On August 8, 1967, the unification of states into one organization took place in Southeast Asia. The ASEAN member countries have identified two statutory goals for the Association: to promote the development of cultural and socio-economic cooperation among members of the organization and stability, and to consolidate peace in Southeast Asia.
Entry sequence
Initially, there were five members of the Association: Malaysia, Indonesia, Thailand, Singapore, and the Philippines. Only in 1984 did the ASEAN member countries accept the state of Brunei Darussalam into their ranks.
Vietnam was added in 1995, Myanmar and Laos in 1997, and Cambodia in 1999. Currently, ASEAN member countries count ten members of their Association. Plus Papua New Guinea with special observer status.
Association Objectives
The organization was faced with a rather complicated task, with many terms: in order to turn this regional grouping into the world economic and political center of a multipolar world, namely this task was at the forefront, it is necessary to create free trade zones and investment zones.
But this is impossible without the introduction of a single monetary unit and the creation of an expanded economic infrastructure. And in order to fulfill all of the above, it is necessary to form a special management structure. It was decided to start with this.
The crisis of 1997
The global monetary and financial crisis in 1997 could not but affect Southeast Asia. ASEAN member countries have gone through serious trials as the effects of the crisis have negatively affected their economic and political course. Singapore and Brunei got a little less, but they overcame all sorts of difficulties within two years. The remaining countries that are part of ASEAN were on the verge of leaving the Association.
However, the “ten” continued the policy of integration in the economic sphere, having overcome this test and strengthened the determination not to leave the plan halfway. Their resilience was rewarded: by the end of 1999, they managed to overcome many negative trends, and, considering in general, the beginning of some economic growth was even noticeable, reaching in 2000 a little less than six percent.
Structure
The supreme body of the organization, which was established by the countries belonging to ASEAN, is the meeting of governments and heads of state, which solve all the main issues posed to the Association. The annual meeting, which is held at the level of the Ministry of Foreign Affairs, in each country in turn (CMFA), leads and coordinates the actions. The current leadership is the permanent committee, chaired by the Minister of Foreign Affairs of the country where the next Ministerial Council is currently being held.
In addition, a Secretariat is constantly operating in the city of Jakarta, led by the Secretary General. In each field of activity there are eleven specialized committees. Within the ASEAN framework, the participating countries listed above carry out more than three hundred events a year. The legal base was established back in 1976 (the Bali Treaty, supporting friendship and cooperation in Southeast Asia).
Economy
The economic area in the Southeast Asian region is subject to great risks, therefore, the Association countries are pursuing a liberalization and integration line based on the Agreement on the Establishment of Free Trade Zones (AFTA), the Framework Agreement on Investment Zones (AIA) and the Basic Agreement on Industrial Cooperation Schemes (AIKO) .
Since the development program has a long-term version, which was developed by an expert group of leading scientists and politicians, businessmen and military leaders, ASEAN plans to achieve higher integration than in the European Union. And this: the unification of the banking sector of the states completely, the unified armed forces and police for the entire Association, the unified departments, both foreign policy and scientific and technological. And these are far from all the plans that the countries of ASEAN have built for themselves. Their list has not yet been replenished, but anything is possible.
APHTHA
The most consolidated grouping of Asian countries , united by the same economic tasks, is the ASEAN free trade zone. She "ripened" for the fourth meeting of governments and heads of state in 1992. At first, only six countries entered, and this continued until 1996, when Vietnam joined AFTA with accession to ASEAN. Gradually until 1999, the composition grew to ten participants.
Which countries are members of ASEAN is well known. And what else can join the Association in the near future? Papua New Guinea is eyeing prospects. A free trade zone was created with an eye on subregional trade to boost trade within ASEAN. The conditions for the growth of such mutual trade were supposed to affect the competitiveness of the economies of their own countries. Plus, political consolidation and the inclusion of even less developed countries in Southeast Asia in such cooperation.
Sept
A free trade zone requires special economic instruments. ASEAN has an Agreement on General Effective Preferential Tariff (CEPT). All participating countries signed this agreement at the Singapore Summit in 1992. The adopted CEPT scheme subdivides all products into four categories. The first - with the level of tariffs subject to reduction according to the usual or accelerated schedule. This group of products makes up 88% of the total product range of all ASEAN countries and is still expanding.
The following two categories of goods are on the exemption lists. One of them represents goods that are important to nat. safety, moral protection, for the health and life of people, as well as fauna and flora, all artistic, archaeological and historical values. The second category of goods for seizure is not subject to tariff reductions for reasons of the domestic economy, and a steady reduction in the number of such goods is envisaged. The fourth category, agricultural raw materials, was initially completely excluded from the CEPT scheme. But in 1995, special conditions were determined for lowering tariffs on these groups of goods.
Industrial cooperation
In order to increase the competitiveness of goods manufactured in the ASEAN zone and, accordingly, to attract investments in this region, new forms of industrial cooperation were attracted. The ASEAN member countries signed the Basic Agreement (AIKO) in 1996.
Under this scheme, AIKO is called upon to regulate production, except for products included in the CEPT Contract Exemption List. Now it applies only to industrial production, but plans to intervene in other sectors of the economy. Moreover, a number of parameters in industrial cooperation programs have been changed. Tariff and non-tariff regulation methods have become more widely used.
AIKO goals
First of all, the course is taken to increase production, increase the number and quality of investments in ASEAN countries from third countries, deepen integration, expand domestic trade, improve the technological base, conquer the world market with competitive products, promote, grow and develop private entrepreneurship. The condition for the creation of each new company was the participation of at least two enterprises in different countries with a minimum of thirty percent of the national capital.
A number of preferences are provided here - preferential tariff rates from the moment of creation, which gives an advantage over manufacturers who, according to CEPT, reach this level in only a few years. Plus, non-tariff preferences are also provided - including the receipt of infestations. If a manufacturer reorientes an enterprise from raw materials and semi-finished products to the final product, AIKO provides additional incentives - preferential tariff rates and unlimited trade in ASEAN markets, while access to intermediate products and raw materials is severely limited.
Aia
The creation of the investment zone was stipulated by the 1998 Framework Agreement. All ASEAN territories are covered by such a zone, and internal and external investments are attracted through franchising: investors are provided with a national treatment, tax benefits, the abolition of restrictions in many respects, even investments in inaccessible sectors of the economy are allowed, except for those that are on the list of temporary exceptions or in Delicate list.
The peculiarity of this Agreement is that it applies only to direct investments, not affecting portfolio investments. ASEAN member countries have significant differences in the level of economic development of states, therefore, the Framework Agreement was drawn up taking into account the gradual reduction of the list of temporary exceptions to complete failure - but not for everyone, but only for Indonesia, Brunei, the Philippines, Malaysia, Thailand and Singapore - in 2010 th year. Later, countries that joined ASEAN should have been using the List for much longer. The AIA Council liquidated the lists for all in 2003.