PAD 380 – CURRENT AFFAIRS IN SOUTH EAST ASIA ASSIGNMENT 2 (INDIVIDUAL) ASEAN EXTERNAL RELATIONS WITH OTHER COUNTRIES
PREPARED BY MOHD SUKRAY BAHAR
ID : 201234740 GROU!: AAM!"A AAM!"A
PREPARED FOR SIR #ARID BIN SA$AD U%TM CAM!US C AM!US SERI ISKANDAR& !ERAK DARUL RID'UAN
INTRODUCTION
ASEAN’s commitment to dee!o" its e#te$n%! $e!%tion &%s $e'!ected in t(e )nd ASEAN S*mmit+ &(e$e its o,-ectie is to dee!o" '$*it'*! $e!%tion %nd coo"e$%tion &it( ot(e$ co*nt$ies o*tside t(is $e.ion/ In t(e e%$! st%.es o' its e#te$n%! $e!%tion+ t(e im"o$t%nt %.end% &%s to 'ind %ssist%nce+ $eco.nition %nd s*""o$t '$om s*"e$"o&e$s in o$de$ to %!!o& t(em to s(ie!d %n 'o$m o' inte$'e$ence '$om Comm*nist "o&e$s/ As ASEAN m%t*$es %nd eo!es+ t(e sco"e o' e#te$n%! $e!%tions &%s !i'ted to inc!*de economic %nd soci%! iss*es/ T(e 'i$st ste" o' ASEAN e#te$n%! $e!%tions &%s t(e .$%ntin. o' its di%!o.*e "%$tne$s to its m%-o$ t$%din. "%$tne$s+ &(ic( &e$e United St%tes+ 1%"%n+ EU+ A*st$%!i%+ Ne& 2e%!%nd %nd C%n%d%/ E#te$n%! $e!%tion is % sit*%tion &(en one co*nt$ coo"e$%tes &it( ot(e$ co*nt$ies in t(e sco"e o' "o!itics+ economics %nd soci%! %s"ects t(%t !%te$ on &i!! ,$in. ,ene'its to ee$ sin.!e "%$t &(o ino!e in it/ Com"onents o' t(e 'ie!d o' e#te$n%! $e!%tion %$e inc!*din. 'o$ei.n "o!ic+ inte$n%tion%! !%&s+ inte$n%tion%! o$.%ni%tion+ st$%te.ic st*dies %nd ot(e$s/ Ho''m%n 45679 de'ined e#te$n%! $e!%tion %s % sstem%tic st*d o' o,se$%,!e "(enomen% t(%t t$ies to discoe$ t(e "$inci"!es %$i%,!es+ to e#"!%in ,e(%io*$ %nd to $ee%! t(e c(%$%cte$istics t"es o' $e!%tion %mon. n%tion%! *nits/
USTI#ICATION O# ASEAN EXTERNAL RELATIONS
B t(e st$%te.ic .eo"o!itic%! !oc%tion o' t(is $e.ion+ Co!,e$t 456::9 ,e!ieed t(e 'o$ei.n inte$est on t(is $e.ion is ,ec%*se o' its $o!e %s ,ot( ,$id.e %nd ,%$$ie$ ,et&een Indi% %nd C(in%+ t(e inte$enin. co*nt$ies in t(is $e.ion %nd im"o$t%nt %$en% %mon. t(e A!!ied %.%inst ;osco&’s t($e%t/ T(is $e.ion (isto$ic%!! is % ,$id.e ,et&een t(e
ASEAN EXTERNAL RELATIONS WITH EURO!EAN UNION (EU)
ASEAN = EUROPEAN UNION st$%te.ic $o!e in ASEAN’s e''o$t in "$omotin. $e.ion%! st%,i!it/EU is %mon. t(e "ionee$ instit*tions in ASEAN e#te$n%! $e!%tions/ Ino!ement o' EU in ARF %s % mec(%nism to en.%.e m%-o$ %nd s*"e$ "o&e$s o' t(e &o$!d is c$*ci%! in o$de$ to c$e%te % "e%ce %nd st%,i!e $e.ion/ ARF is *sed , ASEAN %s % "!%t'o$m to d isc*ss %nd cons*!t on "o!itic%! %nd sec*$it iss*e/ T(is o$.%nis%tion %ims %t ,*i!din. m*t*%! con'idence t($o*.( $e.*!%$ disc*ssion %nd -oint %ctiities to "$eent occ*$$ence o' con'!ict in t(is $e.ion/
