The Association of Southeast Asian Nations

Submitted To:Mr. Liaqat Ali Submitted By:Mohammad Qasim Roll No.: 120426169

Introduction
The Association of Southeast Asian Nations is a geo-political and

economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. The Membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. ASEAN covers a land area of 4.46 million km, which is 3% of the total land area of Earth. It has a population of approximately 600 million people, which is 8.8% of the world's population. In 2010, its combined nominal GDP had grown to US$1.8 trillion. It ranked as the 10th largest economy in the world behind the United States, China, Japan, India, Germany, Russia, France, Canada, Spain, Brazil, the United Kingdom, and Italy.

Formation
ASEAN was preceded by an organization called the Association of

Southeast Asia, commonly called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961.
The bloc itself, however, was established on 8 August 1967, when

foreign ministers of five countries Indonesia, Malaysia, the Philippines, Singapore, and Thailand met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration.
The five foreign ministers Adam Malik of Indonesia, Narciso Ramos

of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of Singapore and Thanat Khoman of Thailand are considered the organization's Founding Fathers.

Expansion
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 stabilization of its government.

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.

Objectives of ASEAN
Mutual respect for the independence, sovereignty, equality,

territorial integrity, and national identity of all nations

The rights of every state to lead its national existence free from

external interference, subversion, and coercion

Non-interference in the internal affairs of one another Settlement of differences or disputes by peaceful manner

Renunciation of the threat or use of force; and

Effective cooperation among themselves.

ASEAN member countries

1. Indonesia 2. Malaysia 3. The Philippines 4. Singapore 5. Thailand 6. Brunei 7. Burma (Myanmar) 8. Cambodia 9. Laos 10. Vietnam

Map of ASEAN

ASEAN countries at a glance

ASEAN Summit
The ASEAN Summit is an annual meeting held by the member of the

Association of Southeast Asian Nations in relation to economic, and cultural development of Southeast Asian countries.
The formal summit are held in three days.
In this summit they talk about future plans, fluctuation and poverty in

economies, investment and trade and conflicts among member countries.

A separate meeting is set for leaders of 2 ASEAN Dialogue Partners

namely Australia and New Zealand.

ASEAN Free Trade Area (AFTA)

Asean Free Trade Area (AFTA) is a trade bloc agreement by the

Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.
Goals
Increase ASEAN's competitive edge as a production base in the

world market through the elimination, within ASEAN, of tariffs and non-tariff barriers and Attract more foreign direct investment to ASEAN

ASEAN Trade, 2010-2011

2010 Exports
1,070,941.4

2011 Total trade

2,045,731.0

Imports
974,789.6

Exports
1,242,286.4

Imports
1,146,305.9

Total trade
2,388,592.3

Total Trade
2,400,000.00 2,300,000.00 2,200,000.00 2,100,000.00 2,000,000.00 1,900,000.00

1,800,000.00
2010 2011

Trade of All the Countries

Country Exports Brunei Darussalam Cambodia Indonesia 157,779.1 Lao PDR 135,663.3 293,442.4 203,496.7 177,435.6 380,932.3 8,615.4 5,583.6 2010 Imports 2,383.8 4,896.8 Total trade 10,999.2 10,480.3 Exports 12,362.3 6,710.6 2011 Imports 2,460.0 6,133.6 Total trade 14,822.3 12,844.1

2,432.8
Malaysia 198,800.8 Myanmar 7,599.5 The Philippines

2,076.4
164,733.5 4,198.7

4,509.1
363,534.3 11,798.3

1,746.5
228,179.1 8,119.2

2,209.4
187,542.8 6,805.9

3,955.9
415,721.9 14,925.1

51,431.7
Singapore 371,194.3 Thailand 195,312.3 Viet Nam

58,228.6
328,078.9 189,728.4

109,660.3
699,273.3 385,040.8

48,042.2
409,443.5 228,820.7

63,709.4
365,709.1 230,083.6

111,751.6
775,152.6 458,904.4

72,191.9

84,801.2

156,993.1

95,365.6

104,216.5

199,582.1

Top ten ASEAN Trade partner countries/regions, 2011

Trade partner country Value Imports 152,497.1 Japan EU-27 145,197.7 128,149.4 126,593.5 108,182.6 234,776.2 198,785.9 124,470.9 96,714.9 80,865.6 68,428.8 59,474.4 10.2 8.6 4.4 6.5 2.7 3.4 3.0 9.4 8.1 6.1 1.3 4.1 2.2 1.9 9.8 8.3 5.2 4.0 3.4 2.9 2.5 273,347.1 11.7 11.2 11.4 Share to total ASEAN trade Exports Imports Total trade 10.3 13.3 11.7

China

Exports 127,908.5

Total trade 280,405.5

USA
Republic of Korea Hong Kong 106,305.6 54,468.0 92,480.3 70,002.9 81,312.9 33,650.7 15,402.1 47,214.9 India 42,754.7 Australia 37,253.9 22,220.5 25,674.1

