Short note on ASEAN.
Short note on ASEAN.
ASEAN: A group of six member countries, comprising Singapore, Brunei, Malaysia, Philippines, Thailand and Indonesia, agreed in January, 1992 to establish a Common Effective Preferential Tariffs (CEPT) plan. This plan helped to create an Association of South-East Asian Nations (ASEAN) free trade area in 15 years that came into effect from January, 1993. The CEPT allows for tariffs cut ranging from 0.50 per cent to 20.00 percent beginning with 15 products.
Vietnam also became the member of ASEAN in 1995. Laos and Myanmar got its membership in 1997 and in April, 1999. Cambodia also became the member of ASEAN, with the objective of securing mutual understanding and co-operation. The total members of ASEAN are ten, at present. Its aims include accelerating economic growth, social progress and cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss about the differences peacefully. The emergence and successful operation of EEC and NAFTA gave an impetus to the formation of ASEAN. The ASEAN member countries have developed economically at a fast rate in a global context.
Their strength is well educated and skilled human resources which enabled them to achieve faster industialisation. Further, the ASEAN member countries are rich in oil, mineral resources, agricultural goods and modern industrial products. These countries invite and allow the free-flow of foreign capital.
The ASEAN countries are very vigilant of the developments in the international environment such as the formation of NAFTA, SAARC and the introduction of Euro. In the view of these developments, the ASEAN countries formed the ASEAN Free Trade Area (AFTA) in September, 1994 that initially set to function for 10 years so as to develop inter ASEAN trade.