EU is ASEAN’s im"o$t%nt economic "%$tne$/ Acco$din. to t(e di%.$%m tot%! t$%de ,et&een ,ot( "%$ties stood %t >)0) ,i!!ion in )008/ EU is ASEAN’s )nd m%-o$ t$%din. "%$tne$ %nd dem%nd c$e%ted 'o$ $e.ion%! commodities %nd 'inis(ed .oods stim*!%te t(e economic %ctiities %nd &i!! !e%d to $e.ion%! dee!o"ment/ ASEAN $e! (e%i! on EU’s (e% e?*i"ments+ m%c(ine$ %nd tec(no!o. to "$o"e! its economic dee!o"ment/ In )00)=)003+ EU $%n@ed second 'o$ ASEAN’s e#"o$t m%$@et+ %nd 3$d !%$.est t$%din. "%$tne$ %'te$ t(e United St%tes %nd 1%"%n/ EU $e!%tions(i" is mo$e 'oc*s to&%$ds Sin.%"o$e %nd most o' t(ei$ FDI '!o& into t(%t co*nt$/ A ne& "%$tne$s(i" &it( So*t(e%st Asi% (%s ,een int$od*ced %nd "%$tic*!%$! 'oc*sed on inestment %nd t$%de $e!%tions/ Coo"e$%tion on Eni$onment%! Conse$%tion+,ot( "%$ties &e!comed t(e dec!%$%tion o' t(e ASEAN Ye%$ o' t(e Eni$onment+ %nd !oo@ 'o$&%$d to %n e%$! decision on t(e est%,!is(ment o' t(e EU=ASEAN Cent$e o' E#ce!!ence on = Biodie$sit Conse$%tion/ T(e ;iniste$s %!so %.$eed to contin*e t(e disc*ssions on eni$onment%! coo"e$%tion on t(e occ%sion o' %n e#"e$t !ee! Semin%$ %nd to (%e e#%mined t(e est%,!is(ment o' % s*,committee on eni$onment/ T(e ;iniste$s *$.ed t(e e%$! im"!ement%tion o' t(e commitments m%de %t t(e E%$t( S*mmit in Rio de 1%nei$o/
ASEAN EXTERNAL RELATIONS WITH CHINA Eo!*tion o' ASEAN %nd Peo"!e’s Re"*,!ic o' C(in% $e!%tions(i" st%$ted in 5663/ T(e (%d ,een .$%nted % Di%!o.*e P%$tne$ St%t*s in 5667/ P$esence o' Peo"!e’s Re"*,!ic o' C(in% (%s ,een !oo@ed '$om ne.%tie "e$s"ectie d*e to its $%"id economic dee!o"ment t(%t t%@es m%-o$it o' 4Fo$ei.n Di$ect Inestment9 in Asi% P%ci'ic $e.ion/ T(is '%ct c%n ,e t*$ned into di''e$ent "e$s"ectie &(e$e t(e s(o*!d ,e %cce"ted %s % '$iend t(%t o''e$s % !ot o' o""o$t*nities $%t(e$ t(%n %n enem/
Re!%tions ,et&een Peo"!e’s Re"*,!ic o' C(in% %nd t(e Associ%tion o' So*t(e%st Asi%n N%tions 4ASEAN9 %nd its mem,e$ st%tes (%e *nde$.one si.ni'ic%nt c(%n.es o e$ t(e "%st 5 e%$s/ <(en Bei-in. 'i$st est%,!is(ed o''ici%! cont%cts &it( t( e o$i.in%! ASEAN=7 in 5665+ it ,%$e! (%d $esto$ed di"!om%tic $e!%tions &it( Indonesi%+ (%d ,e.*n to no$m%!ie $e!%tions &it( ietn%m+ %nd -*st (%d est%,!is(ed di"!om%tic ties &it( Sin.%"o$e/ Demonst$%ted %n eo!*tion o' C(in%’s "o!ic '$om $o.*e d$%.on’ to c(%$min. $e!%tions(i"+ (%s t$%ns'o$med % (%$monio*s $e!%tions(i" ,et&een ,ot( entities/ Ino!ement o' Peo"!e’s Re"*,!ic o' C(in% in
Dee!o"ment &itnesses s*,st%nti%! %mo*nt o' mone in-ected , t(em in %$io*s economic "$o-ects in t(%t %$e%/ Peo"!e’s Re"*,!ic o' C(in% is ASEAN’s @e $e.ion%! sec*$it "%$tne$/ Position o' PRC %s in'!*enti%! co*nt$ in Asi% P%ci'ic s(o*!d ,e ,ene' ited , ASEAN in "$omotin. $e.ion%! st%,i!it %nd ens*$in. ee$!%stin. "e%ce/ Si.nin. o' t(e TAC , t(e Peo"!e’s Re"*,!ic o' C(in% (%s sent % c!e%$ mess%.e to ASEAN t(%t t(e &o*!d !i@e to en.%.e in % (%$monio*s di"!om%tic $e!%tions(i" &it( ASEAN/ T(e s*""o$t %nd $eco.nition $eceied '$om t(em oe$ SEAN
