PASSTRA UNIVERSITY OF CAMBODIA

HOENG OUDAM

INTERNATIONAL RELATIONS

ASEAN INTEGRATION AND RELATIONSHIP

PASSTRA UNIVERSITY OF CAMBODIA

KINGDOM OF CAMBODIA NATION RELIGION KING

HOENG OUDAM

PASSTRA UNIVERSITY OF CAMBODIA

COMMITMENT TO EXCELLENCE RESEARCH TERM PAPER

ASEAN INTEGRATION AND RELATIONSHIP

INTERNATIONAL RELATIONS LECTURER: DR. SENG PHANNA

PREPARED BY : HOENG OUDAM
FACULTY OF INTERNATIONAL RELATION & HUMANITY
IDENTITY NUMBER : AI-50561 GROUP : IR-41M

PHNOM PENH, CAMBODIA ACADEMIC TERM 25 FEBRUARY, 2013

INTERNATIONAL RELATIONS

ASEAN INTEGRATION AND RELATIONSHIP

PASSTRA UNIVERSITY OF CAMBODIA

HOENG OUDAM

PREAMBLE
As we well known 2020 vision of ASEAN, which adopted and declare in Kuala Lumpur in 15 December, 1997. Especially, to find out more information of relationship between Cambodia in ASEAN and great power nations. We have prepared to write this research term paper in term of economics concentration and determine how much benefits has been gain by the strategic, which has been issued to implement in ASEAN Community. The vision, and actions, which taking part by ten nations in regional forums, with a highly commitment and coordinate by a motto of One Vision, One Identity, One Community. In 2015 the head states/Government of the Association of South East Asian Nations, gather that today is a world of Globalizations, especially the time of the world as one. To take actions to develop the nations and clear up the war inside the country, all these nations use an economics strategic to reconcile the problem inside those nations and divided a benefit equally to all nations. On the other hand, these benefit cannot divided equally as the term of ASEAN Summit and issued, so this research term paper also discuss how to get the benefit from other country by using the economics transactions, especially to confirm that some way of implement are efficiency and support to use. When we focus on the International interact and economics system among the state in one region is very important to see who is an intermediary to compromise these nations to prevent with the actions of exploitation and invasion. More and more sufficiency of implementation inside the region, this research term paper also mentions about relationship of ASEAN Nations and other Great Power Nations, such as United State of America, China, Japan, Russia, etc. The time of these countries come to invest in Cambodia or ASEAN Nations, is the time that they come to get their benefit, But this term research are shown the determination of interaction between ASEAN Nations to those nations, to make sure that both side are getting their own benefits.

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Contents
PREAMBLE ....................................................................................................................................... 3 ABBREVIATIONS ............................................................................................................................ 5 CHAPTER I BACKGROUND OF ASEAN ...................................................................................... 6 ESTABLISHMENT OF ASSOCIATION OF SOUTH EAST ASIAN NATION ........................... 7 ASA INFRASTRUCTURE ................................................................................................................ 8 MAPHILINDO PLAN ....................................................................................................................... 8 ASA APEAR WITH NEW ACTIONS AS ASEAN (ASEAN FROM SMALL COMMUNITY TO A DYNAMIC COMMUNITY).......................................................................................................... 9 LATE COMER NATIONS .............................................................................................................. 10 ASEAN TREATIES ......................................................................................................................... 10 TREATY OF AMITY AND COOPERATION (TAC) ................................................................ 10 TREATY ON THE SOUTH EAST ASIA NUCLEAR WEAPON-FREE ZONE (SEANWFZ) 10 ASEAN FREE TRADE AREA (AFTA) ...................................................................................... 11 BASIC ASSUMPTION TO AFTA .................................................................................................. 11 CHAPTER II ASEAN FREE TRADE AREA (AFTA) AND CORE ANALYSIS......................... 12 1. 2. 3. 3.1 3.1.1 3.1.2 3.1.3 3.2 3.2.1 3.2.2 3.2.3 4. 5. ASEAN FREE TRADE AREA 2015 ....................................................................................... 13 AFFECT OF THE ASEAN FREE-TRADE AREA ................................................................. 13 ADVANTAGE AND DISADVANTAGE ............................................................................ 14 ADVANTAGES ................................................................................................................ 14 THE PRODUCTION ..................................................................................................... 14 HUMAN RESOURCES ............................................................................................. 14 TECHNICAL & TECHNLOGY RESOURCES ........................................................ 15 DISADVANTAGES ...................................................................................................... 15 DISADVANTAGE IN PRODUCTION .................................................................... 15 DISADVANTAGE OF THE LABOR ....................................................................... 16 LESS TECHNOLOGY .............................................................................................. 16

