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International Marketing

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The original ASEAN logo presented five brown sheaves of rice


stalks, one for each founding member. Beneath the sheaves is the
legend "ASEAN" in blue. These are set on a field of yellow
encircled by a blue border. Brown stands for strength and stability,
yellow for prosperity and blue for the spirit of cordiality in which
ASEAN affairs are conducted. When ASEAN celebrated its 30th
Anniversary in 1997, the sheaves on the logo had increased to ten -
representing all ten countries of Southeast Asia and reflecting the
colors of the flags of all of them. In a very real sense, ASEAN and
Southeast Asia would then be one and the same, just as the
Founding Fathers had envisioned.

INTRODUCTION

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On 8 August 1967, five leaders - the Foreign Ministers of


Indonesia, Malaysia, the Philippines, Singapore and Thailand - sat
down together in the main hall of the Department of Foreign Affairs
building in Bangkok, Thailand and signed a document. By virtue of
that document, the Association of Southeast Asian Nations (ASEAN)
was born. The five Foreign Ministers who signed it - Adam Malik of
Indonesia, Narciso R. Ramos of the Philippines, Tun Abdul Razak
of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of
Thailand - would subsequently be hailed as the Founding Fathers of
probably the most successful inter-governmental organization in the
developing world today. And the document that they signed would
be known as the ASEAN Declaration.

It was a short, simply-worded document containing just five


articles. It declared the establishment of an Association for
Regional Cooperation among the Countries of Southeast Asia to be
known as the Association of Southeast Asian Nations (ASEAN) and
spelled out the aims and purposes of that Association. These aims
and purposes were about cooperation in the economic, social,
cultural, technical, educational and other fields, and in the
promotion of regional peace and stability through abiding respect
for justice and the rule of law and adherence to the principles of the
United Nations Charter. It stipulated that the Association would be
open for participation by all States in the Southeast Asian region
subscribing to its aims, principles and purposes. It proclaimed
ASEAN as representing "the collective will of the nations of
Southeast Asia to bind themselves together in friendship and
cooperation and, through joint efforts and sacrifices, secure for
their peoples and for posterity the blessings of peace, freedom and
prosperity."

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The ASEAN region has a population of about 500 million, a


total area of 4.5 million square kilometers, a combined gross
domestic product of US$737 billion, and a total trade of US$ 720
billion.

In 1995, the ASEAN Heads of States and Government re-


affirmed that “Cooperative peace and shared prosperity shall be
the fundamental goals of ASEAN.”

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FUNDAMENTAL PRINCIPLES

The Treaty of Amity and Cooperation (TAC) in Southeast


Asia, signed at the First ASEAN Summit on 24 February 1976,
declared that in their relations with one another, the High
Contracting Parties should be guided by the following fundamental
principles:

• Mutual respect for the independence, sovereignty, equality,


territorial integrity, and national identity of all nations.

• The right of every State to lead its national existence free


from external interference, subversion or coercion.

• Non-interference in the internal affairs of one another.

• Settlement of differences or disputes by peaceful manner.

• Renunciation of the threat or use of force; and

• Effective cooperation among themselves.

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OBJECTIVES

The ASEAN Declaration states that the aims and purposes of


the Association are:

• To accelerate the economic growth, social progress and


cultural development in the region through joint endeavours in
the spirit of equality and partnership in order to strengthen
the foundation for a prosperous and peaceful community of
Southeast Asian nations.

• To promote regional peace and stability through abiding


respect for justice and the rule of law in the relationship
among countries in the region and adherence to the principles
of the United Nations Charter.

In 1995, the ASEAN Heads of States and Government re-


affirmed that “Cooperative peace and shared prosperity shall be
the fundamental goals of ASEAN.”

Member Countries

Brunei
Darussalam Cambodia Indonesia Laos Malaysia

Myanmar Philippines Singapore Thailand Vietnam

Strength of ASEAN praised

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HA NOI — Prime Minister Phan Van Khai on Sunday night praised


the success of ASEAN in "striving for the common targets of peace,
stability and development" as he officially opened ASEAN Culture
Week at the Ha Noi Opera House.