ASEAN EXTERNAL RELATIONS WITH A!AN
ASEAN %nd 1%"%n 'i$st est%,!is(ed in'o$m%! di%!o.*e $e!%tions in 56:3+ &(ic( &%s !%te$ 'o$m%!ied in ;%$c( 56:: &it( t(e conenin. o' t(e ASEAN=1%"%n Fo$*m/ Since t(en+ si.ni'ic%nt "$o.$ess (%s ,een m%de in ASEAN=1%"%n $e!%tions %nd coo"e$%tion in t(e %$e%s o' "o!itic%! sec*$it+ economic='in%nce %nd socio=c*!t*$e/ T(e si.nin. o' t(e GTo@o Dec!%$%tion 'o$ t(e Dn%mic %nd End*$in. ASEAN=1%"%n P%$tne$s(i" in t(e Ne& ;i!!enni*m
to.et(e$ &it( t(e GASEAN=1%"%n P!%n o' Action 4ASEAN=1%"%n POA9 %t t(e ASEAN=1%"%n Commemo$%tie S*mmit+ (e!d in Decem,e$ )003 in To@o+ (%e cont$i,*ted to t(e st$en.t(enin. o' $e!%tions ,et&een t(e t&o sides/ T(e )003 To@o Dec!%$%tion %nd t(e ASEAN=1%"%n POA se$ed %s t(e $o%dm%" in moin. ASEAN=1%"%n $e!%tions 'o$&%$d *nti! )050/ At t(e 5t( ASEAN=1%"%n S*mmit on 58 Noem,e$ )0 55 in B%!i+ Indonesi%+ t(e e%de$s iss*ed t(e 1oint Dec!%$%tion 'o$ En(%ncin. ASEAN=1%"%n St$%te.ic P%$tne$s(i" 'o$ P$os"e$in. To.et(e$ 4B%!i Dec!%$%tion9 %nd %do"ted t(e ASEAN=1%"%n P!%n o' Action )055 – )05/ ASEAN %nd 1%"%n ce!e,$%ted t(e 0t( %nnie$s%$ o' ASEAN=1%"%n F$iends(i" %nd Coo"e$%tion in )053/ To ce!e,$%te t(e mi!estone+ ASEAN %nd 1%"%n c%$$ied o*t commemo$%tie %ctiities t($o*.(o*t t(e e%$/ 1%"%n (osted t(e ASEAN=1%"%n Commemo$%tie S*mmit on 53 – 5 Decem,e$ )053 in To@o/ T(e S*mmit %do"ted % 1oint St%tement &it( t(e t(eme GH%nd in (%nd+ '%cin. $e.ion%! %nd .!o,%! c(%!!en.es/ T(e S*mmit %!so %do"ted % ision St%tement on ASEAN=1%"%n F$iends(i" %nd Coo"e$%tion %nd its Im"!ement%tion P!%n/ ASEAN=1%"%n $e!%tions(i" is !ess sto$m %s com"%$ed to 1%"%n=C(in%=Jo$e%n $e!%tions+ dict%ted , 1%"%nese ino!ement in
ASEAN %nd 1%"%n si.ned t(e ASEAN=1%"%n Com"$e(ensie Economic P%$tne$s(i" 4A1CEP9 on 5 A"$i! )008/ T(e A1CEP A.$eement is com"$e(ensie in sco"e+ coe$in. t$%de in .oods+ t$%de in se$ices+ inestment %nd economic coo"e$%tion/ T(e A.$eement ente$ed into 'o$ce on 5 Decem,e$ )008/ As o' ;%$c( )006+ %!! ASEAN ;em,e$ St%tes %nd 1%"%n (%e $%ti'ied t(e ASEAN %nd 1%"%n (%e s*,st%nti%!! conc!*ded t(e ne.oti%tions on t(e Se$ices %nd Inestment C(%"te$s o' t(e A1CEP A.$eement/ T(e ASEAN=1%"%n 50=e%$ St$%te.ic Economic Coo"e$%tion Ro%dm%" &%s endo$sed %t t(e 58t( Cons*!t%tions ,et&een t(e ASEAN Economic ;iniste$s %nd t(e ;iniste$ 'o$ Econom+ T$%de %nd Ind*st$ o' 1%"%n on 30 A*.