsible. This set of cooperative
activities has been developed based on the assumption that the three pillars of the ASEAN
Community are interdependent and interrelated and that linkages are imperative to ensure
complementarity and unity of purpose.
The ASCC Blueprint was adopted by the ASEAN Leaders at the 14th ASEAN Summit on 1
March 2009 in Cha-am/Hua Hin, Thailand.

Focus and Goals of ASEAN Socio-Cultural Community

ASEAN Socio-Cultural
Community
Cultur
e&
Arts

Disaster
Managem
ent

Poverty
Eradicatio
n

Educatio
n

Labour

Social
Welfare &
Developme
nt

A. Culture and Arts:

ASEAN is a region of immense and colourful cultural diversity, one that shares
common historical threads. ASEAN Member States promote cooperation in culture to
help build an ASEAN identity. They seek to promote ASEAN awareness and a sense
28

of community, preserve and promote ASEAN cultural heritage, promote cultural

creativity and industry, and engage with the community. ASEAN Leaders envision
ASEAN as a community of caring societies, conscious of its ties of history, aware of
its cultural heritage and bound by a common regional identity.
One of the main bodies in ASEAN cooperation in culture is the ASEAN Committee
on Culture and Information (COCI). Established in 1978, its mission is to promote
effective cooperation in the fields of culture through its various projects and activities.
The COCI comprises representatives from national institutions like the Ministry of
Foreign Affairs, Ministries of Culture and Information, national radio and
television networks, museums, archives and libraries, among others. Together, they
meet once a year to formulate and agree on projects to fulfil their mission.

B. Disaster Management:
The ASEAN Committee on Disaster Management (ACDM) was established in early
2003 following the decision of the ASEAN Standing Committee (ASC). The
institutional mechanism (in the form of experts group) has existed since the 70s but
was only strengthened towards 2003 with the elevation of the experts group into a
full-fledged committee. The ACDM consists of heads of national agencies responsible
for disaster management of ASEAN Member Countries. The ACDM assumes overall
responsibility for coordinating and implementing the regional activities. The ACDM
met for the first time in December 2003.

The ARPDM is also used as a platform for cooperation and collaboration with
ASEAN Dialogue Partners and relevant international organisations. Ongoing partners
of ACDM include: the United States Department of Agriculture Forest Service, the
Pacific Disaster Centre, the United Nations Office for Coordination of Humanitarian
Affairs (OCHA), UN High Commissioner for Refugees (UNHCR), UNICEF, IFRC,
Asian Disaster Preparedness Centre (ADPC), etc.

29

C. Poverty Eradication:
ASEANs efforts to attain the Millennium Development Goals (MDGs) in the region
continued unabated in the year under review. At the 14th ASEAN Summit held in
Thailand in March 2009, the ASEAN Leaders, in the Joint Declaration on the
Attainment of the MDGs in ASEAN, called for the development of a Roadmap on the
MDGs. The Roadmap would serve as a framework for collective action among
ASEAN Member States to achieve the MDGs focusing on five key areas, namely
advocacy and linkages, knowledge, resources, expertise and regional cooperation and
regional public goods. To address the social impacts of the global financial crisis, the
High-Level Forum on Reducing Vulnerability in the Face of Crisis was held in
February 2009 at the ASEAN Secretariat. Attended by relevant government officials
from the ASEAN Plus Three Countries and representatives from various international
organisations, the Forum came up with a number of recommendations to be
undertaken at both regional and national levels. As a follow up to the Forum, the
ASEAN Assessment on the Social Impact of the Global Financial Crisis will be
conducted in the second half of 2009 with the support of AusAID. In addressing issues
pertaining to rural development and poverty eradication and in narrowing the
development gap in the region, a more concerted effort by Member States in the spirit
of ASEAN Help-ASEAN has been stressed. Such initiatives would include
documenting best

practices and

challenges

of

ASEAN

Member

States

in

implementing their respective policies and programmes on rural development and

poverty eradication to facilitate information sharing among Member States.

D. Education:
Education underpins ASEAN community building. Education lies at the core of
ASEANs development process, creating a knowledge-based society and contributing
to the enhancement of ASEAN competitiveness. ASEAN also views education as the
vehicle to raise ASEAN awareness, inspire the we feeling, and create a sense of
belonging to the ASEAN Community and understanding of the richness of ASEANs
history, languages, culture and common values. At the 11th 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
30

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. As the collective entity to enhance regional cooperation in education, the
ASEAN Education Ministers identified four priorities that ASEAN cooperation on
education would address, namely: (i) Promoting ASEAN Awareness among ASEAN
citizens, particularly youth; (ii) Strengthening ASEAN identity through education; (iii)
Building ASEAN human resources in the field of education; and (iv) Strengthening
ASEAN University Networking. To this end, various projects and activities have
been/are being developed/organised to fulfil the directives.

