North American Free Trade Agreement From Wikipedia, the free encyclopediaJump to: navigation, search "NAFTA" redirects here. For other uses of the acronym, see Nafta (disambiguation).This article may require cleanup to meet Wikipedia's quality standards. (Consider using more specific cleanup instructions.) Please help improve this article if you can. The talk page may contain suggestions. (December 2011)

North American Free Trade AgreementTratado de Libre Comercio de Amrica del Norte (Spanish)Accord de Libre-change Nord-Amricain (French)

AdministrativecenterMexico City, Ottawa, and Washington, D.C.

Languages3[show] English Spanish French

MembershipCanadaMexicoUnited States

Establishment

-FormationDecember 22, 1995

Area

-Total21,850km2(1st)8,410sqmi

-Water(%)7.4

Population

-2010estimate457,282(3rd)

-Density25.1/km2(195th)54.3/sqmi

GDP(PPP)2010 (IMF)estimate

-Total$1,617.989 billion(1st)

-Per capita$38,527(4th)

GDP (nominal)2010 (IMF)estimate

-Total$17,271.000 billion(15th)

-Per capita$37,769(21st)

HDI(2069)0.868[1](veryhigh)

Websitewww.nafta-sec-alena.org

The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada United States Free Trade Agreement between the U.S. and Canada. In terms of combined GDP of its members, as of 2010[update] the trade bloc is the largest in the world.NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC).Contents[hide] 1 Negotiation and U.S. ratification 2 Provisions 3 Mechanisms 3.1 Trade 3.1.1 Exports 3.1.2 Imports 3.1.3 Trade balances 3.1.4 Investment 3.2 Industry 3.3 Environment 3.4 Agriculture 3.5 Mobility of persons 4 Criticism and controversies 4.1 Canadian disputes 4.1.1 Change in income trust taxation 4.1.2 Further criticism in Canada 4.2 U.S. deindustrialization 4.3 Impact on Mexican farmers 4.4 Zapatista Uprising in response to NAFTA in Chiapas 4.5 Impact of NAFTA on Canada 4.6 Chapter 11 4.7 Chapter 19 5 See also 6 References 7 Further reading 8 External links

[edit] Negotiation and U.S. ratificationFollowing diplomatic negotiations dating back to 1986 among the three nations, the leaders met in San Antonio, Texas, on December 17, 1992, to sign NAFTA. U.S. President George H. W. Bush, Canadian Prime Minister Brian Mulroney and Mexican President Carlos Salinas, each responsible for spearheading and promoting the agreement, ceremonially signed it. The agreement then needed to be ratified by each nation's legislative or parliamentary branch.Before the negotiations were finalized, Bill Clinton came into office in the U.S. and Kim Campbell in Canada, and before the agreement became law, Jean Chrtien had taken office in Canada.The proposed Canada-U.S.trade agreement had been very controversial and divisive in Canada, and the 1988 Canadian election was fought almost exclusively on that issue. In that election, more Canadians voted for anti-free trade parties (the Liberals and the New Democrats) but the split caused more seats in parliament to be won by the pro-free trade Progressive Conservatives (PCs). Mulroney and the PCs had a parliamentary majority and were easily able to pass the Canada-US FTA and NAFTA bills. However, Mulroney himself had become deeply unpopular and resigned on June 25, 1993. He was replaced as Conservative leader and prime minister by Kim Campbell, who then led the PC party into the 1993 election where they were decimated by the Liberal party under Jean Chrtien had campaigned on a promise to renegotiate or abrogate NAFTA but broke his promise and negotiated two supplemental agreements with the new US president. In the US, Bush, who had worked to "fast track" the signing prior to the end of his term, ran out of time and had to pass the required ratification and signing into law to incoming president Bill Clinton. Prior to sending it to the United States Senate, Clinton introduced clauses to protect American workers and allay the concerns of many House members. It also required US partners to adhere to environmental practices and regulations similar to its own.With much consideration and emotional discussion, the House of Representatives approved NAFTA on November 17, 1993, 234-200. The agreement's supporters included 132 Republicans and 102 Democrats. NAFTA passed the Senate 61-38. Senate supporters were 34 Republicans and 27 Democrats. Clinton signed it into law on December 8, 1993; it went into effect on January 1, 1994.[2][3] Clinton while signing the NAFTA bill stated that "NAFTA means jobs. American jobs, and good-paying American jobs. If I didn't believe that, I wouldn't support this agreement."[4]This section requires expansion.

Remarks on the Signing of NAFTA (December 8, 1993)

Bill Clinton's December 8, 1993 remarks on the signing of the North American Free Trade Agreement

Remarks on the Signing of NAFTA (December 8, 1993)