*st )05)/ T(e Ro%dm%" %ims to "$omote st$%te.ic "%$tne$s(i" in % &ide $%n.e o' %$e%s inc!*din. im"$oement o' ,*siness eni$onment+ t$%de %nd inestment '%ci!it%tion %nd !i,e$%!i%tion+ in'$%st$*ct*$e dee!o"ment %nd connectiit/ T(e e%de$s o' ASEAN %nd 1%"%n %t t(e 57t ( ASEAN=1%"%n S*mmit in Octo,e$ )053 &e!comed t(e "$o.$ess o' t(e ASEAN=1%"%n 50=Ye%$ St$%te.ic Economic Coo"e$%tion Ro%dm%"+ &(e$e 77 %ctiities o$ 8/7K o' t(e %ctiities (%e ,een im"!emented+ es"eci%!! in t(e %$e%s o' inte!!ect*%! "$o"e$t+ in'o$m%tion %nd comm*nic%tion tec(no!o.+ ind*st$i%! (*m%n $eso*$ce dee!o"ment %nd medic%! co!!%,o$%tion/ T(e e%de$s $eite$%ted t(e need 'o$ o*$ o''ici%!s to e''ectie! im"!ement t(e %ctiities *nde$ t(e Ro%dm%" to (e!" moe to&%$ds o*$ .o%! o' do*,!in. t$%de %nd inestment '!o&s , )0))/ ;ost o' ASEAN co*nt$ies de"end on Fo$ei.n Di$ect Inestment t(%t o$i.in '$om 1%"%n %s % !%$.est sin.!e cont$i,*to$ o' Fo$ei.n Di$ect Inestment to $e.ion%! econom/ 1%"%n %s t(e !e%din. co*nt$ies o' Fo$ei.n Di$ect Inestment so*$ces to t(is $e.ion/ Inestment in ASEAN co*nt$ies , its ;*!ti N%tion%! Co$"o$%tion 4;NCs9 s*c( %s P%n%sonic+ Hond%+ Son %nd see$%! ot(e$s con.!ome$%tes "$oide -o, o""o$t*nities %nd t$%ns'e$ t(ei$ tec(no!o.ies to see$%! ASEAN co*nt$ies/
ASEAN=1%"%n FTA is en'o$ced in )050 %nd e#"ected to .$o& ,ot( economies %t '%ste$ $%te/ T(e ASEAN=1%"%n FTA is e#"ected to ,oost ASEAN’s e#"o$ts to 1%"%n , %s m*c( %s "e$cent+ &(i!e 1%"%nese e#"o$ts to t(e $e.ion &o*!d $ise , ): "e$cent/ i,e$%!i%tion o' ,ot( m%$@et t($o*.( e!imin%tion o' t$%de disc$imin%tions %!!o& 1%"%nese c%"it%! "$od*ct to ente$ ASEAN m%$@et %t com"etitie se!!in. "$ice %nd (e!" t(is $e.ion to "$o"e! t(ei$ ind*st$i%! ,%sed econom/
Sec*$it coo"e$%tion &it( 1%"%n/ ASEAN %nd 1%"%n cond*ct t(ei$ di%!o.*e $e!%tions t($o*.( %$io*s mec(%nisms+ &(ic( inc!*de S*mmits+ ministe$i%! meetin.s+ senio$ o''ici%!s %nd e#"e$ts meetin.s+ %s &e!! %s ,$o%de$ ASEAN=initi%ted $e.ion%! di%!o.*e mec(%nisms s*c( %s t(e ASEAN Re.ion%! Fo$*m 4ARF9+ ASEAN P!*s T($ee 4APT9+ t(e E%st Asi% S*mmit 4EAS9 %nd ASEAN De'ense ;iniste$s ;eetin. P!*s 4AD;; P!*s9/ 1%"%n %cceded to t(e T$e%t o' Amit %nd Coo"e$%tion 4TAC9 in So*t(e%st Asi% in 1*! )00 in 1%@%$t%/ 1%"%n’s %ccession to t(e TAC (%s '*$t(e$ st$en.t(ened t(e T$e%t’s im"o$t%nce %s % code o' cond*ct .oe$nin. $e!%tions %mon. co*nt$ies in t(e $e.ion %nd %s % di"!om%tic inst$*ment 'o$ t(e "$omotion o' "e%ce %nd st%,i!it in t(e $e.ion/ ASEAN %nd 1%"%n %do"ted % 1oint Dec!%$%tion 'o$ Coo"e$%tion on t(e Fi.(t %.