17‏/03‏/2008

ASSOCIATION OF SOUTHEAST ASIAN NATIONS

ASSOCIATION OF SOUTHEAST ASIAN NATIONS
(ASEAN)

Dr Khalil Hussein
Professor at faculty of law at Lebanese university
Director of studies at Lebanese Parliament

ESTABLISHMENT AND MEMBERSHIP
The Association of Southeast Asian Nations or ASEAN was established on 8 August 1967 in Bangkok by the five original Member Countries, namely, Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei Darussalam joined on 8 January 1984, Vietnam on 28 July 1995, Laos and Myanmar on 23 July 1997, and Cambodia on 30 April 1999.
The ASEAN region has a population of about 500 million, a total area of 4.5 million square kilometers, a combined gross domestic product of US$737 billion, and a total trade of US$ 720 billion.

OBJECTIVES
The ASEAN Declaration states that the aims and purposes of the Association are:
- to accelerate the economic growth, social progress and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations.
- to promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the United Nations Charter.
In 1995, the ASEAN Heads of States and Government re-affirmed that “Cooperative peace and shared prosperity shall be the fundamental goals of ASEAN.”
Southeast Asia The Association represents the collective will of the nations of to bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom, and prosperity. (The ASEAN Declaration, Bangkok, 8 August 1967)

FUNDAMENTAL PRINCIPLES
The Treaty of Amity and Cooperation (TAC) in Southeast Asia, signed at the First ASEAN Summit on 24 February 1976, declared that in their relations with one another, the High Contracting Parties should be guided by the following fundamental principles:
- Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations;
- The right of every State to lead its national existence free from external interference, subversion or coercion;
- Non-interference in the internal affairs of one another;
- Settlement of differences or disputes by peaceful manner;
-Renunciation of the threat or use of force;
- Effective cooperation among themselves.

POLITICAL COOPERATION
The TAC stated that ASEAN political and security dialogue and cooperation should aim to promote regional peace and stability by enhancing regional resilience. Regional resilience shall be achieved by cooperating in all fields based on the principles of self-confidence, self-reliance, mutual respect, cooperation, and solidarity, which shall constitute the foundation for a strong and viable community of nations in Southeast Asia.
Some of the major political accords of ASEAN are as follows:
- ASEAN Declaration, Bangkok, 8 August 1967;
- Zone of Peace, Freedom and Neutrality Declaration, Kuala Lumpur, 27 November 1971;
- Declaration of ASEAN Concord, Bali, 24 February 1976;
- Treaty of Amity and Cooperation in Southeast Asia, Bali, 24 February 1976;
- ASEAN Declaration on the South China Sea, Manila, 22 July 1992;
- Treaty on the Southeast Asia Nuclear Weapon-Free Zone, Bangkok, 15 December 1997;
- ASEAN Vision 2020, Kuala Lumpur, 15 December 1997.
- Declaration of ASEAN Concord II, Bali, 7 October 2003
The ASEAN Security Community is envisaged to bring ASEAN’s political and security cooperation to a higher plane to ensure that countries in the region live at peace with one another and with the world at large in a just, democratic and harmonious environment.
In 1992, the ASEAN Heads of State and Government declared that ASEAN should intensify its external dialogues in political and security matters as a means of building cooperative ties with states in the Asia-Pacific region. Two years later, the ASEAN Regional Forum or ARF was established. The ARF aims to promote confidence-building, preventive diplomacy and conflict resolution in the region. The present participants in the ARF include: Australia, Brunei Darussalam, Cambodia, Canada, China, European Union, India, Indonesia, Japan, Republic of Korea, Laos, Malaysia, Myanmar, Mongolia, New Zealand, Papua New Guinea, Philippines, the Russian Federation, Singapore, Thailand, the United States, Vietnam.
Through political dialogue and confidence building, no tension has escalated into armed confrontation among ASEAN members since its establishment more than three decades ago.

