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The Talk Show

Formation of ASEAN-AFTA

ASEAN
Association of Southeast Asian Nations Established on Aug 8, 1967 in Bangkok, Thailand. Founding Fathers are Indonesia, Malaysia, Philippines, Singapore and Thailand

ASEAN Declaration
Aims and purposes of the Association Establishment of machinery Openness of the Association to the participating states that abided with the aims, principles and purposes of the declaration Biding the participating states in friendship and cooperation and security and posterity.

Formation of ASEAN
Aims:
To accelerate economic growth, social progress and cultural development in the region To promote regional peace and stability through the rule of law and adherence to the principles of the United Nations Charter

Motivations for ASEANs birth


Concentrate on nation building Cure the common fear of communism Increase faith in or mistrust of external powers in the 1960s Desire for economic development

AFTA
ASEAN Free Trade Area Removal of obstacles to freer trade among member states Abolition of high tariffs Scrapping of quantitative restrictions and other non-tariff barriers

AFTA
Contained in three agreements at the Fourth ASEAN Summit:
Singapore Declaration of 1992 Framework Agreement on Enhancing ASEAN Economic Cooperation Agreement on Common Effective Preferential Tariff Scheme.

Singapore Declaration of Commonwealth Principles


Issued by assembled Heads of Government of the Commonwealth of Nations Sets out the core political values for Commonwealths membership criteria

Member states who signed the Singapore Declaration of Commonwealth Principles

Brunei Darussalam
HAJI HASSANAL BOLKIAH Sultan of Brunei Darussalam

Republic of Indonesia
SOEHARTO President

Malaysia
DR MAHATHIR BIN MOHAMAD Prime Minister

Republic of the Philippines


CORAZON C AQUINO President

Republic of Singapore
GOH CHOK TONG Prime Minister

Kingdom of Thailand
ANAND PANYARACHUN Prime Minister

Formation of AFTA
Main objectives:
Increase ASEANs competitiveness as production base for both regional and world markets Eliminating intra-ASEAN tariffs and nontariff barriers Attract more foreign direct investments into the region

Formation of AFTA
The main mechanism is CEPT
Covers all manufactured products Excludes unprocessed agricultural products

ASEAN Organizational Structure

ASEAN Heads of Government


Highest authority of ASEAN Meets at the ASEAN Summit every 3 years Meets at Informal Summit annually

ASEAN Ministerial Meeting


ASEAN Foreign Ministers meets annually during the AMM Formulates policy guidelines and coordination of ASEAN activities. Reports jointly with AEM to the ASEAN Heads of Government

Secretary-General of ASEAN
Appointed by ASEAN Heads of Government Initiates, advises, coordinates and implements ASEAN activities. Responsible to the Heads of Government Meeting and to all Meetings of ASEAN Ministers and to the chairman of the ASC.

ASEAN Standing Committee


The policy arm and organ of coordination of ASEAN between the AMM Advisory body to the Permanent Committees Reviews the work of Committees with a view to implementing policy guidelines set by AMM

ASEAN National Secretariats


Organizes and implements ASEANrelated activities at the country level. Director-General is the head of each National Secretariats

ASEAN Secretariat
Established to enhance coordination and implementation of policies, projects and activities of the various ASEAN bodies.

Implementation of Decision and Policies


Any amendments shall be made by consensus and shall become effective upon acceptance by all Member States. The agreement shall be deposited with the Secretary-General of the ASEANSecretariat, who shall likewise promptly furnish a certified copy to each Member State.

ASEANs Agenda-Setting and Decision-Making Porcesses


Track I Practice of diplomacy among government channels Participants stand as representatives and reflect the official positions of their governments All official decisions are made in Track I Track II Involves society groups and other individuals Enables governments to discuss controversial issues and test new ideas

Track III
Acts as a forum for civil society in Southeast Asia Participants are generally civil society groups who represent a particular idea or brand Claim to represent communities and people who are marginalised from political power centers Tries to influence government policies indirectly

Member Countries

Brunei

Cambodia

Indonesia

Laos

Malaysia

Myanmar

Philippines

Singapore

Thailand

Vietnam

Criteria for Membership


Prospective member must agree to subscribe or accede to all the treaties, declarations and agreements in ASEAN ability of a prospective member to participate in ASEAN Free Trade Area and all other economic cooperation arrangements its attendance at ASEAN meetings and participation in cooperation projects

Bangkok Declaration
location in Southeast Asia and the usual principles of inter-state relations no membership criteria related to the character of government, ideological system and orientation, economic policy, or level of development a state must maintain embassies in all current member countries of the bloc

Criteria for observers


should be granted only to potential members of ASEAN who satisfy the criteria set for ASEAN membership

Application Process
Passing an application letter for membership is only requirement submitted to the ASEAN Secretariat. The rest of the evaluation is left to ASEAN.