%inst Inte$n%tion%! Te$$o$ism %t t(e 8t( ASEAN=1%"%n S*mmit in Noem,e$ )00 in ienti%ne/ T(is &%s % conce$ted $es"onse to t(e eme$.ence o' t($e%ts "osed , t$%nsn%tion%! c$imes+ te$$o$ism %nd "i$%c not on! to t(e $e.ion ,*t t(e &o$!d oe$/ In $e!%tion to t(is+ t(e ASEAN= 1%"%n Co*nte$ Te$$o$ism Di%!o.*e 4A1CTD9 &%s !%*nc(ed in ;%$c( )007+ %nd since t(en ei.(t Di%!o.*es (%e ,een cond*cted %nd e!een "$o-ects (%e ,een com"!eted/ Coo"e$%tion ,et&een 1%"%nese Co%st *%$d %nd ASEAN to com,%t se% "i$%c %t So*t( C(in% Se% %nd St$%its o' ;%!%cc% c%n o' co*$se en(%nce t(e st%te o' "e%ce %nd st%,i!it in t(is $e.ion/ T(is "%$tic*!%$ t($e%t (%s ,een identi'ied %s 'o$mid%,!e t($e%t %s s(i"s t(%t 'e$$ "$ecio*s c%$.o %nd d%n.e$o*s commodities once (i-%c@ed , "i$%tes &i!! o''e$ dis%st$o*s im"%cts to $e.ion sec*$it %nd eni$onment/ Ino!ement o' 1%"%n in ARF %nd Si#=P%$t T%!@s meetin. $e'!ect commitment o' 1%"%n to cont$i,*te to t(e c$e%tion o' "e%ce'*! $e.ion/ 1%"%n is '*nd "$oide$ 'o$ $e.ion%! dee!o"ment o' '%ci!ities %nd in'$%st$*ct*$es/
1%"%nese .oe$nment (%s c$e%ted Oe$se%s Dee!o"ment Assist%nce 4ODA9 '*nd s"eci'ic%!! 'oc*sin. in "$oidin. !o%ns to ASEAN co*nt$ies &(o &%nt to mode$nie t(ei$ in'$%st$*ct*$e/ See$%! dee!o"in. co*nt$ies (%e *ti!ied t(is '*nd &(ic( is dis,*$sed %t !o&e$ inte$est $%te/ See$%! '*nds (%e %!so ,een c$e%ted to (e!" %i!in. ASEAN co*nt$ies d*$in. economic c$isis in st%,i!iin. t(ei$ o&n &e%@enin. c*$$encies/ It is c!e%$ t(%t "$esence o' 1%"%n in t(is $e.ion %ct %s % c%t%!st %nd .$o&t( '%ci!it%to$ 'o$ see$%! ASEAN co*nt$ies/ Een t(o*.( 1%"%nese’s occ*"%tion d*$in.
c%*sed t$%*m% %nd ni.(tm%$e to see$%! "eo"!es in t(is $e.ion+ it did not 'o$,id st$%te.ic coo"e$%tion ,et&een in o$de$ to %c(iee % &in=&in sit*%tion/
ASEAN EXTERNAL RELATIONS WITH INDIA T(e$e is % $%"id dee!o"ment o' ASEAN Indi% $e!%tions %s see$%! $e.ion%! %nd inte$n%tion%! "o!itics %nd economics iss*es (%d ,een disc*ssed s*c( %s '$%me&o$@ %.$eement on Com"$e(ensie Economic Coo"e$%tion ,et&een ASEAN %nd Indi%/ T(is &i!! ,oost mem,e$s’ economic dee!o"ment %nd ,$id.e t(e dee!o"ment .%" %mon. t(em/ In )008+ Indi% me$c(%ndise t$%de &it( ASEAN tot%!!ed >: ,i!!ion/ Coo"e$%tion in %.$ic*!t*$e+
,iotec(no!o.+ (*m%n $eso*$ces dee!o"ment+ %.$o "$ocessin. %nd in'o$m%tion %nd comm*nic%tion tec(no!o. ed.e o' Indi%/ Unde$ t(e ASEAN=Indi% Secto$%! Di%!o.*e+ t(e %.$eed on % "!%n o' %ction 'o$ t(e dee!o"ment o' %ctiities in t(e t($ee identi'ied %$e%s o' SLT coo"e$%tion+ n%me! %d%nced m%te$i%!s+ ,iotec(no!o. %nd in'o$m%tion tec(no!o./ T(e "$o"osed %ctiities 'o$ t(e 'i$st e%$ inc!*de $et*$n isits , Indi%n scienti'ic o''ici%!s to ASEAN ;em,e$ Co*nt$ies %nd &o$@s(o"s to identi' s"eci'ic to"ics %nd dee!o" t(e "$o-ect "$o"os%!s 'o$ co!!