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APEC ensures that goods, services, investment and people move easily across borders.
Members facilitate this trade through faster customs procedures at borders; more favorable
business climates behind the border; and aligning regulations and standards across the region.
For example, APEC's initiatives to synchronize regulatory systems is a key step to integrating
the Asia-Pacific economy. A product can be more easily exported with just one set of common
standards across all economies.
APEC has grown to become a dynamic engine of economic growth and one of the most
important regional forums in the Asia-Pacific. Its 21 member economies are home to around 2.8
billion people and represent approximately 59 per cent of world GDP and 49 per cent of world
trade in 2015. As a result of APEC’s work, growth has soared in the region, with real GDP
increasing from USD 19 trillion in 1989 to USD 42 trillion in 2015. Meanwhile, residents of the
Asia-Pacific saw their per capita income rise by 74 per cent, lifting millions out of poverty and
creating a growing middle class in just over two decades. Bringing the region closer together,
reducing trade barriers, and smoothing out differences in regulations have boosted trade which,
in turn, has led to this dramatic increase in prosperity. Average tariffs fell from 17 per cent in
1989 to 5.2 per cent in 2012. During that same time period, the APEC region’s total trade
increased over seven times—outpacing the rest of the world with two-thirds of this trade
occurring between member economies.
APEC implements a wide variety of initiatives to help integrate the region’s economies
and promote trade while addressing sustainability and social equity. Since 1989, APEC’s role in
facilitating regional integration has proven essential to promoting trade and economic growth in
the Asia-Pacific. For example, reducing trade barriers between members, harmonizing
standards and regulations, and streamlining customs procedures have enabled goods to move
more easily across borders.
In 1994, APEC Leaders committed to achieving the ‘Bogor Goals’ of free and open trade
and investment by 2020 through reducing trade barriers in the region and promoting the free
flow of goods, services and capital among APEC economies. Since then, members have made
measurable progress in achieving these goals. APEC’s Trade Facilitation Action Plan which
includes streamlining customs procedures reached its target of region-wide reduction in costs at
the border by 5 per cent between 2004 and 2006. A further 5 per cent decrease was achieved
between 2007 and 2010, which saved businesses in the Asia-Pacific a total of USD 58.7 billion.
Over time, the APEC agenda has broadened its focus to address behind-the-border barriers
such as improving regulatory practices and the local business climate.
APEC launched its Ease of Doing Business Action Plan in 2009, with the goal of making
it cheaper, easier and faster to do business in the region. Between 2009 and 2013, member
economies improved the ease of doing business in the Asia-Pacific by 11.3 per cent across all
areas of the initiative, including starting a business, getting credit or applying for permits. For
example, APEC has expedited the time it takes for a company to build a new factory or office
building. Today, construction permits are issued at a faster pace, dropping 18.7 per cent from
169 days to 134 days in the last four years with APEC topping the charts globally for the
shortest permit time. Starting a company in the Asia-Pacific is also simpler with the number of
procedures falling by 20.2 per cent since 2009.
The Association of Southeast Asian Nations (ASEAN) was formed in 1967 by Indonesia,
Malaysia, the Philippines, Singapore, and Thailand to promote political and economic
cooperation and regional stability. Brunei joined in 1984, shortly after its independence from the
United Kingdom, and Vietnam joined ASEAN as its seventh member in 1995. Laos and Burma
were admitted into full membership in July 1997 as ASEAN celebrated its 30th anniversary.
Cambodia became ASEAN’s tenth member in 1999.
The ASEAN Declaration in 1967, considered ASEAN’s founding document, formalized the
principles of peace and cooperation to which ASEAN is dedicated. The ASEAN Charter entered
into force on 15 December 2008. With the entry into force of the ASEAN Charter, ASEAN
established its legal identity as an international organization and took a major step in its
community-building process.
ASEAN commands far greater influence on Asia-Pacific trade, political, and security issues than
its members could achieve individually. This has driven ASEAN’s community building efforts.