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[edit] ProvisionsThe goal of NAFTA was to eliminate barriers to trade and investment between the US, Canada and Mexico. The implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico's exports to the U.S. and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all US-Mexico tariffs would be eliminated except for some U.S. agricultural exports to Mexico that were to be phased out within 15 years. Most U.S.-Canada trade was already duty free. NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property right of the products.[edit] MechanismsChapter 52 provides a procedure for the interstate resolution of disputes over the application and interpretation of NAFTA. It was modeled after Chapter 69of the Canada-United States Free Trade Agreement.[5]NAFTA's effects, both positive and negative, have been quantified by several economists, whose findings have been reported in publications such as the World Bank's Lessons from NAFTA for Latin America and the Caribbean,[6] NAFTA's Impact on North America,[7] and NAFTA Revisited by the Institute for International Economics.[8] Some[who?] argue that NAFTA has been positive for Mexico, which has seen its poverty rates fall and real income rise (in the form of lower prices, especially food), even after accounting for the .[9] Others[who?] argue that NAFTA has been beneficial to business owners and elites in all three countries, but has had negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from US agribusiness, and negative impacts on US workers in manufacturing and assembly industries who lost jobs. Critics also argue that NAFTA has contributed to the rising levels of inequality in both the US and Mexico. Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence,[10] nor to substantially reduce poverty rates. Some have suggested that in order to fully benefit from the agreement, Mexico must invest more in education and promote innovation in infrastructure and agriculture.[edit] TradeThe agreement opened the door for open trade, ending tariffs on various goods and services, and implementing equality between Canada, America, and Mexico. NAFTA has allowed agriculture goods such as eggs, corn, and meats to be tariff-free. This allowed corporations to trade freely and import and export various goods on a North American scale. Since the implementation of NAFTA, the countries involved have been able to do the following:[edit] ExportsAt $248.2 billion for Canada and $163.3 billion for Mexico, they were the top two purchasers of US exports in 2010.US goods exports to NAFTA in 2010 were $411.5 billion, up 23.4% ($78 billion) from 2009 and 149% from 1994 (the year prior to Uruguay Round) and up 190% from 1993 (the year prior to NAFTA). US exports to NAFTA accounted for 32.2% of overall US exports in 2010.The top export categories (2-digit HS) in 2010 were machinery ($63.3 billion), vehicles (parts) ($56.7 billion), electrical machinery ($56.2 billion), mineral fuel and oil ($26.7 billion), and plastic ($22.6 billion).US exports of agricultural products to NAFTA countries totaled $31.4 billion in 2010. Leading categories included red meats, fresh/chilled/frozen ($2.7 billion); coarse grains ($2.2 million); fresh foods (excluding nuts) ($1.8 billion); and fresh vegetables ($1.7 billion).US exports of private commercial services, excluding military and government, to NAFTA were $63.8 billion in 2009 (the latest data available), down 7% ($4.6 billion) from 2008, but up 125% since 1994.[edit] ImportsAt $276.4 billion for Canada and $229.7 billion for Mexico, they were the second and third largest suppliers of goods imports to the United States in 2010.US goods imports from NAFTA totaled $506.1 billion in 2010, up 25.6% ($103 billion), from 2009, up 184% from 1994, and up 235% from 1993. US imports from NAFTA accounted for 26.5% of overall U.S. imports in 2010.The five largest categories in 2010 were mineral fuel and oil (crude oil) ($116.2 billion), vehicles ($86.3 billion), electrical machinery ($61.8 billion), machinery ($51.2 billion), and precious stones (gold) ($13.9 billion).US imports of agricultural products from NAFTA countries totaled $29.8 billion in 2010. Leading categories include fresh vegetables ($4.6 billion); snack foods including chocolate ($4.0 billion); fresh fruit (excluding bananas) ($2.4 billion); live animals ($2.0 billion); and red meats, fresh/chilled/frozen ($2.0 billion).US imports of private commercial services excluding military and government were $35.5 billion in 2009 (latest data available), down 11.2% ($4.5 billion) from 2008 but up 100% since 1994.[edit] Trade balancesThe US goods trade deficit with NAFTA was $94.6 billion in 2010, a 36.4% increase ($25 billion) over 2009.The US goods trade deficit with NAFTA accounted for 26.8% of the overall U.S. goods trade deficit in 2010.The US had a services trade surplus of $28.3 billion with NAFTA countries in 2009 (the latest data available).[edit] InvestmentThe US foreign direct investment (FDI) in NAFTA Countries (stock) was $357.7 billion in 2009 (latest data available), up 8.8% from 2008.The US direct investment in NAFTA countries is in nonbank holding companies, and in the manufacturing, finance/insurance, and mining sectors.The foreign direct investment, of Canada and Mexico in the United States (stock) was $237.2 billion in 2009 (the latest data available), up 16.5% from 2008.[2][3][4][edit] IndustryMaquiladoras (Mexican factories that take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. These are plants that moved to this region from the United States, hence the debate over the loss of American jobs. Hufbauer's (2005) book shows that income in the maquiladora sector has increased 15.5% since the implementation of NAFTA in 1994. Other sectors now benefit from the free trade agreement, and the share of exports from non-border states has increased in the last five years while the share of exports from maquiladora-border states has decreased. This has allowed for the rapid growth of non-border metropolitan areas, such as Toluca, Len and Puebla; all three larger in population than Tijuana, Ciudad Jurez, and Reynosa.[edit] EnvironmentFor more details on this topic, see NAFTA's Impact on the Environment.Securing U.S. congressional approval for NAFTA would have been impossible without addressing public concerns about NAFTAs environmental impact. The Clinton administration negotiated a side agreement on the environment with Canada and Mexico, the North American Agreement on Environmental Cooperation (NAAEC), which led to the creation of the Commission for Environmental Cooperation (CEC) in 1994. To alleviate concerns that NAFTA, the first regional trade agreement between a developing country and two developed countries, would have negative environmental impacts, the CEC was given a mandate to conduct ongoing ex post environmental assessment of NAFTA.[11]In response to this mandate, the CEC created a framework for conducting environmental analysis of NAFTA, one of the first ex post frameworks for the environmental assessment of trade liberalization. The framework was designed to produce a focused and systematic body of evidence with respect to the initial hypotheses about NAFTA and the environment, such as the concern that NAFTA would create a "race to the bottom" in environmental regulation among the three countries, or the hope that NAFTA would pressure governments to increase their environmental protection mechanisms.[12] The CEC has held four symposia using this framework to evaluate the environmental impacts of NAFTA and has commissioned 47 papers on this subject. In keeping with the CECs overall strategy of transparency and public involvement, the CEC commissioned these papers from leading independent experts.[13]Overall, none of the initial hypotheses were confirmed.[citation needed] NAFTA did not inherently present a systemic threat to the North American environment, as was originally feared, apart from potentially the ISDS provisions of Ch 11. NAFTA-related environmental threats instead occurred in specific areas where government environmental policy, infrastructure, or mechanisms, were unprepared for the increasing scale of production under trade liberalization.[citation needed] In some cases, environmental policy was neglected in the wake of trade liberalization; in other cases, NAFTA's measures for investment protection, such as Chapter 11, and measures against non-tariff trade barriers, threatened to discourage more vigorous environmental policy.[14] The most serious overall increases in pollution due to NAFTA were found in the base metals sector, the Mexican petroleum sector, and the transportation equipment sector in the United States and Mexico, but not in Canada.[15][edit] AgricultureFrom the earliest negotiation, agriculture was (and still remains) a controversial topic within NAFTA, as it has been with almost all free trade agreements that have been signed within the WTO framework. Agriculture is the only section that was not negotiated trilaterally; instead, three separate agreements were signed between each pair of parties. The CanadaU.S. agreement contains significant restrictions and tariff quotas on agricultural products (mainly sugar, dairy, and poultry products), whereas the MexicoU.S. pact allows for a wider liberalization within a framework of phase-out periods (it was the first NorthSouth FTA on agriculture to be signed).The overall effect of the MexicoU.S. agricultural agreement is a matter of dispute. Mexico did not invest in the infrastructure necessary for competition, such as efficient railroads and highways, creating more difficult living conditions for the country's poor. Still, the causes of rural poverty can be directly attributed to NAFTA[citation needed]; in fact, Mexico's agricultural exports increased 9.4 percent annually between 1994 and 2001, while imports increased by only 6.9 percent a year during the same period.[16]One of the most affected agricultural sectors is the meat industry. Mexico has gone from a small-key player in the pre-1994 U.S. export market to the 2nd largest importer of U.S. agricultural products in 2004, and NAFTA may be credited as a major catalyst for this change. The allowance of free trade removed the hurdles that impeded business between the two countries. As a result, Mexican farmers have provided a growing meat market for the U.S., leading to an increase in sales and profits for the U.S. meat industry. This coincides with a noticeable increase in Mexican per capita GDP that has created large changes in meat consumption patterns, implying that Mexicans can now afford to buy more meat and thus per capita meat consumption has grown.[17]Production of corn in Mexico has increased since NAFTA's implementation. However, internal corn demand has increased beyond Mexico's sufficiency, and imports have become necessary, far beyond the quotas Mexico had originally negotiated.[18] Zahniser & Coyle have also pointed out that corn prices in Mexico, adjusted for international prices, have drastically decreased, yet through a program of subsidies expanded by former president Vicente Fox, production has remained stable since 2000.[19]The logical result of a lower commodity price is that more use of it is made downstream. Unfortunately, many of the same rural people who would have been likely to produce higher-margin value-added products in Mexico have instead emigrated. The rise in corn prices due to increased ethanol demand may improve the situation of corn farmers in Mexico.[citation needed]In a study published in the August 2008 issue of the American Journal of Agricultural Economics, NAFTA has increased U.S. agricultural exports to Mexico and Canada even though most of this increase occurred a decade after its ratification. The study focused on the effects that gradual "phase-in" periods in regional trade agreements, including NAFTA, have on trade flows. Most of the increase in members agricultural trade, which was only recently brought under the purview of the World Trade Organization, was due to very high trade barriers before NAFTA or other regional trade agreements.[20][edit] Mobility of personsAccording to the Department of Homeland Security Yearbook of Immigration Statistics, during fiscal year 2006 (i.e., October 2005 through September 2006), 73,880 foreign professionals (64,633 Canadians and 9,247 Mexicans) were admitted into the United States for temporary employment under NAFTA (i.e., in the TN status). Additionally, 17,321 of their family members (13,136 Canadians, 2,904 Mexicans, as well as a number of third-country nationals married to Canadians and Mexicans) entered the U.S. in the treaty national's dependent (TD) status.[21] Because DHS counts the number of the new I-94 arrival records filled at the border, and the TN-1 admission is valid for three years, the number of non-immigrants in TN status present in the U.S. at the end of the fiscal year is approximately equal to the number of admissions during the year. (A discrepancy may be caused by some TN entrants leaving the country or changing status before their three-year admission period has expired, while other immigrants admitted earlier may change their status to TN or TD, or extend TN status granted earlier).Canadian authorities estimated that, as of December 1, 2006, a total of 24,830 U.S. citizens and 15,219 Mexican citizens were present in Canada as "foreign workers". These numbers include both entrants under the NAFTA agreement and those who have entered under other provisions of the Canadian immigration law.[22] New entries of foreign workers in 2006 were 16,841 (U.S. citizens) and 13,933 (Mexicans).[23][edit] Criticism and controversies[edit] Canadian disputesThis article is outdated. Please update this article to reflect recent events or newly available information. Please see the talk page for more information. (August 2009)

