Asean, EU & Mercosur

8/4/2019 Asean, EU & Mercosur

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EXPORT MARKETING

PROJECT WORK

Evaluation Of Success Of:

ASEAN EUROPEAN UNION

MERCOSUR.

NAMES: ROLL NO.

1. RUCHI MEHTA 660

2. BHARTI BHAMBWANI 610

T.Y.B.com

Division: E.

ASEAN ECONOMIC ORGANIZATION:


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ESTABLISHMENT:

The Association of Southeast Asian Nations or ASEANwas established on 8 August 1967 in Bangkok by the

five original Member Countries, namely, Indonesia,

Malaysia, Philippines, Singapore, and Thailand. Brunei

Darussalam joined on 8 January 1984, Vietnam on 28

July 1995, Lao PDR and Myanmar on 23 July 1997,

and Cambodia on 30 April 1999.

The Chair of ASEAN is rotated among the ASEAN

countries on an annual basis, and acts as host of the

Summit and key ministerial meetings. Thailand is the

current Chair of ASEAN.

MEMBER COUNTRIES:

1. Burma 6. Malaysia2. Brunei Darussalam 7. Philippines3. Cambodia 8. Singapore4. Indonesia 9. Thailand5. Laos 10. Vietnam

OBJECTIVES:

The ASEAN Declaration states that the aims and

purposes of the Association are:


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To accelerate economic growth, social progress and

cultural development in the region.

To promote regional peace and stability through

abiding respect for justice and the rule of law in

the relationship among countries in the region and

adherence to the principles of the United Nations

Charter.

The ASEAN Vision 2020, adopted by the ASEAN

Leaders on the 30th Anniversary of ASEAN, agreed

on a shared vision of ASEAN as a concert ofSoutheast Asian nations, outward looking, living in

peace, stability and prosperity, bonded together in

partnership in dynamic development and in a

community of caring societies.

In 2003, the ASEAN Leaders resolved that an

ASEAN Community shall be established comprisingthree pillars, namely, ASEAN Security Community,

ASEAN Economic Community and ASEAN Socio-

Cultural Community.

STRUCTURE OF ASEAN:

ASEAN


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ASEAN has emphasized regional cooperation in these

three pillars. The regional grouping has made the

most progress in economic integration.

THE ASEAN SECURITY COMMUNITY:

It shall aim to ensure that countries in the region liveat peace with one another and with the world in a

just, democratic manner. In recognition of securityinterdependence in the Asia-Pacific region, ASEANestablished the ASEAN Regional Forum (ARF) in 1994.

The ARFs agenda aims to evolve the promotion ofconfidence building, development of preventivediplomacy and elaboration of approaches to conflicts.

The ARF discusses major regional security issues in the

region, including the relationship amongst the majorpowers, non-proliferation, counter-terrorism, transnationalcrime, South China Sea and the Korean Peninsula,among others.

THE ASEAN ECONOMIC COMMUNITY:

Its goal is to create a stable, prosperous and highlycompetitive ASEAN economic region in which there is afree flow of goods, services, investment and a free flowof capital, equitable economic development and reducedpoverty and socio-economic disparities in year 2020.

Major integration-related economic activities of ASEANinclude the following:

ASEAN

Security

Communit

ASEAN

Economic

communit

ASEAN

Socio-

cultural


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Roadmap for Financial and Monetary Integration ofASEAN capital market development, capital accountliberalisation, liberalisation of financial services andcurrency cooperation;

Trans-ASEAN transportation network consisting ofmajor inter-state highway and railway networks,principal ports, and sea lanes for maritime traffic,inland waterway transport, and major civil aviationlinks;

Roadmap for Integration of Air Travel Sector;; Interoperability and interconnectivity of national

telecommunications equipment and services. Trans-ASEAN energy networks, which consist of the

ASEAN Power Grid and the Trans-ASEAN Gas

Pipeline Projects; Initiative for ASEAN Integration (IAI) focusing on

infrastructure, human resource development,information and communications technology, andregional economic integration primarily in the CLMV(cambodia, lao pdr, Myanmar and Vietnam)countries;

Visit ASEAN Campaign and the private sector-ledASEAN Hip-Hop Pass to promote intra-ASEAN

tourism; and Agreement on the ASEAN Food Security Reserve.