ECONOMIC AND FUNCTIONAL COOPERATION
When ASEAN was established, trade among the Member Countries was insignificant. Estimates between 1967 and the early 1970s showed that the share of intra-ASEAN trade from the total trade of the Member Countries was between 12 and 15 percent. Thus, some of the earliest economic cooperation schemes of ASEAN were aimed at addressing this situation. One of these was the Preferential Trading Arrangement of 1977, which accorded tariff preferences for trade among ASEAN economies. Ten years later, an Enhanced PTA Programme was adopted at the Third ASEAN Summit in Manila further increasing intra-ASEAN trade.
The Framework Agreement on Enhancing Economic Cooperation was adopted at the Fourth ASEAN Summit in Singapore in 1992, which included the launching of a scheme toward an ASEAN Free Trade Area or AFTA. The strategic objective of AFTA is to increase the ASEAN region’s competitive advantage as a single production unit. The elimination of tariff and non-tariff barriers among the member countries is expected to promote greater economic efficiency, productivity, and competitiveness. The Fifth ASEAN Summit held in Bangkok in 1995 adopted the Agenda for Greater Economic Integration, which included the acceleration of the timetable for the realization of AFTA from the original 15-year timeframe to 10 years.
In 1997, the ASEAN leaders adopted the ASEAN Vision 2020, which called for ASEAN Partnership in Dynamic Development aimed at forging closer economic integration within the region. The vision statement also resolved to create a stable, prosperous and highly competitive ASEAN Economic Region, in which there is a free flow of goods, services, investments, capital, and equitable economic development and reduced poverty and socio-economic disparities. The Hanoi Plan of Action, adopted in 1998, serves as the first in a series of plans of action leading up to the realization of the ASEAN vision.
In addition to trade and investment liberalization, regional economic integration is being pursued through the development of Trans-ASEAN transportation network consisting of major inter-state highway and railway networks, principal ports and sea lanes for maritime traffic, inland waterway transport, and major civil aviation links. ASEAN is promoting the interoperability and interconnectivity of the national telecommunications equipment and services. Building of Trans-ASEAN energy networks, which consist of the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline Projects are also being developed.
ASEAN cooperation has resulted in greater regional integration. Within three years from the launching of AFTA, exports among
ASEAN countries grew from US$43.26 billion in 1993 to almost US$80 billion in 1996, an average yearly growth rate of 28.3 percent. In the process, the share of intra-regional trade from ASEAN’s total trade rose from 20 percent to almost 25 percent. Tourists from ASEAN countries themselves have been representing an increasingly important share of tourism in the region. In 1996, of the 28.6 million tourist arrivals in ASEAN, 11.2 million or almost 40 percent, came from within ASEAN itself.
Today, ASEAN economic cooperation covers the following areas: trade, investment, industry, services, finance, agriculture, forestry, energy, transportation and communication, intellectual property, small and medium enterprises, and tourism.
Desiring to build a community of caring societies, the ASEAN leaders resolved in 1995 to elevate functional cooperation to a higher plane to bring shared prosperity to all its members. The Framework for Elevating Functional Cooperation to a Higher Plane was adopted in 1996 with a theme: “Shared prosperity through human development, technological competitiveness, and social cohesiveness.” Functional cooperation is guided by the following plans:
- ASEAN Plan of Action on Social Development;
- ASEAN Plan of Action on Culture and Information;
- ASEAN Plan of Action on Science and Technology;
- ASEAN Strategic Plan of Action on the Environment;
- ASEAN Plan of Action on Drug Abuse Control; and
- ASEAN Plan of Action in Combating Transnational Crime

EXTERNAL RELATIONS
The ASEAN Vision 2020 affirmed an outward-looking ASEAN playing a pivotal role in the international community and advancing ASEAN’s common interests.
ASEAN has made major strides in building cooperative ties with states in the Asia-Pacific region and shall continue to accord them a high priority. Cooperation with other East Asian countries has accelerated with the holding of an annual dialogue among the leaders of ASEAN, China, Japan, and the Republic of Korea. In 1997, a joint statement between ASEAN and each of them was signed providing for framework for cooperation towards the 21st century. In November 1999, the leaders of ASEAN, China, Japan and the Republic of Korea issued a Joint Statement on East Asia Cooperation outlining the areas of cooperation among them.
The ASEAN Summit of 1992 mandated that “ASEAN, as part of an increasingly interdependent world, should intensify cooperative relationships with its Dialogue Partners.” Consultations between ASEAN and its Dialogue Partners are held at the Foreign Ministers’ level on an annual basis. ASEAN’s Dialogue Partners include Australia, Canada, China, the European Union, India, Japan, the Republic of Korea, New Zealand, the Russian Federation, the United States of America, and the United Nations Development Programme. ASEAN also promotes cooperation with Pakistan on certain sectors.
Consistent with its resolve to enhance cooperation with other developing regions, ASEAN maintains contact with other inter-governmental organizations, namely, the Economic Cooperation Organization, the Gulf Cooperation Council, the Rio Group, the South Asian Association for Regional Cooperation, and the South Pacific Forum.
Most ASEAN Member Countries also participate actively in the activities of the Asia-Pacific Economic Cooperation (APEC), the Asia-Europe Meeting (ASEM), the East Asia-Latin America Forum (EALAF).