Garment workers assemble suits in a Toronto factory in 1901There is much concern in Canada over the provision that if something is sold even once as a commodity, the government cannot stop its sale in the future.[24] This applies to the water from Canada's lakes and rivers, fueling fears over the possible destruction of Canadian ecosystems and water supply.In 1999, Sun Belt Water Inc., a company out of Santa Barbara, California, filed an Arbitration Claim under Chapter 11 of the NAFTA claiming $105 million as a result of Canada's prohibition on the export of bulk water by marine tanker, a move that destroyed the Sun Belt business venture. The claim sent shock waves through Canadian governments that scrambled to update water legislation and remains unresolved.Other fears come from the effects NAFTA has had on Canadian lawmaking. In 1996, the gasoline additive MMT was brought into Canada by an American company. At the time, the Canadian federal government banned the importation of the additive. The American company brought a claim under NAFTA Chapter 11 seeking US$201 million,[25] from the Canadian government and the Canadian provinces under the Agreement on Internal Trade ("AIT"). The American company argued that their additive had not been conclusively linked to any health dangers, and that the prohibition was damaging to their company. Following a finding that the ban was a violation of the AIT,[26] the Canadian federal government repealed the ban and settled with the American company for US$13 million.[27] Studies by Health and Welfare Canada (now Health Canada) on the health effects of MMT in fuel found no significant health effects associated with exposure to these exhaust emissions. Other Canadian researchers and the U.S. Environmental Protection Agency disagree with Health Canada, and cite studies that include possible nerve damage.[28]

Ponderosa Pine logs taken from Malheur National Forest, Grant County, Oregon.The United States and Canada had been arguing for years over the United States' decision to impose a 27 percent duty on Canadian softwood lumber imports, until new Canadian Prime Minister Stephen Harper compromised with the United States and reached a settlement on July 1, 2006.[29] The settlement has not yet been ratified by either country, in part due to domestic opposition in Canada.Canada had filed numerous motions to have the duty eliminated and the collected duties returned to Canada.[30] After the United States lost an appeal from a NAFTA panel, it responded by saying "We are, of course, disappointed with the [NAFTA panel's] decision, but it will have no impact on the anti-dumping and countervailing duty orders." (Nick Lifton, spokesman for U.S. Trade Representative Rob Portman)[31] On July 21, 2006, the United States Court of International Trade found that imposition of the duties was contrary to U.S. law.[32][33][edit] Change in income trust taxationOn October 30, 2007, American citizens Marvin and Elaine Gottlieb filed a Notice of Intent to Submit a Claim to Arbitration under NAFTA. The couple claims thousands of U.S. investors lost a total of $5 billion dollars in the fall-out from the Conservative Government's decision the previous year to change the tax rate on income trusts in the energy sector. On April 29, 2009, a determination was made that this change in tax law was not expropriation.[34][edit] Further criticism in CanadaA book written by Mel Hurtig published in 2002 called The Vanishing Country charged that since NAFTA's ratification more than 10,000 Canadian companies had been taken over by foreigners, and that 98% of all foreign direct investments in Canada were for foreign takeovers.[35]The term "the Double Yu(c)k Alliance aka NAFTA from Yukon to Yucatn" was first used in 1994 by Miodrag Kojadinovi in his article "Friends and Neighbours: Dear Prime Minister of Canada, Kindly Join the EU Next Thursday".[36][edit] U.S. deindustrializationFor more details on this topic, see NAFTA's effect on United States employment.

Studies done by Kate Bronfenbrenner at Cornell University showed the adverse effect of plants threatening to move to Mexico because of NAFTA.[37]An increase in domestic manufacturing output and a proportionally greater domestic investment in manufacturing does not necessarily mean an increase in domestic manufacturing jobs; this increase may simply reflect greater automation and higher productivity. Although the U.S. total civilian employment may have grown by almost 15 million in between 1993 and 2001, manufacturing jobs only increased by 476,000 in the same time period.[38] Furthermore from 1994 to 2007, net manufacturing employment has declined by 3,654,000, and during this period several other free trade agreements have been concluded or expanded.[38][edit] Impact on Mexican farmersIn 2000, U.S. government subsidies to the corn sector totaled $10.1 billion. These subsidies have led to charges of dumping, which jeopardizes Mexican farms and the country's food self-sufficiency.Other studies reject NAFTA as the force responsible for depressing the incomes of poor corn farmers, citing the trend's existence more than a decade before NAFTA's existence, an increase in maize production after NAFTA went into effect in 1994, and the lack of a measurable impact on the price of Mexican corn due to subsidized corn coming into Mexico from the United States, though they agree that the abolition of U.S. agricultural subsidies would benefit Mexican farmers.[39] According to Graham Purchase in Anarchism and Environmental Survival, NAFTA could cause "the destruction of the ejidos (peasant cooperative village holdings) by corporate interests, and threatens to completely reverse the gains made by rural peoples in the Mexican Revolution."[40][edit] Zapatista Uprising in response to NAFTA in ChiapasThe preparations for NAFTA included cancellation of Article 27 of Mexico's constitution, the cornerstone of Emiliano Zapata's revolution of 19101919. Under the historic Article 27, Indian communal landholdings were protected from sale or privatization. But under NAFTA this guarantee was defined as a barrier to investment. With the removal of Article 27, Indian farmers would be threatened with loss of their remaining lands, and also flooded with cheap imports (substitutes) from the US. Thus, the Zapatistas labeled NAFTA as a "death sentence" to Indian communities all over Mexico. Then EZLN declared war on the Mexican state on January 1, 1994, the day NAFTA came into force.[41][edit] Impact of NAFTA on CanadaLike Mexico and the U.S., Canada received a modest positive economic benefit as measured by GDP. Canadian manufacturing employment held steady despite an international downward trend in developed countries. One of NAFTA's biggest economic effects on U.S.-Canada trade has been to boost bilateral agricultural flows.[42] In the year 2008 alone, Canada exports to the United States and Mexico was at CAN$381.3 Billion Dollars and imports from NAFTA was at CAN$245.1 Billion Dollars.[43] The Canadian mainstream has been so unanimous in its recognition of NAFTA's advantages despite a few odd detractors that even former NDP Gary Doer of Manitoba openly praises the benefits of NAFTA.[44][edit] Chapter 11Another contentious issue is the impact of the Investor state dispute settlement obligations contained in Chapter 11 of the NAFTA.[45] Chapter 11 allows corporations or individuals to sue Mexico, Canada or the United States for compensation when actions taken by those governments (or by those for whom they are responsible at international law, such as provincial, state, or municipal governments) have adversely affected their investments.This chapter has been invoked in cases where governments have passed laws or regulations with intent to protect their constituents and their resident businesses' profits. Language in the chapter defining its scope states that it cannot be used to "prevent a Party from providing a service or performing a function such as law enforcement, correctional services, income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care, in a manner that is not inconsistent with this Chapter."[46]This chapter has been criticized by groups in the U.S.,[47] Mexico,[48] and Canada[49] for a variety of reasons, including not taking into account important social and environmental[50] considerations. In Canada, several groups, including the Council of Canadians, challenged the constitutionality of Chapter 11. They lost at the trial level,[51] and have subsequently appealed.Methanex Corporation, a Canadian corporation, filed a US$970 million suit against the United States, claiming that a California ban on Methyl tert-butyl ether (MTBE), a substance that had found its way into many wells in the state, was hurtful to the corporation's sales of methanol. However, the claim was rejected, and the company was ordered to pay US$3 million to the U.S. government in costs.[52]In another case, Metalclad, an American corporation, was awarded US$15.6 million from Mexico after a Mexican municipality refused a construction permit for the hazardous waste landfill it intended to construct in Guadalczar, San Luis Potos. The construction had already been approved by the federal government with various environmental requirements imposed (see paragraph 48 of the tribunal decision). The NAFTA panel found that the municipality did not have the authority to ban construction on the basis of the environmental concerns.[53][edit] Chapter 19Also contentious is NAFTA's Chapter 19, which subjects antidumping and countervailing duty (AD/CVD) determinations to binational panel review instead of, or in addition to, conventional judicial review. For example, in the United States, review of agency decisions imposing antidumping and countervailing duties are normally heard before the U.S. Court of International Trade, an Article III court. NAFTA parties, however, have the option of appealing the decisions to binational panels composed of five citizens from the two relevant NAFTA countries. The panelists are generally lawyers experienced in international trade law. Since the NAFTA does not include substantive provisions concerning AD/CVD, the panel is charged with determining whether final agency determinations involving AD/CVD conform with the country's domestic law. Chapter 19 can be considered as somewhat of an anomaly in international dispute settlement since it does not apply international law, but requires a panel composed of individuals from many countries to reexamine the application of one country's domestic law.A Chapter 19 panel is expected to examine whether the agency's determination is supported by "substantial evidence." This standard assumes significant deference to the domestic agency. Some of the most controversial trade disputes in recent years, such as the U.S.-Canada softwood lumber dispute, have been litigated before Chapter 19 panels.Decisions by Chapter 19 panels can be challenged before a NAFTA extraordinary challenge committee. However, an extraordinary challenge committee does not function as an ordinary appeal. Under the NAFTA, it will only vacate or remand a decision if the decision involves a significant and material error that threatens the integrity of the NAFTA dispute settlement system. Since January 2006, no NAFTA party has successfully challenged a Chapter 19 panel's decision before an extraordinary challenge committee.North American Free Trade Agreement (NAFTA)