%,o$%tion/ 1oint Dec!%$%tion 'o$ Coo"e$%tion to Com,%t Inte$n%tion%! Te$$o$ism/ ASEAN %nd Indi% s(%$e % simi!%$ $e.ion%! t($e%t &(ic( is inte$n%tion%! te$$o$ism/ E#c(%n.e o' in'o$m%tion %nd -oint t$%inin. ,et&een en'o$cement %nd inte!!i.ence o''ice$ &i!! "*t t(em in % ,ette$ "osition to oe$come t(is t($e%t/ ASEAN – Indi% F$ee T$%de A$e%/ T(e si.nin. o' t(e AIFTA T$%de in oods A.$eement comes %t %n o""o$t*ne time %s "%$t o' t(e $e.ion’s $es"onse oe$ t(e .$o&in. conce$n o' % .!o,%! economic %nd 'in%nci%! c$isis/ T(e AIFTA co*!d se$e %s % e(ic!e to (e!" s*st%in t(e $e.ion’s .$o&t( t(%t &o*!d ,ene'it %nd im"$oe t(e &e!'%$e o' "eo"!es o' ASEAN %nd Indi%+ %s &e!! %s t(e E%st Asi%n $e.ion/ T(e c$e%tion o' %n o"en m%$@et in % $e.ion com"$isin. %,o*t 5/: ,i!!ion "eo"!e %nd &it( % com,ined .$oss domestic "$od*ct o' %""$o#im%te! US> )/: t$i!!ion %s o' )008/ T(e ;iniste$s noted t(e inc$e%se in ASEAN=Indi% inestments+ &(ic( $e%c(ed US> 00 mi!!ion in )008/
ASEAN #*++ T*,-+ A*+, (A#TA)
T(is is % d$%stic e''o$t t%@en , ASEAN to dee!o" its economic d*e to "$eio*s economic dee!o"ment "$o-ect did not ie!d s%tis'%cto$ $es*!t %nd t(e$e is no di$ect im"%ct to t(e $e.ion%! %nd mem,e$ co*nt$ies economic dee!o"ment/ AFTA &%s "$od*ced d*$in. t(e t' ASEAN S*mmit 566) &(ic( &%s (e!d in Sin.%"o$e/
M./%,/% ,/.*5 /.6,*-5 A#TA
In 5680’s %nd 5660’s+ m%-o$it o' co*nt$ies in t(is &o$!d ,e.%n to dism%nt!e t(ei$ t$%de ,%$$ie$s %nd "$otection in o$de$ to ,ecome % mem,e$ o'
T(e *!tim%te mission o' AFTA is to "osition ASEAN %s % com"etitie "$od*ction ,%se t(%t "$od*ce % "$od*cts %nd .oods 'o$ t(e &o$!d m%$@et/ It is % sit*%tion &(e$e t(is $e.ion m*st ,e % m%n*'%ct*$in. cent$e o$ (*, t(%t com"$ised o' m*!tin%tion%!s co$"o$%tion 4;NC9 t(%t *ti!ies $e.ion%! $%& m%te$i%! %nd n%t*$%! $eso*$ces+ em"!oin. !oc%! (*m%n $eso*$ces+ t$%ns'e$$in. its tec(no!o.+ m%$@et t(e "$od*ct to m%-o$it "%$t o' t(e &o$!d t(%t cont$i,*te to inc$e%se o' DP %nd "e$ c%"it% income+ t(%t 'in%!! !e%d to $e.ion%! economic dee!o"ment/ In s(o$t+ its %im is to cone$t t(is $e.ion '$om %.$ic*!t*$e ,%sed ind*st$ies %nd econom to ind*st$i%! o$ m%n*'%ct*$in. (i.( tec(no!o. ind*st$ies/ I9;+9+/,/%. 9+<,%595
Re%!i%tion o' AFTA’s o,-ecties &i!! ,e %c(ieed , Common E''ectie P$e'e$enti%! T%$i'' 4CEPT9+ %n im"o$t%nt t%$i'' $ed*ction 'o$m*!%/ P$od*cts %nd .oods in m%n*'%ct*$in. %nd %.$ic*!t*$e ind*st$ies t(%t %$e inc!*ded in Inc!*sion ists’ &i!! ,e $ed*ced its t%# .$%d*%!! '$om 566 to )00/ T%# %nd t%$i'' $%tes c%n ,e on! !eied $%n.in. '$om K to 0K , )00/ In ot(e$ &o$ds+ mem,e$ co*nt$ies m*st on! im"ose m%#im*m K t%# %nd t%$i'' 'o$ "$od*cts %nd .oods im"o$ted , mem,e$ co*nt$ies to enco*$%.e int$% $e.ion t$%de %nd stim*!%te $e.ion%! economic dee!o"ment/ See$%! co*nt$ies %$e not $e%d to o"en t(ei$ m%$@et tot%!! d*e to some $e%sons+ es"eci%!! t(e ASEAN + %nd $e?*i$e mo$e time ,e'o$e t(e c%n com"! &it( CEPT mec(%nisms/ T(e$e'o$e in o$de$ to "$oide '!e#i,i!it+ see$%! !ists (%e ,een int$od*ced s*c( %s
