Here is a compilation of term papers on ‘Trade Blocs’ for class 11 and 12. Find paragraphs, long and short term papers on ‘Trade Blocs’ especially written for school and college students.
Term Paper on Trade Blocs
Term Paper Contents:
- Term Paper on the Meaning of Trade Bloc
- Term Paper on South Asian Association for Regional Co-Operation
- Term Paper on South Pacific Regional Trade and Economic Co-Operation Agreement
- Term Paper on North American Free Trade Agreement
- Term Paper on African Free Trade Zone
- Term Paper on Latin American Integration Association
- Term Paper on Southern African Customs Union
- Term Paper on Mercosur Trade Bloc
- Term Paper on the Cooperation Council for the Arab States of the Gulf
- Term Paper on European Union Customs Union
- Term Paper on East African Community
- Term Paper on Andean Community
- Term Paper on Dominican Republic – Central America Free Trade Agreement
- Term Paper on Caribbean Community
- Term Paper on ASEAN Free Trade Area
Term Paper # 1. Meaning of Trade Bloc:
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We know that trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organisation, where regional barriers to trade, (tariffs and non-tariff barriers) are reduced or eliminated among the participating states. Trade blocs can be stand-alone agreements between several states or part of a regional organisation.
There are five major advantages of trade bloc agreements:
i. Foreign direct investment,
ii. Economies of scale,
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iii. Competition,
iv. Trade effects, and
v. Market efficiency.
An increase in foreign direct investment results from trade blocs and benefits the economies of participating nations. The larger markets created via trading blocs permit economies of scale.
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Trade blocs bring manufacturers in numerous countries closer together, resulting in greater competition, which increase efficiency of the firms. It eliminates tariffs, thus driving the cost of imports down.
The disadvantages, on the other hand, include:
i. Regionalism vs. multinationalism,
ii. Loss of sovereignty,
iii. Concessions, and
iv. Interdependence.
According to Economics Online, trading bloc is a group of countries within a geographical region that protect themselves from imports from non-members. Trading blocs are a form of economic integration, and increasingly shape the pattern of world trade.
There are several types of trading bloc:
1. Preferential Trade Areas (PTAs) exist when countries within a geographical region agree to reduce or eliminate tariff barriers on selected goods imported from other members of the area.
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2. Free Trade Areas (FTAs) are created when two or more countries in a region agree to reduce or eliminate barriers to trade on all goods coming from other members.
3. A customs union involves the removal of tariff barriers between members, plus the acceptance of a common (unified) external tariff against non-members.
4. A common market is the first significant step towards full economic integration, and occurs when member countries trade freely in all economic resources – not just tangible goods.
Regionalism is sweeping the world trading system like wildfire while multilateral negotiations proceed at a glacial pace. This negative correlation raises the time-honoured question of whether regional trade agreements help or hinder global trade liberalisation.
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The early 1930s witnessed an astonishing implosion of world trade. Between 1929 and 1932 its value in current U.S. dollars fell by 50 percent. Though deflation contributed to the collapse, even at constant prices the volume of trade in 1932 was nearly 30 percent below 1929 levels.
Over the last decade, a large number of bilateral trading arrangements have been created, strengthened, or proposed in nearly every region of the world. The North American Free Trade Agreement (NAFTA), the European Union, Asia-Pacific Economic Cooperation (APEC), and Mercosur are just a few examples of this trend.
The claim that open trade inhibits war can be traced to philosophers and theologians writing almost two millenniums ago. Voiced most forcefully by the nineteenth century Manchester liberals, this claim remains influential and rests on a number of core arguments.
Since the 1960s, regional economic integration has been a goal pursued by most middle-income countries. Regional integration would allow economies to gain in terms of scale of production and in moving up the value chain, through import substitution industrialisation and without opening up immediately to competition with the most advanced exporters in the world.
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The reorientation of trade policy towards more openness and the rapid economic growth in Asia has resulted in a new geographical pattern of world production and trade. Since the inception of the General Agreement on Tariffs and Trade (GATT), there have been more than 240 regional trade arrangements (RTAs) or preferential trade arrangements (PTAs), a large portion of which are regional free trade agreements (FTAs).