E. Labour :
To enhance the competitiveness of ASEAN, human capital holds a key role in driving
the direction of the economy and the social progress. With ASEANs massive labour
force amounting to 285 million, ASEAN recognises the importance of job creation,
developing the quality of the workforce and providing social security to the workers.
Since 2000, ASEANs work on labour and human resources has been guided by the
ASEAN Labour Ministers (ALM) Work Programme. The Work Programme provides
the framework to prepare the regions labour force to face the challenges of
globalisation and trade liberalisation. The five broad priorities initially set in the Work
Programme are in the areas of employment generation, labour market monitoring,
labour mobility, social protection, and tripartite cooperation. In May 2006, the
ASEAN Labour Ministers agreed in their Joint Statement of 2006 to add a sixth
priority area, namely occupational safety and health (OSH), in the ALM Work
Programme. Apart from the priorities set in the ALM Work Programme, ASEAN
made a groundbreaking move to address the issue of migrant workers on 13 January
2007, when its Leaders signed the ASEAN Declaration on the Protection and
Promotion of the Rights of Migrant Workers. The Declaration mandates ASEAN
countries to promote fair and appropriate employment protection, payment of wages,
and adequate access to decent working and living conditions for migrant workers. As
a follow-up to the Declaration, an ASEAN Committee on the Implementation of the
ASEAN Declaration on the Protection and Promotion of the Rights of Migrant
Workers (ACMW) convened its first Meeting in September 2008. The ACMW is
31

currently in the process of drafting the ASEAN instrument on the protection and
promotion of migrant workers and started the first round of discussions in April 2009
in Bangkok.

F. Social Welfare & Development:

ASEAN recognises that despite its economic achievements, socio-economic
disparities still exist. Much work has to be done to uplift the quality of life of the
socially vulnerable groups in the region. In this context, the Declaration of the Bali
Concord II by ASEAN Leaders during the ASEAN Summit of 2003 committed the
ASEAN Community to fostering cooperation in social development aimed at raising
the standard of living of disadvantaged groups and the rural population, and seek the
active involvement of all sectors of society, in particular women, youth, and local
communities. ASEAN also puts emphasis on the need to address issues relating to the
greying of populations in the region, as the issues do not only need social responses,
but could also have economic implications. ASEAN cooperation in the area of social
welfare and development continues its effort in addressing social risks faced by
children, women, the elderly and persons with disabilities. Under its social welfare
and development work programme of 2003 2006, ASEAN has completed some
activities addressing concerns for older persons, early child care and development, and
people with disability; and in building GO-NGO partnership. In December 2007, the
work programme of the ASEAN cooperation in social welfare and development for
2007 2010 was issued. The new work programme highlights three strategies to bring
together ASEAN member countries in a regional context to address social welfare,
family and childrens issues. These strategies include capacity building in human
resources, documentation of standards and benchmarks for quality services, and
partnership and inter-sectoral collaboration.

Characteristics and Elements ASEAN Socio-Cultural

Community
32

1. The primary goal of the ASCC is to contribute to realising an ASEAN Community

that is people-centred and socially responsible with a view to achieving enduring
solidarity and unity among the nations and peoples of ASEAN by forging a common
identity and building a caring and sharing society which is inclusive and harmonious
where the well-being, livelihood, and welfare of the peoples are enhanced.

2. The ASCC will address the regions aspiration to lift the quality of life of its peoples
through cooperative activities that are people-oriented and environmentally friendly
geared towards the promotion of sustainable development. The ASCC shall contribute
to building a strong foundation for greater understanding, good neighbourliness, and a
shared sense of responsibility.

3. The ASCC is characterised by a culture of regional resilience, adherence to agreed

principles, spirit of cooperation, collective responsibility, to promote human and social
development, respect for fundamental freedoms, gender equality, the promotion and
protection of human rights and the promotion of social justice.

4. The ASCC shall respect the different cultures, languages, and religions of the peoples
of ASEAN emphasise their common values in the spirit of unity in diversity and adapt
them to present realities, opportunities and challenges.

5. The ASCC will also focus on the social dimension of Narrowing the Development
Gap (NDG) towards bridging the development gap among Member States.

