ASEAN Final
ASEAN Final
ASEAN Final
Today the ASEAN region stretches across three time zones and incorporates
a key part of Asia’s continental landmass and several archipelagos.
Economically, it belongs to the developing world, but some of its member
countries have joined the world’s top 20 most competitive economies. Its
population of about 500 million constitutes a huge, increasingly middle-class
market, half the size of China’s. One of every ten persons in the world today
is a Southeast Asian.
Besides its economic importance and the natural resources its marine
territories are believed to hold, Southeast Asia is also of global strategic
importance. It is the bridge between the Indian and Pacific Oceans. It
straddles some of the busiest sea-lanes in the world. The oil tankers and
freighters that pass daily through these sea-lanes buttress Japan’s status as
an industrial power.
HISTORY
ASEAN was preceded by an organisation 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 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 as the organisation's Founding Fathers.
In 1976, the Melanesian state of Papua New Guinea was accorded observer
status. Throughout the 1970s, the organisation embarked on a program of
economic cooperation, following the Bali Summit of 1976. This floundered in
the mid-1980s and was only revived around 1991 when Thai proposed for a
regional free trade area. The bloc then grew and Brunei Darussalam became
the sixth member on 8 January 1984. On 28 July 1995, Vietnam became the
seventh member. Laos and Burma (Myanmar) joined two years later in 23
July 1997. Combodia joined on 30 April 1999.
ASEAN CHARTER
On 15 December 2008 the members of ASEAN met in the Indonesian capital
of Jakarta to launch a charter, signed in November 2007, with the aim of
moving closer to "an EU-style community".
The charter turns ASEAN into a legal entity. It aims to create a single free-
trade area for the region. The charter is divided into various chapters.
PURPOSES
1. To maintain and enhance peace, security and stability and further
strengthen peace-oriented values in the region;
2. To enhance regional resilience by promoting greater political, security,
economic and socio-cultural cooperation;
3. To preserve Southeast Asia as a Nuclear Weapon-Free Zone and free of all
other weapons of mass destruction;
4. To ensure that the peoples and Member States of ASEAN live in peace with
the world at large in a just, democratic and harmonious environment;
5. To create a single market and production base which is stable,
prosperous, highly competitive and economically integrated with effective
facilitation for trade and investment in which there is free flow of goods,
services and investment; facilitated movement of business persons,
professionals, talents and labor; and freer flow of capital;
6. To alleviate poverty and narrow the development gap wthin ASEAN
through mutual assistance and cooperation;
7. To strengthen democracy, enhance good governance and the rule of law,
and to promote and protect human rights and fundamental freedoms, with
due regard to the rights and responsibilities of the Member States of ASEAN
8. To respond effectively, in accordance with the principle of comprehensive
security, to all forms of threats, transnational crimes and trans-boundary
challenges;
9. To promote sustainable development so as to ensure the protection of the
region’s environment, the sustainability of its natural resources, the
preservation of its cultural heritage and the high quality of life of its peoples;
10. To develop human resources through closer cooperation in education
and life-long learning, and in science and technology, for the empowerment
of the peoples of ASEAN and for the strengthening of the ASEAN Community;
11. To enhance the well-being and livelihood of the peoples of ASEAN by
providing them with equitable access to opportunities for human
development, social welfare and justice;
12. To strengthen cooperation in building a safe, secure and drug-free
environment for the peoples of ASEAN;
13. To promote a people-oriented ASEAN in which all sectors of society are
encouraged to participate in, and benefit from, the process of ASEAN
integration and community building;
14. To promote an ASEAN identity through the fostering of greater
awareness of the diverse culture and heritage of the region; and
15. To maintain the centrality and proactive role of ASEAN as the primary
driving force in its relations and cooperation with its external partners in a
regional architecture that is open, transparent and inclusive.
