ASSOCIATION OF SOUTH EAST ASIAN NATIONS

PRESENTED BY- Gagandeep Kaur

One Vision, One Identity, One Community

About ASEAN

ASEAN Regional Forum (ARF)

ASEAN Free Trade Area (AFTA)

CEPT

India and ASEAN

ASEAN (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 itself, however, was established on 8 August 1967, when

foreign ministers of five countries– Indonesia, Malaysia, the

Philippines, Singapore, and Thailand–signed the ASEAN

Declaration, more commonly known as the Bangkok Declaration.

The motivations for the birth of ASEAN were so that its members’ governing elite could concentrate on nation building, as well as a desire for economic development; not to mention Indonesia’s ambition to become a regional hegemon through regional cooperation with Malaysia and Singapore

5

COUNTRIES

1)Brunei – January 7 1984 2) Cambodia - April 30, 1999

3) Indonesia - August 8, 1967

4) Laos - July 23, 1997

5) Malaysia - August 8, 1967

6) Myanmar - July 23, 1997

7) Philippines - August 8, 1967

8) Singapore - August 8, 1967

9) Thailand - August 8, 1967

10) Vietnam - July 28 , 1995

ASEAN(features)

A group of 10 nations(south-east countries) It was formed on 8 August 1967 by Indonesia,

Malaysia, the Philippines, Singapore and Thailand & later joined by other countries

Its aims include the acceleration of economic growth, social progress, cultural development among its members.

Spans over area of 4.46 million squares Population of approximately 580mn people(8.7%

world population) If ASEAN was a single country, it would rank as

the 9th largest economy in the world in terms of nominal GDP.

POPULATION(IN MILLIONS)

GDP GROWTH

Contribution of services exports 2009

The ASEAN regional forum is an

informal multilateral dialogue of 27 members that seek to address issues like confidence building, foster dialogues on disputed issues in Asia Pacific region. The ARF met for the first time in 1994.

ARF(ASEAN regional forum)

• AUSTRALIA• CANADA• PEOPLE’S REPUBLIC OF CHINA• EUROPEAN UNION• INDIA • JAPAN• NORTH KOREA• SOUTH KOREA• MONGOLIA• NEWZEALAND• PAKISTAN• RUSSIA• UNITED STATES• BANGLADESH

ASEAN FREE TRADE AREA

To eliminate tariff barriers among the south east asean countries with a view to integrating the asean economies into a single economic base and creating a regional market of 600 million people.

Launched in 1992

When the AFTA agreement was originally signed, ASEAN had6members,namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand.All the four latecomers were required to sign the AFTA agreement in order to join asean, but were given longer time frames in which to meet AFTA'S tariff reduction obligations.

CEPT 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

ASEAN members have the option of excluding

products from the CEPT in two cases: 1.) Temporary

exclusions; 2.) Sensitive agricultural products; .

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.

India and ASEAN

Mutual interest led ASEAN to invite India to become its full

dialogue partner during the fifth ASEAN Summit in Bangkok

in 1995.

In August 2009, India signed a Free Trade Agreement (FTA)

with the ASEAN members in Thailand. Under the ASEAN-

India FTA, ASEAN member countries and India will lift

import tariffs on more than 80 per cent of traded products

between 2013 and 2016,.

India has made requests in a number of

areas including teaching, nursing,

architecture, chartered accountancy and

medicine as it has a large number of English

speaking professionals in these areas who

can gain from job opportunities in the ASEAN

region.

Total bilateral trade 45.8 billion

dollars

INDIAN TRADE

2005-06

2006-07

2007-08

2008-09

2009-10

05

101520253035404550

23

30.7

39.8

45.34

24.19

TRADE(BILLION $)

TRADE(BILLION $)