6. Based on the above, the ASCC envisages the following characteristics: (a) Human
Development; (b) Social Welfare and Protection; (c) Social Justice and Rights; (d)
Ensuring Environmental Sustainability (e) Building the ASEAN Identity; and (f)
Narrowing the Development Gap.
33

ASEAN AND INDIA

Introduction
ASEAN-India dialogue relations have grown rapidly from a sectoral dialogue partnership in
1992 to a full dialogue partnership in December 1995. The relationship was further elevated
with the convening of the ASEAN-India Summit in 2002 in Phnom Penh, Cambodia. Since
then the ASEAN-India Summit has been held annually. All these took place in a decade,
which clearly signifies the importance of the dialogue partnership to ASEAN and India and
the progress made in the cooperation. At the ASEAN-India Commemorative Summit held on
20 December 2012 in New Delhi, India, the Leaders adopted the ASEAN-India Vision
Statement and declared that the ASEAN-India Partnership stands elevated to a Strategic
Partnership.

Political and Security Cooperation

Since India became a Dialogue Partner of ASEAN, the collaboration has transcended the
realm of functional cooperation to cover political and security dimensions. India participates
in a series of consultative meetings with ASEAN under the ASEAN-India Dialogue Relations,
which include Summit, ministerial meetings, senior officials meetings, and meetings at
experts level, as well as through dialogue and cooperation frameworks initiated by ASEAN,
such as the ASEAN Regional Forum (ARF), the Post Ministerial Conference (PMC) 10+1,
the East Asia Summit (EAS), Mekong-Ganga Cooperation and Bengal Initiative for
Multisectoral Technical and Economic Cooperation (BIMSTEC), which help contribute to
enhancing regional dialogue and accelerating regional integration.
In demonstrating its commitment and shared interest to ensuring peace, security, stability and
development in Southeast Asia, India acceded to the Treaty of Amity and Cooperation in
Southeast Asia (TAC) on 8 October 2003 during the 2 nd ASEAN-India Summit in Bali,
Indonesia. At the same occasion, ASEAN and India also signed a Joint Declaration for
34

Cooperation in Combating International Terrorism, symbolising concrete initiatives to step up

cooperation in the fight against terrorism.
As a reflection of the interest of ASEAN and India to intensify their

engagement, the

ASEAN-India Partnership for Peace, Progress and Shared Prosperity, which sets out the
roadmap for long-term ASEAN-India engagement, was signed at the 3rd ASEAN-India
Summit on 30 November 2004 in Vientiane, Lao PDR. A Plan of Action (2004-2010) was
also developed to implement the Partnership. The 7 th ASEAN-India Summit held in October
2009 also noted with satisfaction the steady progress of implementation of the ASEANIndia
Partnership for Peace, Progress and Shared Prosperity. The Summit also agreed on a new and
more enhanced phase of the Plan of Action to implement the said Partnership in order to seize
the opportunities and overcome the challenges arising from the global financial crisis and
evolving political and economic landscape. Subsequently, the new ASEAN-India Plan of
Action for 2010-2015 was developed and adopted by the Leaders at the 8 th ASEAN-India
Summit in October 2010 in Ha Noi.

Following the entry into force of the ASEAN Charter, and based on the strong foundation of
the ASEAN-India Dialogue Relations, India has accredited its Ambassador to ASEAN based
in Jakarta, particularly to work closely with the Committee of Permanent Representatives to
ASEAN (CPR) and the ASEAN Secretariat. At the 10 th ASEAN-India Summit on 9 October
2012 in Bandar Seri Begawan, India announced its intention to establish a separate
Diplomatic Mission to ASEAN with a Resident Ambassador as an illustration of the
intensification of the ASEAN-India Strategic Partnership.
ASEAN and India marked the 20th anniversary of their Dialogue Relations in 2012 with a
Commemorative Summit held in India on 20 December 2012. A number of commemorative
activities were carried out to signify the expanding and deepening of the Dialogue
Partnership.
In this connection, the ASEAN-India Eminent Persons group (EPG) was established to take
stock of ASEAN-India relations over the past 20 years, explore ways to widen and deepen
existing cooperation between ASEAN and India, as well as recommend measures to further
strengthen ASEAN-India relations in the future, taking into account existing documents
35