This work is based largely on consultation, consensus, and cooperation.
U.S. relations with ASEAN have been excellent since its inception. The United States became a
Dialogue Partner country of ASEAN in 1977. Dialogue partners meet regularly with ASEAN at
the working and senior levels to guide the development of our regional relations. In July 2009,
Secretary Clinton signed the Treaty of Amity and Cooperation in Southeast Asia (TAC) which
has greatly enhanced U.S. political relations with ASEAN.
Every year following the ASEAN Ministerial Meeting, ASEAN holds its Post-Ministerial
Conference (PMC) to which the Secretary of State is invited. In 1994, ASEAN took the lead in
establishing the ASEAN Regional Forum (ARF), which now has 27 members and meets each
year at the ministerial level just after the PMC.
ASEAN was established on August 8, 1967 in Bangkok, Thailand, with the signing of
what became known as the ASEAN Declaration or the Bangkok Declaration, signed by the 5
founding fathers of the regional organization: Indonesia, Malaysia, Philippines, Singapore, and
Thailand. ASEAN replaced the Association of South East Asia (ASA), which was formed in 1961
by the Philippines, Thailand, and Malaysia. From the original 5 members, ASEAN eventually
expanded membership to include Brunei, which joined in 1984; Vietnam in 1995; Laos and
Myanmar in 1997; and Cambodia in 1999. The organization, which aimed to promote peace and
security in Southeast Asia and foster economic development and cooperation among member
nations, was formed with the ongoing Vietnam War in its backdrop, and the fall of Vietnam, Laos
and Cambodia to communist regimes.
ASEAN was born with the signing of the ASEAN declaration by the 5 foreign ministers of
Indonesia, Malaysia, the Philippines, Singapore and Thailand, who spent 4 days negotiating
over the document at a beach resort in Bang Saen, southeast of Bangkok.
The ASEAN declaration contained only 5 articles, which described the aims and purposes of
ASEAN and how these were to be carried out and implemented. ASEAN, they said, aims to
achieve the following:
accelerate the economic growth, social progress and cultural development in the region
provide assistance to each other in the form of training and research facilities
collaborate more effectively for the greater utilization of agriculture and industries,
expansion of their trade, improvement of transportation and communications facilities,
and raising the living standards of their peoples
maintain close cooperation with existing international and regional organizations with
similar aims and purposes, and explore all avenues for even closer cooperation
It also stated the the association is open for participation to all states in the Southeast Asian
region subscribing to the same principles and purposes. The declaration also said that ASEAN
represents “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.”
The signatories were Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun
Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand.
In their speeches following the signing of the declaration, the foreign ministers
recognized the need for the countries of Southeast Asia to work together as the region faces
challenges in uncertain times.
Then-Philippine foreign affairs secretary Narciso Ramos – father of former Philippine
president Fidel Ramos – said that by regional cooperation, ASEAN "could marshal the still
untapped potentials of this rich region through more substantial united action."
For his part, Adam Malik of Indonesia shared his vision for Southeast Asia as a region
that can "stand on its own feet, strong enough to defend itself against any negative influence
from outside the region."
He said: "We must think not only of our national interests but posit them against regional
interests: that is a new way of thinking about our problems. And these are two different things
and sometimes they can conflict. Secondly, we must also accept the fact, if we are really serious
about it, that regional existence means painful adjustments to those practices and thinking in
our respective countries. We must make these painful and difficult adjustments. If we are not
going to do that, then regionalism remains a utopia."
Since its founding, ASEAN has held semiannual meetings hosted by its member-countries. This
year, the Philippines will be hosting the 30th and 31st summit in April and in November.
This will be the third time that the Philippines will host the ASEAN Summit. The first was in
December 1987, which saw the approval of the Manila Declaration 1987 that promoted the
principle of sustainable development and its integration in all aspects of development, among
other things.
In January 2007, the 12th ASEAN Summit was held in Cebu. The leaders committed
to establish an ASEAN charter that would serve as a "firm foundation in achieving one ASEAN
Community by providing an enhanced institutional framework as well as conferring a legal
personality to ASEAN."