THE SUSTAINABLE DEVELOPMENT ............................................................................ 16 CONCLUSION ......................................................................................................................... 17

ANNEX ............................................................................................................................................ 18

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ABBREVIATIONS
ASEAN ASA U. S SEANWFZ
AFTA TAC CEPT

Association of South East Asian Nations Associations of South East Asian United State of America, or United State
Treaty on the South East Asia Nuclear Weapons Free Zone ASEAN Free Trade Area Treaty of Amity and cooperation Common Effective Preferential Tariff

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CHAPTER I
BACKGROUND OF ASEAN

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ESTABLISHMENT OF ASSOCIATION OF SOUTH EAST ASIAN NATION

Association of South East Asian Nation (ASEAN) has been establish in 08 August, 1967 one organization call Association of Southeast Asia (ASA), which has 5 founding Nations is Singapore, Thailand, Malaysia, Indonesia, and Philippine. By the meeting in Thailand Department of Foreign Affair, ASEAN has been established officially by Bangkok Declaration in that day. This community is created in purpose to build up a good relationship inside the region, security, peace, and to prevent with widened of communist regime. As an Association of South East Asia (ASA), this community has not last longer. This concept of build this Community is found by Mr. TUNKU Abdul Rahman Prime Minister of Malaysia. Mr. Rahman has been discuss about this concept of building up the community with Philippines president, who names Carlos Garcia, while the unofficial visiting in Philippine on January, 1959. Across the discussion the leader of both countries has agree and try to persuade other neighbor countries to sign in the economics agreement and friendship in South East Asia to adopt a regional cooperation framework. After that whats notable thing of this framework has been reinforce of Thai Prime Minister Mr. Thanat Khoman interest and fully support to this framework. On other hand, Indonesia not even just dislikes this frame work but also veto to join this core of conduction.1 Actually, the denied to joining in ASA community because Mr. ALMET Soukano, President of Indonesia have been implemented a foreign policy to China and Russia, which is a communist nation, and thiss a contra-concept from the framework of ASA. Indonesia thinks that this concept of ASA is not a regional idea but its a founder idea of West countries, which lead by U.S in the core to prevent of broadens of communist Nations.2 Indonesia also thinks that they wont join in the core of conduct with ASA, because ASA might not bring a benefit to their nations. Especially, Indonesia is getting closer to the communist union.3

1 2

ASEAN Knowledge (KH) Page 1-2 Political Analysis, (Indonesia veto to join in ASA in 1959) 3 Core analyze of Realism, include depend on Liberalism(Concept of Indonesia 1959)

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In contrast, by clearly notified that Cambodia cant join in this community, Indonesia turn their persuasion to Cambodia, and Burma (Myanmar Now) to join in ASA, while they know that Cambodia and Burma are not a sovereign state, and under the France colony in 1953. Even the persuasion from ASA havent got any good result, they still continue to build up this community. But after that, they has been aim to create one community, without getting control from other Block or Country, and also not prevent with other nations. This is a truly peace community.4 Purpose of ASA is joining to conduct a community with harmony and development on economics, social construction, and culture, with taking actions by all members inside the community. For the first time ASA has been unsupported by those nations inside the region, Because those nation think that ASA has been support by the U.S.

ASA INFRASTRUCTURE
ASA has a simple infrastructure, and aim to accept by them annual ASA Summit by Foreign Ministerial Meeting of three Countries are: Philippine, Thailand, and Malaysia. The Permanently Members need to discuss in the meeting about the politics of ASA by the Foreign Minister of These three countries. In every member of ASA is needed to have a National secretary and three professional council members to cooperate with other nations on Economic, Social Culture, and Technology. During ASA has been completely created by the three permanently members, they works efficiency, but didnt have a powerful actions to interest other state inside the region. So Philippines Prime minister has a new plan to create a new plan to explain to regional nations that ASA has not support by the Communist Block or Democratic Block.

MAPHILINDO PLAN
During ASA has been completely created by the three permanently members, they works efficiency, but didnt have a powerful actions to interest other state inside the region to join in this community with them. So other state such as Philippine, which manage by the Mr. Macapagal, Prime Minister of Philippine create a core to conduct in purpose to put together of other nations,

Liberalism conceptASEAN.