ASEAN SOCIO-CULTURAL COMMUNITY:

The ASEAN Socio-Cultural Community, in consonancewith the goal set by ASEAN Vision 2020, envisages aSoutheast Asia bonded together in partnership as acommunity of caring societies and founded on acommon regional identity.

Among the on-going activities of ASEAN in this areainclude the following:

ASEAN Work Programme for Social Welfare, Family,and Population;

ASEAN Work Programme on HIV/AIDS;


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ASEAN Work Programme on Community-Based Carefor the Elderly;

ASEAN Occupational Safety and Health Network; ASEAN Work Programme on Preparing ASEAN Youth

for Sustainable Employment and Other Challengesof Globalisation; ASEAN University Network (AUN) promoting

collaboration among seventeen member universitiesASEAN;

ASEAN Students Exchange Programme, YouthCultural Forum, and the ASEAN Young SpeakersForum;

The Annual ASEAN Culture Week, ASEAN YouthCamp and ASEAN Quiz;

ASEAN Media Exchange Programme; and Framework for Environmentally Sustainable Cities

(ESC) and ASEAN Agreement on TransboundaryHaze Pollution.

ASEAN TRADE PERFORMANCE:

There was an increase in the ASEAN trade performanceover the years.

Japan, the US, the European Union and China andKorea continued to be ASEANs largest trading partners.

The share of ASEAN trade (exports + imports) withthese countries in overall ASEAN trade in were 12.6%,12.5%, 11.2%, 9.3% and 3.9 %, respectively.

The ASEAN Heads of State and Government decided toestablish an ASEAN Free Trade Area or AFTA in 1992.

The objective of AFTA is to increase the ASEAN regionscompetitive advantage as a production base geared forthe world market.


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A vital step in this direction is the liberalization oftrade through the elimination of tariffs and non-tariffbarriers among the ASEAN members. This activity hasbegun to serve as a catalyst for greater efficiency in

production and long-term competitiveness.

Moreover, the expansion of intra-regional trade is givingthe ASEAN consumers wider choice and better qualityconsumer products.

Member Countries are working towards the totalelimination of import duties on all products to achievethe ultimate objective of a free trade area.

The AFTA Council has agreed that the target dates toachieve this objective will be in 2015 for the sixoriginal ASEAN Member Countries and 2018 for thenewer Members.

STRUCTURES AND MECHANISMS:

The highest decision-making organ of ASEAN is theMeeting of the ASEAN Heads of State andGovernment. The ASEAN Summit is convened every

year. The ASEAN Ministerial Meeting (Foreign Ministers)is held annually.

To support the conduct of ASEANs external relations,ASEAN has established committees composed of headsof diplomatic missions.

ASEAN promotes dialogue and consultations withprofessional and business organisations with relatedaims and purposes. Furthermore, there are 58 Non-Governmental Organizations (NGOs), which have formalaffiliations with ASEAN.

EXTERNAL RELATIONS:


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The ASEAN Vision 2020 affirmed an outward-lookingASEAN playing a pivotal role in the internationalcommunity and advancing ASEANs common interests.

Building on the Joint Statement on East AsiaCooperation of 1999, cooperation between the Southeastand Northeast Asian countries has accelerated with theholding of an annual summit among the leaders ofASEAN, China, Japan, and the Republic of Korea (ROK)within the ASEAN Plus Three process.

ASEAN Plus Three relations continue to expand anddeepen in the areas of security dialogue andcooperation, transnational crime, trade and investment,

environment, finance and monetary, agriculture andforestry, energy, tourism, health, labour, culture and thearts, science and technology, information andcommunication technology, social welfare anddevelopment, youth, and rural development and povertyeradication. There are now thirteen ministerial-levelmeetings under the ASEAN Plus Three process.

Consistent with its resolve to enhance cooperation withother developing regions, ASEAN maintains contact withother inter-governmental organisations.

THE FUTURE OF ASEAN:

ASEAN is widely recognized in the internationalcommunity as an exemplar of enlightened andsuccessful regionalism.

ASEAN today is the only subregional organization inAsia that provides a political forum where Asiancountries and the world Powers can discuss andconsider problems related to security, political issuesand military concerns".


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The expansion of ASEAN shall pave the way for a newsynergy, maximizing the cooperation potential for growthof the entire region".