The 30th ASEAN summit will be held this month in Manila, while the 31st will be held in
November in Clark, Pampanga.
Tensions, problems
While the regional bloc aims to foster cooperation and goodwill among the ASEAN member-
nations, the organization has faced problems and disagreement in the past. The hotly-contested
South China Sea has been a constant source of tension among ASEAN members, with the
bloc failing to release the customary joint communique for the first time in 2012 because of it.
The Philippines was caught in a word war with then-ASEAN host Cambodia, which
supposedly opposed the mention in the joint statement of Scarborough Shoal, over which the
Philippines and China are in a heated dispute.
But Cambodia, a Beijing ally, resisted, and said that it cannot accept "that the joint statement
has become hostage of the bilateral issue (between the Philippines and China)."
In 2016, the ASEAN chairman's statement noted serious concerns in the South China Sea, but
did not mention the historic ruling by an arbitral tribunal in The Hague that favored the
Philippines.
ASEAN has also faced dilemmas with the actions of its members. In 2007, Myanmar's prime
minister Thein Sein forced ASEAN summit host Singapore to disinvite UN envoy Ibrahim
Gambari, who was supposed to brief regional leaders. This happened as Myanmar faced
international backlash over its crackdown on street protests.
Then Philippine president Gloria Macapagal-Arroyo had also warned that the Philippines was
unlikely to ratify a new ASEAN charter unless Myanmar's opposition leader Aung San Suu Kyi
was released
The North American Free Trade Agreement's history began in 1980. Its purpose is to reduce
trading costs, increase business investment and help North America be more competitive in the
global marketplace. The agreement is between Canada, the United States, and Mexico. For
more details, see NAFTA Fast Facts.
History
The impetus for NAFTA began with President Ronald Reagan, who proposed a North American
common market in his campaign. In 1984, Congress passed the Trade and Tariff Act. That gave
the president "fast-track" authority to negotiate free trade agreements. It
removes Congressional authority to change negotiating points. Instead, it allows Congress only
the ability to approve or disapprove the entire agreement. That makes negotiation much easier
for the administration. Trade partners don't have to worry that Congress will nitpick specific
elements.
Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations for the Canada-
U.S. Free Trade Agreement. It was signed 1988 and went into effect 1989. NAFTA has now
replaced it. (Source: "NAFTA Timeline," NaFina.)
Regan’s successor, President H.W. Bush, began negotiations with Mexican President Salinas
for a liberalized trade agreement between the two countries. Before NAFTA, Mexican tariffs on
U.S. imports were 250 percent higher than U.S. tariffs on Mexican imports. In 1991, Canada
requested a trilateral agreement, which then led to NAFTA. In 1993, concerns about the
liberalization of labor and environmental regulations led to the adoption of two addendums.
In 1992, NAFTA was signed by President George H.W. Bush, Mexican President Salinas and
Canadian Prime Minister Brian Mulroney. It was ratified by the legislatures of the three countries
in 1993. The U.S. House of Representatives approved it by 234 to 200 on November 17, 1993.
The U.S. Senate approved it by 60 to 38 on November 20, three days later.
President Bill Clinton signed it into law December 8, 1993. It entered force January 1, 1994.
It was a priority of President Clinton's, and its passage is considered one of his first successes.
(Source: "NAFTA Signed Into Law," History.com, December 8, 1993.)
Purpose
Article 102 of the NAFTA agreement outlines its purpose. There are seven specific goals.
2. Eliminate barriers to trade and facilitate the cross-border movement of goods and
services.
NAFTA fulfilled all seven of its goals. That's made it the world’s largest free trade area in terms
of gross domestic product.
Most important, it increased the competitiveness of the three countries in the global
marketplace. This has become critical since the launch of the European Union. It's helped
overcome the economic growth of China and the rise of other emerging market countries. In
2007, the EU replaced the United States as the world's largest economy. In 2015, China
replaced both and took the top spot.