ASEAN: Association of South-East Asian Nations

In this article we will discuss about the Association of South-East Asian Nations (ASEAN). After reading this article you will learn about: 1. Subject-Matter of Association of South-East Asian Nations (ASEAN) 2. India and ASEAN—A Partnership 3. 20th India-ASEAN Commemorative Summit, 2012. 

Subject-Matter of Association of South-East Asian Nations (ASEAN):

The Association of Southeast Asian Nations (ASEAN) is a geo-political and economic organization of ten countries located in Southeast Asia. On 8th August 1967 ASEAN was formed by five countries Indonesia, Malaysia, the Philippines, Singapore and Thailand.

Since then, membership has been expanded to include Brunei, Burma (Myanmar), Cambodia, Laos and Vietnam. Aims of ASEAN mainly include—accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss their differences peacefully for its settlement.

ASEAN covers a land area of 4.46 million km which is about 3.0 per cent of the total land area of earth. It gives shelter to approximately 600 million people which is about 8.8 per cent of total population of the world. Total sea area of ASEAN is about three times larger than its land counterpart.

In 2010, the combined nominal GDP of ASEAN had grown to US $ 1.8 trillion. If ASEAN is taken as a single entity, it will rank as the ninth largest economy in the world, behind the United States, China, Japan, France, Germany, Brazil, the United Kingdom, and Italy.

The ASEAN Way:

In order to implement independent policies with a unifying focus of refrain from interference in regional domestic affaires, there was a move to unify the South East Asian region under what was called the ‘ASEAN Way’.

This move was based on the ideals of non-interference, informality, minimal institutionalization, consultation and consensus, non-use of force and non-confrontation. ASEAN members approved the popular term ‘ASEAN Way’ in order to describe a regional method of multilateralism.

Thus a Treaty of Amity and Co-operation was signed in Southeast Asia and adopted the following fundamental principles:

(i) Mutual respect for the independence, sovereignty, equality, territorial integrity, and national identity of all nations.

(ii) The right of every State to lead its national existence free from external interference.

(iii) Non-interference in internal affaires.

(iv) Settlement of differences or disputes in a peaceful manner.

(v) Renunciation of the threat or use of force.

(vi) Attaining effective regional cooperation.

Thus the ‘ASEAN Way’ is contributing durability an longevity within the organisation, by promoting regional identity and enhancing a spirit of mutual confidence and cooperation. ASEAN agreements are negotiated in a close, interpersonal process.

Such process of consultations and consensus is designed to engender a democratic approach to decision making. These leaders are wary of any effort to legitimize efforts to undermine their nation or contain regional cooperation.

Critics argue that ASEAN way serves as the major stumbling block to it becoming a true diplomacy mechanism. As a result of consensus based approach every member has a veto and thus contentious issues must remain unresolved until agreements can be reached.

Moreover, it is usually, claimed that member nations are directly and indirectly advocating that ASEAN be more flexible and allow discourse on internal affaires of member countries in effective manner.

India and ASEAN—A Partnership:

The partnership between India and the Association of South East Asian Nations (ASEAN) comprising Brunei, Cambodia, Indonesia, Laos, Myanmar, Malaysia, the Philippines, Singapore, Thailand and Vietnam has been developing smoothly at a fast pace since its inception.

In 1992, India became a sectoral dialogue partner of ASEAN. Mutual interest led ASEAN to invite India to become its full dialogue partner during the fifth ASEAN Summit held in Bangkok in 1995. India also become a member of the ASEAN Regional Forum (ARF) in 1996. Since 2002, India and ASEAN have been holding summit level meraling on an annual basis since 2002.

India then signed a Free Trade Agreement (FTA with the ASEAN members in Thailand in August, 2009. Under the ASEAN—India FTA, member countries of ASEAN and India will lift import tariff on more than 80 per cent of traded products between 2013 and 2016, as reported by the Ministry of Commerce and Industry.

In January 2010, Singapore, Malaysia and Thailand accepted FTA on goods. Other seven ASEAN countries have also operationalist the FTA in the mean time.