"We are proud to say that ASEAN is the most successful association
of developing nations.

"We are firmly building a strong and united ASEAN based on three
pillars: political security, and economic and socio-cultural co-
operation.

"These pillars, which are closely linked and support each other, will
contribute to ensuring the long-lasting stability and prosperity of
each country and the region as a whole."

The festival, to be held in the capital city and Ha Long Bay, is to


mark the 37th year of ASEAN. The art, food, traditional dress and
customs of the association’s 10 member countries will be on display
during the celebrations.

This is only the second time an ASEAN Culture Week has been
staged. The first was held in Cambodia last year and was initiated
by PM Khai at the ASEAN summit in Brunei in 1999.

Khai told the opening ceremony audience that ASEAN had


weathered many difficult situations in its history, including the
financial crisis of 1997, economic recession in 1999 and 2000,
terrorist attacks and epidemics.

"The association’s success can be attributed to a typical ASEAN


approach: the flexible and wise combination of the interests of each
nation and of the whole region, so as to promote the political
advantages of the region, as well as the cultural, social, political
and economic diversities of each country member.

"This has allowed us to turn challenges into opportunities,


contradictions and competitions into negotiation and co-operation."

Khai said that after nearly four decades of existence and


development, ASEAN was now at a turning point in its history.

"It is an active group striving to become a politically strong


community that has co-operates closely in economic fields, helping
each other among developed societies, as was said in the Bali
Declaration 2 and the ASEAN 2020 Vision."

Khai said that although there were differences in economic


development and politics, culture, languages and religion, ASEAN
shared the same purpose: to development economically, maintain

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peace and stability in the region, and create a base for the stable
development of each country member and the region as whole.

All the fundamental principles of the association – the principle of


consensus, the respect for independence, sovereignty and territorial
integrity and non-interference in each other’s internal affairs – have
contributed to maintaining the balance between the demand for co-
operation in the region and the interests of each member country.

However, Khai said the fast pace of globalisation had raised a


number of problems for which ASEAN had no solutions.

"Globalisation has increased the dependence among nations so that


when a crisis such as an epidemic, occurs in a country or a region,
the impact spreads to other countries and other regions."

"But ASEAN has succeeded in defining a suitable co-operation level


and frame to mobilise all nations to deal with issues which concern
everyone.

"We would not abuse our co-operative relationships by using them


to pressure and to interfere in the internal affairs of other
countries," Khai said.

"According to the ASEAN approach, we have coped with any issues


successfully and have still ensured we do not interfere in the
internal affairs of our fellow members."

"Globalisation has also caused an increase in competition,


particularly between our economies. For small and medium-sized
economics, the best way of improving competitiveness is to enhance
economic co-ordination and market unification."

Khai said ASEAN should increase its efforts to reduce the economic
gap between member countries and take advantage of the diversity
in the region to support one another.

"To improve economic co-ordination in ASEAN, we should combine


bilateral co-operation between ASEAN and the world, with the
enhancement of co-operation within ASEAN."

ASEAN attached importance to it policy on making friends with all


countries to enhance peace, security and economic development,
Khai said.

"ASEAN will play an important role in regional co-operation


through forums and will strive for its long-term target of building
an East Asia community with a central role for ASEAN."

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"We believe the fundamental principles of ASEAN will remain a


foundation for the development of the association in the long-term,
even when the community is established as set out in the ASEAN
Concord Declaration 2, approved by its leaders at the ninth ASEAN
Summit in Bali last year." — VNS

Unity is strength in ASEAN race to counter giants' economic


clout

ASEAN may be hobbled politically but the group is forging


ahead on the economic front, crafting free trade and integration
deals that analysts say are an attempt to counter the growing
power of China and India.

Martin Abbugao

Wednesday, December 07, 2005

ASEAN may be hobbled politically but the group is forging ahead


on the economic front, crafting free trade and integration deals that
analysts say are an attempt to counter the growing power of China
and India.

Goaded by fears about the economic muscle of the two nations, the
Association of South East Asian Nations is working to unite its
fractious markets and maximize its clout with a population of more
than 500 million people.

