The Association of Southeast Asian Nations is a political and economic organisation of 10 Southeast Asian countries. It was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Membership has since expanded to include Brunei, Cambodia, Laos, Myanmar (Burma), and Vietnam.

ASEAN’s aims include

• Accelerating economic growth
• Social progress and sociocultural evolution among its member
• Protection of regional peace and stability and
• Opportunities for member countries to resolve differences peacefully

In 2015, the organisation’s combined nominal GDP had grown to more than US$2.6 trillion.

As set out in the ASEAN Declaration, the aims and purposes of ASEAN are:

• To accelerate economic growth, social progress, and cultural development in the region
• To promote regional peace and stability
• To promote collaboration and mutual assistance on matters of common interest
• To provide assistance to each other in the form of training and research facilities
• To collaborate for the better utilisation of agriculture and industry to raise the living standards of the people
• To promote Southeast Asian studies
• To maintain close, beneficial co-operation with existing international organisations with similar aims and purpose

The ‘Asean Way’ refers to a methodology or approach to solving issues that respects the cultural norms of Southeast Asia.

The ASEAN Intergovernmental Commission on Human Rights (AICHR) was established in the year 2009 after much deliberation. In November 2012, the commission adopted the ASEAN Human Rights Declaration.

In 1990, Malaysia proposed the creation of an East Asia Economic Caucus composed of the members of ASEAN and the People’s Republic of China, Japan & South Korea, with the intention of counterbalancing the growing influence of the United States in Asia-Pacific Economic Cooperation (APEC), and in the Asian region as a whole. The proposal failed because of heavy opposition from the US and Japan.

After the East Asian Financial Crisis of 1997, a revival of the Malaysian proposal was put forward in Chiang Mai, known as the Chiang Mai Initiative, which called for better integration of the economies of ASEAN as well as the ASEAN Plus Three countries, China, Japan, and South Korea.

Mutual Recognition Agreements (MRAs) have been agreed by ASEAN for eight professions: physicians; dentists; nurses; architects; engineers; accountants; surveyors; and tourism professionals, to be free to work in any ASEAN nation after the start of the AEC, 31 December 2015.

The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.

The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997 and Cambodia in 1999. AFTA now comprises the ten countries of ASEAN.

The primary goals of AFTA seek to:

• 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.

Each ASEAN member may impose tariffs on goods entering from outside ASEAN based on its national schedules. However, for goods originating within ASEAN, ASEAN members are to apply a tariff rate of 0-5 %(the more recent members of Cambodia, Laos, Myanmar and Vietnam, also known as CMLV countries, were given additional time to implement the reduced tariff rates). This is known as the Common Effective Preferential Tariff (CEPT) scheme. The CEPT only applies to goods originating within ASEAN. The general rule is that local ASEAN content must be at least 40% of the FOB value of the good. The local ASEAN content can be cumulative, that is, the value of inputs from various ASEAN members can be combined to meet the 40% requirement.

ASEAN national authorities have also been traditionally reluctant to share or cede sovereignty to authorities from other ASEAN members (although ASEAN trade ministries routinely make cross-border visits to conduct on-site inspections in anti-dumping investigations). Unlike the EU or NAFTA, joint teams to ensure compliance and investigate non-compliance have not been widely used. Instead, ASEAN national authorities must rely on the review and analysis of other ASEAN national authorities to determine if AFTA measures such as rule of origin are being followed.

Countries that agree to eliminate tariffs among themselves:

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

Regular Observers

 Papua New Guinea

 Timor-Leste

The most recent ASEAN meeting was observed also by :

 China

 Japan

 South Korea

 India

 Australia

 New Zealand

The Asian Currency Unit (ACU) is a proposed weighted index of currencies for ASEAN+3 probably inspired by the European Currency Unit, now replaced by Euro. The ACU is not a currency per se, but a currency basket, a weighted index of East Asian currencies that will function as a benchmark for regional currency movements. The Asian Currency Unit’s purpose is to help stabilise the region’s financial markets.

The ASEAN Economic Community (AEC) is now often referred to as “AEC 2015” since its original implementation date was brought forward from 2020 to 31 December 2015. As one of the three pillars of the ASEAN, it aims to “implement economic integration initiatives” to create a single market across ASEAN nations.

Its characteristics include:

1. A single market and production base,
2. A highly competitive economic region,
3. A region of fair economic development, and
4. A region fully integrated into the global economy

The areas of co-operation include human resources development; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced infrastructure and communications connectivity; development of electronic transactions through e-ASEAN; integrating industries across the region to promote regional sourcing; and enhancing private sector involvement. Through the free movement of skilled labour, goods, services and investment, ASEAN will rise globally as one market with each member gaining from each other’s strengths, thus increasing its competitiveness and opportunities for development

Other meetings

Asia–Europe Meeting (ASEM) – strengthening co-operation between the countries of Europe and Asia, especially members of the European Union and ASEAN in particular.

The ASEAN–Russia Summit is an annual meeting between leaders of member states and the President of Russia.

ASEAN candidate members – Timor-Leste and Papa New Guinea

East Asia Summit – ASEAN+3, India, Russia, USA, Australia & NZ – 18 countries in total

10 ASEAN dialogue partners (Australia, Canada, China, the EU, India, Japan, New Zealand, ROK, Russia and the United States)

ASEAN Regional Forum – ASEAN + ASEAN Dialogue partners, Papa New Guinea, North Korea(DPRK), Mongolia, Pakistan, Timor-Leste, Bangladesh and Sri Lanka.

The ASEAN Regional Forum (ARF) was established in 1994. It comprises 27 members.