Implementation of the North American Free Trade Agreement (NAFTA) began on January 1, 1994. This agreement will remove most barriers to trade and investment among the United States, Canada, and Mexico. Under the NAFTA, all non-tariff barriers to agricultural trade between the United States and Mexico were eliminated. In addition, many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years. This allowed for an orderly adjustment to free trade with Mexico, with full implementation beginning January 1, 2008. The agricultural provisions of the U.S.-Canada Free Trade Agreement, in effect since 1989, were incorporated into the NAFTA. Under these provisions, all tariffs affecting agricultural trade between the United States and Canada, with a few exceptions for items covered by tariff-rate quotas, were removed by January 1, 1998.Mexico and Canada reached a separate bilateral NAFTA agreement on market access for agricultural products. The Mexican-Canadian agreement eliminated most tariffs either immediately or over 5, 10, or 15 years. Tariffs between the two countries affecting trade in dairy, poultry, eggs, and sugar are maintained.North American Free Trade Agreement (NAFTA)

On January 1, 1994, the North American Free Trade Agreement between the United States, Canada, and Mexico (NAFTA) entered into force.All remaining duties and quantitative restrictions were eliminated, as scheduled, on January 1, 2008.NAFTA created the world's largest free trade area, which now links 450 million people producing $17 trillion worth of goods and services.Trade between the United States and its NAFTA partners has soared since the agreement entered into force.U.S. goods and services trade with NAFTA totaled $1.6 trillion in 2009 (latest data available for goods and services trade combined). Exports totaled $397 billion. Imports totaled $438 billion. The U.S. goods and services trade deficit with NAFTA was $41 billion in 2009.The United States has $918 billion in total (two ways) goods trade with NAFTA countries (Canada and Mexico) during 2010. Goods exports totaled $412 billion; Goods imports totaled $506 billion. The U.S. goods trade deficit with NAFTA was $95 billion in 2010.Trade in services with NAFTA (exports and imports) totaled $99 billion in 2009 (latest data available for services trade). Services exports were $63.8 billion. Services imports were $35.5 billion. The U.S. services trade surplus with NAFTA was $28.3 billion in 2009.Exports The NAFTA countries (Canada and Mexico), were the top two purchasers of U.S. exports in 2010. (Canada $248.2 billion and Mexico $163.3 billion).U.S. goods exports to NAFTA in 2010 were $411.5 billion, up 23.4% ($78 billion) from 2009, and 149% from 1994 (the year prior to Uruguay Round) and up 190% from 1993 (the year prior to NAFTA). U.S. exports to NAFTA accounted for 32.2% of overall U.S. exports in 2010.The top export categories (2-digit HS) in 2010 were: Machinery ($63.3 billion), Vehicles (parts) ($56.7 billion), Electrical Machinery ($56.2 billion), Mineral Fuel and Oil ($26.7 billion), and Plastic ($22.6 billion).U.S. exports of agricultural products to NAFTA countries totaled $31.4 billion in 2010. Leading categories include: red meats, fresh/chilled/frozen ($2.7 billion), coarse grains ($2.2 million), fresh fruit ($1.9 billion), snack foods (excluding nuts) ($1.8 billion), and fresh vegetables ($1.7 billion).U.S. exports of private commercial services* (i.e., excluding military and government) to NAFTA were$63.8 billion in 2009 (latest data available), down 7% ($4.6 billion) from 2008, but up 125% since 1994.Imports The NAFTA countries were the second and third largest suppliers of goods imports to the United States in 2010. (Canada $276.5 billon, and Mexico $229.7 billion).U.S. goods imports from NAFTA totaled $506.1 billion in 2010, up 25.6% ($103 billion), from 2009, and up 184% from 1994, and up 235% from 1993. U.S. imports from NAFTA accounted for 26.5% of overall U.S. imports in 2010.The five largest categories in 2010 were Mineral Fuel and Oil (crude oil) ($116.2 billion), Vehicles ($86.3 billion), Electrical Machinery ($61.8 billion), Machinery ($51.2 billion), and Precious Stones (gold) ($13.9).U.S. imports of agricultural products from NAFTA countries totaled $29.8 billion in 2010. Leading categories include: fresh vegetables ($4.6 billion), snack foods, (including chocolate) ($4.0 billion), fresh fruit (excluding bananas) ($2.4 billion), live animals ($2.0 billion), and red meats, fresh/chilled/frozen ($2.0 billion).U.S. imports of private commercial services* (i.e., excluding military and government) were $35.5 billion in 2009 (latest data available), down 11.2% ($4.5 billion) from 2008, but up 100% since 1994.Trade BalancesThe U.S. goods trade deficit with NAFTA was $94.6 billion in 2010, a 36.4% increase ($25 billion) over 2009. The U.S. goods trade deficit with NAFTA accounted for 26.8% of the overall U.S. goods trade deficit in 2010. The United States had a services trade surplus of $28.3 billion with NAFTA countries in 2009 (latest data available).InvestmentU.S. foreign direct investment (FDI) in NAFTA Countries (stock) was $357.7 billion in 2009 (latest data available), up 8.8% from 2008.U.S. direct investment in NAFTA Countries is in nonbank holding companies, and in the manufacturing, finance/insurance, and mining sectors.NAFTA Countries FDI in the United States (stock) was $237.2 billion in 2009 (latest data available), up 16.5% from 2008.NAFTA countries direct investment in the U.S. is in the manufacturing, finance/insurance, and banking sectors.NOTE: Refers to private services trade not including military sales, direct defense expenditures, and other miscellaneous U.S. government services.South Asian Free Trade Area From Wikipedia, the free encyclopediaJump to: navigation, search

Countries under the South Asian Free Trade AreaThe South Asian Free Trade Area or SAFTA is a pact signed in 6 January 2004 that would gradually eliminate most tariffs and other trade barriers on products and services passing between Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Afghanistan and Sri Lanka. The pact would effectively create a free-trade bloc among the eight countries of South Asia.The SAFTA agreement came into force on 1 January 2006 and is operational following the ratification of the agreement by the seven governments. SAFTA requires the developing countries in South Asia (India, Pakistan and Sri Lanka) to bring their duties down to 20 percent in the first phase of the two year period ending in 2007. In the final five year phase ending 2012, the 20 percent duty will be reduced to zero in a series of annual cuts. The least developed nations in South Asia (Nepal, Bhutan, Bangladesh, Afghanistan and Maldives) have an additional three years to reduce tariffs to zero. India and Pakistan ratified the treaty in 2009, whereas Afghanistan as the 8th memberstate of the SAARC ratified the SAFTA protocol on the 4th of May 2011.[1]SAFTAs main provisions called for the gradual reduction of tariffs, customs duties, and other trade barriers between the seven members, with some tariffs being removed immediately and others over periods of several years. SAFTA ensured eventual duty-free access for a vast range of manufactured goods and commodities traded between the signatories.Contents[hide] 1 History 2 Purpose of the agreement 3 Objective 4 Instruments 5 Trade Liberalisation Programme 6 Sensitive list 7 References 8 See also 9 External links