ASEAN faces the future with confidence. Its strongfoundation and remarkable achievements will serveASEAN well as it pursues higher goals at the dawn ofthe new millennium. Economically, ASEAN shall movetowards greater economic integration with emphasis onsustainable and equitable growth. shall nourish a caringand cohesive ASEAN community, whose strength lies infostering a common regional identity and a sharedvision for the future.

EUROPEAN UNION (EU):

ESTABLISHMENT:

The European Union was formally established onNovember 1, 1993. It is the most recent in a series ofcooperative organizations in Europe that originated withthe European Coal and Steel Community (ECSC) of

1951, which became the European Community (EC) in1967.

The original members of the EC were Belgium, France,West Germany (now part of the united Germany),Greece, Italy, Luxembourg, and Netherlands.Subsequently these nations were joined by Denmark,Ireland, the United Kingdom, Portugal, and Spain. In1991 the governments of the 12 member states signedthe Treaty on European Union (commonly called theMaastricht Treaty), which was then ratified by thenational legislatures of all the member countries.

The Maastricht Treaty transformed the EC into the EU.In 1995 Austria, Finland, and Sweden joined the EU. InMay 2004, 10 more countries were added, bringing the
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total number of EU member countries to 25. The 10new members were Cyprus, Czech Republic, Estonia,Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, andSlovenia. Two more countries In eastern Europe

Romania and Bulgariajoined the EU on January 1, 2007.

The European Union headquarters is located In Brussels,Belgium. As of 2008 there were 27 countries in the EU.

MEMBER STATES:

The European Union is composed of 27 independentsovereign countries which are known as member states:

1.Austria 15. Latvia2. Belgium 16. Lithuania3. Bulgaria 17. Luxembourg4. Cyprus 18. Malta5. The Czech Republic 19. The Netherlands6. Denmark 20. Poland7. Estonia 21. Portugal

8. Finland 22. Romania9. France 23. Slovakia10. Germany 24. Slovenia11. Greece 25. Spain12. Hungary 26. Sweden13. Republic of Ireland 27. The United Kingdom14. Italy

There are three official candidate countries, Croatia, theRepublic of Macedonia, and Turkey; the western Balkancountries of Albania, Bosnia and Herzegovina,Montenegro, and Serbia are officially recognised aspotential candidates. The disputed region of Kosovo hasbeen granted similar status.
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OBJECTIVES, FEATURES AND POLICIES OF THE EU:

Its principal goal is to promote and expandcooperation among member states in economicsand trade, social issues, foreign policy, security anddefense, and judicial matters.

A major goal of the EU has been to establish asingle market in which the economies of all the EUmember states are unified.

The EU has sought to meet this objective in threeways: by defining a common commercial policy, byreducing economic differences among its richer andpoorer members, and by stabilizing the currenciesof its members.

The EU has attempted to address regionaleconomic differences through agencies such as theEuropean Social Fund, the European Regional

Development Fund, the Cohesion Fund, and theEuropean Investment Bank (EIB).

These agencies provide money through loans orgrants to promote development in the economicallydisadvantaged areas of the EU.

However, apart from activities of the EIB, thisfunding is limited by the size of the EUs overallbudget, which is equivalent to about 1 percent ofthe gross domestic product (GDP) of all the

member states.

FUNDAMENTAL RIGHTS:
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At present the EU does not have a codified catalogueoffundamental rights against which its legal acts mightbe judged. However the European Court of Justice doesgive judgements on fundamental rights derived from the

"constitutional traditions common to the MemberStates," and may even invalidate EU legislation basedon its failure to adhere to these fundamental rights.

While the EU may be said to have an unwrittenfundamental rights code, there have, nonetheless, beenefforts to establish a written catalogue. In 2000 the EUdrew up the Charter of Fundamental Rights.

The Charter is not legally binding at present but would

become so if the Lisbon Treaty comes into force.

REDUCING ECONOMIC DIFFERENCES:

Under the 1957 Rome treaty that created the EEC, thesignatories pledged to standardize policies regardingworking conditions, social insurance, and similar matters.However, little progress was made until an increase inoil prices brought about the worldwide economic

depression of the 1970s.

At that time, the European Regional Development Fundwas created and the moribund European Social Fund,which had originally been established by the Rometreaty, was reactivated.

In 1994 the EU established the more comprehensiveCohesion Fund for reducing the economic gap between

its richest and poorest areas.

