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The Association of Southeast Asian Nations

Submitted To:-

Mr. Liaqat Ali

Submitted By:-

Mohammad Qasim

Roll No.: 120426169


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Introduction

The Association of Southeast Asian Nations is a geo-political andeconomic 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 hasexpanded to include Brunei, Burma (Myanmar), Cambodia, Laos,and Vietnam.

ASEAN covers a land area of 4.46 million km, which is 3% of thetotal land area of Earth.

It has a population of approximately 600 million people, which is8.8% of the world's population.

In 2010, its combined nominal GDP had grown to US$1.8 trillion.

It ranked as the 10thlargest economy in the world behind the UnitedStates, China, Japan, India, Germany, Russia, France, Canada, Spain,Brazil, the United Kingdom, and Italy.


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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 Thailandmet 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 ministersAdam 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.


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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 countrylater joined on 30 April 1999, following the stabilization of its

government.


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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.


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ASEAN member countries

1. Indonesia

2. Malaysia

3. The Philippines

4. Singapore5. Thailand

6. Brunei

7. Burma (Myanmar)

8. Cambodia

9. Laos

10. Vietnam


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Map of ASEAN


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ASEAN countries at a glance


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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.


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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


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ASEAN Trade, 2010-20112010 2011

Exports Imports Total trade Exports Imports Total trade

1,070,941.4 974,789.6 2,045,731.0 1,242,286.4 1,146,305.9 2,388,592.3

1,800,000.00

1,900,000.00

2,000,000.00

2,100,000.00

2,200,000.00

2,300,000.00

2,400,000.00

2010 2011

Total Trade


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Trade of All the Countries

Country 2010 2011


Brunei

Darussalam 8,615.4 2,383.8 10,999.2 12,362.3 2,460.0 14,822.3

Cambodia

5,583.6 4,896.8 10,480.3 6,710.6 6,133.6 12,844.1

Indonesia

157,779.1 135,663.3 293,442.4 203,496.7 177,435.6 380,932.3Lao PDR

2,432.8 2,076.4 4,509.1 1,746.5 2,209.4 3,955.9

Malaysia

198,800.8 164,733.5 363,534.3 228,179.1 187,542.8 415,721.9

Myanmar

7,599.5 4,198.7 11,798.3 8,119.2 6,805.9 14,925.1

The Philippines51,431.7 58,228.6 109,660.3 48,042.2 63,709.4 111,751.6

Singapore

371,194.3 328,078.9 699,273.3 409,443.5 365,709.1 775,152.6

Thailand

195,312.3 189,728.4 385,040.8 228,820.7 230,083.6 458,904.4

Viet Nam

72,191.9 84,801.2 156,993.1 95,365.6 104,216.5 199,582.1


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Top ten ASEAN Trade partner countries/regions, 2011

Trade partner country Value Share to total ASEAN trade


China 127,908.5

152,497.1 280,405.5 10.3 13.3 11.7

Japan 145,197.7

128,149.4 273,347.1 11.7 11.2 11.4

EU-27 126,593.5108,182.6 234,776.2 10.2 9.4 9.8

USA

106,305.6 92,480.3 198,785.9 8.6 8.1 8.3

Republic of Korea 54,468.0

70,002.9 124,470.9 4.4 6.1 5.2

Hong Kong

81,312.9 15,402.1 96,714.9 6.5 1.3 4.0

Taiwan 33,650.7

47,214.9 80,865.6 2.7 4.1 3.4

India

42,754.7 25,674.1 68,428.8 3.4 2.2 2.9

Australia

37,253.9 22,220.5 59,474.4 3.0 1.9 2.5


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Top ten Export markets

Export market

Country of destination Value of exports Share to total

ASEAN 327,531.8 26.4

Japan 145,197.7 11.7

China 127,908.5 10.3

EU-27 126,593.5 10.2USA 106,305.6 8.6

India 42,754.7 3.4

Australia 37,253.9 3.0

Taiwan 33,650.7 2.7

Total top ten destination countries 1,082,977.3 87.2Others2/ 159,309.1 12.8

Total 1,242,286.4 100.0


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Top ten Import origins

Import origin

Country of origin Value of Imports Share to total

ASEAN 270,710.4 23.6

China 152,497.1 13.3

Japan 128,149.4 11.2EU-27 108,182.6 9.4

USA 92,480.3 8.1

Saudi Arabia 36,186.3 3.2

United Arab Emirates 31,356.4 2.7

India 25,674.1 2.2

Total top ten origin countries 962,454.3 84.0

Others 183,851.5 16.0

Total 1,146,305.9 100.0


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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 dontgive 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.