signed/adopted by both sides, as well as key ASEAN documents, particularly the ASEAN
Charter, Roadmap for an ASEAN Community, the three Blueprints of the ASEAN
Community and other relevant documents. The Report of the AIEPG was submitted to the
10th ASEAN-India Summit in November 2012 in Phnom Penh, Cambodia. In this regard, the
Leaders tasked the Ministers to consider the report thoroughly and to implement the key
recommendations where appropriate.
Economic Cooperation
Volume of trade and investment flows between ASEAN and India remained relatively low
compared with other dialogue partners of ASEAN. 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.
The total trade between ASEAN and India grew by 5.3%, from US$68.2 billion in 2011 to
US$71.8 billion in 2012. At the 10th ASEAN-India Summit in November 2012, the Leaders
set the target of US$100 billion by 2015 for ASEAN-India trade. Foreign direct investments
(FDI) from India rebounded from negative US$ 1.7 billion in 2011 to US$2.6 billion in 2012.
Acknowledging this trend and recognising the economic potential of closer linkages, both
sides recognised the opportunities for deepening trade and investments, and agreed to
negotiate a framework agreement to pave the way for the establishment of an ASEAN-India
Free Trade Area.
At the 2nd ASEAN-India Summit in 2003, the Leaders signed the ASEAN-India Framework
Agreement on Comprehensive Economic Cooperation. The Framework Agreement laid a
sound basis for the establishment of an ASEAN-India Free Trade Area (FTA), which includes
FTA in goods, services and investment.
ASEAN and India signed the ASEAN-India Trade in Goods (TIG) Agreement in Bangkok on
13 August 2009 after six years of negotiations. The signing of the ASEAN-India Trade in
Goods Agreement paves the way for the creation of one of the worlds largest free trade areas
(FTA) - market of almost 1.8 billion people with a combined GDP of US$ 2.8 trillion. The
ASEAN-India FTA will see tariff liberalisation of over 90% of products traded between the
two dynamic regions. Tariffs on over 4,000 product lines will be eliminated by 2016, at the
earliest. The ASEAN-India TIG Agreement entered into force on 1 January 2010.

36

During the 10th ASEAN-India Summit in November 2012, the ASEAN-India Leaders tasked
their economic ministers to step up their efforts and flexibility to conclude the ASEAN-India
Trade in Services and Investment Agreement at the earliest. Subsequently, an announcement
on the conclusion of the negotiations on both Agreements on ASEAN-India Trade in Services
and Investment was made at the ASEAN-India Commemorative Summit on 20 December
2012. The concluded draft Agreement is targeted to be signed in the near future.
ASEAN and India are also working on enhancing private sector engagement, including the
re-activation of the ASEAN-India Business Council (AIBC), the holding of the first ASEANIndia Business Summit (AIBS) and an ASEAN-India Business Fair and Conclave (AIBFC)
held in New Delhi on 2-6 March 2011 with participation of an estimated 500 trade exhibitors,
business leaders, practitioners and entrepreneurs from ASEAN and India to showcase their
products and services. The 2nd AIBF was held at the sidelines of the ASEAN-India
Commemorative Summit, in New Delhi on 18-20 December 2012. The events were part of
the efforts to stimulate trade and business-to-business interaction.
The 14th 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. In 2012, India
participated for the first time in the 21 st ASEAN Land Transport Working Group (LTWG)
Meeting. During the Meeting, India presented her initiatives for enhanced cooperation on
ASEAN Action Plan, covering various sectors such as land transport, maritime
transport,border management, customs, immigration, logistics and safety and Public Private
Partnership (PPP).
The IndiaMyanmarThailand Trilateral Highway Project and its extension to Laos and
Cambodiais one of current proposed projects to achieve greater ASEAN-India physical
connectivity. The project is planned to connect the ASEAN Highway Network with the
highway system in eastern India.
In tourism, the number of visitor arrivals from India to ASEAN in 2012 was 2.84 million, an
increase from 2.711 million 2011. The 2 nd Meeting of ASEAN and India Tourism Ministers
(ATM+India) held on 25 January 2010 in Bandar Seri Begawan supported the establishment
of the ASEAN Promotional Chapter for Tourism (APCT) in Mumbai, India as an important
collaborative platform for ASEAN National Tourism Organisations (NTOs) to market
Southeast Asia to the Indian consumers and, at the same time, create mutual awareness
37