Tem"o$%$ E#c!*sion ists &(e$e time is .ien to t(e "$od*cts o$ secto$ to ,ecome mo$e m%t*$e ,e'o$e t%# $ed*ction is im"!emented/ %st ,*t not !e%st+ o,-ecties o' AFTA t(%t (%e ,een de$ied d*$in. t( ASEAN S*mmit in Sin.%"o$e &i!! ,e $e%!ied &(en mem,e$ co*nt$ies &o*!d $ed*ce t(e domestic t%# %nd t%$i'' %cco$din. to CEPT sc(eme on %!! m%n*'%ct*$ed %nd %.$ic*!t*$e .oods inc!*ded inside Inc!*sion ists’/ As % $es*!t+ ASEAN com"etitie ed.e %s % "$od*ction ,%se 'o$ &o$!d m%$@et c%n ,e %c(ieed/ T($o*.( e!imin%tion o' $e.ion%! t%# %nd t%$i'' d*e to economic inte.$%tion+ ASEAN m%n*'%ct*$in. secto$ &i!! ,ecome m*c( st$on.e$ %nd com"etitie+ t(%t 'in%!! cont$i,*te to t(e economic dee!o"ment/ A-,/,+5 . A#TA
% B++%/5 *.9 +..9% . 5,;+
Economic o' sc%!e is % sit*%tion &(en cost o' "$od*ction c%n ,e $ed*ced i' "%$tic*!%$ "$od*cts o$ .oods %$e "$od*ced in m%ss ?*%ntit/ Fo$ e#%m"!e+ m%-o$ %*tomo,i!es co$"o$%tions s*c( %s ene$%! ;oto$s+ Hond% %nd Toot% %$e %,!e to se!! c%$ %t % c(e%"e$ "$ice ,ec%*se o' t(is $e.ion (%s %,*nd%nce o' "%$ts m%n*'%ct*$e$ %nd s*""!ie$ t(%t !e%d to "$ice $ed*ction/ <(en t(e "$od*cts c%n ,e so!d c!ose to cost "$ice+ it &i!! !e%d to inc$e%se o' dem%nd %nd &i!! $es*!t to economic .$o&t(/ %% #=;;> =/%;%5,/%. . *+%.,; *.-=/%. ,/.*5
%%% C.9+/%/%. 6%/< M=;/% N,/%.,; C.*.*,/%.5 (MNC) 6%;; 5/%9=;,/+ *.-=/%%/>
In'!*# o' 'o$ei.n inesto$s m*st ,e seen '$om "ositie "e$s"ectie/ T(is sit*%tion "$oides % (e%!t( com"etition &(e$e !oc%! co$"o$%tions m*st t$ to ,ecome mo$e "$od*ctie %nd !e%$n %n *se'*! @no&!ed.e %nd e#"e$ience '$om 'o$ei.n "!%e$s/ % A//*,/ 9.*+ #.*+% D%*+/ I+5/9+/ (#DI)
B est%,!is(in. AFTA+ it &i!! se$e %s % s"eci%!t o$ *ni?*eness o' t(is $e.ion/ T(is $e.ion &i!! ,e identi'ied %s % &o$!d’s m%n*'%ct*$in. (*, &(en AFTA is '*!! &o$@ed in )006/
D%5,-,/,+5 . A#TA
% ?=+5/%. 6<+/<+* 9+9+* .=/*%+5 ,*+ 6%;;% /. ;%+*,;%5+ %/5 +..9>