FUNDAMENTAL PRINCIPLES
i. respect for the independence, sovereignty, equality, territorial integrity
and national identity of all ASEAN Member States
ii. shared commitment and collective responsibility in enhancing regional
peace, security and prosperity
iii. renunciation of aggression and of the threat or use of force or other
actions in any manner inconsistent with international law
iv. reliance on peaceful settlement of disputes
v. non-interference in the internal affairs of ASEAN Member States
vi. respect for the right of every Member State to lead its national
existence free from external interference, subversion and coercion
vii. enhanced consultations on matters seriously affecting the common
interest of ASEAN
viii. adherence to the rule of law, good governance, the principles of
democracy and constitutional government
ix. respect for fundamental freedoms, the promotion and protection of
human rights, and the promotion of social justice
x. upholding the United Nations Charter and international law, including
international humanitarian law, subscribed to by ASEAN Member States
xi. abstention from participation in any policy or activity, including the use
of its territory, pursued by and ASEAN Member State or non-ASEAN
State or any non-State actor, which threatens the sovereignty,
territorial integrity or political and economic stability of ASEAN Member
States
xii. respect for the different cultures, languages and religions of the
peoples of ASEAN, while emphasizing their common values in the spirit
of unity in diversity
xiii. the centrality of ASEAN in external political, economic, social and
cultural relations while remaining actively engaged, outward-looking,
inclusive and non-discriminatory
xiv. Adherence to multilateral trade rules and ASEAN's rules-based regimes
for effective implementation of economic commitments and
progressive reduction towards elimination of all barriers to regional
economic integration, in a market-driven economy.
POLICIES
Apart from consultations and consensus, ASEAN’s agenda-setting and
decision-making processes can be usefully understood in terms of the so-
called Track I and Track II. Track I refers to the practice of diplomacy among
government channels. The participants stand as representatives of their
respective states and reflect the official positions of their governments
during negotiations and discussions. All official decisions are made in Track I.
Therefore, "Track I refers to intergovernmental processes". Track II differs
slightly from Track I, involving civil society groups and other individuals with
various links who work alongside governments. This track enables
governments to discuss controversial issues and test new ideas without
making official statements or binding commitments, and, if necessary,
backtrack on positions.
The track that acts as a forum for civil society in Southeast Asia is called
Track III. Track III participants are generally civil society groups who
represent a particular idea or brand. Track III networksclaim to represent
communities and people who are largely marginalised from political power
centres and unable to achieve positive change without outside assistance.
This track tries to influence government policies indirectly by lobbying,
generating pressure through the media. Third-track actors also organise
and/or attend meetings as well as conferences to get access to Track I
officials. While Track II meetings and interactions with Track I actors have
increased and intensified, rarely has the rest of civil society had the
opportunity to interface with Track II. Those with Track I have been even
rarer.
Looking at the three tracks, it is clear that until now, ASEAN has been run by
government officials who, as far as ASEAN matters are concerned, are
accountable only to their governments and not the people.
ASEAN COMMUNITY
At its Ninth Summit in October 2003 the Association of South East Asian
Nations (ASEAN) announced its intention to create an ASEAN Community
based upon three pillars: ASEAN Security Community, ASEAN Economic
Community and an ASEAN Socio-Cultural Community. A year later ASEAN
established the Vientiane Action Program to realize this goal.
In more details, one of the most notable threats to ASEAN members is China,
whose robust economy is in direct competition with those of its Southeast
Asian neighbors, especially in trade and foreign direct investment.
Meanwhile, in recent years, the sleeping dragon has also tried to enhance its
economic and political influence and presence in the region, particularly in
Myanmar, Laos, Vietnam and Cambodia. This important change has
increasingly drawn ASEAN states, which share the common fear of intrusive
outside powers, into the long-term strategic competition between the United
States and China in Asia Pacific. In order to cope with China and avoid
external intervention, Southeast Asian countries feel the need to act
collectively and to lean on each other, so that they can have combined
strengths as well as better bargaining power in both economic and political
issues. The same will work when dealing with an amalgamated or regional
community such as the United States and the European Union, or with
international organisations such as the United Nations and the World Trade
Organization.