between ASEAN Member States and India. The registration of APCT and its activities
commenced in 2011.
To further enhance tourism collaboration between ASEAN and India through concrete
activities, during the 3rdATM+India held on 12 January 2012 in Manado, Indonesia, the
ASEAN and India Tourism Ministers signed the Memorandum of Understanding (MoU)
between ASEAN and India on Strengthening Tourism Cooperation, which would serve as the
key instrument for more action-oriented cooperation, encouraging both parties to cooperate in
facilitating travel and tourist visits and further strengthen the close tourism partnership. The
Ministers also welcomed the ASEAN-India Car Rally. This Rally, held from 26 November
21 December 2012, marked another meaningful step forward in ASEAN-India tourism
cooperation and at the same time reflected the existence of land route connectivity that would
facilitate tourism exchange between ASEAN and India.
Further on connectivity, the 10th ASEAN-India Summit welcomed the establishment of
Indias Inter-Ministerial Group on Connectivity and encouraged regular exchanges between
the Group and the ASEAN Connectivity Coordinating Committee (ACCC) to explore
concrete ways and means to support the MPAC, in particular in areas where India has strong
expertise and interest. The 1st ASEAN-India ACCC Meeting was held in Balikpapan,
Indonesia. The Meeting served in providing a format for expeditious exchange of information
to facilitate decision making on broad project proposals and ideas mentioned in the numerous
studies on ASEAN-India Connectivity.
Significant developments can also be seen in the cooperation in the agriculture and forestry
sector as ASEAN and India have successfully held the first and second ASEAN-India
Ministerial Meeting on Agriculture and Forestry on 8 October 2011 in Jakarta, Indonesia and
on 17 October 2012 in New Delhi, India, respectively. The Ministers adopted the Medium
Term Plan of Action for ASEAN-India Cooperation in Agriculture (2011-2015) with the view
to promoting and intensifying cooperation in the agriculture and forestry sector between
ASEAN and India, in order to meet the challenges of food security, to exchange information
and technology, to cooperate on research and development projects, to encourage agriculture
and forestry-related industries, and to strengthen human resources development. A number of
cooperative activities in this areas have been carried out, most notably the ASEAN-India Agri
Expo and the Symposium onIndo-ASEAN Export Potential of Agriculture Products that were
organised on 17 19 October 2012 and 18 October 2012, respectively, in New Delhi;
publication of the regular edition of the ASEAN-India Newsletter on Agriculture and Forestry
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since 2012; ASEAN-India Farmers Exchange Programme,; and the Conference of Heads of
Agriculture Universities and Research Institutions of India and ASEAN organised on 18-21
February 2013 in New Delhi.
Socio-Cultural Cooperation
Over the years, ASEAN-India socio-cultural cooperation has been expanded to include
human resource development, science and technology (S&T), people-to-people contacts,
health and pharmaceuticals, transport and infrastructure, small and medium enterprises
(SMEs), tourism, information and communication technology (ICT), agriculture, energy and
Initiative for ASEAN Integration (IAI). All cooperation projects are funded by the ASEANIndia Fund (AIF).
Cooperation in these areas are carried out through the implementation of the Plan of Action
(PoA) to Implement the ASEAN-India Partnership for Peace, Progress and Shared Prosperity,
which was adopted by the Leaders at the 3 rdASEAN-India Summit in November 2004 in
Vientiane. The PoA is carried out through activities under the various existing ASEAN
sectoral work plans, Declarations concluded between ASEAN and India, as well as priority
activities under the Roadmap for an ASEAN Community 2009-2015 that could be
implemented with India.
India is also actively contributing to the implementation of the IAI Work Plan with the
implementation of some of the IAI projects/activities, such as the Entrepreneurship
Development Centres (EDC) and the Centres for the English Language Training (CELT) in
Cambodia, Lao PDR, Myanmar and Viet Nam. India also positively considering the
establishment of a CELT in Indonesia.
In continuing to promote people-to-people contacts to foster ASEAN-India relations at the
peoples level, ASEAN and India maintain to organise programme/activities that have been
ongoing annually, namely ASEAN-India Students Exchange Programme, Special Course for
ASEAN Diplomats, and Delhi Dialogue, as well as the ongoing programme such as ASEANIndia Media Exchange Programme, ASEAN-India Young Farmers Exchange Programme and
the ASEAN-India Network of Think-Tanks.
Pursuant to the announcement by the Prime Minister of India during the 6 th ASEAN-India
Summit held in November 2007, the ASEAN-India Green Fund with an initial contribution of
US$ 5 million was set up in 2010 to support cooperative pilot projects between ASEAN and
39