BILATERAL TRADE

MALAYSIA COMBODIA VIETNAM PHILLIPINE INDONESIA MYANMAR THAILAND0

2

4

6

8

10

12

10.604

0.496

2.15

0.998

9.3

1.15

4.6

INDIA BILATERAL TRADE IN 2008-09 IN bn $

16.1

INDIA’S EXPORT TO DIFFERENT COUNTRIES

SINGAP

ORE

MAL

AYSI

A

COMBO

DIA

VIET

NAM

PHILLIPINE

INDONES

IA

MYA

NMAR

THAI

LAND

0

2

4

6

8

8.45

3.42

0.4691.7

0.998

2.561.59 1.94

EXPORTS IN Bn $

EXPORTS

INDIA & SINGAPORESingapore is the single largest investor in India amongst the ASEAN

countries

The total bilateral trade during 2008-09 was US$ 16.1 billion, an

increase of 3.86 per cent over US$ 15.5 billion in 2007-08

The respective Ministry of Commerce and Industry of

both countries, agreed on a bilateral economic

roadmap to take the India-Singapore Comprehensive

Economic Cooperation Agreement (CECA) forward in

the coming five years. As per the roadmap the two

countries will work towards doubling the annual

bilateral trade by 2015

India-Singapore Bilateral Economic Roadmap includes:

Increase two-way flow of tourists, businessmen and professionals

Expedite conclusion of mutual recognition agreements (MRAs) for dentistry, medical, nursing, architecture, accountancy and company secretary professionals on priority

Develop closer co-operation in tourism

GOODS TRADED WITH SINGAPORE-: Mineral fuels Oils

Gems & jwelleryShips & boats

INDIA & MALAYSIA Malaysia is the 25th largest overall investor and third largest

investor among ASEAN countries with a total inflow of US$ 252.97

million during the April 2000-March 2010 period,

Indians play an important role in promoting tourism in Malaysia.

Following a 7.1 per cent growth in revenues from Indian tourists in

2009, Malaysia expects 650,000 visitors from India in 2010,

according to the Director General of Malaysia Tourism.

Moreover, Indian biotech companies are increasingly looking at

making investments in Malaysia. It is attracting Indian companies

with a large number of sops including a 10-year tax holiday, duty

exemptions, customised incentives for large investments,

GOODS TRADED-:

1. GEMS

2. ORGANIC STRUCTURE

3. PEARLS

INDIA AND THAILAND

Bilateral trade between the two countries touched US$ 4.6 billion in 2008-

09, as compared to US$ 4.12 billion in 2007-08, registering a growth of

12.9 per cent.

India exported goods worth US$ 1.94 billion in 2008-09 and worth US$

1.25 billion during April-December 2009-10, to Thailand

Total FDI inflow during the period April 2000-March 2010 from Thailand was

US$ 77.97 million,

India and Thailand are targeting bilateral trade worth US$ 12 billion by

2012.

Main items of trade are-:

natural pearls

,gems and jewellery,

residue and waste from food industries and organic chemicals

INDIA & INDONESIA Indonesia is an important source of FDI for India. It is

the 16th largest FDI investor amongst all countries

and the second largest amongst the ASEAN countries.

FDI inflows from Indonesia into India totalled US$

604.28 million during April 2000-March 2010

During the period 2008-09, India exported goods

worth US$ 2.56 billion to Indonesia. During April-

December 2009-10, India exported goods worth US$

2.3 billion to Indonesia comprising mainly of organic

chemicals, mineral fuels and ships and boats,

India and Indonesia are targeting bilateral trade worth

US$ 20 billion by 2020

INDIA & COMBODIA

During 2008-09, bilateral trade between the two countries

stood at US$ 49.61 million. India exported goods worth US$

46.90 million to Cambodia in 2008-09. During April-

December 2009-10,

India exported goods worth US$ 30.53 million,

chiefly comprising pharmaceuticals, cotton and

tobacco,

INDIA & PHILLIPINES Bilateral trade between India and Philippines was worth US$

998.54 million in 2008-09 as compared to US$ 824.87 million in

2007-08, an increase of 21.05 per cent.

Indian exports to Philippines during 2008-09 totalled US$ 743.77

million. During April-December 2009-10, India exported goods

worth US$ 534.38 million to Philippines.

comprising chiefly of meat, iron and steel and vehicles other than

railways,.

INDIA & MYANMAR

During 2008-09, India exported goods worth US$

221.64 million to Myanmar comprising mainly of

pharmaceuticals and iron and steel. Bilateral trade

stood at US$ 1.15 billion during 2008-09, an increase

of 15.7 per cent over US$ 994.45 million in 2007-08,

according to the latest data by the Ministry of

Commerce and Industry.

FDI inflows from Myanmar into India totalled US$ 8.96

million in the period April 2000-March 2010, according

to data released by the Department of Industrial Policy

and Promotion.