Besides, in the time of economic globalisation and after it was hit hard by the
Asian financial crisis, forming an economic community will help Southeast
Asia boost its economic competitiveness and attractiveness to investors
inside and outside the region (Almonte, 2006). In a 2003 study done for the
ASEAN economic ministers by McKinsey & Company warned that “The region
is falling behind its rivals. Turning it into a true single market would... help
restore its economic luster”.
In terms of political and security issues, internal ethnic and religious tensions
(most dangerously in Myanmar, Southern Thailand, Eastern Indonesia and
Southern Philippines) have led to cross-border instability, terrorism, illegal
migration and drug-trafficking. These and other problems such as air
pollution, avian flu, AIDS all require regional concerted and coordinated
actions.
Against this backdrop, the future of the region and of ASEAN will be, to a
considerable extent, contingent on the degree of success of community
building. The ASEAN Community is based on three intertwined and mutually
reinforcing pillars: ASEAN Security Community (ASC), ASEAN Economic
Community (AEC) and ASEAN Socio-Cultural Community (ASCC). The ASC is
expected to maintain and strengthen peace, security and stability and
enhance ASEAN’s capacity for self-management of regional security. It
includes maritime cooperation and fight against terrorism, but no plan for a
regional military bloc or defence pact. Besides, member countries are free to
pursue their own foreign policies and defence arrangements. Meanwhile, the
mission of the AEC is to develop a single market and production base that is
stable, prosperous, highly competitive and economically integrated with
effective facilitation for trade and investment in which there is free flow of
goods, services investment, skilled labours, and freer flow of capital. But it
will not adopt a common currency like the European Union. And last but not
least, the ASCC is for a Southeast Asia bonded together in partnership as “a
community of caring and sharing societies”. The ASCC Plan of Action
contains four core elements: Building a community of caring societies,
managing the social impact of economic integration, enhancing
environmental sustainability, and strengthening the foundations of regional
social cohesion towards an ASEAN Community. In 2005, member countries
agreed to establish an ASEAN Charter, which would serve as the legal and
institutional framework for the regional organisation and the ASEAN
Community. Although it will not take on any supranational functions, with its
ambitious goals, the ASEAN Community is believed to have far-reaching and
important impacts on the lives of the people in Southeast Asia.
Trade in Services
An ASEAN Framework Agreement on Trade in Services was adopted at the
ASEAN Summit in Bangkok in December 1995. Under AFAS, ASEAN Member
States enter into successive rounds of negotiations to liberalise trade in
services with the aim of submitting increasingly higher levels of
commitments. The negotiations result in commitments that are set forth in
schedules of specific commitments annexed to the Framework Agreement.
These schedules are often referred to as packages of services commitments.
At present, ASEAN has concluded seven packages of commitments under
AFAS.
Indonesia: 514,900
Thailand: 266,400
Malaysia: 191,463
Singapore: 177,132
Philippines: 160,991
Vietnam: 91,760
ASEAN SECURITY COMMUNITY
There has been a low level of international conflict in the area, although
there are concerns about non-national actors, including ideologues and
traditional pirates. Agreements and conflict resolution mechanisms were
established both among the members, and in a broader ASEAN Regional
Forum. ASEAN, with some pride, observes that while there has been tension,
there have been no armed conflicts, since its founding, among its members.
Building on this experience, ASEAN is forming the ASEAN Security
Community (ASC).
The members of the Community pledge to rely exclusively on peaceful
processes in the settlement of intra-regional differences and regard their
security as fundamentally linked to one another and bound by geographic
location, common vision and objectives. It has the following components:
political development; shaping and sharing of norms; conflict prevention;
conflict resolution; post-conflict peace building; and implementing
mechanisms.
ASEAN established the ASEAN Regional Forum (ARF) in 1994. The ARF’s
agenda aims to evolve in three broad stages, namely the promotion of
confidence building, development of preventive diplomacy and elaboration of
approaches to conflicts.