China and India will "put pressure on industries and countries, and
force the pace of change and restructuring everywhere," Singapore
Prime Minister Lee Hsien Loong said last week.

"All countries will need to respond to this tectonic shift, and


develop new bases for competing and prospering."

US business consultant Ernest Bower said that "ASEAN remains


economically important only if it moves forward with integration"
because "divided, ASEAN will have no real voice in Asian trade and
investment plans."

Bower, a former US-ASEAN Business Council president, said


ASEAN can hold its own as a group.

"For instance, ASEAN still has about 1.5 times more US investment
than China, and nearly eight times the investment American
companies have in India," he said.

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"ASEAN can and should be the fulcrum between India and China. It
has the scale and scope to play this role of balancer and regional
trade hub."

The economic integration process is fraught with difficulties and


may marginalize the group's poorer members, but if successful it
may give ASEAN the punch it needs to compete globally for trade
and investments.

ASEAN has also emerged as the catalyst for a wider grouping when
it roped in China, Japan and South Korea into its web of trade and
economic integration initiatives.

The addition of Australia, New Zealand and India at the inaugural


East Asia Summit in Malaysia next week may lead to the formation
of a powerful free trade area taking in about half the world's
population, diplomats said.

ASEAN and the United States last month said they had agreed to
work together to conclude a region-wide framework deal on trade
and investment, which some officials say could evolve into a free-
trade pact.

MC Abad, spokesman of ASEAN secretary general Ong Keng Yong,


said integration is a top priority in order "to create an economy of
scale both as a production base and as a market."

He said economic integration is also a "confidence-building effort"


for ASEAN's diverse members - Brunei, Cambodia, Indonesia, Laos,
Malaysia, Burma, the Philippines, Singapore, Thailand and Vietnam.

It is negotiating free-trade deals with China, India, Japan, South


Korea, Australia and New Zealand. Individual countries have also
moved to negotiate bilateral free trade treaties, while aiming to
achieve zero tariffs within the group by 2015 under the ASEAN Free
Trade Area.

Poorer ASEAN members - Cambodia, Burma, Laos and Vietnam -


have meanwhile been given more time to wipe out tariffs. Key
ASEAN members have signed currency swap deals that will help
them to fight off financial crises such as in 1997 and 1998.

Initiatives are also under way to link stock exchanges and develop
the bond markets, but analysts say progress has been held back by
regulatory barriers.

Bower said ASEAN has made "great strides" in cutting tariffs, but
dragged its feet on plans to give "national treatment" to investments
from other ASEAN members, and in liberalizing the services sector.

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ASEAN SUMMITS

Tenth ASEAN Summit, Vientiane, 29-30 November 2004

Ninth ASEAN Summit, Bali, 7-8 October 2003

Eighth ASEAN Summit, Phnom Penh, 4-5 November 2002

Seventh ASEAN Summit, Bandar Seri Begawan, 5-6 November


2001

Fourth Informal Summit, Singapore, 22-25 November 2000

Third Informal Summit, Manila, 27-28 November 1999

Sixth ASEAN Summit, Ha Noi, 15-16 December 1998

Second Informal Summit, Kuala Lumpur, 14-16 December 1997

First Informal Summit, Jakarta, 30 November 1996

Fourth ASEAN Summit, Singapore, 27-29 January 1992

Third ASEAN Summit, Manila, 14-15 December 1987

Eleventh ASEAN Summit, Kuala Lumpur, 12-14


December 2005
Chairman’s Statement of the 11th ASEAN
Summit
“ O n e V i s i o n , O n e I d e n t i t y , O n e C om m u n i t y ”

Kuala Lumpur, 12 December 2005

1. The 11th ASEAN Summit, with the theme “One Vision, One
Identity, One Community”, was chaired by The Honourable Dato’
Seri Abdullah Ahmad Badawi, the Chairman of the 11th ASEAN
Summit and the Prime Minister of Malaysia. The Leaders of

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ASEAN had a productive meeting, which was held in plenary, and in


retreat for the first time allowing for candid and frank discussions.

2. A total of 10 documents listed in the Annex, were issued as the


outcome of the 11th ASEAN Summit.