GOVERNANCE:

The EU is often described as being divided into threeareas of responsibility, called pillars. The original
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European Community policies form the first pillar, whilethe second consists of Common Foreign and SecurityPolicy. The third pillar originally consisted of Justice andHome Affairs, however owing to changes introduced by

the Amsterdam and Nice treaties, it currently onlyconsists ofPolice and Judicial Co-operation in CriminalMatters.

Most activities of the EU come under the first,Community pillar.

EUROPEAN ECONOMIC AREA:

It is an association formed to establish a single marketand free-trade area among countries of the EuropeanUnion (EU) and the European Free Trade Association(EFTA).

The EEA is the one of the largest free-trade zones inthe world. It has 30 members, comprising the 27 EUcountries plus Iceland, Liechtenstein, and Norway.Switzerland, the only member of EFTA that did not join

the EEA, maintains observer status.

The treaty forming the EEA was signed in Porto(Oporto), Portugal, in 1992 and went into effect in1994.

The main provisions of the treaty are: (1) The freemovement of people, services, capital, and goods withinthe EEA;

(2) The adoption by the EFTA of EU rulings relating toconsumer protection, the environment, business law,education, research, and social policy;

(3) The gradual liberalization of the EFTAs agriculturalpolicy; and
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(4) The establishment of an EFTA surveillance authority,a body that oversees the implementation of EEApolicies in the EFTA states that joined the EEA.

Stabilizing Currencies: The European Monetary System(EMS)

The European Monetary System (EMS) is the exchangerate structure of the EU. It was established in 1979 tostabilize exchange rates among members at a timewhen currencies were fluctuating dramatically becauseof the economic recession of the 1970s.

The promotion of stable currencies, it was hoped, would

provide the foundations for a future monetary unionand a single currency among member states.

The core of the EMS and the engine of stabilization isthe Exchange Rate Mechanism (ERM). This system wasdesigned to reduce the amount that the currencies ofmember states could fluctuate against each other.

By evening out exchange rate fluctuations andstabilizing currencies, the ERM was intended to

stimulate trade and investment among EU members,and to help prevent inflation by linking weaker nationalcurrencies to the strong and stable German nationalcurrency, the deutsche mark.

EUROPEAN FREE TRADE ASSOCIATION:

The operation of the free-trade area among the EFTA

states is the responsibility of the EFTA Council, whichmeets twice yearly and is made up of representativesfrom each member nation. Among other things, thecouncil manages relations among EFTA members, setsthe organizations budget, and handles relations with theEuropean Union.
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Several standing committees, such as the BudgetCommittee and the Economic Committee, assist thecouncil in its operations. EFTA is also served by asecretariat that deals with matters relating to the EEA,

relations with countries outside Western Europe, andcooperation with European statistical agencies. Theheadquarters of the EFTA is in Geneva, Switzerland.

THE FUTURE OF THE EUROPEAN UNION:

Its progress, however, has been uneven, with spurts ofactivity separated by dormant periods.

Uncertainties about the future of the EU are underlinedby concerns among member states over the potentialloss of their ability to act independently. A reluctanceto cede national authority has been most pronounced insecurity policy. The EU failed to present a coherentfront in either the Persian Gulf War or the former

Yugoslavia when required to move from a commonpolicy position to a common action. The desire of somecountries to build a common defense policy is resisted

by others that insist that at best a European defenseforce can only be supportive of and subordinated toNATO.

MERCOSUR:

ESTABLISHMENT:

Mercosur, regional trade organization formed in 1991 to

establish a common market and a common trade policytowards outside nations.

Mercosur takes its name from Mercado Comun Del Sur(Spanish for Common Market of the South). It is alsosometimes referred to as the Southern Cone CommonMarket. The organization has its origins in a trade
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treaty signed by Argentina and Brazil in 1986. In 1990these countries joined with Uruguay and Paraguay toform a free-trade zone, which allows unrestricted tradebetween the four countries. In 1995 the member

nations formed a customs union, in which they agreedto reduce or eliminate trade barriers between membercountries and adopt a common trade policy towardoutside nations. In 2006, Venezuela became a fullmember of Mercosur after being an associate membersince 2004. Venezuelas entry raised the combinedannual gross domestic product of Mercosur to $1trillion.