Taiwan

Top ten Export markets

Export market Country of destination ASEAN Value of exports 327,531.8 Share to total 26.4

Japan
China EU-27 USA India Australia Taiwan Total top ten destination countries Others2/

145,197.7
127,908.5 126,593.5 106,305.6 42,754.7 37,253.9 33,650.7 1,082,977.3 159,309.1

11.7
10.3 10.2 8.6 3.4 3.0 2.7 87.2 12.8

Total

1,242,286.4

100.0

Top ten Import origins

Import origin Country of origin ASEAN China Japan EU-27 USA Saudi Arabia United Arab Emirates India Total top ten origin countries Others Total Value of Imports 270,710.4 152,497.1 128,149.4 108,182.6 92,480.3 36,186.3 31,356.4 25,674.1 962,454.3 183,851.5 1,146,305.9 Share to total 23.6 13.3 11.2 9.4 8.1 3.2 2.7 2.2 84.0 16.0 100.0

India-ASEAN Relation
ASEAN-India relations have grown rapidly from a sectoral dialogue

partnership in 1992 to a full dialogue partnership in December 1995.

ASEAN dont give permission to India to become part of ASEAN but

they just give permission to do trade with them and make a look on their policies and economies.
During 1990 to 2005, the total value of trade between India and

ASEAN countries has gone up from US$2.4 billion in 1990 to US$23 billion by the end of 2005. And now it goes up to US 68.8 billion.
Area of trade: palm oil, electrical and high-end technological

components, chemical products and drugs, textiles, software, tea and coffee, both raw and processed meats automotive, chemicals, consumer electronics and retailing sectors and so on.

Indias Trade with ASEAN

25000 20000 15000 In $mn 10000 5000 0

-5000
2002-03 India's export 4627.7 india's import 5160.3 trade balance -532.6 -10000 2003-04 5825.7 7438.2 -1612.5 2004-05 8422.4 9110.9 -688.5 2005-06 10409.8 10882.1 -472.3 2006-07 12605.2 18091.6 -5486.4 2007-08 15721.2 22669.7 -6948.5

Profile of Indias Trade with ASEAN ($ mn)

Products Exports from India Products Imports from ASEAN

Cereals
Food Residues & Animal Fodder Mineral Fuel & Oils

161.06
331.00 1,185.22

Animal & Vegetable Fats

Mineral Fuels & Oils Organic Chemicals

1903.91
226.46 441.99

Organic Chemicals
Cotton Manmade Filaments Precious Stones

348.49
123.17 136.00 415.74

Wood Articles
Books & Scripts Machinery & Appliances Electrical Machinery

505.07
134.55 1,127.80 779.86

Iron & Steel

Machinery & Appliances Electrical Machinery

390.44
298.52 182.69

Aircraft Parts
Ships, Boats Ores, Slag & Ash

119.55
279.68 124.30

SCIENTIFIC AND TECHNOLOGICAL RELATIONSHIP

A number of agreements have been signed covering areas like space

technology, info-tech, biotechnology, pharmaceuticals, and telemedicines.

India and ASEAN have also decided to establish an India-ASEAN

Institute of Biotechnology in Jakarta and develop an ASEAN-India Digital Archive.

Japan-ASEAN Relations
Japan's formal relationship with ASEAN dates back to 1977, when

then Prime Minister Takeo Fukuda met with ASEAN leaders at the organization's second summit meeting in Kuala Lumpur.
The 1997 Asian financial crisis highlighted the interdependence of the

region's economies and led to the establishment of the ASEAN+3 (Japan, Korea, and China).
Japans trade with ASEAN in year 2000 it was 92,592,621 and by the

end of 2010 it goes up to 128,164,584. (figures are in yen)

Singapore Prime Minister Lee Kuan Yew said in 1969:

``My generation and that of my elders cannot forget [WWII] as long as we live ``The policy of our government is not to allow the unhappy experiences of the past to inhibit us from a policy which can enhance our growth rates by Japanese participation

Japan-Asean Trade Stats

Year Trade Value Import Export Balance Figures are in Yen 2000 92,592,621 51,654,198 40,938,423 10,715,775 2010 128,164,584 67,399,627 60,764,957 6,634,670

Japan Trade with Asean and China

Reasons of financial crisis 1997

Foreign debt-to-GDP ratios rose from 100% to 167% in the four large

ASEAN economies in 1993-96.

Financial deregulation encouraged more loans and helped to create

asset bubbles.
The US increased interest rates to reduce inflationary pressures.

Higher interest rates in the US, made the East less attractive as a place to move hot money flows.