STRUCTURES AND MECHANISMS
The highest decision-making organ of ASEAN is the Meeting of the ASEAN Heads of State and Government. The ASEAN Summit is convened every year. The ASEAN Ministerial Meeting (Foreign Ministers) is held on an annual basis. Ministerial meetings on several other sectors are also held: agriculture and forestry, economics, energy, environment, finance, information, investment, labour, law, regional haze, rural development and poverty alleviation, science and technology, social welfare, transnational crime, transportation, tourism, youth, the AIA Council and, the AFTA Council. Supporting these ministerial bodies are 29 committees of senior officials and 122 technical working groups.
To support the conduct of ASEAN’s external relations, ASEAN has established committees composed of heads of diplomatic missions in the following capitals: Brussels, London, Paris, Washington D.C., Tokyo, Canberra, Ottawa, Wellington, Geneva, Seoul, New Delhi, New York, Beijing, Moscow, and Islamabad.
The Secretary-General of ASEAN is appointed on merit and accorded ministerial status. The Secretary-General of ASEAN, who has a five-year term, is mandated to initiate, advise, coordinate, and implement ASEAN activities. The members of the professional staff of the ASEAN Secretariat are appointed on the principle of open recruitment and region-wide competition.
ASEAN has several specialized bodies and arrangements promoting inter-governmental cooperation in various fields: ASEAN University Network, ASEAN-EC Management Centre, ASEAN Centre for Energy, ASEAN Agricultural Development Planning Centre, ASEAN Earthquake Information Centre, ASEAN Poultry Research and Training Centre, ASEAN Regional Centre for Biodiversity Conservation, ASEAN Rural Youth Development Centre, ASEAN Specialized Meteorological Center, ASEAN Tourism Information Centre, and ASEAN Timber Technology Centre.
In addition, ASEAN promotes cooperative activities with organizations with related aims and purposes: ASEAN-Chambers of Commerce and Industry, ASEAN Business Forum, ASEAN Tourism Association, ASEAN Council on Petroleum, ASEAN Ports Association, ASEAN Vegetable Oils Club, and the ASEAN-Institutes for Strategic and International Studies. Furthermore, there are 53 Non-Governmental Organizations (NGOs), which have formal affiliations with ASEAN.

ASEAN Plus Three Cooperation

I - Background
The ASEAN Plus Three cooperation began in December 1997 with the convening of an informal Summit among the Leaders of ASEAN and their counterparts from East Asia, namely China, Japan and the Republic of Korea (ROK) at the sidelines of the Second ASEAN Informal Summit in Malaysia.
The ASEAN Plus Three process was institutionalised in 1999 when the Leaders issued a Joint Statement on East Asia Cooperation at their 3rd ASEAN Plus Three Summit in Manila. The ASEAN Plus Three Leaders expressed greater resolve and confidence in further strengthening and deepening East Asia cooperation at various levels and in various areas, particularly in economic and social, political, and other fields.
Since then, a number of key documents have been adopted to set the direction for ASEAN Plus Three cooperation. These include the Report of the East Asia Vision Group (EAVG) of 2001 and the Report of the East Asia Study Group (EASG) of 2002.

II - Political and Security Cooperation
Political and security cooperation among the ASEAN and Plus Three countries are progressing well. ASEAN and Plus Three Countries hold regular dialogue and consultations at the summit, ministerial, senior officials and working groups/expert levels to strengthen and deepen cooperation.
ASEAN Plus Three countries have cooperated in addressing the threat posed by terrorism and other transnational crimes. The first ASEAN SOM Plus Three Consultation on Transnational Crime (SOMTC+3) was held in June 2003 in Ha Noi. The first ASEAN Ministerial Meeting on Transnational Crime Plus Three was held on 10 January 2004 in Bangkok, where the ministers adopted the concept plan to address transnational crimes in eight areas, namely terrorism, illicit drug trafficking, trafficking in persons, sea piracy, arms smuggling, money laundering, international economic crime, and cyber crime.
The SOMTC +3 held on 29 September 2004 in Bandar Seri Begawan further agreed to develop specific work programmes in the eight areas of the concept plan for joint cooperation. Each of the areas will be led by an “engine country” from ASEAN and supported by the Plus Three Countries.