Trade Agreements Signed


ASEAN Preferential Trading Arrangement ASEAN Free Trade Area ASEAN Framework Agreement on the Facilitation of Goods in Transit (1998)

ASEAN Preferential Trading Arrangement


Basic commodities and most-favoured nation (MFN) rates were reduced Tariff rates were proposed on a product-by-product basis

ASEAN Free Trade Area


Envisages the reduction of tariffs to 0-5 per cent Non-tariff barriers were subjected to a proper time schedule complete elimination of import duties of Inclusion List products by 2010

ASEAN Framework Agreement on the Facilitation of Goods in Transit


Aimed at facilitating the transport of goods in transit and establishing an effective, efficient, integrated and harmonized transit transport system Two Characteristics:
Exemption of taxes and other charges on transit transport stipulation that containers shall not be subjected to examination at customs offices en route

Ensures border and frontier facilities

Advantages of Membership
Free Trade Area Comprehensive Investment Area Trade in Services Lessen the need for the World Trade Organization (WTO) Integration into a single market

Disadvantages of Membership
Expense Competition Domestic Instability

Contribution of Each Members

Brunei
Maintenance of peace and stability Hosts important meetings Reinforce commitment to build better understanding, friendship and trust in the region

Cambodia
Effort to reduce the development gaps among new and old member countries Accelerated the speed of trade liberalization and free flows of goods and services

INDONESIA
Involvements:
ASEAN East Asia Summit (EAS) Group of 20 (G20)

INDONESIA
Sub-regional Level ASEAN 2011 Chair Used a regional approach to promote national interests by :
Framing and shaping agendas and outcomes within the framework of ASEAN

Regional Level Coordinating the East Asia Summit Employs pluralist approach that ASEAN is a driving force in this evolving regional architecture

On Food Security
Indonesia will provide 12,000 tons of rice out of the 780,000 tons of rice that ASEAN +3 members as reserve food in case of emergency.

Laos
Strategic gem for the Aseans bid to establish a single market and production base in 2015 An important partner in the Aseans Great Mekong Subregion economic cooperation program

Malaysia
Advocated the use of "prosper-thyneighbour" policies or policies that seek to assist neighbouring countries to develop together with Malaysia Initiated the ASEAN Plus Three cooperation

Myanmar
Has a great advantage in agriculture sector investment in farming and livestock sectors by ASEAN countries Strategic position could contribute to ASEANs access to countries outside the region

Philippines
Plays a role in attaining the ASEAN purposes of accelerating economic growth, social progress and cultural development in the region, and promoting regional peace and stability Hosted the ASEAN Center for Biodiversity headquarters Chaired ASEAN from 2006 to 2007, hosting the ASEAN Heads of State Summit and the ASEAN Regional Forum

Singapore
Promote regional military co-operation and dialogue Hosted the Millennium Air Power Conference in Singapore

Thailand
Proposed in 1992 an ASEAN Free Trade Area Hosted the first ASEAN Regional Forum On 24 July 2008, they were entrusted with the duty of the ASEAN Chairmanship Organised the ASEAN Youth Summit

Vietnam
Was the Country Coordinator for ASEAN relations with the Russian s Federation, the United States, and Australia Steered ASEAN in convening the ASEAN-Australia and New Zealand Commemorative Summit Transformation of the South China Sea from an area of conflict into an area of

Philippines and ASEAN

Too soft in its approach to promoting human rights and democracy in the junta-led Burma Political systems is a barrier to farreaching cooperation outside the economic sphere Less successful at restraining its members and resolving border disputes Viewed as imperialistic that threatens the country's sovereignty

Criticism

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