Regional agreements
The 1967 ASEAN Declaration, by the five founding members, established a
pattern of cooperation. It was followed by a Zone of Peace, Freedom and
Neutrality Declaration, Kuala Lumpur, 27 November 1971;
Next, there was a 1976 Declaration of ASEAN Concord and a Treaty of Amity
of Cooperation.
On a wider level, there were declarations on the South China Sea in 1992,
and a Southeast Asia Nuclear Weapon Free declaration 1997.
A forward looking plan formed ASEAN Vision 2020, declared on 15 December
1997; and a redeclaration of ASEAN Concord II in 2003.
In 1994, ASEAN created a larger ASEAN Regional Forum (ARF), charged with
evolution, in three steps, to "the promotion of confidence building,
development of preventive diplomacy and elaboration of approaches to
conflicts."
Even though the eventual 1991 Paris Peace Accords for Cambodia mandated
elections and a ceasefire, which was not fully respected by the Khmer Rouge,
UN-sponsored elections in 1993 helped restore some semblance of normalcy
under a coalition government. Factional fighting in 1997 ended the first
coalition government, but a second round of national elections in 1998 led to
the formation of another coalition government and renewed political
stability. The remaining elements of the Khmer Rouge surrendered in early
1999.
Counterterrorism
Spurred by terrorism concerns, the ASEAN states, in May 2002, agreed on an
Action Plan that provided for enhanced cooperation in intelligence sharing
and coordination of anti-terror laws.
In August 2002, ASEAN and the United States issued a “Joint Declaration to
Combat International Terrorism," which was followed by an ASEAN Regional
Forum (ARF) meeting on terrorism, to be jointly sponsored by Malaysia in the
US. The US proposed that a regional counterterrorism training center be
established in Malaysia. Accompanying the Anti-Terrorism Center is an
intelligence-sharing agreement among Indonesia, the Philippines, Malaysia,
Cambodia, and Thailand, a first meeting of which was held in Manila in
January 2003. An obvious question, without a simple answer, is how much
SIGINT capabilities these countries have.
ASEAN shall ensure that its work force shall be prepared for, and benefit
from, economic integration by investing more resources for basic and higher
education, training, science and technology development, job creation, and
social protection.
Among the on-going activities of ASEAN in this area include the following:
* ASEAN Work Programme for Social Welfare, Family, and Population;
* ASEAN Work Programme on HIV/AIDS;
* ASEAN Work Programme on Community-Based Care for the Elderly;
* ASEAN Occupational Safety and Health Network;
* ASEAN Work Programme on Preparing ASEAN Youth for Sustainable
Employment and Other Challenges of Globalisation;
*ASEAN University Network (AUN) promoting collaboration among seventeen
member universities ASEAN;
* ASEAN Students Exchange Programme, Youth Cultural Forum, and the
ASEAN Young Speakers Forum;
* The Annual ASEAN Culture Week, ASEAN Youth Camp and ASEAN Quiz;
* ASEAN Media Exchange Programme; and
*Framework for Environmentally Sustainable Cities (ESC) and ASEAN
Agreement on Transboundary Haze Pollution.
Cultural activities
The organisation hosts cultural activities in an attempt to further integrate
the region. These include sports and educational activities as well as writing
awards. Examples of these include the ASEAN University Network, the ASEAN
Centre for Biodiversity, the ASEAN Outstanding Scientist and Technologist
Award, and the Singapore-sponsored ASEAN Scholarship.
S.E.A. Write Award
The S.E.A. Write Award is a literary award given to Southeast Asian poets
and writers annually since 1979. The award is either given for a specific work
or as a recognition of an author's lifetime achievement. Works that are
honoured vary and have included poetry, short stories, novels, plays, folklore
as well as scholarly and religious works. Ceremonies are held in Bangkok and
are presided by a member of the Thai royal family.
ASAIHL
ASAIHL or the Association of Southeast Asian Institutions of Higher Learning
is a non-governmental organisation founded in 1956 that strives to
strengthen higher learning institutions, especially in teaching, research, and
public service, with the intention of cultivating a sense of regional identity
and interdependence.