Economic activities are increasingly occurring within supranational spaces or regional states, which results in functionally interconnected transnational spaces. The space in which trade takes place is defined by the flows of economic activity, rather than by political boundaries.
Term Paper # 2. South Asian Association for Regional Co-Operation:
It is an economic and geopolitical organisation of eight countries that are primarily located in South Asia or Indian subcontinent. The SAARC Secretariat is based in Kathmandu, Nepal. The idea of regional political and economic cooperation in South Asia was first raised in 2nd May 1980 by Bangladesh President Ziaur Rahman and the first summit was held in Dhaka on 8 December 1985.
The SAARC policies aim to promote welfare economics, collective self-reliance among the countries of South Asia, and to accelerate socio-cultural development in the region. SAFTA was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union, Common Market and Economic Union.
Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka formally adopted the South Asian Association for Regional Cooperation (SAARC) Charter on 8 December 1985. SAARC provides a platform for the people of South Asia to work together to accelerate the process of economic and social development. Afghanistan was invited to become a member of SAARC during the 13th SAARC Summit in November 2005.
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In preparatory meetings prior to the first summit, members identified nine areas of cooperation under an Integrated Programme of Action (IPA):
i. Agriculture;
ii. Health and population activities;
iii. Meteorology;
iv. Postal services;
v. Rural development;
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vi. Science and technology;
vii. Sports, arts and culture;
viii. Telecommunications; and
ix. Transport.
Term Paper # 3. South Pacific Regional Trade and Economic Co-Operation Agreement:
It is a nonreciprocal trade agreement in which Australia and New Zealand offer duty-free and unrestricted access for specified products originating from the developing island member countries of the Pacific Islands Forum. Signed in 1980 in Tarawa and subject to Rules of Origin regulations, the agreement was designed to address the unequal trade relationships between the two groups.
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Cook Island, Australia, Fiji, Marshall Islands, Micronesia, Nauru, New Zealand, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, Vanuatu, Kiribati, and Niue are members of it.
The South Pacific Regional Trade and Economic Co-Operation Agreement (SPARTECA) is a nonreciprocal trade agreement under which the two developed nations of the South Pacific Forum, Australia and New Zealand offer duty free and unrestricted or concessional access for virtually all products originating from the developing island member countries of the Forum, hereinafter called the Forum Island Countries (FICs). SPARTECA was signed by most Forum members at the Forum’s Eleventh Meeting in Kiribati on 14th July, 1980.
It came into effect for most FICs from 1st January, 1981. The Agreement includes provisions for general economic, commercial and technical co-operation, safeguard provisions relating to dumped and subsidised goods and suspension of obligations, and provisions for general exceptions and revenue duties.
Trans-Pacific Partnership:
The Trans-Pacific Partnership (TPP) is a proposed regional regulatory and investment treaty. The proposed agreement began in 2005 as the Trans-Pacific Strategic Economic Partnership Agreement. On 12th November 2011, the nine Trans-Pacific Partnership countries announced that the TPP intended to “enhance trade and investment among the TPP partner countries, to promote innovation, economic growth and development, and to support the creation and retention of jobs.” There are twelve countries which are participating in negotiations for the Trans-Pacific partnership.
The Trans-Pacific Partnership is a massive new international trade pact being pushed by the U.S. government at the behest of transnational corporations. The TPP is already being negotiated between the United States, Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and most recently, Japan which together cover approximately 40 percent of the global economy.
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The Trans-Pacific Partnership is a secretive, multinational trade agreement that threatens to extend restrictive intellectual property (IP) laws across the globe and rewrite international rules on its enforcement. The TPP contains a chapter on intellectual property covering copyright, trademarks, and patents. All signatory countries will be required to conform their domestic laws and policies to the provisions of the Agreement.
Term Paper # 4. North American Free Trade Agreement:
In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the world’s largest free trade zones and laying the foundations for strong economic growth and rising prosperity for Canada, the United States, and Mexico.
Since NAFTA came into effect, trade and investment levels in North America have increased, bringing strong economic growth, job creation, and better prices and selection in consumer goods. Each NAFTA country forgoes tariffs on imported goods “originating” in the other NAFTA countries.