China-ASEAN Relations

The ASEANChina Free Trade Area (ACFTA) agreement was signed on 4 November 2002 with the intent on establishing a free trade area among the eleven nations. The ASEANChina Free Trade Area is the largest free trade area in terms of population and third largest in terms of nominal GDP. ASEAN members and the People's Republic of China had a combined nominal gross domestic product of approximately US$6 trillion in 2008. The free trade area had the third largest trade volume after the European Economic Area and the North American Free Trade Area. Between 2003 and 2008, trade with ASEAN grew from US$59.6 billion to US$192.5 billion. China is also the world's largest exporter. And become the Largest Trading Partner of ASEAN. It had overtaken Japan, The US and EU.

China-Asean Trade Stats

Year Total Trade In % age of Total trade 1998 20,414 3.5% 2010 232,013 11.3%

Total Trade
250,000 200,000 150,000 100,000 50,000 0 1998 2010

EU-ASEAN Relations

The EU is Free Trade Agreements with Singapore, Malaysia and Vietnam. ASEAN as a whole represents the EU's 3rd largest trading partner outside Europe with more than 206 billion of trade in goods and services in 2011. The EU is ASEAN 2nd largest trading partner, accounting for around 11% of ASEAN trade. The EU is by far the largest investor in ASEAN countries. EU companies have invested around 9.1 billion annually on average (2000-2009). The EU's main exports to ASEAN are chemical products, machinery and transport equipment. The main imports from ASEAN to the EU are machinery and transport equipment, agricultural products as well as textiles and clothing.

EU-Asean Trade Stats

Trade in goods 2009-2011, billions Year EU imports EU exports Balance

2009
2010 2011

68.0
87.0 93.3

50.1
61.1 68.4

-17.9
-25.8 -24.8

USA-ASEAN Relations
The United States and ASEAN members (Brunei, Burma, Cambodia,

Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam) concluded a TIFA in August 2006 and since then have been working to build upon already strong trade and investment ties to further enhance their economic relationship.
The ASEAN countries collectively became the fourth largest U.S.

trading partner, up from fifth place in 2009.

U.S. trade with the region continued to expand with ASEAN.
ASEAN provide a huge market to US for selling Goods and services.

U.S.-ASEAN Trade Facts

The United States goods trade with ASEAN countries totaled $178

billion in 2010.
U.S. goods exports in 2010 totaled $70.4 billion, up 31% since 2009. U.S. goods imports from ASEAN were $ 107.8 billion in 2010, up 17

% since 2009.
U.S. services exports in 2009 to ASEAN totaled $15.9 billion, down

2.5 % from 2008.

U.S. services imports from ASEAN were $9.3 billion, down 5.1

percent since 2008.

Trade in Goods is continuously growing up but in services its going

down.

Criticism of Asean
The lack of transparency. Too soft in promoting human rights. Allowing human rights violations to occur in Myanmar and refused to

suspend Myanmar as a member.

European Union refused to conduct free trade negotiations at a

regional level for these political reasons.

Many Arab countries refused to trade with ASEAN after human rights

violations in Myanmar.
International observers view it as a "talk shop" which means "big on

words but small on action".

Cause and Facts

What are the reasons that trade of ASEAN is going up day by day? Why it is the fastest growing Trade bloc? Answer is

Less Labor Cost is inviting all the world for investment. Labor is the main factor of production and a big part of capital is taken by Labor. But the ASEAN countries are not developed countries so the labor cost in these countries is very low. ASEAN has population of 600 million which means huge market for consumption. Due to the Low Currency Rate of member countries of ASEAN. AFTA (Asean Free Trade Agreement) also helps in trade of ASEAN which means any one can freely trade with ASEAN countries with out or very less Tarrifs. The region offers a rich investment opportunity due to its strong demographic dividend. A young growing population with strong income levels and low consumer debt-to-GDP are the growth drivers . ASEAN contributes to 87 per cent of world's crude palm oil production and 82 per cent of the world's rubber production. Indonesia is ranked third amongst the world's top five regions with the highest overall mining potential

Cont.

FISCAL MANAGEMENT, the world were affected by the global financial crisis of 2008, Asean countries faced an equally severe crisis during the Asian financial crisis of 1997. However, fiscal management and implementation of austerity measures have seen these countries moving from a fiscal deficit situation in 1997 to a fiscal surplus situation now. Significant agricultural market.

Conclusion
After 40 years, many consider ASEAN to be very successful

in part because of the ongoing stability in the region. Instead of worrying about military conflict, its member countries have been able to focus on development of their political and economic systems.

ASEAN is the fastest growing rate other than any trade bloc. AFTA helps ASEAN for trading with new countries. ASEAN trade in 99 goods and services and in 220 countries. Figures of ASEAN going up day by day and Its future is also seeing very bright. It just not helps in GDPs of its member states but also the countries who make trade with ASEAN.

Despite any objections, ASEAN is well on its way to full economic integration and is making great strides to fully assert itself on the world market.

THANK YOU