Heritage Parks
ASEAN Heritage Parks is a list of nature parks launched 1984 and relaunched
in 2004. It aims to protect the region's natural treasures. There are now 35
such protected areas, including the Tubbataha Reef Marine Park and the
Kinabalu National Park.
Scholarship
The ASEAN Scholarship is a scholarship program offered by Singapore to the
9 other member states for secondary school, junior college, and university
education. It covers accommodation, food, medical benefits & accident
insurance, school fees, and examination fees.
University Network
The ASEAN University Network (AUN) is a consortium of Southeast Asian
universities. It was originally founded in November 1995 by 11 universities
within the member states. Currently AUN comprises 21 Participating
Universities.
Official song
The ASEAN Way - the official regional anthem of ASEAN.
Sports
Southeast Asian Games
The Southeast Asian Games, commonly known as the SEA Games, is a
biennial multi-sport event involving participants from the current 11
countries of Southeast Asia. The games are under regulation of the
Southeast Asian Games Federation with supervision by the International
Olympic Committee (IOC) and the Olympic Council of Asia.
Football Championship
The ASEAN Football Championship is a biennial Football competition
organised by the ASEAN Football Federation, accredited by FIFA and
contested by the national teams of Southeast Asia nations. It was
inaugurated in 1996 as Tiger Cup, but after Asia Pacific Breweries terminated
the
sponsorship deal, "Tiger" was renamed "ASEAN".
ASEAN MEETINGS
The ASEAN Summit is an annual meeting held by ASEAN in relation to
economic, and cultural development of Southeast Asian countries. The
grouping regularly conducts dialogue meetings with other countries in an
organization collectively known as the ASEAN dialogue partners. ASEAN + 3
adds China, Japan and South Korea after the agreement of ASEAN+3 Heads
of Government Summit on Nov. 2001 in Brunei. The formal summit is held in
three days. The usual itinerary is as follows:
• ASEAN leaders hold an internal organization meeting.
• ASEAN leaders hold a conference together with foreign ministers of the
ASEAN Regional Forum.
• Leaders of 3 ASEAN Dialogue Partners (also known as ASEAN+3) namely
China, Japan and South Korea hold a meeting with the ASEAN leaders.
• A separate meeting is set for leaders of 2 ASEAN Dialogue Partners (also
known as ASEAN+CER) namely Australia and New Zealand.
HISTORY
The first ASEAN summit was held in February 1976 in Bali. At this summit,
ASEAN expressed its readiness to "develop fruitful relations" and mutually
beneficial co-operation with other countries of the region. The ASEAN leaders
signed the Treaty of Amity and Cooperation in Southeast Asia.
The 2nd ASEAN summit in Kuala Lumpur in 1977 was the occasion for the
first summit meeting between Japan and ASEAN. Japan expressed its
intention to promote co-operation with ASEAN. The ASEAN heads of
government also met the heads of government of Australia and New
Zealand. The summit called for expanding cooperation on human resource
development; integrating women and youth in human resource
development; eliminating poverty, disease and illiteracy; integrating
population with rural development policies; providing productive jobs for low-
income groups, especially in rural areas; and taking concerted action to curb
the abuse and traffic in narcotics and drugs.
COMMEMORATIVE SUMMIT
A commemorative summit is a summit hosted by a non-ASEAN country to
mark a milestone anniversary of the establishment of relations between
ASEAN and the host country. The host country invites the heads of
government of ASEAN member countries to discuss future cooperation and
partnership.
REGIONAL FORUM
The ASEAN Regional Forum (ARF) is a formal, official,
multilateral dialogue in Asia Pacific region. As of July
2007, it is consisted of 27 participants. ARF
objectives are to foster dialogue and consultation,
and promote confidence-building and preventive
diplomacy in the region. The ARF met for the first
time in 1994. The current participants in the ARF are as follows: all the
ASEAN members, Australia, Bangladesh, Canada, the People's Republic of
China, the European Union, India, Japan, North Korea, South Korea, Mongolia,
New Zealand, Pakistan, Papua New Guinea, Russia, Timor-Leste, United
States and Sri Lanka. The Republic of China (also known as Taiwan) has been
excluded since the establishment of the ARF, and issues regarding the
Taiwan Strait is neither discussed at the ARF meetings nor stated in the ARF
Chairman's Statements.
