asean and other integrations final

ASEAN and

Other IntegrationsBy,N V Aditya(131103)

Association of Southeast Asian Nations

ASEAN

ASEAN• ASEAN: The Association of South-East Asian Nations• Member countries:

• Singapore• Brunei• Malaysia• Philippines• Thailand• Indonesia

ASEAN• January 1992, Common Effective Preferential Tariffs (CEPT)• This helps to create Association of South-East Asian Nations (ASEAN)• CEPT allows for tariffs cut ranging from 0.50% to 20%• Success of EEC and NAFTA gave impetus for the forming ASEAN• Strength is well educated and skilled human resources, this helped them to

achieve faster industrialization. Further the ASEAN countries are rich in oil mineral resources, agricultural goods and modern industrial products. These countries invite and allow the free-flow of foreign capital

THE ESTABLISHMENT OF ASEAN

Bangkok, 8 August 1967

ASEAN MEMBER COUNTRIES

ASEAN Economic Ministers

ASEAN Foreign Ministers

Standing Committee

Meeting of ASEAN DG’s

Committee on Budget

ASEAN Secretariat

Fixed Committees

COTT(Singapore)

Sub-committees, Working Group and Ad hoc

Meetings

COIME(Philippines)


Meetings

COFAB(Thailand)


Meetings

COFAF(Indonesia)


Meetings

COTAC(Male)


Meetings

Rotating Committees

COSD


Meetings

COSI


Meetings

COST


Meetings

Other ASEAN Ministers

ASEAN Committees with Dialogue Countries and International Organisations1. ASEAN-Australia (Canberra)2. ASEAN-NZ (Wellington)3. ASEAN-Japan (Tokyo)4. ASEAN- EC (Brussels, Bonn,

Geneva, London, Paris)5. ASEAN-US (Washington)6. ASEAN-UNDP

ORGANISATION STRUCTURE OF ASEAN

GOALS OF ASEAN

• To accelerate the economic growth, social progress and cultural development in the region through joint endeavors; and

• To promote regional peace and stability through abiding respect for justice and the rule of law.

POLITICAL OBJECTIVE : PROMOTING PEACE & STABILITY

• Through political dialogue and confidence building, no tension has escalated into armed confrontation among ASEAN members since its establishment more than three decades ago.

ECONOMIC AND FUNCTIONAL COOPERATION

• When ASEAN was established, trade among the Member Countries was insignificant

• Thus, some of the earliest economic cooperation schemes of ASEAN were aimed at addressing this situation

• The Framework Agreement on Enhancing Economic Cooperation was adopted at the Fourth ASEAN Summit in Singapore in 1992, which included the launching of a scheme toward an ASEAN Free Trade Area or AFTA.

ASEAN FREE TRADE AREA(AFTA)

• The ASEAN countries are vigilant of the developments in the international environment like the formation NAFTA, SAARC and the introduction of euro. In view of these developments, the ASEAN countries formed the Asean Free Trade Area (AFTA) in September 1994. The AFTA initially set to function for 10 years in order to develop inter ASEAN trade

OBJECTIVES OF AFTA

• To encourage inflow of foreign investment into this region• To establish free trade area in the member countries• To reduce tariff of the products produced in ASEAN countries.

ASEAN FREE TRADE AREA

Average tariff under AFTA

19930

10

15

20

5

Percent

2003

12.76%

2.39%

EXTERNAL RELATIONS

• ASEAN has made major strides in building cooperative ties with states in the Asia-Pacific region

• Consistent with its resolve to enhance cooperation with other developing regions, ASEAN maintains contact with other inter-governmental organizations

TOWARDS AN ASEAN ECONOMIC COMMUNITY

• From ASEAN Free Trade Area to an ASEAN single market and production base characterized by free flow of goods, services, investment, labor, and capital by 2020.

LATEST DEVELOPMENTS• NEW DELHI: India signed a free trade pact

in services and investment with the 10-member Association of Southeast Asian Nations (Asean) on Monday in New Delhi. The accord is aimed at allowing freer movement of professionals and encouraging investment.

"The agreement will help provide market access to Indian professionals in the Asean region including those from the IT/ITeS (information technology enabled services) sector," a commerce department official said.

EUROPEAN FREE TRADE ASSOCIATION(EFTA)

• Formed in 1959. The member countries of EFTA include: Austria, Norway, Portugal, Sweden and Switzerland. The associate member countries are: Finland and Iceland, Great Britain and Denmark

• Today Member countries are• Iceland• Principality of Liechtenstein• Kingdom of Norway• Swiss

EUROPEAN FREE TRADE ASSOCIATION(EFTA)

OBJECTIVES OF EFTA

• To eliminate almost all tariffs among member countries• To abolish the trade restrictions regarding imports and exports of

among member countries• To enhance economic development, employment, incomes and

living standards of the people of the member countries• To enable free trade in Western Europe

LATIN AMERICAN INTEGRATION ASSOCIATION(LAIA)

• Countries: Argentina, Brazil, Chile, Mexico, Paraguay, Peru, Uruguay, Colombia, Ecuador, Venezuela and Bolivia.