NAFTA has two supplements:
i. The North American Agreement on Environmental Cooperation (NAAEC) and
ii. The North American Agreement on Labour Cooperation (NAALC).
The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico. Chapter 52 provides a procedure for the interstate resolution of disputes over the application and interpretation of NAFTA (North American Free Trade Agreement).
East Asia Economic Caucus:
The East Asia Economic Caucus (EAEC) was a regional free trade zone (FTA) proposed in 1990 by former Malaysian Prime Minister Dr. Mahathir bin Mohammad and encompasses the Association of Southeast Asian Nations (ASEAN) member states, China, South Korea and Japan. The EAEG encountered strong opposition from the United States and Australia.
Under President George H.W. Bush the United States successfully pressured key Asian allies, especially South Korea and Japan, not to support the EAEG. The Asian financial crisis of 1997-1998 gave new life to Mahathir’s East Asia ideas. The EAEG was considered significant as an early signal of what many saw as a re-ascendant East Asia.
Economic Community of West African States:
It is a regional group of fifteen West African countries. Founded on 28 May 1975, with the signing of the Treaty of Lagos, its mission is to promote economic integration across the region. The ECOWAS consists of two institutions to implement policies—the ECOWAS Commission and the ECOWAS Bank for Investment and Development, formerly known as the Fund for Cooperation until it was renamed in 2001.
The ECOWAS nations assigned a non-aggression protocol in 1990 along with two earlier agreements in 1978 and 1981. They also signed a Protocol on Mutual Defence Assistance in Freetown, Sierra Leone, on 29 May 1981 that provided for the establishment of an Allied Armed Force of the Community. A few members of the organisation have come and gone over the years.
The member countries of ECOWAS are:
Benin, Burkina Faso, Côte d’lvoire, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, Togo and Cape Verde. Mauritania used to be a member but decided to withdraw in 2000 to join the Arab Maghreb Union.
The main objective of ECOWAS is to promote cooperation and integration in the context of an economic union of West Africa in order to raise the living standards of its people, to maintain and increase economic stability, to strengthen relations among the Member States and contribute to the progress and development of the African continent.
In 2000, five ECOWAS members formed the West African Monetary Zone (WAMZ) aiming to establish a strong stable currency, “eco”, to rival the CFA franc, whose exchange rate is tied to that of the euro and is guaranteed by the French Treasury. ECOWAS consists of the Authority of Heads of State and Government, the Council of Ministers, the Community Tribunal, Community Court of Justice, the Executive Secretariat the ECOWAS Parliament, and the Specialised Commissions.
The Authority of Heads of State and Government of Member States is the supreme institution of the Community and are composed of Heads of State and/or Government of Member States.
The ECOWAS parliament plays an essentially consultative role:
It provides advisory opinion on issues covering a wide range of areas that are of crucial importance for the integration process. These include respect for human rights, the interconnection of communication and telecommunication links, health, education, and revisions of basic community texts.
Commonwealth of Independent States Free Trade Area:
The Commonwealth for Independent States was created at the end of 1991 as part of an effort to hold together the remnants of the Soviet Union. The former Soviet space has since experienced extensive economic transformation and political realignment both towards and away and from existing Moscow backed integration projects. The CIS Free Trade Zone Agreement, proposed since the breakup of the Soviet Union in 1991, was signed on 18 October 2011 by Russia, Ukraine, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Moldova and Armenia.
Russian President Putin was participating in a regular gathering of CIS prime ministers that also included heads of government from Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, and Ukraine. Azerbaijan and Uzbekistan are also CIS members, while Turkmenistan has observer status.
Those three countries have asked for a few weeks to consider joining the free-trade agreement that the other members signed. Putin hailed the free-trade decision as a key step forward in the economic development of the region. Putin also stressed that the new free-trade arrangement does not conflict with any obligations under the World Trade Organisation (WTO), which Moscow hopes to join in the near future.
“The establishment of a free-trade zone in no way contradicts the principles and norms of the WTO,” he said. “Moreover, some of the countries that signed today’s treaty — namely Kyrgyzstan, Armenia, Ukraine, and Moldova — are already members of the World Trade Organisation”.