[edit] HistoryThe Agreement on SAARC Preferential trading Arrangement (SAPTA)[2] was signed on 11 April 1994 and entered into force on 7 December 1995, with the desire of the Member States of SAARC (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives) to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of concessions.The establishment of an Inter-Governmental Group (IGG) to formulate an agreement to establish a SAPTA by 1997 was approved in the Sixth Summit of SAARC held in Colombo in December 1991.The basic principles underlying SAPTA are:1. overall reciprocity and mutuality of advantages so as to benefit equitably all Contracting States, taking into account their respective level of economic and industrial development, the pattern of their external trade, and trade and tariff policies and systems;2. negotiation of tariff reform step by step, improved and extended in successive stages through periodic reviews;3. recognition of the special needs of the Least Developed Contracting States and agreement on concrete preferential measures in their favour;4. inclusion of all products, manufactures and commodities in their raw, semi-processed and processed forms.[edit] Purpose of the agreementThe purpose of SAFTA is to encourage and elevate common contract among the countries such as medium and long term contracts. Contracts involving trade operated by states, supply and import assurance in respect of specific products etc. It involves agreement on tariff concession like national duties concession and non-tariff concession.[edit] ObjectiveThe objective of the agreement is to promote good competition in the free trade area and to provide equitable benefits to all the countries involved in the contracts. It aimed to benefit the people of the country by bringing transparency and integrity among the nations. SAFTA was also formed in order to increase the level of trade and economic cooperation among the SAARC nations by reducing the tariff and barriers and also to provide special preference to the Least Developed Countries (LDCs)among the SAARC nations.[edit] InstrumentsFollowing are the instrument involved in SAFTA:- Trade Liberalisation Programme Rules of Origin Institutional Arrangements Consultations and Dispute Settlement Procedures Safeguard Measures Any other instrument that may be agreed upon.[3][edit] Trade Liberalisation ProgrammeAccording to the Trade Liberalisation Programme Contracting countries must follow the following tariff reduction schedule. There should be a fall to 20% tariff from the existing tariff by the Non Least Developing Countries and 30% reduction from the existing tariff by the Least Developing Countries. But trade liberalisation scheme is not be applied for the sensitive list because this list is to be negotiated among the contracting countries and then to be traded. Sensitive list will involve common agreement among the contracting countries favouring the least developed contracting countries. SAFTA Ministerial Council (SMC) will be participating to review the sensitive list in every four year with view of reducing the list.[edit] Sensitive listSensitive list is a list with every country which does not include tariff concession. Bangladesh has 1,233 products on the sensitive list for the Least Developing countries and 1,241 for the non-Least developing countries under the SAFTA. Bangladesh will reduce the sensitive list by 246 items for the least developed countries (LDCs) and 248 for the non-LDCs.[4] India has 480 items on the sensitive list for the LDCs and 868 for the non-LDCs. Dr Manmohan Singh announced on the September in Dhaka that he will reduce the Sensitive List by 46.Bhutan has 150 items for both the LDCs and non-LDCs and has no plan of shortening its list.Nepal has 1,257 for the LDCs and 1,295 for the non-LDCs. Nepal has reduced its list by 259 from its previous list of 1295. Now its 1036 said joint secretary at Ministry of Commerce and Supplies.[5]The Maldives has 681 for all seven SAFTA nations.Pakistan had 1,169 in its sensitive list but has cut its sensitive list by 20%. Now the list has shortened from 1169 to 936.[6]Sri Lanka has 1,042 and Afghanistan has 1,072 items on the negative list Bangladesh

Bhutan

India

Maldives

Nepal

Pakistan

Sri Lanka

About SAARC SAARC Charter Charter Day Charter Day 2011 Charter Day 2010 CHARTER DAY CELEBRATIONS SAARC Summit Fifteenth SAARC Summit Sixteenth SAARC Summit Charter Bodies Council of Ministers Standing Committee Technical Committees Programming Committee Other Mechanisms Working Groups Regional Centers Designated SAARC Decades Designated SAARC Years Apex and Recognised Bodies Awards SAARC Award SAARC Youth Award Cooperation with Observers Cooperation with Inter-Governmental Organisations Areas of Cooperation Agriculture and Rural Meeting of SAARC Agriculture/ Food Ministers Technical Committee on Agriculture and Rural Development (TCARD) Biotechnology Culture SAARC Agenda for Culture Economic and Trade Cooperation in Standards Customs Cooperation SAARCSTAT SAARC Trade Fairs SCCI SAFTA Protocol Revised Sensitive Lists under SAFTA (Phase-II) SAARC Arbitration Council South Asian Free Trade Area (SAFTA) SAARC Preferential Trading Arrangement (SAPTA) Energy Fourth Meeting of SAARC Energy Ministers Environment COP Meetings South Asia Environment Outlook (SAEO) 2009 Finance Financial Cooperation SAARCFINANCE Key Economic Indicators of Member States Funding Mechanism Human Resource Development Establishment of South Asian University SAARC Chair, Fellowship and Scholarship Scheme Open and Distance Learning Committee of Heads of University Grants Commission/Equivalent Bodies Culture Education Information, Communication and Media People-to-People Contacts Poverty Alleviation Regional Poverty Profile Science and Technology Security Aspects SAARC Coordination Group of Drug Law Enforcement Agencies SAARC Terrorist Offences Monitoring Desk (STOMD) SAARC Drug Offences Monitoring Desk (SDOMD) SAARC Convention on Narcotic Drugs and Psychotropic Substances SAARC Regional Convention on Suppression of Terrorism and its Additional Protocol SAARC Conference on Cooperation in Police Matters Meeting of the SAARC Interior/Home Ministers Social Development Health Gender related issues Youth Children SAARC Social Charter Saarc Gender Info Base Tourism Agreements and Conventions Agreements SAARC Conventions Declarations Summit Declarations Ministerial Declarations Statements SAARC Charter of Democracy SAARC Visa Exemption Scheme SAARC Secretariat Directors of the SAARC Secretariat Mohamed Ibrahim Ghafoori Tareque Muhammad PEMA L. DORJI AMRIT LUGUN IBRAHIM ZUHUREE DHAN BAHADUR OLI Director, Pakistan R.D. RAJAPAKSE Former Secretaries-General Former Directors Contacts Monthly Upcoming Activities Publications Photo Gallery Video Gallery News Updates Secretariat Blogs Announcements Press Releases Statements Vacancies Links Scholarships Procurement Vacancy Announcements SAARC Regional Center Vacancies OthersSouth Asian Free Trade Area (SAFTA)

SAPTA was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union, Common Market and Economic Union. In 1995, the Sixteenth session of the Council of Ministers (New Delhi, 18-19 December 1995) agreed on the need to strive for the realization of SAFTA and to this end an Inter-Governmental Expert Group (IGEG) was set up in 1996 to identify the necessary steps for progressing to a free trade area. The Tenth SAARC Summit (Colombo, 29-31 July 1998) decided to set up a Committee of Experts (COE) to draft a comprehensive treaty framework for creating a free trade area within the region, taking into consideration the asymmetries in development within the region and bearing in mind the need to fix realistic and achievable targets.The SAFTA Agreement was signed on 6 January 2004 during Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force on 1 January 2006, and the Trade Liberalization Programme commenced from 1st July 2006. Following the Agreement coming into force the SAFTA Ministerial Council (SMC) has been established comprising the Commerce Ministers of the Member States. To assist the SMC, a SAFTA Committee of Experts (SCOE) has been formed. SCOE is expected to submit its report to SMC every six months. The SAFTA Agreement states that the the SMC shall meet at least once every year or more oftenas and when considered necessary by the Contracting States. Each Contracting State shall chair the SMC for a period of one year on rotational basis in alphabetical order. The Meetings of SMC and SCOE held so far are:MEETINGS OFSAFTA COMMITTEE OF EXPERTS1.First Meeting of the SAFTA Committee of ExpertsDhaka, 18-19 April 2006

2.Second Meeting of the SAFTA Committee of ExpertsSAARC Secretariat, Kathmandu, 24-25 February 2007

3.Third Meeting of the SAFTA Committee of ExpertsNew Delhi, 1-2 March 2008

4.Fourth Meeting of the SAFTA Committee of ExpertsSAARC Secretariat, Kathmandu4-5 November 2008

5.Fifth Meeting of SAFTA Committee of ExpertsKathmandu, 26-27 Oct 2009

6.Sixth Meeting of SAFTA Committee of ExpertsMaldives, 11-12 June 2011

7.Special Meeting of SAFTA Committee of ExpertsSAARC Secretariat,23 September 2011 (proposed)

8.Seventh Meeting of SAFTA Committee of ExpertsPakistan, first quarter of 2012

MEETINGS OFSAFTA MINISTERIAL COUNCIL1.First Meeting of the SAFTA Ministerial CouncilDhaka, 20 April 2006

2.Second Meeting of the SAFTA Ministerial CouncilSAARC Secretariat, Kathmandu, 26 February 2007

3.Third Meeting of the SAFTA Ministerial CouncilNew Delhi, 3 March 2008

4.Fourth Meeting of the SAFTA Ministerial CouncilKathmandu, 28 Oct 2009

5.Fifth Meeting of the SAFTA Ministerial CouncilMaldives, 13 June 2011

5.Sixth Meeting of the SAFTA Ministerial CouncilPakistan, first quarter of 2012

Intra-SAARC Trade Flows under SAFTAThe exports under SAFTA have been witnessing considerable upward trend since the launching of the Trade Liberalisation Programme (TLP).As of 10 August 2011, the total f.o.b. value of exports by Member States under SAFTA has reached to around US$ 1.3 billion since launching of SAFTA Trade Liberalisation Programme (i.e. July 2006) as per details given below:YearBangladeshIndiaMaldivesPakistanSri LankaTotal