III - Economic, Trade and Financial Cooperation
Cooperation in economic, and monetary and financial fields has made substantive progress. Over the years, total trade value between ASEAN and the Plus Three Countries reached US$ 195.6 billion in 2003 compared to US$170.8 billion in 2002, marking a growth of 14.49% in 2003.
Bilateral trading arrangements between ASEAN and China and ASEAN and Japan have been established and between ASEAN and the ROK are underway. These arrangements will serve as the building blocks for a possible establishment of an East Asia Free Trade Area (EAFTA) in the near future.
In financial cooperation, a regional financing arrangement called the “Chiang Mai Initiative (CMI)” has been put in place. The CMI consist of an expanded ASEAN Swap Arrangement (ASA) and a network of bilateral swap arrangements (BSAs) among ASEAN Member Countries, China, Japan and the ROK. The ASA is now US$1 billion in size, while 16 BSAs have been successfully concluded with a combined total size of US$36.5 billion. The ASEAN Plus Three countries are exploring ways to enhance the effectiveness of the CMI.
Under monetary and finance cooperation, substantive progress has been made in developing the Asian Bond Market Initiative (ABMI). ASEAN Plus Three countries are undertaking efforts to modify existing regulations to facilitate the issuance of and investment in local currency denominated bonds under the ABMI. The AsianBondsOnline Website (ABW) was launched in May 2004.
IV - Implementation of East Asia Study Group (EASG) Measures
The Final Report of the EASG was adopted by the ASEAN Leaders at the ASEAN Plus Summit in 2002 in Cambodia. The Report contains 17 short-term measures, and 9 medium and long-term measures.
EASG Short-term Measures
Since the adoption of the EASG’s Final Report in 2002, all 17 EASG short-term measures have been taken up by the ASEAN Plus Three Countries. The ASEAN Plus Three Countries have agreed to implement all the short-term measures by the 10th Anniversary of the ASEAN Plus Three cooperation in 2007.
Four Short-term measures have been implemented: 1) “implement a comprehensive human resources development program for East Asia” by establishing the ASEAN Plus Three Study Group on Facilitation and Promotion of Exchange of People and Human Resources Development by Japan; 2) “build a network of East Asia Think-tanks” (NEAT) by China and Thailand, 3) “establish an East Asia Forum” (EAF) by the ROK and Malaysia, and 4) “form and East Asia Business Council” (EABC) by Malaysia. Some measures have been implemented through ASEAN Plus Three sectoral cooperation such as “establish GSP status and preferential treatment for the least developed countries” and “strengthen mechanisms for cooperation on non-traditional security issues”.

EASG Medium and Long-term Measures
There are 9 EASG Medium and Long-term Measures. China is planning to host the high-level conference on investment and SMEs in China in the first half of 2005.
ASEAN Plus Three Countries continue to hold discussions on the convening of the East Asia Summit (EAS) at an appropriate time and the concept of an East Asia community. ASEAN and Japan have developed concept and issues papers on the EAS. Malaysia has offered to host the first East Asia Summit in Kuala Lumpur in 2005.
The ASEAN Plus Three Economic Ministers Meeting (AEM+3) held in Jakarta on 14 September 2004 have endorsed a proposal to set up an Experts Group, comprising scholars and researchers to study the feasibility of an EAFTA.
Other measures are being pursued through ASEAN Plus Three sectoral meetings: 1) “establish a regional financing facility” and “pursue a more closely coordinated regional exchange rate mechanism” through ASEAN+3 Finance Ministers Meeting; 2) “promote closer regional marine environmental cooperation for the entire region” through ASEAN+3 Ministers Meeting on the Environment; and 3) “build a framework for energy policies and strategies and action plans” through the ASEAN+3 Ministers Meeting on Energy.

V - Institutional Mechanisms
Currently, there are 48 mechanisms under the ASEAN Plus Three process, coordinating 16 areas of ASEAN Plus Three cooperation, which include economic, monetary and finance, political and security, tourism, agriculture, environment, energy, and ICT
The ASEAN Plus Three Unit was established at the ASEAN Secretariat in December 2003 to assist the ASEAN Plus Three Co-chairs to coordinate and monitor ASEAN Plus Three cooperation.