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Indias Trade with ASEAN

-10000

-5000

0

5000

10000

15000

20000

25000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

India's export 4627.7 5825.7 8422.4 10409.8 12605.2 15721.2

india's import 5160.3 7438.2 9110.9 10882.1 18091.6 22669.7trade balance -532.6 -1612.5 -688.5 -472.3 -5486.4 -6948.5

In$mn


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Profile of Indias Trade with ASEAN ($ mn)

Products Exportsfrom India

Products Imports fromASEAN

Cereals 161.06 Animal & Vegetable Fats 1903.91

Food Residues &

Animal Fodder

331.00 Mineral Fuels & Oils 226.46

Mineral Fuel & Oils 1,185.22 Organic Chemicals 441.99

Organic Chemicals 348.49 Wood Articles 505.07

Cotton 123.17 Books & Scripts 134.55

Manmade Filaments 136.00 Machinery & Appliances 1,127.80

Precious Stones 415.74 Electrical Machinery 779.86Iron & Steel 390.44 Aircraft Parts 119.55

Machinery &

Appliances

298.52 Ships, Boats 279.68

Electrical Machinery 182.69 Ores, Slag & Ash 124.30


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SCIENTIFIC AND TECHNOLOGICAL RELATIONSHIP

A number of agreements have been signed covering areas like space

technology, info-tech, biotechnology, pharmaceuticals, and tele-

medicines.

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

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


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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).

Japanstrade 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


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Japan-Asean Trade Stats

Year 2000 2010Trade Value 92,592,621 128,164,584

Import 51,654,198 67,399,627

Export 40,938,423 60,764,957

Balance 10,715,775 6,634,670Figures are in Yen

Japan Trade with Asean and China


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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.


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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 amongthe eleven nations.

The ASEANChina Free Trade Area is the largest free trade area interms of population and third largest in terms of nominal GDP.

ASEAN members and the People's Republic of China had a combinednominal gross domestic product of approximately US$6 trillion in 2008.

The free trade area had the third largest trade volume after the EuropeanEconomic 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 LargestTrading Partner of ASEAN.

It had overtaken Japan, The US and EU.


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China-Asean Trade Stats

Year 1998 2010

Total Trade 20,414 232,013

In % age of Total trade 3.5% 11.3%

0

50,000

100,000

150,000

200,000

250,000

1998 2010

Total Trade


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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 around9.1 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.


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EU-Asean Trade Stats

Trade in goods 2009-2011,billions

Year EU imports EU exports Balance

2009 68.0 50.1 -17.9

2010 87.0 61.1 -25.8

2011 93.3 68.4 -24.8


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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.


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U.S.-ASEAN Trade Facts The United Statesgoods 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.


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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 onwords but small on action".


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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 countriesare 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 meansany 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 consumerdebt-to-GDP are the growth drivers .

ASEAN contributes to 87 per cent of world's crude palm oil production and 82 percent of the world's rubber production.

Indonesia is ranked third amongst the world's top five regions with the highestoverall mining potential


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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 fiscaldeficitsituation in 1997

to a fiscalsurplussituation now.

Significant agricultural market.


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

in part because of the ongoing stability in the region. Insteadof worrying about military conflict, its member countrieshave been able to focus on development of their political andeconomic 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 alsoseeing very bright.

It just not helps in GDPs of its member states but also thecountries who make trade with ASEAN.

Despite any objections, ASEAN is well on its way to fulleconomic integration and is making great strides to fullyassert itself on the world market.


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THANK YOU

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