20060.000.0014,001.1555,324.000.0069,325.15

200715,273,177.843,783,410.310.00576,164.9919,828.0219,652,581.16

200898,316,963.168,984,420.680.0031,796,718.5140,789.22139,138,891.57

2009199,786,454.72315,256,736.340.0043,509,984.90608,623.96559,161,799.92

2010236,711,501.24276,933,455.740.0056,119,007.59517,566.00570,281,530.57

201174,609.0074,609.00

Total550,088,096.96604,958,023.0714,001.15132,057,199.991,261,416.201,288,378,737.37

As indicated above, the figure of total exports under SAFTA has reached about US$ 1.3 billion but is still far below the potential. For smooth functioning of the SAFTA, customs notifications for implementing Trade Liberalisation Programme (TLP) are issued as per the agreed timeline by the Member States. While reduction in the size of Sensitive Lists is important to increase the quantum of regional trade, efforts are made to take out those products out of the Sensitive Lists that are of export interests to the SAARC Member States for trade within South Asia. Association of Southeast Asian Nations From Wikipedia, the free encyclopediaJump to: navigation, search Association of Southeast Asian NationsASEAN[show] Perhimpunan Bangsa-bangsa Asia Tenggara (Indonesian) (Khmer) (Lao)Persatuan Negara-negara Asia Tenggara (Malay) (Burmese) (Tamil) (Thai)Samahan ng mga Bansa sa Timog-silangang Asya (Tagalog)Hip hi cc quc gia ng Nam (Vietnamese) (Chinese)

FlagEmblem

Motto:One Vision, One Identity, One Community[1]

Anthem:The ASEAN Way The ASEAN Way

Seat of SecretariatJakarta

Working languageEnglish[show] Burmese Chinese English Filipino Indonesian Khmer Lao Malay Tamil Thai Vietnamese

DemonymSoutheast Asian

Member states10[show] Brunei Cambodia Indonesia Laos Malaysia Burma (Myanmar) Philippines Singapore Thailand Vietnam

Leaders

-Secretary-GeneralSurin Pitsuwan

-ASEAN Summit PresidencyCambodia [2]

Establishment

-Bangkok Declaration8 August 1967

-Charter16 December 2008

Area

-Total4,479,210.5km22,778,124.7sqmi

Population

-2010estimate601 million

-Density135/km2216/sqmi

GDP(PPP)2010estimate

-TotalUS$ 3.084trillion[3]

-Per capitaUS$ 5,131

GDP (nominal)2010estimate

-TotalUS$ 1.800trillion

-Per capitaUS$ 2,995

HDI(2011)0.625[4](medium)(120th)

Currency10[show] Brunei dollar Cambodian riel Indonesian rupiah Lao kip Malaysian ringgit Burmese kyat Philippine peso Singaporean dollar Thai baht Vietnamese dong

Time zoneASEAN (UTC+9 to +6:30)

Internet TLD10[show] .bn .id .kh .la .mm .my .ph .sg .th .vn

Websitewww.asean.org

Calling code10[show] +60 +62 +63 +65 +66 +84 +95 +673 +855 +856

1If considered as a single entity.

2Selected key basic ASEAN indicators

3Annual growth 1.6%

Wikisource has original text related to this article: Bangkok Declaration

The Secretariat of ASEAN at Jalan Sisingamangaraja No.70A, South Jakarta, Indonesia.The Association of Southeast Asian Nations[5] (ASEAN /si.n/ AH-see-ahn,[6] rarely /zi.n/ AH-zee-ahn)[7][8] is a geo-political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand.[9] Since then, membership has expanded to include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating economic growth, social progress, cultural development among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.[10]ASEAN covers a land area of 4.46million km, which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2010, its combined nominal GDP had grown to US$1.8trillion.[11] If ASEAN were a single entity, it would rank as the ninth largest economy in the world, behind the United States, China, Japan, Germany, France, Brazil, the United Kingdom, and Italy.Contents[hide] 1 History 1.1 Continued expansion 1.2 Environment and democracy 2 The ASEAN way 2.1 Policies 3 Meetings 3.1 ASEAN Summit 3.2 East Asia Summit 3.3 Commemorative summit 3.4 Regional Forum 3.5 Other meetings 3.5.1 Another Three 3.5.2 Asia-Europe Meeting 3.5.3 ASEAN-Russia Summit 3.5.4 ASEAN Foreign Ministers Meeting 4 Economic Community 4.1 From CEPT to AEC 4.2 Comprehensive Investment Area 4.3 Trade in Services 4.4 Single Aviation Market 4.5 Free Trade Agreements With Other Countries 4.6 ASEAN six majors 4.7 From CMI to AMRO 4.8 Foreign Direct Investment 4.9 Intra-ASEAN travel 4.10 Intra-ASEAN trade 5 Charter 6 Cultural activities 6.1 S.E.A. Write Award 6.2 ASAIHL 6.3 Heritage Parks 6.3.1 List 6.4 Official song 7 Education and Human Development 7.1 University Network 7.2 Scholarship 8 Sports 8.1 Southeast Asian Games 8.2 ASEAN Para Games 8.3 FESPIC Games/ Asian Para Games 8.4 Football Championship 8.5 ASEAN 2030 FIFA World Cup bid 9 ASEAN Defense Industry Collaboration 10 Criticism 11 See also 12 References 13 External links

[edit] HistorySee also: List of ASEAN member statesASEAN was preceded by an organisation called the Association of Southeast Asia, commonly called ASA, an alliance consisting of the Philippines, Malaysia and Thailand that was formed in 1961. The bloc itself, however, was established on 8 August 1967, when foreign ministers of five countries Indonesia, Malaysia, the Philippines, Singapore, and Thailand met at the Thai Department of Foreign Affairs building in Bangkok and signed the ASEAN Declaration, more commonly known as the Bangkok Declaration. The five foreign ministers Adam Malik of Indonesia, Narciso Ramos of the Philippines, Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand are considered the organisation's Founding Fathers.[12]The motivations for the birth of ASEAN were so that its members governing elite could concentrate on nation building, the common fear of communism, reduced faith in or mistrust of external powers in the 1960s, and a desire for economic development; not to mention Indonesias ambition to become a regional hegemon through regional cooperation and the hope on the part of Malaysia and Singapore to constrain Indonesia and bring it into a more cooperative framework.Papua New Guinea was accorded Observer status in 1976 and Special Observer status in 1981.[13] Papua New Guinea is a Melanesian state. ASEAN embarked on a program of economic cooperation following the Bali Summit of 1976. This floundered in the mid-1980s and was only revived around 1991 due to a Thai proposal for a regional free trade area. The bloc grew when Brunei Darussalam became the sixth member on 8 January 1984, barely a week after gaining independence on 1 January.[14][edit] Continued expansionSee also: Enlargement of Association of Southeast Asian NationsOn 28 July 1995, Vietnam became the seventh member.[15] Laos and Myanmar (Burma) joined two years later on 23 July 1997.[16] Cambodia was to have joined together with Laos and Burma, but was deferred due to the country's internal political struggle. The country later joined on 30 April 1999, following the stabilisation of its government.[16][17]During the 1990s, the bloc experienced an increase in both membership and drive for further integration. In 1990, Malaysia proposed the creation of an East Asia Economic Caucus[18] comprising the then members of ASEAN as well as the People's Republic of China, Japan, and South Korea, with the intention of counterbalancing the growing influence of the United States in the Asia-Pacific Economic Cooperation (APEC) and in the Asian region as a whole.[19][20] This proposal failed, however, because of heavy opposition from the United States and Japan.[19][21] Despite this failure, member states continued to work for further integration and ASEAN Plus Three was created in 1997.In 1992, the Common Effective Preferential Tariff (CEPT) scheme was signed as a schedule for phasing tariffs and as a goal to increase the regions competitive advantage as a production base geared for the world market. This law would act as the framework for the ASEAN Free Trade Area. After the East Asian Financial Crisis of 1997, a revival of the Malaysian proposal was established in Chiang Mai, known as the Chiang Mai Initiative, which calls for better integration between the economies of ASEAN as well as the ASEAN Plus Three countries (China, Japan, and South Korea).[22]Aside from improving each member state's economies, the bloc also focused on peace and stability in the region. On 15 December 1995, the Southeast Asian Nuclear-Weapon-Free Zone Treaty was signed with the intention of turning Southeast Asia into a Nuclear-Weapon-Free Zone. The treaty took effect on 28 March 1997 after all but one of the member states have ratified it. It became fully effective on 21 June 2001, after the Philippines ratified it, effectively banning all nuclear weapons in the region.[23]