Central European Free Trade Agreement:
The Central European Free Trade Agreement (CEFTA) is an agreement originally signed by the countries of the Visegrad group (the Czech Republic, Hungary, Poland and the Slovak Republic) on 21 December 1992 and effective since July 1994. Later on Slovenia (1996), Romania (1997) and Bulgaria (1999), Croatia (2003) joined CEFTA.
As of 1 July 2013, the parties of the CEFTA agreement are:
Albania, Bosnia and Herzegovina, Macedonia, Moldova, Montenegro, Serbia and the United Nations Interim Administration Mission in Kosovo (UNMIK) on behalf of Kosovo. Former parties are Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia.
The agreement creates a regional free trade area, based on the existing bilateral agreements which liberalise more than 90 percent of trade and almost all trade in industrial goods. CEFTA will make the region more attractive as a consolidated market for foreign investment. Overall, FDI flows in the region remain low.
They are insufficient to finance the countries’ current account deficits. The countries need to attract greater levels of foreign direct investments; in particular new investments are becoming increasingly important as the privatisation process in the region winds down.
Central American Common Market:
The Central American Common Market (CACM) was established in 1960 with the signing of the General Treaty of Central American Integration at Managua, Nicaragua. The original signatories of the treaty, which became effective June 3, 1961, were El Salvador, Guatemala, Honduras, and Nicaragua.
Costa Rica joined the market in 1962. The CACM had its beginnings with the Committee for Economic Cooperation of the Central American Isthmus, which formulated the Central American Economic Integration Program of 1952. The Central American Economic Council, the group’s chief policy-making organ, meets every three months.
Composed of economic ministers, it coordinates regional economic integration. The council elects a secretary-general, who serves a three-year term. The CACM was formed in response to the need of member countries to cooperate with each other to attract industrial capital and diversify their economies.
Term Paper # 5. African Free Trade Zone:
The African Free Trade Zone is a free trade zone announced at the EAC-SADC-COMESA Summit on 22 October 2008 by the heads of Southern African Development Community , the Common Market for Eastern and Southern Africa and the East African Community.
The African Free Trade Zone (AFTZ) announced at the EAC-SADC-COMESA Summit is the realisation of a dream that has been for more than hundred years in the making. A trade zone envisioned then to span the length and breadth of the African continent from Cape to Cairo; from North African Egypt all the way to the southernmost tip of Africa, Cape Town in South Africa.
The proposed African Free Trade Zone is likely to be made up of 26 member states namely; Angola, Botswana, Burundi, Comoros, Djibouti, Democratic Republic of Congo, Egypt, Eritrea, Ethiopia, Kenya, Lesotho, Libya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, South Africa, Sudan, Tanzania, Uganda, Zambia and Zimbabwe.
Term Paper # 6. Latin American Integration Association:
It is an international and regional scope organisation. It was created on 12 August 1980 by the 1980 Montevideo Treaty, replacing the Latin American Free Trade Association. Currently, it has 13 member countries, and any of the Latin American States may apply for accession. It aims at promoting the harmonious and balanced socio-economic development of the region, and its long-term objective is the gradual and progressive establishment of a Latin-American Common Market.
The signatories to the 1980 treaty were Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela. The goal of LAIA is to reduce restrictions on trade between its members. The principal governing organ of LAIA is the Council of Ministers of Foreign Affairs.
Member countries have established an area of economic preferences, comprising a regional tariff preference, regional and partial scope agreements, and created conditions favoring the participation of countries at a relatively less advanced stage of economic development in the economic integration process, based on principles of non-reciprocity and community cooperation.
The Council of Ministers of Foreign Affairs is the highest organ of the Association and is responsible for the adoption of its top policy guidelines. The Secretariat, headed by a Secretary-General who is elected by the Council for a renewable three-year term, carries out ALADI’s technical and administrative tasks.
Term Paper # 7. Southern African Customs Union:
The Southern African Customs Union was established in 1910 with Botswana, Lesotho, South Africa and Swaziland being the founding Member States. The Agreement was renegotiated and signed in 1969.
