Economic Cooperation in ASEAN: AFTA and AEC

Economic Cooperation in ASEAN: AFTA and AEC. Building a Competitive and Integrated Southeast Asia.

ASEAN was founded in 1967 (Bangkok Declaration). Main goal: promote peace, stability, and progress in Southeast Asia. Economic integration became a main focus in the 1990s. AFTA (1992): Promotes free trade among members. AEC (2015): Aims to create a single market and production base..

Importance of Economic Cooperation. Promotes regional stability and growth. Increases trade and foreign investment. Improves competitiveness in global markets. Helps smaller economies benefit from bigger markets..

Key Initiatives and Examples. AFTA (1992): Lowered tariffs to 0–5% among members. AEC (2015): Promotes free flow of goods, services, investment, and skilled labor. RCEP (2020): ASEAN-led trade pact including China, Japan, South Korea, Australia, and New Zealand..

Intra-ASEAN trade increased by over 20%. ASEAN became the world’s 5th largest economy. Attracts major foreign investments. Boosted regional supply chains and job creation..

Challenges and Issues. Economic inequality among members (rich vs. poor countries). Non-tariff barriers (laws, customs rules). Limited labor mobility (different job standards). Dependence on major powers (China, US)..

Conclusion. ASEAN’s unity creates shared growth opportunities. Economic cooperation builds a stronger regional identity. Continued effort is needed to close development gaps. “Unity in Diversity” remains ASEAN’s strength..

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