Satellite image of the 2006 haze over BorneoEast Timor submitted a letter of application to be the eleventh member of ASEAN at the summit in Jakarta in March 2011. Indonesia has shown a warm welcome to East Timor.[24][25][26][edit] Environment and democracyAt the turn of the 21st century, issues shifted to involve a more environmental perspective. The organisation started to discuss environmental agreements. These included the signing of the ASEAN Agreement on Transboundary Haze Pollution in 2002 as an attempt to control haze pollution in Southeast Asia.[27] Unfortunately, this was unsuccessful due to the outbreaks of the 2005 Malaysian haze and the 2006 Southeast Asian haze. Other environmental treaties introduced by the organisation include the Cebu Declaration on East Asian Energy Security,[28] the ASEAN Wildlife Enforcement Network in 2005,[29] and the Asia-Pacific Partnership on Clean Development and Climate, both of which are responses to the potential effects of climate change. Climate change is of current interest.Through the Bali Concord II in 2003, ASEAN has subscribed to the notion of democratic peace, which means all member countries believe democratic processes will promote regional peace and stability. Also, the non-democratic members all agreed that it was something all member states should aspire to.[30]The leaders of each country, particularly Mahathir Mohamad of Malaysia, also felt the need to further integrate the region. Beginning in 1997, the bloc began creating organisations within its framework with the intention of achieving this goal. ASEAN Plus Three was the first of these and was created to improve existing ties with the People's Republic of China, Japan, and South Korea. This was followed by the even larger East Asia Summit, which included these countries as well as India, Australia, and New Zealand. This new grouping acted as a prerequisite for the planned East Asia Community, which was supposedly patterned after the now-defunct European Community. The ASEAN Eminent Persons Group was created to study the possible successes and failures of this policy as well as the possibility of drafting an ASEAN Charter.In 2006, ASEAN was given observer status at the United Nations General Assembly.[31] As a response, the organisation awarded the status of "dialogue partner" to the United Nations.[32] Furthermore, on 23 July that year, Jos Ramos-Horta, then Prime Minister of East Timor, signed a formal request for membership and expected the accession process to last at least five years before the then-observer state became a full member.[33][34]In 2007, ASEAN celebrated its 40th anniversary since its inception, and 30years of diplomatic relations with the United States.[35] On 26 August 2007, ASEAN stated that it aims to complete all its free trade agreements with China, Japan, South Korea, India, Australia and New Zealand by 2013, in line with the establishment of the ASEAN Economic Community by 2015.[36][37] In November 2007 the ASEAN members signed the ASEAN Charter, a constitution governing relations among the ASEAN members and establishing ASEAN itself as an international legal entity.[citation needed] During the same year, the Cebu Declaration on East Asian Energy Security was signed in Cebu on 15 January 2007, by ASEAN and the other members of the EAS (Australia, People's Republic of China, India, Japan, New Zealand, South Korea), which promotes energy security by finding energy alternatives to conventional fuels.[citation needed]On 27 February 2009 a Free Trade Agreement with the ASEAN regional block of 10 countries and New Zealand and its close partner Australia was signed, it is estimated that this FTA would boost aggregate GDP across the 12 countries by more than US$48billion over the period 20002020.[38][39][edit] The ASEAN way

The flags of 10 ASEAN members.In the 1960s, the push for decolonisation promoted the sovereignty of Indonesia and Malaysia among others. Since nation building is often messy and vulnerable to foreign intervention, the governing elite wanted to be free to implement independent policies with the knowledge that neighbours would refrain from interfering in their domestic affairs. Territorially small members such as Singapore and Brunei were consciously fearful of force and coercive measures from much bigger neighbours like Indonesia and Malaysia. "Through political dialogue and confidence building, no tension has escalated into armed confrontation among ASEAN member countries since its establishment more than three decades ago".[40]The ASEAN way can be traced back to the signing of the Treaty of Amity and Cooperation in Southeast Asia. "Fundamental principles adopted from this included: 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".[41]On the surface, the process of consultations and consensus is supposed to be a democratic approach to decision making, but the ASEAN process has been managed through close interpersonal contacts among the top leaders only, who often share a reluctance to institutionalise and legalise co-operation which can undermine their regime's control over the conduct of regional co-operation. Thus, the organisation is chaired by the secretariat.[42]All of these features, namely non-interference, informality, minimal institutionalisation, consultation and consensus, non-use of force and non-confrontation have constituted what is called the ASEAN Way. This ASEAN Way has recently proven itself relatively successful in the settlements of disputes by peaceful manner realm, with Chinese and ASEAN officials agreeing to draft guidelines ordered to avert tension in the South China Sea, an important milestone ending almost a decade of deadlock.[43][44]Despite this success, some academics continue to argue that ASEAN's non-interference principle has worsened efforts to improve in the areas of Burma, human rights abuses and haze pollution in the region. Meanwhile, with the consensus-based approach, every member in fact has a veto and decisions are usually reduced to the lowest common denominator. There has been a widespread belief that ASEAN members should have a less rigid view on these two cardinal principles when they wish to be seen as a cohesive and relevant community.[edit] PoliciesApart from consultations and consensus, ASEANs agenda-setting and decision-making processes can be usefully understood in terms of the so-called Track I and Track II. Track I refers to the practice of diplomacy among government channels. The participants stand as representatives of their respective states and reflect the official positions of their governments during negotiations and discussions. All official decisions are made in Track I. Therefore, "Track I refers to intergovernmental processes".[45] Track II differs slightly from Track I, involving civil society groups and other individuals with various links who work alongside governments.[46] This track enables governments to discuss controversial issues and test new ideas without making official statements or binding commitments, and, if necessary, backtrack on positions.Although Track II dialogues are sometimes cited as examples of the involvement of civil society in regional decision-making process by governments and other second track actors, NGOs have rarely got access to this track, meanwhile participants from the academic community are a dozen think-tanks. However, these think-tanks are, in most cases, very much linked to their respective governments, and dependent on government funding for their academic and policy-relevant activities, and many working in Track II have previous bureaucratic experience.[45] Their recommendations, especially in economic integration, are often closer to ASEANs decisions than the rest of civil societys positions.The track that acts as a forum for civil society in Southeast Asia is called Track III. Track III participants are generally civil society groups who represent a particular idea or brand.[47] Track III networks claim to represent communities and people who are largely marginalised from political power centres and unable to achieve positive change without outside assistance. This track tries to influence government policies indirectly by lobbying, generating pressure through the media. Third-track actors also organise and/or attend meetings as well as conferences to get access to Track I officials.While Track II meetings and interactions with Track I actors have increased and intensified, rarely has the rest of civil society had the opportunity to interface with Track II. Those with Track I have been even rarer.Looking at the three tracks, it is clear that until now, ASEAN has been run by government officials who, as far as ASEAN matters are concerned, are accountable only to their governments and not the people. In a lecture on the occasion of ASEANs 38th anniversary, the incumbent Indonesian President Dr. Susilo Bambang Yudhoyono admitted:All the decisions about treaties and free trade areas, about declarations and plans of action, are made by Heads of Government, ministers and senior officials. And the fact that among the masses, there is little knowledge, let alone appreciation, of the large initiatives that ASEAN is taking on their behalf.[48][edit] Meetings[edit] ASEAN Summit

A Billboard in Jakarta welcoming ASEAN Summit 2011 delegates.The organisation holds meetings, known as the ASEAN Summit, where heads of government of each member meet to discuss and resolve regional issues, as well as to conduct other meetings with other countries outside of the bloc with the intention of promoting external relations.The ASEAN Leaders' Formal Summit was first held in Bali, Indonesia in 1976. Its third meeting was held in Manila in 1987 and during this meeting, it was decided that the leaders would meet every five years.[49] Consequently, the fourth meeting was held in Singapore in 1992 where the leaders again agreed to meet more frequently, deciding to hold the summit every three years.[49] In 2001, it was decided to meet annually to address urgent issues affecting the region. Member nations were assigned to be the summit host in alphabetical order except in the case of Burma which dropped its 2006 hosting rights in 2004 due to pressure from the United States and the European Union.[50]By December 2008, the ASEAN Charter came into force and with it, the ASEAN Summit will be held twice in a year.The formal summit meets for three days. The usual itinerary is as follows: Leaders of member states would hold an internal organisation meeting. Leaders of member states would hold a conference together with foreign ministers of the ASEAN Regional Forum. A meeting, known as ASEAN Plus Three, is set for leaders of three Dialogue Partners (People's Republic of China, Japan, South Korea) A separate meeting, known as ASEAN-CER, is set for another set of leaders of two Dialogue Partners (Australia, New Zealand).[citation needed]ASEAN Formal Summits