The Southern African Customs Union is a customs union among five countries of Southern Africa:
i. Botswana,
ii. Lesotho,
iii. Namibia,
iv. South Africa and
v. Swaziland.
The union meets annually to discuss matters related to the Agreement.
Its aim is to maintain the free interchange of goods between member countries. It provides for a common external tariff and a common excise tariff to this common customs area. SACU is the oldest existing customs union in the world. While SACU entered into a free trade deal with the four-nation European Free Trade Association on 1 July 2006, its negotiations with the United States for a free trade agreement have stalled.
Term Paper # 8. Mercosur Trade Bloc:
Mercosur is a trading bloc in Latin America comprising Brazil, Argentina, Uruguay and Paraguay. It was formed in 1991 with the objective of facilitating the free movement of goods, services, capital and people among the four member countries. It is the third largest integrated market after the European Union (EU), North American Free Trade Agreement (NAFTA).
The major product groups covered in the offer list of Mercosur are food preparations, organic chemicals, pharmaceuticals, essential oils, plastics & articles, rubber and rubber products, tools and implements, machinery items, electrical machinery and equipment’s.
Term Paper # 9. Cooperation Council for the Arab States of the Gulf:
The Cooperation Council for the Arab States of the Gulf is a regional organisation, with six members:
i. Bahrain,
ii. Kuwait,
iii. Oman,
iv. Qatar,
v. Saudi Arabia and
vi. The United Arab Emirates.
Set up in 1981, its objectives are to enhance coordination, integration and inter-connection among its members. The unified economic agreement between the countries of the Gulf Cooperation Council was signed on 11 November 1981 in Abu Dhabi.
These countries are often referred to as “the GCC states”. This area has some of the fastest growing economies in the world, mostly due to a boom in oil and natural gas revenues coupled with a building and investment boom backed by decades of saved petroleum revenues. A common market was launched on 1 January 2008 with plans to realise a fully integrated single market. In 2014, Bahrain, Kuwait, Qatar and Saudi Arabia took major steps to ensure the creation of a single currency.
The supreme council is the highest authority of the organisation. It is composed of the heads of the Member-States. It is the highest decision-making entity of the GCC. The Ministerial Council is composed of the Foreign Ministers of all the Member States.
The Secretariat is the executive arm of the Gulf Cooperation Council. The union has served as a grouping for sports co-operation and competition. The GCC members and Yemen are also members of the Greater Arab Free Trade Area.
Term Paper # 10. European Union Customs Union:
The European Union Customs Union is a customs union which consists of all the member states of the European Union and some of its neighbouring countries:
i. Andorra,
ii. Monaco,
iii. San Marino and
iv. Turkey.
The customs union is a principal task of the European Economic Community, established in 1958, and now succeeded by the European Union.
Term Paper # 11. East African Community:
The East African Community (EAC) is the regional intergovernmental organisation of the Republics of Burundi, Kenya, Rwanda, the United Republic of Tanzania, and the Republic of Uganda, with its headquarters in Arusha, Tanzania. The Treaty for Establishment of the East African Community was signed on 30 November 1999 and entered into force on 7 July 2000 following its ratification by the original three Partner States – Kenya, Tanzania and Uganda.
The Republic of Rwanda and the Republic of Burundi acceded to the EAC Treaty on 18 June 2007 and became full Members of the Community with effect from 1 July 2007. The EAC aims at widening and deepening co-operation among the Partner States in, among others, political, economic and social fields for their mutual benefit.
The East African Community is a potential precursor to the establishment of the East African Federation, a proposed federation of its five members into a single state. In 2010, the EAC launched its own common market for goods, labour and capital within the region, with the goal of creating a common currency and eventually a full political federation.
Tanzania supports the expansion of the East African Community. In 2010, Tanzanian officials expressed interest in inviting Malawi, the Democratic Republic of Congo and Zambia to join the EAC. The EAC would have the 10th largest population in the world, if considered a single entity.
Term Paper # 12. Andean Community:
The Andean Community is a trade bloc of four countries – Bolivia, Colombia, Ecuador and Peru. Chile, Argentina, Brazil, Paraguay and Uruguay are associate members while Panama, Mexico, and Spain are Observers. The Headquarters of CAN are located in Lima, Peru.