Malaysia will host the 11th ASEAN Summit and Related


Summits from 12 – 14 December 2005. The ASEAN Summit is
an annual meeting held on a rotational basis by the country
which holds the Chairmanship of the ASEAN Standing
Committee. The Related Summits that are to be held around
that time are the 9th ASEAN + 3 Summit , 9th ASEAN + China
Summit, 9th ASEAN + Japan Summit, 9th ASEAN + Republic
of Korea Summit and 4th ASEAN + India Summit. Malaysia
will also be hosting the first ASEAN + Russia Summit. The
highlight of these high-level meetings will be the staging of the
First East Asia Summit (EAS) on 14th December 2005.

The ASEAN Summit is geared towards strengthening ASEAN as


a regional institution that is competent in managing issues of
regional and international concern in an effective and
productive way. The meetings would provide opportunities to
Leaders of ASEAN member countries to evaluate the relations
and cooperation within the grouping as well as identifying the
most appropriate measures in defining the direction of ASEAN.
While Summits of ASEAN and its dialogue partners namely
China , Japan , Republic of Korea , India and Russia allows
ASEAN to strengthen its cooperation with these nations. The
inaugural East Asia Summit is expected to draw ASEAN to
closer and substantial relations with China , Japan , Republic
of Korea, India, Australia and New Zealand .

Malaysia will also host two other Summits, namely the Second
Brunei Indonesia Malaysia Philippines East ASEAN Growth
Areas (BIMP-EAGA) Summit and the First Indonesia Malaysia
Thailand Growth Triangle (IMT-GT) Summit on the sidelines of
the 11th ASEAN Summit . They were aimed at enhancing sub-
regional cooperation. While Cambodia , Laos , Myanmar and
Vietnam will hold their Second CLMV Summit.

To make preparations and lay the groundwork for these top-


level meetings, senior officials and Ministers from these
countries will meet in Kuala Lumpur from 6th to11th December
2005 at various senior officials' and ministerial level
meetings.ASEAN or the Association of South East Asian Nation
has a population of about 500 million, a total area of 4.5

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million sq. km, a combined gross domestic product of US$737


billion, and a total trade of US$720 billion.

The private sector in ASEAN will also play an active role


during the busy summit period as Kuala Lumpur will stage the
2005 ASEAN Business and Investment Summit from Dec 9 to
11.
The Business and Investment Summit, which is the third in the
series, will be sponsored by the ASEAN Business Advisory
Council.

Besides complementing the 11th ASEAN Summit, its objectives


are to foster an exchange of views and perceptions between the
private sector and government within ASEAN and East Asia and
to facilitate commerce and trade between the communities in
this region.

It will also help explore intra- and inter- ASEAN/East Asia


business and investment opportunities and highlight the
enormous investment potentials of the ASEAN and East Asian
regions.

ONE VISION, ONE IDENTITY, ONE COMMUNITY

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The Twin Towers was chosen as a


recognizable symbol for Kuala
Lumpur . Twin towers symbolizes
the progressive growth of ASEAN
where all its members move
together in tandem to achieve a
common goal.

The two pinnacles signify the


promotion of physical and
spiritual growth and development.
The ASEAN logo between the
pinnacles, signifies the goal of
ASEAN member countries to
achieve an ASEAN Community.

The ASEAN logo at the centre


signifies regional integration. The
ASEAN logo at the centre of the
two towers also signifies ASEAN
being the driving force in its
relations with the Dialogue
Partners.

The sky bridge symbolizes the


narrowing of development gap
among ASEAN member countries.
Indirectly, the twin towers also
reflects the number eleven, in
line with this being the 11th
ASEAN Summit.