Aside from the ones above, other regular meetings are also held. These
include the annual ASEAN Ministerial Meeting as well as other smaller
committees, such as the Southeast Asian Fisheries Development Center.
Meetings mostly focus on specific topics, such as defense or the environment
and are attended by Ministers, instead of heads of government.
PLUS THREE
The ASEAN Plus Three is a meeting between
ASEAN, China, Japan, and South Korea, and is
primarily held during each ASEAN Summit.
TRANSNATIONAL ISSUES
The processes of globalization, interdependence and regional integration
have made cooperation on transnational issues an imperative. The Third
ASEAN Informal Summit held in Manila in November 1999 had recognized
how the evolving regional security environment during the last decade had
given rise to new forms of security challenges for ASEAN. In this light, the
Heads of Government have reaffirmed their commitment to move forward
ASEAN's cooperation in transnational issues, such as environment,
transboundary haze, transnational crime, drugs and narcotics, immigration
and legal matters.
Environment
ASEAN has adopted the Strategic Plan of Action on the Environment (SPAE)
to support the objectives laid down in the Ha Noi Plan of Action. The 1999-
2004 Plan covers the following areas: (a) Land and Forest Fires and
Transboundary Haze; (b) Nature Conservation and Biodiversity; (c) Coastal
and Marine Environment; (d) International Environment Issues; (e) Other
Environment Activities. The Plan of Action includes measurable benchmarks
in terms of timeframes and targets. A monitoring system has been
established to track the progress of each of the activities. As environmental
issues are interdisciplinary and cross-sectoral, there is a critical need to
interface and coordinate with other sectoral bodies in ASEAN in the
implementation of the SPAE. Similarly, environmental considerations should
be incorporated into the development plans of the other sectors if the goals
of sustainable development are to be achieved. The ASEAN Secretariat plays
a key role in integrating environmental factors into the other development
activities of ASEAN.
Transnational Crime
With the rapid advances in technology and the greater mobility of people
and resources across national boundaries, transnational crime has become
increasingly pervasive, diversified and organized. The ASEAN region has to
deal with many new forms of organized crimes that transcend national
boundaries, such as terrorism, new types of drug abuse and trafficking,
innovative forms of money laundering, arms smuggling, trafficking in women
and children, and piracy. ASEAN's resolve to fight transnational crime can be
traced to the Declaration of ASEAN Concord of 1976, which called for the
intensification of cooperation among Member Countries and with
international bodies to prevent and eradicate narcotics abuse and the illegal
trafficking in drugs. Having consistently addressed the issue of transnational
crime for more than two decades, the Meeting of ASEAN Ministers of
Interior/Home Affairs on Transnational Crime adopted the ASEAN Declaration
on Transnational Crime in December 1997, which underscored the
Association's resolve to adopt a comprehensive approach to fighting
transnational crime through greater regional collaboration and by forging
international cooperation. In a further step to fight transnational crime, the
ASEAN Plan of Action to Combat Transnational Crime was adopted in June
1999. The Plan of Action established mechanisms for information exchange,
cooperation in legal and law enforcement matters, institutional capacity
building, training and extra-regional cooperation. Consultations are
proceeding on the proposed establishment of the ASEAN Centre for
Combating Transnational Crime (ACTC). As envisioned, the Centre will
promote data resource sharing, assist in the implementation of programs
outlined in the proposed action plan, and serve as a repository of information
on legislation, regulatory measures and jurisprudence of individual member
countries. It is envisaged that the ACTC will conduct research and analysis of
transnational crime activities and to recommend regional strategies.