As &e mentioned ,e'o$e+ ASEAN c%n ,e diided into to m%-o$ .$o*"s+ &(ic( %$e ASEAN 7 %nd ASEAN / Co*nt$ies t(%t %$e c%te.o$ised in ASEAN 7 %$e ;%!%si%+ Indonesi%+ Sin.%"o$e+ T(%i!%nd %nd B$*nei t(%t %d%nced '%$ '*$t(e$ '$om economic %nd ind*st$i%! "e$s"ecties/ <(e$e e!se ASEAN is C%m,odi%+ %os+ ietn%m %nd ;%nm%$+ &(ic( %$e !e't ,e(ind %nd ,%c@&%$ds in economic %nd "o!itic%! st%,i!it %s com"%$ed &it( t(e si#/ ASEAN 7 en-os mo$e %d%nt%.es t(%n t(e ASEAN ,ec%*se o' c%"it%! st$en.t(+ "o!itic%! "e%ce %nd st%,i!it %nd ed*c%ted+ &e!!=t$%ined %nd !ite$%te (*m%n &o$@'o$ce/ T(e$e'o$e ASEAN &i!! not ,e % "$e'e$$ed inestment destin%tion , 'o$ei.n inesto$s *n!ess t(e im"$oe t(ei$ st%,i!it+ %,!e to "$oide s@i!'*! !%,o*$ 'o$ce %n d .%in con'idence '$om inte$n%tion%! ,*siness comm*nit/ AFTA &i!! ,e s*ccess'*!! im"!emented %nd c%n conso!id%te %!! ten co*nt$ies in t(is $e.ion i' t(e %$e %,!e to c!ose % .%" ,et&een t(e si# %nd t(e 'o*$/
%%% T<*+,/ /. %,/ %-=5/*%+5
In'%nt ind*st$ies %$e ind*st$ies t(%t %$e not et %c(iein. e#"e$ience c*$e %nd -*st ,e inco$"o$%ted/ It is !%c@ o' e#"e$ience+ e$ sm%!! in te$m o' sie+ o"e$%tion %nd "$o'it/ T(ese ind*st$ies need to ,e "$otected so to m%@e t(em m%t*$e %nd st$on./ AFTA &i!! &it( no do*,t t($e%ten t(ese ind*st$ies %nd m% !e%d to its dest$*ction/ % T<*+,/ /. ,/%.,; 5+=*%/> ,- %/+*+5/5
See$%! !oc%! ind*st$ies em"!o (*nd$eds o' t(o*s%nds o' !oc%! "eo"!e %nd ,ecome % st$e%m!ine ind*st$ 'o$ t(e .oe$nment/ T(e ?*estion t(%t &i!! %$ise &(en AFTA is '*!! im"!emented is &(%t &i!! (%""en i' t(is ind*st$ '%i!ed to com"ete &(en t(e m%$@et (%s ,een o"ened/ See$%! dee!o"in. co*nt$ies "ossess % 'ee!in. o' %n#iet i' t(is ind*st$ is c!osed do&n ,ec%*se it &i!! !e%d to inc$e%se o' *nem"!oment in t(%t "%$tic*!%$ co*nt$/ R+,-%+55 /. ,+ 5/% .9+/%/%. ,- <,;;++5 . ;.,;%@,/%.
T(e %$dstic@s t(%t %$e *sed to me%s*$e &(et(e$ "%$tic*!%$ co*nt$ %$e .!o,%! o$ not %$e m%ste$ o' J=econom+ *s%.e o' En.!is(+ n*m,e$ o' com"*te$s %nd inte$net net&o$@in.+ ino!ement in inte$n%tion%! "o!itic%! %$en%+ ,ette$ %nd mode$ni%tion o' in'$%st$*ct*$es %n '%ci!ities+ (*m%n $eso*$ces dee!o"ment %nd im"!ement%tion o' democ$%c sstem/ T(e ?*estion is t(%t &(et(e$ %!! ten ASEAN co*nt$ies %$e (%in. t(ese c%"%,i!ities in o$de$ to com"ete &it( 'o$ei.n "!%e$s/
CONCLUSION ASEAN e#te$n%! $e!%tions (%s e#"%ndin. in % $%"id mode &(e$e %t initi%! st%.e+ it
coe$s coo"e$%tion in "o!itic%! %s"ects+ (%s ,een e#"%nded to inc!*de coo"e$%tion in economic %nd t$%de+ soci%! %nd (*m%n $eso*$ces dee!o"ment/ ASEAN not on! en.%.es indiid*%! co*nt$ies ,*t %!so $e.ion%! o$.%nis%tion in 'indin. st$%te.ic "%$tne$s(i" to %c(iee t(ei$ s%c$ed "$inci"!es/ !o,%!i%tion %nd !i,e$%!i%tion %$e t(e moti%tin. '%cto$s t(%t s(%"ed ASEAN e#te$n%! $e!%tion/ T(e ,ene'its .%ined '$om inte$n%tion%! $e!%tion c%n ,e s%id %s %
c%t%!st t(%t "$o"e!s ASEAN’s economic dee!o"ment+ c$e%tion o' "e%ce %nd st%,!e n%tion %nd "$od*cin. % !oin.+ c%$in. %nd dee!o"ed societ/
R++*++5
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