India for promotion of technologies aimed at promoting adaptation to and mitigation of

climate change. In addition, the ASEAN-India S&T Development Fund with an initial fund of
US$ 1 million was established to encourage collaborative R&D and technology development
between ASEAN and India. In 2007, India made a contribution of US$ 1 million to the
ASEAN Development Fund (ADF).
The ASEAN Leaders also welcomed the announcement made by Prime Minister Manmohan
Singh to allocate, during the period of ASEAN Work Plan, US$ 50 million to the ASEANIndia Cooperation Fund and the ASEAN Development Fund in support of the above
initiatives, as well as IAI programme and projects in the areas of education, energy,
agriculture and forestry, SMEs and implementation of the ASEAN ICT Master Plan.
Based on the ASEAN-India Vision Statement adopted by the Commemorative Summit in
November 2012, ASEAN and India launched the ASEAN-India Centre located in Research
and Information System for Developing Countries (RIS) in New Delhi to promote, among
others, trade, investment, tourism and cultural exchanges. ASEAN and India are currently
developing the Memorandum of Understanding on Establishing the ASEAN-India Centre.

40

Conclusion

ASEAN had its beginning as a diplomatic mechanism for subregional reconciliation. Initially
conceived for economic co-operation, it has gradually evolved into an organization of
political and security co-operation going beyond the bounds of its member nations. Though
the membership has expanded only gradually since its formation in 1967, from five to six
members, its corporate identity has been recognized as an international actor. However, as a
regional organization has it been effective as it should be? Some consider the Association to
be successful, since no armed conflict has erupted within the ASEAN since its creation.
Theres a believe that it could do more. As one political analyst wrote, 'Unless ASEAN and
other interested parties move beyond the dialogue of a dining club and begin focusing on
41

concrete action, the challenges to regional security will go unmet". 52 The optimism enerated
by the end of the Cold War for regional stability and the US-Sino and Sino-Soviet rivalries
has substantially been eroded. While the possibility of a major armed international conflict in
Southeast Asia may seem remote at the moment, strategic uncertainties and potential
flashpoints abound. Certainly, no ASEAN leader is optimistic about the changing regional
balance of power, even if none can point to any clear external threat to regional security.
The ASEAN may be described as one of the more successful regional organizations in the
world, but it cannot isolate itself from the political realities of the changing times. The goals
of the founding fathers of the Association to free the region from external powers and for the
organization to remain as an economic block cannot be possible without security and defense
agreements. As shown in the containment and termination of the Cambodian conflict, the
ASEAN as a regional organization was a major actor in the final conflict resolution. The
potential strength of the ASEAN can be used to balance any threat from any external
superpower. Even with the ideological differences among the other Southeast Asian nations,
like Vietnam, Laos, Cambodia, and Burma, the ASEAN leaders should find ways to harness
these economically strapped nations which could be beneficial to the Association.
The ASEAN may be described as one of the more successful regional organizations in the
world, but it cannot isolate itself from the political realities of the changing times. The goals
of the founding fathers of the Association to free the region from external powers and for the
organization to remain as an economic block cannot be possible without security and defense
agreements. As shown in the containment and termination of the Cambodian conflict, the
ASEAN as a regional organization was a major actor in the final conflict resolution. The
potential strength of the ASEAN can be used to balance any threat from any external
superpower. Even with the ideological differences among the other Southeast Asian nations,
like Vietnam, Laos, Cambodia, and Burma, the ASEAN leaders should find ways to harness
these economically strapped nations which could be beneficial to the Association.

42

Bibliography
http://www.asean.org/archive/5187-19.pdf
http://www.slideshare.net/isabeltumarong/asean-and-overview-of-southeast-asia-issues-andchallenges?related=1
http://www.asean.org/
http://en.wikipedia.org/wiki/Association_of_Southeast_Asian_Nations

Acknowledgement
I owe a great many thanks to many people who helped and supported me during this Project.
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My deepest thanks to Lecturer, Ms. Afroz , the Guide of the project for guiding and correcting
various documents of mine with attention and care. She has taken pain to go through the
project and make necessary correction as and when needed.
I would also thank my Institution and my faculty members without whom this project would
have been a distant reality. I also extend my heartfelt thanks to my family and well wishers.

Methodology
The data used in this project has been collected from secondary sources. There are those data
which have already been collected by someone else and have panel through statistical power.
When the researcher utilizes secondary data, he has to look into various sources from where
he can obtain data usually published data is available in:

Technical and trade journals.

Books, Magazines & newspapers.

Public records & statistics.

Historical Documents and other resources.

Website journals, etc.

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