Immigration Matters
The ASEAN leaders have directed the ASEAN Heads of Immigration to discuss
ways of cooperation in immigration matters, including the simplification of
immigration clearance procedures. The Directors General of Immigration
Departments and Heads of Consular Divisions of the Ministries of Foreign
Affairs of ASEAN Member Countries (DGICM) are now considering the
following areas for cooperation: opening ASEAN lanes at the international
airports, visa-free entry for ASEAN nationals, possible use of smart cards as
travel documents within the region, harmonization of ASEAN immigration
embarkation and disembarkation cards, and the facilitation of the movement
of yachts, leisure boats and private aircraft within the ASEAN region.
Cooperation in immigration is expected to contribute significantly to
facilitating the movement of people and promoting tourism in the region. It
can contribute to the implementation of the ASEAN Investment Area (AIA) by
promoting freer flow of capital, skilled labor, professionals and technology. A
more efficient immigration system can also facilitate the Visit ASEAN
Campaign, which is expected to draw a large number of tourists from North
America, Europe and East Asia as well as within the region. Cooperation in
immigration can help in the implementation of the ASEAN Plan of Action to
Combat Transnational Crime, particularly with respect to trafficking in
persons. ASEAN has agreed to establish an Institutional Framework for
ASEAN Cooperation on Immigration Matters. A Plan of Action for Cooperation
on Immigration Matters is being developed. In addition, an ASEAN Directory
of Immigration Focal Points is being put together to facilitate networking
among the immigration authorities in ASEAN.
The primary mechanism for achieving the goals given above is the Common
Effective Preferential Tariff (CEPT) scheme, which established a schedule for
phased initiated in 1992 with the self-described goal to increase the
"region’s competitive advantage as a production base geared for the world
market".
Contents
1. History
2. The Common Effective Preferential Tariff (CEPT) scheme
3. Rule of Origin
4. Administration
5. Dispute resolution
6. Further trade facilitation efforts
7. Membership
8. ASEAN Plus Three
9. Related free trade areas
10. References
History
A proposal to set up a Free Trade Area in ASEAN was first mooted by the Thai
Prime Minister Anand Panyarachun, which was agreed upon with
amendments during the ASEAN Seniors Economic Official Meeting (AEM) in
Kuala Lumpur. In January 1992, the ASEAN members signed the Singapore
Declaration at the heart of which was the creation of AFTA in 15 years. This
is a comprehensive program of tariff reduction in the region, which is to be
carried out in phases through the year 2008. This deadline was subsequently
moved forward and AFTA became fully operational on 1 January 2003.
Over the course of several years, the initial program of tariff reductions was
broadened and accelerated and other "AFTA Plus" activities were initiated.
This includes efforts to eliminate non-tariff barriers, harmonization of
customs nomenclature, valuation, and procedures and development of
common product certification standards.
The Common Effective Preferential Tariff (CEPT) scheme
Unlike the EU, AFTA does not apply a common external tariff on imported
goods. 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 to 5
percent (the more recent members of Cambodia, Laos, Myanmar and
Vietnam, aka CMLV countries, were given additional time to implement the
reduced tariff rates). This is known as the Common Effective Preferential
Tariff (CEPT) scheme.
ASEAN members have the option of excluding products from the CEPT in
three cases:
1. Temporary exclusions; 2.Sensitive agricultural products; 3.General
exceptions. Temporary exclusions refer to products for which tariffs will
ultimately be lowered to 0-5%, but which are being protected temporarily by
a delay in tariff reductions.
Sensitive agricultural products include commodities such as rice. ASEAN
members have until 2010 to reduce the tariff levels to 0-5%.
General exceptions refer to products which an ASEAN member deems
necessary for the protection of national security, public morals, the
protection of human, animal or plant life and health, and protection of
articles of artistic, historic, or archaeological value. ASEAN members have
agreed to enact zero tariff rates on virtually all imports by 2010 for the
original signatories, and 2015 for the CMLV countries.
Rule of Origin
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.
The following formula is applied:
Raw material cost + Direct labor cost + Direct overhead cost + Profit +
Inland transport cost x 100% FOB value
However, for certain products, special rules apply:
• Change in Chapter Rule for Wheat Flour;
• Change of Tariff Sub-Heading for Wood-Based Products;
• Change in Tariff Classification for Certain Aluminum and Articles
thereof.