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the core of conduct call Macapagal Plan5 and after that this simple core of conduct become a Federal state called MAPHILINDO6. Not more than a month this program has been aborted because of the argument between Philippine with Malaysia, and Malaysia with Indonesia.7 Until 1963, Philippine, Malaysia fall into the massive war of Sabah Iceland8. After the declaration to abort this program, All Nations around the world think that thiss an unsuccessful to proceeds an ASA.

ASA APEAR WITH NEW ACTIONS AS ASEAN (ASEAN FROM SMALL COMMUNITY to A DYNAMIC COMMUNITY)
In 08 August, 1967, five leaders include senior ministers of Malaysia, Indonesia, Philippine, Singapore, and Thai has been joining in a summit in Bangkok Foreign Affair conference hall to sign in a document to create Association of South East Asian Nations (ASEAN). All five foreign Minsters Mr. Adam Malik of Indonesia, Mr. Narciso R. Ramos of Philippine. Mr. Tun Abdul Razak of Malaysia, Mr. S. Rajaratnam of Singapore, and Mr. Thanat Khoman of Thailand. All these Foreign Minister has been called A Successful founding Father of ASEAN. A Bangkok Declaration or ASEAN Declarations is a first declaration which created an ASEAN Community. ASEAN declaration, has been compose in four days by these five ministers, in Bang Saen Beach (about 100 Km from Bangkok), which celebrate informally and normal which has been called Sport Shirt Diplomacy9. In the vision of founding has been shown about this community creation to be harmony community, which joins by all members in the region. So inside ASEAN declaration written that ASEAN Community is wide open to welcome of other state in South East Asian Region by accepted with the objection, Principle, and purpose of ASEAN.10

Macapagal Plan is a program, or the core to conduct a sub union to persuade other nation know clearly about ASA, Especially to tell them that ASA havent support by the U.S. 6 A federal, which have two other nations inside are Malaysia, and Indonesia, join and take actions with Philippine. 7 Ref : ASEAN knowledge 2007, (KH) Noun Sothimun,. 8 A name of Iceland, North East of Borneo Iceland which under the Britain colony from (1877 to 1963). 9 Sport-Shirt Diplomacy is a kind of diplomacy strategic, which used to compose a law or Contract, which celebrate normally. ( Page 11. ASEAN ) 10 ASEAN Political Document and Charter, 2009 ( Minister of Information). ASEAN or Bangkok Declaration.

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LATE COMER NATIONS

After ASEAN Declaration has been declared successfully, with a principle to wide open to welcome other nations inside South East Asian Nations, ASEAN which has 5 founder nations accept to get 5more nations are : Brunei Darusallam Vietnam Laos Myanmar Cambodia 08 January, 1984 28 July, 1995 23 July, 1997 23 July, 1997 30 April, 1999

ASEAN TREATIES

After ASEAN has been bound as one with full of Actions inside the region, and make other nation know that ASEAN is a brand new community without under other block, ASEAN is standing in the international forum to develop own community, with stability, Prosperity, Dynamic. By the vision of ASEAN One Community, One Identity, One Vision, It shown the world of ASEAN unity, by create many treaties and basic such as :

TREATY OF AMITY AND COOPERATION (TAC)

This treaty create in ASEAN Summit in Bali Island (Indonesia) in 1976, with sign by five founders of this treaty and cooperation with fully accepted and supported in this declaration called (Declaration of ASEAN Concord). This core concern of this treaty has been shown that all nations need to obey each other of independence, Sovereignty, Equality, and Nationality, right to get out of depletion. Solving a problem without war ( using negotiation), Get away from war and using military and having a good cooperation among regional nations.11

TREATY ON THE SOUTH EAST ASIA NUCLEAR WEAPON-FREE ZONE (SEANWFZ)

In 15 December, 1995, Ten ASEAN Nations Leaders has been signed on the SEANWFZ treaties. And agree to implemente in 27 March, 1997. This treaty accept to build this community to get away from solving argument by the Nuclear weapons, and research on this weapons, to build peace.

11

Theory of Liberalism, ( Depend on Negotiation)

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PASSTRA UNIVERSITY OF CAMBODIA ASEAN FREE TRADE AREA (AFTA)

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In Singapore January, 1992, ASEAN has been agree to issue an ASEAN Free Trade Area (AFTA) in the next 15 Year (start in 2007). All nations inside ASEA Community has been sign in the draft agreement and data about the Common Effective Preferential Tariff (CEPT) 12 which is a good factor to create AFTA.