MEMBER COUNTRIES:

1. Argentina2. Paraguay3. Uruguay4. Brazil5. Venezuela

Associate Members:

Bolivia, Chile, Colombia, Ecuador, Peru.
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trading partners. Petroleum and its derivatives are theprincipal components of foreign trade. Brazil andVenezuela dominate the continent's export trade, andBrazil accounts for much of the imports.

The continent's external trade in agricultural and miningcommodities remains more important than the internaltrade of these commodities. South America contributessignificantly to world trade in petroleum, coffee, copper,bauxite, fish meal, and oilseed; trade in these andother primary goods is essential to the underwriting ofthe continent's economic development.


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FREE TRADE ZONES:

Scope

The member nations can have commercial free-trade

zones, industrial free-trade zones, export processingzones, and special customs areas, all of which targetproviding merchandise marketed or produced in theseareas with treatment different from that afforded intheir respective customs territories.

Tariffs

The member states can assess merchandise from theseareas with the common external tariff used for

MERCOSUR merchandise, or, in the case of certainspecial products, the domestic tariff prevailing ineach individual state. In this way, the products fromthe free-trade zones can have the more favorabletax treatment established under MERCOSUR, given tothe merchandise produced in the normal customszones of each member state or, in the case ofcertain special products, can have the normalcustoms treatment prevailing in each nation.

Safeguards

Products produced or marketed in the free-trade zonesof each member nation will be eligible for thesafeguard system whenever this entails an increasenot provided for in imports, but capable of causingdamages or threatened damages to the importercountry.

Incentives


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In the event of the producing nation's granting specialincentives for production from the free-trade zonesthat are not compatible with the correspondingguidelines established under the General Agreement

on Tariffs and Trade - GATT, the member nation canmake any adjustments needed to return the situationto equilibrium.

Manaus and Tierra del Fuego Free-trade Zones:

The actual implementation of MERCOSUR will not affectthe special Manaus, Brazil, and Tierra del Fuego,Argentina, free-trade zones organized in light of theirspecial geographic situations. These two free-tradezones may continue normal operations until 2013.

EXTERNAL RELATIONS:

Negotiations for an inter-regional AssociationAgreement between the EU and the Mercosur werelaunched in April 2000. The agreement is based on aregion-to region approach and aims to be bothcomprehensive and ambitious, going beyond therespective WTO obligations of both sides. No sectorwill be excluded from liberalisation, although productand sectoral sensitivities on both sides will be takeninto account. The agreement will cover not just

goods, but services, investment and governmentprocurement markets for goods, services and works.

In line with all modern EU FTAs, the EU-Mercosur FTAaims to ensure adequate protection of intellectualproperty rights, effective competition policies and willinclude a special agreement on sanitary and


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phytosanitary standards. It will also establish aneffective and binding dispute settlement mechanismto help resolve trade frictions in the EU-Mercosurrelationship.

As of 2008, 16 negotiating rounds have beenconducted. Recognising the close ties between thisnegotiation and any outcome of the WTO DohaDevelopment Agenda, negotiations have only takenplace at a technical level since 2004. With greaterclarity on the likely result of the Doha Round itshould be possible to relaunch full negotiations.

FUTURE OF MERCOSUR:

With the absence of a bipolar international system andthe rise of globalization, there are two tracks of foreigndiplomatic and economic policy that nation-states canpursue.

These can be competing or complementary. The first is global integration. The other course is to concentrate on regionalintegration.

The European Union is the best example of this today.Latin America also faces a choice in its future.Mercosur, the "Common Market of the South" is aneconomic initiative that offers promise of economicdevelopment. Begun in 1991 as an economic agreementbetween four nations in the Southern Cone, Mercosur

made large gains in regional trade during its initialyears.As the global economy began lagging at the turn ofthe century, proponents for Mercosur have had a moredifficult time arguing its benefits.Should Mercosur survive this test, it could emergestronger and continue to expand along the same lines


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politically and militarily as the European Union. Thisthesis will open by examining the evolution of Mercosurcompared to the model of the European Union.

The next chapter will focus on the problems the

Common Market has faced since its inception and howthe actors have dealt with them. It will offer thecorrective steps necessary for the project to succeed.

The final chapter will focus on economic nationalism.What is it and will it derail Mercosur? The answer maybe startling to some. The conclusion will summarize thearguments made and make a prediction on the futureof Mercosur.

Date post:	07-Apr-2018
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Asean, EU & Mercosur

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