The exporter must obtain a “Form D” certification from its national
government attesting that the good has met the 40% requirement. The Form
D must presented to the customs authority of the importing government to
qualify for the CEPT rate. Difficulties have sometimes arisen regarding the
evidentiary proof to support the claim, as well how ASEAN national customs
authorities can verify Form D submissions. These difficulties arise because
each ASEAN national customs authority interprets and implements the Form
D requirements without much coordination.
Administration
Administration of AFTA is handled by the national customs and trade
authorities in each ASEAN member. The ASEAN Secretariat has authority to
monitor and ensure compliance with AFTA measures, but has no legal
authority to enforce compliance. This has led to inconsistent rulings by
ASEAN national authorities. The ASEAN Charter is intended to bolster the
ASEAN Secretariat’s ability to ensure consistent application of AFTA
measures.
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. Disagreements may result between
the national authorities. Again, the ASEAN Secretariat may help mediate a
dispute but has no legal authority to resolve it.
ASEAN has attempted to improve customs coordination through the
implementation of the ASEAN Single Window project. The ASEAN Single
Window would allow importers to submit all information related to the
transaction to be entered electronically once. This information would then be
shared with all other ASEAN national customs authorities.
Dispute resolution
Although these ASEAN national customs and trade authorities coordinate
among themselves, disputes can arise. The ASEAN Secretariat has no legal
authority to resolve such disputes, so disputes are resolved bilaterally
through informal means or through dispute resolution.
An ASEAN Protocol on Enhanced Dispute Settlement Mechanism governs
formal dispute resolution in AFTA and other aspects of ASEAN. ASEAN
members may seek mediation and good offices consultations. If these efforts
are ineffective, they may ask SEOM to establish panel of independent
arbitrators to review the dispute. Panel decisions can be appealed to an
appellate body formed by the ASEAN Economic Community Council.
The Protocol has almost never been invoked because of the role of SEOM in
the dispute resolution process. SEOM decisions require consensus among all
ASEAN members, and since both the aggrieved party and the alleged
transgressor are both participating in SEOM, such consensus cannot be
achieved. This discourages ASEAN members from invoking the Protocol, and
often they seek dispute resolution in other fora such as the WTO or even the
International Court of Justice. This can also be frustrating for companies
affected by an AFTA dispute, as they have no rights to invoke dispute
resolution yet their home ASEAN government may not be willing to invoke
the Protocol. The ASEAN Secretary General has listed dispute resolution as
requiring necessary reform for proper administration of AFTA and the AEC.
Membership
Countries that agree to eliminate tariffs among themselves:
• Brunei
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Myanmar
• Cambodia
• Laos
• 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
ASEAN has been criticized, in the past, of being a mere talk shop. However,
leaders such as the Philippines' Foreign Affairs Secretary, Alberto Romulo,
said it would be a workshop not a talk shop. Others have also expressed
similar sentiment.
While these criticisms of ASEAN are largely correct, they tend to overstate
the limitations of the group. It is also necessary to examine the individual
actions of the ASEAN member states, not just the high-profile initiatives that
it carries out as an organization. The individual members have their own
separate foreign-policy initiatives. These initiatives may actually serve the
broader interests of ASEAN, despite not being publicly justified as supporting
organizational goals.
ASEAN Plus Three relations continue to expand and deepen in the areas of
security dialogue and cooperation, transnational crime, trade and
investment, environment, finance and monetary, agriculture and forestry,
energy, tourism, health, labour, culture and the arts, science and technology,
information and communication technology, social welfare and development,
youth, and rural development and poverty eradication. There are now
thirteen ministerial-level meetings under the ASEAN Plus Three process.
Bilateral trading arrangements have been or are being forged between
ASEAN Member Countries and China, Japan, and the ROK. These
arrangements will serve as the building blocks of an East Asian Free Trade
Area as a long term goal.