BIBLIOGRAPHYWWW.IBEF.ORGWWW.WIKIPEDIA.COMWWW.ASEANSEC.ORGWWW.UNESCAP.ORGCIA WORLD FACT BOOK

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NORTH AMERICAN FREE

TRADE AGGREMENT

NAFTA

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AN INTRODUCTION

Official languages - English, French and SpanishMembership - Canada, Mexico, United StatesEstablishment - Formation1 January 1994 Area - Total21,783,850 km² (1st)Population - 2008 estimate445,335,091 (3rd) - GDP 2007 estimate - Total$15,857 billion (1st) -

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The North American Free Trade Agreement (NAFTA ) is a trilateral trade bloc in North America created by the governments of the United States, Canada, and Mexico.

The agreements were signed in December 1993 by the leaders of the three countries — Brian Mulroney of Canada, Carlos Salinas de Gortari of Mexico, and Bill Clinton of the United States but did not come into effect until January 1, 1994.

◦ In terms of combined purchasing power parity GDP of its members, as of 2007 the trade bloc is the largest in the world and second largest by nominal GDP comparison.

◦ It also is one of the most powerful, wide-reaching treaties in the world.

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NAFTA SUPPLEMENTS

The North American Free Trade Agreement (NAFTA) has two supplements:-

the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labour Cooperation (NAALC)

(NAAEC) was a response to environmentalists' concerns that the United States would lower its standards if the three countries did not achieve consistent environmental regulation.

(NAALC) supplements NAFTA and endeavors to create a foundation for cooperation among the three countries for the resolution of labour problems, as well as to promote greater cooperation among trade unions and social organizations in order to fight for improved labor conditions.

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Trade and Investment Effects

NAFTA is a broad agreement, but improved market access, including tariff reductions on merchandise trade, was the major U.S. goal.

After ten years, most tariffs have gone to zero, except for some very sensitive (mostly agricultural) goods that have limited protection for up to 15 years. Clearly, U.S.-Mexico trade and investment have grown sharply over the past decade.

From 1994 to 2003, U.S. exports to Mexico rose 91%, compared to 41% to the world. U.S. imports increased by 179%, compared to 89% from the world.

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NAFTA EU(25) & Japan

300.9

411.8

226.9

412.2

$0

$100

$200

$300

$400

$500

$600

$700

$800

BIL

LIO

N D

OLL

AR

S

EXPORTS IMPORTS

U.S.-NAFTA total trade• Trade between the United States and

its NAFTA partners has soared since the agreement entered into force.

• U.S. goods and services trade with NAFTA totaled $1.1 trillion in 2008 (latest data available for Goods and Services trade).

• Exports totaled $482 billion; Imports totaled $596 billion. The U.S. goods and services trade deficit with NAFTA was $114 billion in 2008

• The United States has $735 billion in total (two ways) goods trade with NAFTA countries (Canada and Mexico) during 2009. Goods exports totaled $334 billion; Goods imports totaled $401 billion. The U.S. goods trade deficit with NAFTA was $68 billion in 2009. 

• Trade in services with NAFTA (exports and imports) totaled $110 billion in 2008 (latest data available).

• Services exports were $69.8 billion; Services imports were $40.2 billion. The U.S. services trade surplus with NAFTA was $29.6 billion in 2008. 

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Exports

The NAFTA countries (Canada and Mexico), were the top two purchasers of U.S. exports in 2009. (Canada $204.7 billion and Mexico $129.0 billion). 

U.S. goods exports to NAFTA in 2009 were $333.7 billion, down 19.1% ($79 billion) from 2008, but 102% from 1994 (the year prior to Uruguay Round) and up 135% from 1993 (the year prior to NAFTA). U.S. exports to NAFTA accounted for 31.6% of overall U.S. exports in 2009.

The top export categories (2-digit HS) in 2009 were: Machinery ($52.0 billion), Electrical Machinery ($44.2 billion), Vehicles (parts) ($41.4 billion), Plastic ($18.5 billion), and Mineral Fuel and Oil ($17.4 billion). 

U.S. exports of agricultural products to NAFTA countries totaled $28.6 billion in 2009. Leading categories include: red meats, fresh/chilled/frozen ($2.5 billion), coarse grains ($2.1 million), fresh fruit ($1.7 billion), snack foods (excluding nuts) ($1.7 billion), and fresh vegetables ($1.7 billion). 

