SUBMITTED TO: SIR FAIQ MEHMOOD

STUDENT NAME & ID: SALMA AKBER (12133007)

MAMOONA QADRI (12133011)
NIDA TANVEER (13219002)
PROGRAM: MBA
Association of Southeast Asian Nations (ASEAN)

Association of Southeast Asian Nations (ASEAN)

Motto
One Vision, One Identity, One Community

Background and establishment

Cold War in the 1960s: political and security conflicts in Asia

Bangkok Declaration 1967
Five founding members
Formal objectives: economic and cultural cooperation
Loose agreement
Common policy towards Vietnam in the 1970s and 1980s

Aims & Purposes

To speed up Economic Growth, Social Progress, and Cultural development among its
members
Protection of the peace and stability of the region
Provide opportunities for the members countries discuss differences peacefully.
Promote ASEAN identity.
Preserve Southeast Asia as a Nuclear Weapon-free zone and free of all other weapons of
mass destruction.

Fundamental Principles
1. Mutual respect for the independence, equality, territorial integrity, and national identity of
all nations
2. The right of every state to lead its national existence free from external interference and
subversion
3. Non-interference in the internal affairs of one another
4. Settlement of differences or disputes by peaceful manners
5. Renunciation of the threat or use of force
6. Effective cooperation among themselves

ASEAN cooperation: economic and trade issues

1977 ASEAN Preferential Tariffs Arrangements (PTA): import tariff reductions

ASEAN Industrial Projects; ASEAN Industrial Complementation; ASEAN Industrial
Joint Ventures
Slow progress in implementation
However, ASEAN became model for third world cooperation
In the 1990s, regional cooperation in trade began among ASEAN

ASEAN Free Trade Area (AFTA)

Response to regionalism and regionalization trends in Europe and North America

Common Effective Preferential Tariff (CEPT) scheme 1992
Trade preferences among the member countries
Gradual tariff reductions in intra-ASEAN trade (tariffs to 0-5 %)
Faster tariff reductions for 15 product groups

Other forms of ASEAN cooperation

In the 1990s, sub-regional cooperation in trade and investments

Growth Triangles: cross-border areas between three countries
E.g. Singapore-Johor-Riau (SIJORI)
In 2004, decision to establish a common market by 2020
ASEAN Community
Free flow of goods, services, investment, and a freer flow of capital

ASEAN organization

Loose institutional structure: consultation and cooperation

Central unit: ASEAN Secretariat (in Jakarta)Decisions made by consensus
Cooperation is slow and subject to fluctuations

Trade regimes and policy-making

No common trade policy, but different approaches based on industrial structures
From import substitution policy to export-oriented strategy

Main export sectors

Indonesia: labour-intensive manufacturing

Malaysia: palm oil, electronics
Philippines: agriculture, electr.

Singapore: trade, banking, finance

Thailand: labour-intensive manuf.
Brunei: oil and natural gas

External relations:
Dialogue Partners System

Annual meetings with the dialogue partners within the DPS

Objectives: market access, science and technology, social and cultural development, etc.
Unique procedure in the developing country groupings
Committees with diplomatic missions around the world