ASEAN: Key Insights and Overview

Association of Southeast Asian Nations (ASEAN) was established on August 8, 1967 when the
Foreign Ministers of five countries signed the ASEAN Declaration in Bangkok, Thailand. The
ASEAN Declaration, also known as the Bangkok Declaration. The document outlined the
organization's aims and purposes, and formalized the principles of peace and cooperation that
ASEAN is dedicated to.

Five signatory countries are:

 Indonesia

 Malaysia

 Philippines

 Singapore

 Thailand

ASEAN has since expanded to include the following countries:

 Brunei (1984)

 Vietnam (1995)

 Laos and Myanmar (1997)

 Cambodia (1999)

ASEAN Declaration states that the organization’s goals include:

 Economic growth: Accelerate economic growth in the region

 Social progress: Promote social progress in the region

 Cultural development: Promote cultural development in the region

 Regional peace and stability: Promote regional peace and stability

 Respect for justice and rule of law: Respect justice and the rule of law in the region

 Adherence to the United Nations Charter: Adhere to the principles of the United
Nations Charter
  Regional cooperation: Promote collaboration and mutual assistance in economic, social,
cultural, technical, scientific and administrative fields.

ASEAN's trade policies and initiatives include:

 ASEAN Free Trade Area (AFTA)

This trade agreement aims to create a single market and production base in the ASEAN region. It does
this by: (i) Lowering tariffs (ii) Streamlining trade rules (iii) Simplifying customs processes (iv)
Promoting investment (v) Fostering regional development

 ASEAN Trade in Goods Agreement (ATIGA)

This is a legal framework that aims to reduce trade barriers and increase trade between ASEAN member
states. It focuses on:

Tariffs

ATIGA's primary goal is to reduce regional tariffs. As of 2020, 98.6% of products in the ASEAN region
are tariff-free.

Rules of origin

ATIGA's rules of origin (ROO) outline the requirements and procedures for determining the origin of
goods and claiming tax incentives.

Local content

ATIGA includes criteria for determining if goods are eligible for preferential tariff treatment.

Harmonized System (HS)

ATIGA uses the HS of Tariff Classification to clarify the differences between goods and set standards
that certain goods must meet.

Capacity building

ATIGA provides capacity building programs to strengthen the domestic capacity, efficiency, and
competitiveness of member states.

ASEAN Trade Repository (ATR)

The ASEAN Trade Repository (ATR) is an electronic interface that allows the public to access trade-
related information from the National Trade Repositories (NTRs) of each ASEAN Member State. It is
linked to the NTRs, which maintain the national-level trade information. The ATR organizes the
information into nine topics, including tariff nomenclature, rules of origin, and non-tariff measures and
provides transparency on the trade and customs laws and procedures of all ASEAN Member States.
  ASEAN Solutions for Investments, Services, and Trade (ASSIST)

ASSIST Solutions for Investments, Services and Trade) is a free, online mechanism for ASEAN
enterprises to resolve cross-border issues. Here's how it works:

1. File a complaint

An ASEAN enterprise or representative entity submits a complaint on the ASSIST website. Complaints
can be anonymous.

2. Central Administrator review

The Central Administrator (CA) reviews the complaint and may ask for amendments or resubmission.

3. Destination Contact Point (DCP) review

The DCP reviews the complaint and may reject it if it's not appropriate for ASSIST.

4. Solution search

If the DCP accepts the complaint, the Responsible Authority (RA) in the country concerned searches for a
solution.

5. Notification

The complainant is notified of the response and any proposed solution.

6. Timeframe

The complaint should be addressed within 30–50 working days of the DCP's acceptance.

**ASSIST is non-binding, meaning that ASEAN Member States can choose not to accept a complaint or
offer a solution. However, they are expected to deal with complaints in good faith.

 Mutual Recognition Arrangements (MRAs)

ASEAN is developing product-specific arrangements to ensure that product-related standards and

regulations do not become technical barriers to trade. The ASEAN Mutual Recognition Arrangements
(MRAs) are a framework of agreements that facilitate the flow of trade and skilled labor in the ASEAN
region:

 Help reduce non-tariff barriers, which can lead to a freer flow of trade. They can also help
consumers by ensuring that imported goods are safe and labeled correctly.

 Help skilled labor and professionals move around the region. For example, the ASEAN Mutual
Recognition Arrangement on Tourism Professionals (MRA-TP) recognizes the qualifications of
tourism professionals from different ASEAN countries.

Some examples of ASEAN MRAs include:

  MRAs for health professionals in ASEAN were established in 2009 for nursing, medicine, and
dentistry.

 There is an ASEAN Mutual Recognition Arrangement on Architectural Services.

 There is an ASEAN Sector based MRA for GMP Inspection of Manufacturers for Medicinal
Products.

 National standards alignment

ASEAN is aligning national standards with international standards for 20 priority product groups.
ASEAN national standard alignment is the process of harmonizing standards across the Association of
Southeast Asian Nations (ASEAN) to reduce trade barriers and support the implementation of mutual
recognition arrangements:

 Goal

To create a single market and production base that is fully integrated into the global economy

 Benefits

To facilitate intra-ASEAN trade and support the harmonization of regulatory regimes

 How it works

ASEAN member states align their national standards with international practices to remove unnecessary
trade barriers