U.S. exports of private commercial services to NAFTA were $69.8 billion in 2008, up 5.6% ($3.7 billion) from 2007, and up 146% since 1994. 

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Imports

The NAFTA countries were the second and third largest suppliers of goods imports to the United States in 2009. (Canada $224.9 billon, and Mexico $176.5 billion). 

U.S. goods imports from NAFTA totaled $401.4 billion in 2009, down 27.7% ($154 billion), from 2008, but 126% from 1994, and up 166% from 1993. U.S. imports from NAFTA accounted for 25.8% of overall U.S. imports in 2009, down from 26.9% in 1994. 

The five largest categories in 2009 were Mineral Fuel and Oil (crude oil) ($89.0 billion), Vehicles ($58.5 billion), Electrical Machinery ($54.1 billion), Machinery ($37.8 billion), and Special Other ($12.2 billion). 

U.S. imports of agricultural products from NAFTA countries totaled $26.1 billion in 2009. Leading categories include: fresh vegetable ($3.7 billion), snack foods, (including chocolate) ($3.4 billion), fresh fruit (excluding bananas) ($2.1 billion), processed fruit and vegetables ($1.9 billion), and wine and beer ($1.7 billion). 

U.S. imports of private commercial services* (i.e., excluding military and government) were $40.2 billion in 2008 (latest data available), up 0.5% ($207 million) from 2007, and up 127% since 1994. 

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EFFECTS OF NAFTA

BENEFITS

Benefit’s the importers by reduced or duty free goods.

No MPF from Canada for NAFTA goods

Can make the exporter more competitive then other non-participating countries

200% increase in trade among the 3 countries.

Increase market access within each country.

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LIMITATIONS

It has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U.S. agribusiness

It has negative impacts on U.S. workers in manufacturing and assembly industries who lost jobs.

Critics also argue that NAFTA has contributed to the rising levels of inequality in both the U.S. and Mexico.

Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence, nor to substantially reduce poverty rates

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NAFTA slightly increased growth in output and productivity –

The CBO study, which had a limited model for estimating the trade effects on GDP, found that NAFTA increased annual GDP growth in the United States by no more than .04%, and for Mexico, no more than 0.8%.

NAFTA had little or no impact on aggregate employment –

None of the reports attributed changes in aggregate U.S. or Mexican employment levels to NAFTA

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Impact on Jobs

The study's indicates that the reduction in net exports to Mexico has eliminated 227,663 U.S. job opportunities since 1993, and the reduction in net exports to Canada has eliminated 167,172 job opportunities in the same period. In total, NAFTA resulted in a net loss of 394,835 jobs in its first three years.

The analysis finds that NAFTA has eliminated significant numbers of jobs for women and members of minority groups, as well as white males. Between 1993 and 1996, women lost 141,454 jobs to NAFTA, blacks lost 36,890 jobs, and Hispanics lost 22,520 jobs, numbers closely reflecting these groups' shares in manufacturing industries

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MOBILITY OF PERSONS

According to the Department of Homeland Security Yearbook of Immigration Statistics, during fiscal year 2006 (i.e., October 2005 through September 2006 74,098 foreign professionals (64,633 Canadians and 9,247 Mexicans) were admitted into the United States for temporary employment under NAFTA (i.e., in the TN status).

Additionally, 17,321 of their family members (13,136 Canadians, 2,904 Mexicans, as well as a number of third-country nationals married to Canadians and Mexicans) entered the U.S. in the treaty national's dependent (TD) status

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PUBLIC OPINION

Public opinion toward NAFTA in the United States, Canada, and Mexico is mixed. A survey conducted by CIDE and COMEXI in Mexico showed that 64 percent of the Mexican public favored NAFTA.

The Program on International Policy Attitudes reported in a poll that 47 percent of Americans thought that NAFTA has been good for the United States, while 39 percent thought it had been bad for the country

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CONCLUSION

NAFTA is one of the most successful treaties of the times in terms of growth in trade i.e. imports & exports , G.D.P e.t.c but on the other hand it is also responsible for causalities like loss of jobs, migration, rising level of inequality and many others.

Thus it is important that the treaty should be carried forward concerning about taking steps for the problems originated due to NAFTA ,otherwise it will create inequality in many terms which can lead to bad conditions in future for all the three countries.

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