Moreover, India and ASEAN are currently negotiating agreements on trade in services and investment. Negotiation on trade in services are taking place on a request-offer basis, where both sides make requests for the openings they seek and offers are made by the receiving country based on the requests.

In the meantime, India 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 above mentioned areas who can gain satisfactoriness from job opportunities in the ASEAN region India is also seen on expanding its telecom, IT, tourism and banking network among the ASEAN member countries.

Buoyancy in Trade and Investment:

In the mean time, ties between India and ASEAN has been established on a solid footing. The deepening of ties between India and ASEAN is reflected in the continued buoyancy in trade figures. India’s trade with ASEAN countries increase from US $ 30.7 billion in 2006-07 to US $ 39.08 billion in 2007-08 and to US $ 57.87 billion in 2008-09.

In 2010-11, India’s exports to ASEAN totalled US $ 27.27 billion. Again India imported goods worth US $ 30.6 billion in 2010-11 from ASEAN.

In recent years, the growing bilateral economic relationship is reflected in the rapidly rising bilateral trade between Singapore and India. Singapore continue to be the single largest investor it) India amongst the ASEAN countries and also becomes the second largest among all countries in respect of inflow of foreign direct investment (FDI) into India, totalling US $ 2.4 billion in 2009-10.

The cumulative FDI inflows from Singapore during the period April 2000 to March 2010 were US $ 10.2 billion, as per data released by the Department of Industrial Policy and Promotion (DIPP). Total bilateral trade during 2008-09 was US $ 16.1 billion, showing an increase of 3.86 per cent over US $ 15.5 billion in 2007-08.

During 2008-09, India exported goods work US $ 8.45 billion to Singapore, comprising mainly of mineral fuels and oils, ships, boats and floating structures and natural pearls, gems and jewellery.

Recently, India has signed the Free Trade Agreement (FTA) in services and investments with 10 member ASEAN countries, which has paved the way for free movement of professionals and further opening up of opportunities for investment among the agreeable countries.

Since India had already implemented foreign trade agreement in goods and commodities with the ASEAN in 2011, the FTA with them has now become full fledged. Thus, it is happy to note that the trade in services agreement contains all features of a modern and comprehensive pact and is in line with bilateral agreements that India has signed so far.

The ASEAN noted that the total two way trade between ASEAN and India grew by 5.3 per cent in the past years and called for further encouragement and promotion of business-to-business contact in order to achieve greater volume of trade and investment.

The bilateral trade between India and ASEAN grew by 4.6. per cent from USD 68.4 billion in 2011 to USD 71.6 billion in 2012. ASEAN’s exports were valued at USD 43.84 billion and imports from India amounted to USD 27.72 billion in 2012. The target has now been set for ASEAN India trade to the extent of USD 100 billion by 2015.

In order to achieve its target, India stressed the need for strengthening of maritime connectivity with Myanmar, Thailand, Cambodia and Vietnam and also called for an ‘open sky policy’ on quid pro quo basis in order to increase its trade with ASEAN.

20th India—ASEAN Commemorative Summit, 2012:

On the historic occasion of the 20th Commemorative year of the ASEAN-India relations, the Ministry of External Affaires, Government of India and the Confederation of Indian Industry (CII) organised the ASEAN- India car Rally, 2012 from November 25 to December 20 in close cooperation with member states of ASEAN and the ASEAN Secretarial.

The rally started as Yogyakarta in Indonesia and traversed nine nations and entered India through March the border point in Manipur and after reaching Guwahati the rally finally culminated at New Delhi. The ASEAN-India car Rally, 2012 conceived to mark yet another meaningful step forward in the ASEAN-India relations.

This has successfully demonstrated proximity between India and ASEAN countries, created public awareness of India-ASEAN relations, promoted connectivity, especially road transport and would likely to enhance trade, investment, tourism and people to people contact between India and ASEAN countries.

The business marker events mainly focused on the North East Connectivity, IT and ITeS, mining, agriculture, small and medium enterprises (SMEs) border trade, investment and financing, infrastructure and development etc..