The regional integration in the Andean countries began with the signing of the Cartagena Agreement (by Bolivia, Chile, Colombia, Ecuador and Peru) in 1969 creating the Andean Pact with the objective of creating a Customs Union and a Common Market.
Venezuela joined the Pact in 1973 but withdrew in 2006 after Colombia and Peru signed Free Trade Agreements with USA. In 1996, the Protocol of Trujillo renamed the Pact as the Andean Community.
Recently, with the new cooperation agreement with Mercosur, the Andean Community gained four new associate members:
i. Argentina,
ii. Brazil,
iii. Paraguay, and
iv. Uruguay.
These four Mercosur members were granted associate membership by the Andean Council of Foreign Ministers meeting in an enlarged session with the Commission (of the Andean Community) on July 7, 2005.
The Andean Community and Mercosur comprise the two main trading blocs of South America. From January 1, 2005, the citizens of the member countries can enter the other Andean Community member states without the requirement of a visa. Travellers should present the authorities their national ID cards.
Term Paper # 13. Dominican Republic – Central America Free Trade Agreement:
The Central American – Dominican Republic Free Trade Agreement (CAFTA-DR) is the first free trade agreement between the United States and a group of smaller developing economies.
The agreement includes seven signatories:
i. The United States,
ii. Costa Rica,
iii. Dominican Republic,
iv. El Salvador,
v. Guatemala,
vi. Honduras and
vii. Nicaragua.
The Agreement first entered into force between the United States and El Salvador on March 1, 2006, followed by Honduras and Nicaragua on April 1, 2006, Guatemala on July, 1, 2006 and the Dominican Republic on March 1, 2007.
Term Paper # 14. Caribbean Community:
The Caribbean Community (CARICOM) is a regional organisation of 15 Caribbean countries and dependencies, whose main objectives are the promotion of economic integration, the cooperation among its member States, the assurance that the benefits of integration are equitably shared, and the coordination of foreign policy.
In 1972, Commonwealth Caribbean leaders of Barbados, Jamaica, Guyana and Trinidad and Tobago at the Seventh Heads of Government Conference decided to transform the Caribbean Free Trade Association (CARJFTA) into a Common Market and established the Caribbean Community, of which the Common Market would be an integral part. CARICOM contains a quasi-Cabinet of the individual Heads of Government.
The Caribbean Community (CARICOM) brings together 15 states in the Caribbean, including Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Haiti, Jamaica, Grenada, Guyana, Montserrat, St. Lucia, Suriname, St. Kitts and Nevis, St. Vincent and the Grenadines, and Trinidad and Tobago.
The objectives of the Caribbean Community are to improve standards of living and work; the full employment of labour and other factors of production; accelerated, coordinated and sustained economic development and convergence; expansion of trade and economic relations with third States; enhanced levels of international competitiveness; organisation for increased production and productivity; achievement of a greater measure of economic leverage; effectiveness of Member States in dealing with third States, groups of States and entities of any description; and the enhanced coordination of Member States’ foreign and foreign economic policies and enhanced functional cooperation.
Its major activities involve coordinating economic policies and development planning; devising and instituting special projects for the less-developed countries within its jurisdiction; operating as a regional single market for many of its members (Caricom Single Market); and handling regional trade disputes. The secretariat headquarters is based in Georgetown, Guyana. In July 2012, CARICOM announced that they were considering making French and Dutch official languages.
Term Paper # 15. ASEAN Free Trade Area:
The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries. The AFTA agreement was signed on 28 January 1992 in Singapore.
ASEAN was first formed in 1967 with six member countries:
i. Brunei,
ii. Indonesia,
iii. Malaysia,
iv. Philippines,
v. Singapore, and
vi. Thailand, and was subsequently joined by Cambodia, Laos, Myanmar and Vietnam.
The ASEAN Ministers signed the Framework Agreement on the ASEAN Investment Area on 7 October 1998 in Manila. The AIA encourages investors to adopt a regional investment strategy and network of operations. It will provide greater scope for division of labour and industrial activities across the region, creating opportunities for greater industrial efficiency and cost competitiveness.