BASIC ASSUMPTION TO AFTA

All these three Treaty has included other declaration to create ASEAN, which is a basic core to run this community which guarantee of development and good cooperation inside ASEAN. Exclude the Declaration and these Treaties, ASEAN Community has been accept in the agreement of Political, Security, Economics, Culture, Social, and Environment, to straighten of new development with the world. This might be a core to build up ASEAN Community, with prosperity, and efficiency on development, in this research we will see through the core of economics development, which is an ASEAN Free Trade Area. AFTA is the treaty, which accepted to open the border inside the region to trade and live together as a provinces in ASEAN. So after AFTA has been implemented All Nations in ASEAN community are to be an ASEANs provinces.

12

Tax reduction strategic to compromise the import and Export system among regional Nation ( IPE International Political Economics)

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CHAPTER II
ASEAN FREE TRADE AREA (AFTA) AND CORE ANALYSIS

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1. ASEAN FREE TRADE AREA 2015

The AFTA agreement was signed on 28 January 1992 in Singapore. When the AFTA agreement was originally signer, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Myanmar in 1997, and Cambodia in 1999. AFTA now comprise ten countries ten countries of ASEAN. All four latecomer were required to sign the AFTA agreement in order to join ASEAN, but were given longer time to meet AFTAs tariff reduction obligation. The primary goal of AFTA seek: to Increase ASEANs competitive in production and service base the world market through the elimination which mean that ASEAN not depend on world Market. Its not mean that ASEAN is Isolated from another country and other Union but its mean that ASEAN start to bring themselves an strong economics to their region and start to develop with peace prosperity. ASEAN Free Trade Area adopt to start in 2015 and will expand to all nation in ASEAN. And one condition that bring to these nations are allowed the small country to specify in one product and export as on Nation is ASEAN.

2. AFFECT OF THE ASEAN FREE-TRADE AREA

The ASEAN Free Trade Area (AFTA) has a strong affected on the Nation in the Association of Asian Nation. In addition An ASEAN Nation always welcome with the successful economics system, But not a risk Economics. Through the motto of ASEAN-Phnom Penh Agenda is One Community, One Destiny. ASEAN need to provide and encourage all Nation to have a good condition and specified in the goods that they want to export. The risk in the future is the problem, so thats the most attracted agenda in the ASEAN summit. The resolution of those problems is find out the measure and make balance between nation and nation. Its refer to the economic and the ability to export especially GDP (Gross Domestic Product) and Especially, GNP(Gross Nation Product). In the free trade area GNP are most worried and sophisticated from the nation of the community. In order to gain the profit to their nation and make sure their people have a good wage or salary to support their life. So whats the affected of this strategic. ASEAN has sign in ASEAN-EU agreement, ASEAN plus one (ASEAN and India), ASEAN plus three (ASEAN with Japan, China, South Korea). These agreement always bring those partner and large benefits and development.

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PASSTRA UNIVERSITY OF CAMBODIA 3. ADVANTAGE AND DISADVANTAGE 3.1 ADVANTAGES

HOENG OUDAM

3.1.1 THE PRODUCTION

ASEAN Free Trade Area brought to the Developed Country of the opportunity to find out the produce market. When a Free allocated in their community they dont worry about the large amount of production, because they have a large market area to contribute their supplies or product too. The GDP in the developed country might increase, because of their productivity, such as Thailand, Indonesia, Malaysia, Philippine, and Singapore. By the tariffs reductions strategic these Nation might be happy to export their product to the local market. The large capacity export nations have a very good ability to produce and export. With full of the mega-factory that can support a high capacity and ability to produce a large amount of produce and low price, the tax reduction strategic, that allow the export nation to supply the product to ASEAN market with a lot of product and lower price to compete and make the small company or factories bankrupt. More than this, product become a mono-product in the market which can set the price depends on the producer. Its a large benefit the ASEAN build up this declaration and adopt to use in South East Asian Nation (ASEAN).
3.1.2 HUMAN RESOURCES

Human Resource in one nation is very important to develop the nation. For Example Cambodian nation are important to join in social activities to develop Cambodia, Cambodian Peoples salary is a revenues of Cambodia. The arrival of ASEAN Free Trade Area (AFTA), human resources is very special to the increase the economics. They will compete with each other to find the high salary. So how the one nation educated the people? In all ASEAN Nation must considerate with the education system. ASEAN Free Trade Area will open wide border to exchange the labor in this community. After the implementation of ASEAN FTA 2015, Cambodia and other nine more countries will become a province of ASEAN, with issue one charter with the law reinforcement for all people in this community. The main focus of the economics in this situation might focus on GNP (Gross National Product). So, to increase this economics index, education and skill for the people in those countries need to build up and increase too. Education can help people to find a good job and high salary. When they specified in one skill, they will have