• Formed in 1960, later Latin American Integration Association (LAFTA)

LATIN AMERICAN INTEGRATION ASSOCIATION(LAIA)

OBJECTIVES OF LAIA

• To eliminate restrictions on trade among the member countries• To reduce the customs and tariffs and eliminate them gradually

ORGANISATION STRUCTURE OF LAIACouncil of Minister

(Foreign Ministers of Member Countries)

Conference of Contracting Parties(Makes Decisions on Joint Issues)

Executive Committee(Supervises the Implementation of the Treaty)

Secretariat(Performs Technical and Administrative Functions)

OPERATIONS

• Members prepare a list of goods on which they consider duty reductions

• Member countries negotiate once in three years for complete exemption of tariffs and decide the list of products eligible for complete exemption of tariffs

• More favorable terms are granted for the less developed countries of the region

CRITICAL APPRAISAL

The performance of the LAIA is only modest. The reasons for modest performance include:• Delay and negative approach of the members in preparing

common list• High cost of transportation• Contentment of the members with the sheltered markets• Forces of nationalism

SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION(SAARC)

• The successful performance of EEC, NAFTA and other trade blocks in the economic development of the member countries and in improving the employment opportunities, incomes and living standards of the people of the region gave impetus for the formation of South Asian Association for Regional Cooperation(SAARC)

• Countries: India, Bangladesh, Bhutan, Pakistan, Maldives, Nepal and Sri Lanka on 8th December, 1985

SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION(SAARC)

OBJECTIVES OF SAARC• To improve the quality of life and welfare of the people of the SAARC member countries

• To develop the region economically, socially and culturally

• To provide the opportunity to the people of the region to live in dignity and to exploit their potentialities

• To enhance the self-reliance of the member countries jointly

• To provide conducive climate for creating and enhancing mutual trust, understanding and application of one another’s issues

• To enhance the cooperation with other developing economies

• To have unity among the member countries regarding the issues of common interest in the international forums

• To extend cooperation to other trade blocks

ORGANISATION OF SAARCThe Council

(Highest Policy-Making Body)

Council of Ministers(Represented by the Foreign of the Member Governments)

Standing Committee(Represented by Foreign Secretaries of the Member Government)

Monitors and Co-ordinates the Programmes

Programming Committee(Represented by the Senior Officials of the Member Government)

Scrutinises Budget and Annual Schedule

Technical Committee(Comprises the Representatives of All Countries)Formulates, Implements and Monitors Projects)

SAARC PREFERENTIAL TRADING ARRANGEMENT(SAPTA)

• The council of ministers of SAARC have signed the SAARC Preferential Trading Arrangement agreement on April 11, 1993

OBJECTIVES OF SAPTA

• To gradually liberalize the trade among member countries of SAARC

• To eliminate trade barriers among SAARC countries and reduce or eliminate tariffs

• To promote and sustain mutual trade and economic cooperation among member countries

ADMINISTRATION OF SAPTA

SAPTA would be administered on the following lines:• The benefits to the member countries would be accorded on

equitable basis of reciprocity and mutuality• The agreement would be improved step-by-step through mutual

negotiations• The agreement has taken the special needs of the less developed

countries into consideration

CONCLUSION

• It is criticized that the functioning of SAPTA has not been encouraging, not been benefiting the member countries

• One of the major reasons for this is the political conflict between India and Pakistan

• In addition the member countries do not have significant potentialities for trade

• ESCAP has 53 member countries and 9 associate members

• ESCAP is headed by Shamshad Akhtar of Pakistan

• ESCAP is the regional arm of the UNO. It promotes Economic and Social Development of the region

THE ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

(ESCAP)

The objectives of ESCAP are • Macroeconomic Policy and Development• Trade and Investment• Transport• Social Development• Environment and Sustainable Development• Information and Communications Technology and Disaster Risk Reduction• Statistics• Sub-regional activities for development

THE ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC (ESCAP)

ESCAP MEMBER COUNTRIES

• Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim member economies

• It accounts for more than one third of world’s population (2.6 billion people)

• Approx. 54% of world GDP• 44% of world trade• Started by Australian Prime Minister Bob

Hawke in 1989 for effective co-operation of Pacific rim economies

ASIA-PACIFIC ECONOMIC CO-OPERATION (APEC)

• India• Pakistan• Colombia• Panama• and 9 more economies

have requested membership.

ASIA-PACIFIC ECONOMIC CO-OPERATION (APEC)

• Treaty of Asuncion signed by South American Countries

• Member countries are• Argentina• Brazil• Paraguay• Uruguay• Venezuela

MERCOSUR(MERCADO COMÚN DEL SUR)

Associate Members are• Chile• Bolivia• Colombia• Ecuador• Perú


• It has a population of 275.5 million, GDP of $ 3.32 Trillion and includes 13.2 % and 16.8 % of Exports and Imports respectively

• It is a Common Market which was initiated as Free trade Zone.


• Andean is a customs union of South American Countries of• Bolivia• Colombia• Ecuador• Peru

ANDEAN COMMUNITY(COMUNIDAD ANDINA)

• With Associates• Argentina • Brazil• Paraguay• Uruguay• Chile

• Observer countries:• Spain

ANDEAN COMMUNITY(COMUNIDAD ANDINA)

asean and other integrations final

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