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ASEAN Economic Ministers


AEM

AMM ASEAN Ministerial Meeting


AFMM ASEAN Finance Ministers Meeting
SEOM Senior Economic Officials Meeting
ASC ASEAN Standing Committee
SOM Senior Officials Meeting
ASEAN Senior Finance Officials
ASFOM
Meeting

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TRADE

ASEAN's exports had regained its upward trend in the two


years following the financial crisis of 1997-1998 reaching its peak
in 2000 when total exports was valued US$ 408 billion. After
declining to US$ 366.8 billion in 2001, as a result of the economic
slowdown in the United States and Europe and the recession in
Japan, ASEAN exports recovered in 2002 when it was valued at US$
380.2 billion. The upward trend for ASEAN-6 continued up to first
two quarters of 2003. Intra-ASEAN trade for the first two quarters
of 2003 registered an increase of 4.2 and 1.6 percent for exports and
imports respectively. [Figures 2, 3 & 4]

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ASEAN Trade with


Selected Trading Partners

The United States, the European Union and Japan continued to


be ASEAN’s largest export markets. Japan, followed by the U.S. and
EU, were the largest sources of ASEAN imports. During the first
half of 2002-2003, ASEAN-6 trade with major markets as a whole
increased by 11.71 percent for exports and 6.91 percent for imports.
However, ASEAN exports to the U.S. and India and imports from
Canada and India declined during the same period. [Figure 5]

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ASEAN VISION 2020

ASEAN shall have, by the year 2020, established a peaceful and


stable Southeast Asia where each nation is at peace with itself and
where the causes for conflict have been eliminated, through abiding
respect for justice and the rule of law and through the strengthening
of national and regional resilience.

• Maintain regional macroeconomic and financial stability by


promoting closer consultations in macroeconomic and
financial policies.

• Advance economic integration and cooperation by undertaking


the following general strategies: fully implement the ASEAN
Free Trade Area and accelerate liberalization of trade in
services, realise the ASEAN Investment Area by 2010 and free
flow of investments by 2020; intensify and expand sub-
regional cooperation in existing and new sub-regional growth
areas; further consolidate and expand extra-ASEAN regional
linkages for mutual benefit cooperate to strengthen the
multilateral trading system, and reinforce the role of the
business sector as the engine of growth.

• Promote a modern and competitive small and medium


enterprises (SME) sector in ASEAN which will contribute to
the industrial development and efficiency of the region.

• Accelerate the free flow of professional and other services in


the region.

• Promote financial sector liberalisation and closer cooperation


in money and capital market, tax, insurance and customs

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matters as well as closer consultations in macroeconomic and


financial policies.

• Accelerate the development of science and technology


including information technology by establishing a regional
information technology network and centers of excellence for
dissemination of and easy access to data and information.

• Establish interconnecting arrangements in the field of energy


and utilities for electricity, natural gas and water within
ASEAN through the ASEAN Power Grid and a Trans-ASEAN
Gas Pipeline and Water Pipeline, and promote cooperation in
energy efficiency and conservation, as well as the
development of new and renewable energy resources.

• Enhance food security and international competitiveness of


food, agricultural and forest products, to make ASEAN a
leading producer of these products, and promote the forestry
sector as a model in forest management, conservation and
sustainable development.

• Meet the ever increasing demand for improved infrastructure


and communications by developing an integrated and
harmonized trans-ASEAN transportation network and
harnessing technology advances in telecommunication and
information technology, especially in linking the planned
information highways/multimedia corridors in ASEAN,
promoting open sky policy, developing multi-modal transport,
facilitating goods in transit and integrating
telecommunications networks through greater
interconnectivity, coordination of frequencies and mutual
recognition of equipment-type approval procedures.

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• Enhance human resource development in all sectors of the


economy through quality education, upgrading of skills and
capabilities and training.

• Work towards a world class standards and conformance system


that will provide a harmonised system to facilitate the free
flow of ASEAN trade while meeting health, safety and
environmental needs.

• Use the ASEAN Foundation as one of the instruments to


address issues of unequal economic development, poverty and
socioeconomic disparities.

• Promote an ASEAN customs partnership for world class


standards and excellence in efficiency, professionalism and
service, and uniformity through harmonised procedures, to
promote trade and investment and to protect the health and
well-being of the ASEAN community.

• Enhance intra-ASEAN trade and investment in the mineral


sector and to contribute towards a technologically competent
ASEAN through closer networking and sharing of information
on mineral and geosciences as well as to enhance cooperation
and partnership with dialogue partners to facilitate the
development and transfer of technology in the mineral sector,
particularly in the downstream research and the geosciences
and to develop appropriate mechanism for these.

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