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enough ability to find money to support their family and life. People in one nation have a high salary, GNP also increase through tax and another factor. After, they have enough ability, government can completed the unemployment reduction in one nation its also a high problem that we need to solve.
3.1.3 TECHNICAL & TECHNLOGY RESOURCES

After we build up one nation with full of the human resources, Research and development is very important progress their product and can compete with other product in the regional market. Thats what we can technical resource. Technical resource is happen after the human resource, because human resource is a main step to start the development of our nation. Technical resources provide us to be a high standard of production and creation. ASEAN Free Trade Area 2015 can attract to the investor to invest in our country. The called culture changed too, in this case culture referred to the new way of living so the new technology is the new thing that can provide us a new culture. Technical and Technological resources is important to make our product have a high standard. For example: the product of rice that grow in Cambodia with simple packed. And Thailand rice with a high technology to packed in high standard. Thailand can import this rice to Japan in higher price than Cambodian rice. Technology and Technical always stand in the first agenda in new era. So all nation in ASEAN Nation needs the technical Resource and Technology to make their countries can compete with other nation in the regional and international forum.

3.2

DISADVANTAGES

Truly the ASEAN free trade area strategic is bring to ASEAN Nation an advantage, but not even an advantage of the economics and the relationship for those nations. Country which cant compete with other nation become poorer and poorer. Low capacitys nation of production, human resources, technical resources, export abilities build up a high risk for those nations.
3.2.1 DISADVANTAGE IN PRODUCTION

Even this community will allow and reduce the tax barrier to force the import and export between those nations in ASEAN, but the consumers need a high standard of living, so they need a high quality of product too. ASEAN Free Trade Area is a large market to export the product to sale
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in this community. Large market also has a large competition. This competition might enforce to the producer progress and do research in any time, to make sure they can compete with the regional market. If some nation have a low ability and capacity of export, this country might face with the high risk and become the market of other country. It mean that all product the people need in those nation always import from other country to face the demand for their people.
3.2.2 DISADVANTAGE OF THE LABOR

Disadvantage of Labor referred to the situation that people in any nation face with the risk while they dont have enough ability to compete with other labor to earn and salary. In the year of 2015, compete mean to fight, and to win by the economics. So they need a high ability labor to work for the investor. So what happen if one nation without any human resources? The answer is those nation is poorer and poorer, because they cant find a good job to earn a high salary. Some people might work under the employer, and with full of high pressure. They wont have enough ability to start their own business, because in the high standard of production need to reform and they will bankrupt in the first step of production and investment.

3.2.3

LESS TECHNOLOGY

Wide open of the ASEAN Free Trade must affect to some nation which have a less of technology. It can caused damage on the country development. Before the AFTA, they can produce the handmade product, but after AFTA they will face the high price of the product which cant competes with world and regional market. Handmade production cant face with the demand of the consumer which increasing day by day. So, technology is very important to support your production to compete with ASEAN Market. Even it wide opened of economics, but it not means that your country can get the technology the other country invented. One nation must have a strong technology and Human resource to develop their technology and society.

4. THE SUSTAINABLE DEVELOPMENT

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The sustainable development is referred to the environmental impact. Its mean that the development in any form which face with the present demand but do not compromise to the next generation demand. In this case, ASEAN Nation open wide border for investor to their country, but they might have a high thinking about the impact to the environment. Through the Environmental Impact Assessment (EIA), all development projects must be sign and agree by the ASEAN Environmental Assessors. The agenda which issue in the ASEAN Ministerial Meeting on the Environment (AMME) and ASEAN Senior Officials on the Environment (ASOEN) is the sustainable development, and all the ASEAN Regional and the world environment must be concerned and care.

5. CONCLUSION

After the arrival of the ASEAN Free Trade Area in the year 2015, Cambodia and other Country must prepared and develop the Human, Technical Resources, through the educated people and promote them to have enough ability to compete with other nation. If Cambodia has enough human, technical Resources, and other technology, Cambodia might face with the growing in economics. AFTA bring the ASEAN Nation a wide open border in export and import, But one country with low productivity and export capacity might become a market, which mean that those nation will strongly depend on the regional economics. One nation depends on the regional market is always face with high risk, such as inflation, Unemployment, Less development, and change through the regional trend and economics like a domino.

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ANNEX

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Fig. 01-- ASEAN Symbol.

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ASEAN Flag which has five color : is a combination of all color of member state in ASEAN. Which represented : Blue : represented Peace and Stability. Red : represented of Bravery and Dynamics community. White : represented honest, pure and fresh Yellow : represented Prosperity, and Development.

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