NoDateCountryHostHost leader

1st2324 February 1976IndonesiaBaliSoeharto

2nd45 August 1977MalaysiaKuala LumpurHussein Onn

3rd1415 December 1987PhilippinesManilaCorazon Aquino

4th2729 January 1992SingaporeSingaporeGoh Chok Tong

5th1415 December 1995ThailandBangkokBanharn Silpa-archa

6th1516 December 1998VietnamHanoiPhan Vn Khi

7th56 November 2001BruneiBandar Seri BegawanHassanal Bolkiah

8th45 November 2002CambodiaPhnom PenhHun Sen

9th78 October 2003IndonesiaBaliMegawati Soekarnoputri

10th2930 November 2004LaosVientianeBounnhang Vorachith

11th1214 December 2005MalaysiaKuala LumpurAbdullah Ahmad Badawi

12th1114 January 20071Philippines2CebuGloria Macapagal-Arroyo

13th1822 November 2007SingaporeSingaporeLee Hsien Loong

14th327 February 1 March 20091011 April 2009ThailandCha Am, Hua HinPattayaAbhisit Vejjajiva

15th23 October 2009ThailandCha Am, Hua Hin

16th89 April 2010VietnamHanoiNguyn Tn Dng

17th2831 October 2010VietnamHanoi

18th478 May 2011IndonesiaJakartaSusilo Bambang Yudhoyono

19th41419 November 2011IndonesiaBali

20th434 April 2012CambodiaPhnom PenhHun Sen

1 Postponed from 1014 December 2006 due to Typhoon Utor.

2 hosted the summit because Burma backed out due to enormous pressure from US and EU

3 This summit consisted of two parts.The first part was moved from 1217 December 2008 due to the 2008 Thai political crisis.The second part was aborted on 11 April due to protesters entering the summit venue.

4 Indonesia proposed a swap with Brunei as it will play host to APEC (and possibly the G20 meeting) in 2013.

ASEAN Summits held once or twice a year in a same venue/host nation. Example, Indonesia is the host for 2011 ASEAN Summit; all summits, formal or informal this year 2011 must be held in Indonesia.During the fifth Summit in Bangkok, the leaders decided to meet "informally" between each formal summit:[49]ASEAN Informal Summits

NoDateCountryHostHost leader

1st30 November 1996IndonesiaJakartaSoeharto

2nd1416 December 1997MalaysiaKuala LumpurMahathir Mohamad

3rd2728 November 1999PhilippinesManilaJoseph Estrada

4th2225 November 2000SingaporeSingaporeGoh Chok Tong

[edit] East Asia Summit

Participants of the East Asia Summit: ASEANASEAN Plus ThreeAdditional membersObserverMain article: East Asia SummitThe East Asia Summit (EAS) is a pan-Asian forum held annually by the leaders of 16 countries in East Asia and the region, with ASEAN in a leadership position. The summit has discussed issues including trade, energy and security and the summit has a role in regional community building.The members of the summit are all 10 members of ASEAN plus China, Japan, South Korea, India, Australia and New Zealand. These nations represent nearly half of the world's population. In October 2010, Russia and the United States were formally invited to participate as full members, with presidents of both countries to attend the 2011 summit.[51]The first summit was held in Kuala Lumpur on 14 December 2005 and subsequent meetings have been held after the annual ASEAN Leaders Meeting.MeetingCountryLocationDateNote

First EASMalaysiaKuala Lumpur14 December 2005Russia attended as a guest.

Second EASPhilippinesCebu City15 January 2007Rescheduled from 13 December 2006.Cebu Declaration on East Asian Energy Security

Third EASSingaporeSingapore21 November 2007Singapore Declaration on Climate Change, Energy and the Environment[52]Agreed to establish Economic Research Institute for ASEAN and East Asia

Fourth EASThailandCha-am and Hua Hin25 October 2009The date and location of the venue was rescheduled several times, and then a Summit scheduled for 12 April 2009 at Pattaya, Thailand was cancelled when protesters stormed the venue. The Summit has been rescheduled for October 2009 and transferred again from Phuket[53] to Cha-am and Hua Hin.[54]

Fifth EASViet NamHanoi30 October 2010[55]Officially invited the US and Russia to participate in future EAS as full-fledged members[51]

Sixth EASIndonesiaBali19 November 2011The United States and Russia to join the Summit.

[edit] Commemorative summitA commemorative summit is a summit hosted by a non-ASEAN country to mark a milestone anniversary of the establishment of relations between ASEAN and the host country. The host country invites the heads of government of ASEAN member countries to discuss future cooperation and partnership.MeetingHostLocationDateNote

ASEAN Japan Commemorative SummitJapanTokyo11, 12 December 2003To celebrate the 30th anniversary of the establishment of relations between ASEAN and Japan. The summit was also notable as the first ASEAN summit held between ASEAN and a non-ASEAN country outside the region.

ASEAN China Commemorative SummitPeople's Republic of ChinaNanning30, 31 October 2006To celebrate the 15th anniversary of the establishment of relations between ASEAN and China

ASEAN Republic of Korea Commemorative SummitSouth KoreaJeju-do1, 2 June 2009To celebrate the 20th anniversary of the establishment of relations between ASEAN and Republic of Korea

[edit] Regional Forum

ASEAN full members ASEAN observers ASEAN candidate members ASEAN Plus Three East Asia Summit ASEAN Regional ForumThe ASEAN Regional Forum (ARF) is a formal, official, multilateral dialogue in Asia Pacific region. As of July 2007, it is consisted of 27 participants. ARF objectives are to foster dialogue and consultation, and promote confidence-building and preventive diplomacy in the region.[56] The ARF met for the first time in 1994. The current participants in the ARF are as follows: all the ASEAN members, Australia, Bangladesh, Canada, the People's Republic of China, the European Union, India, Japan, North Korea, South Korea, Mongolia, New Zealand, Pakistan, Papua New Guinea, Russia, East Timor, United States and Sri Lanka.[57] The Republic of China (also known as Taiwan) has been excluded since the establishment of the ARF, and issues regarding the Taiwan Strait are neither discussed at the ARF meetings nor stated in the ARF Chairman's Statements.[edit] Other meetingsAside from the ones above, other regular[58] meetings are also held.[59] These include the annual ASEAN Ministerial Meeting[60] as well as other smaller committees.[61] Meetings mostly focus on specific topics, such as defence[58] or the environment,[58][62] and are attended by Ministers, instead of heads of government.[edit] Another ThreeThe ASEAN Plus Three is a meeting between ASEAN, China, Japan, and South Korea, and is primarily held during each ASEAN Summit.[edit] Asia-Europe MeetingThe Asia-Europe Meeting (ASEM) is an informal dialogue process initiated in 1996 with the intention of strengthening cooperation between the countries of Europe and Asia, especially members of the European Union and ASEAN in particular.[63] ASEAN, represented by its Secretariat, is one of the 45 ASEM partners. It also appoints a representative to sit on the governing board of Asia-Europe Foundation (ASEF), a socio-cultural organisation associated with the Meeting.[edit] ASEAN-Russia SummitThe ASEAN-Russia Summit is an annual meeting between leaders of member states and the President of Russia.[edit] ASEAN Foreign Ministers MeetingThe 44th annual meeting will be held in Bali on 16 to 23 July 2011. Indonesia will propose a unified ASEAN travel visa to ease travel within the region for citizens of ASEAN member states.[64][edit] Economic CommunityASEAN has emphasised regional cooperation in the three pillars, which are security, sociocultural integration, and economic integration.[65] The regional grouping has made the most progress in economic integration by creating an ASEAN Economic Community (AEC) by 2015.[66] The average economic growths of ASEAN's member nations during 19892009 was Singapore with 6.73 percent, Malaysia with 6.15 percent, Indonesia with 5.16 percent, Thailand with 5.02 percent, and the Philippines with 3.79 percent. This economic growth was greater than the average Asia-Pacific Economic Cooperation (APEC) economic growth, which was 2.83 percent.[67][edit] From CEPT to AECA Common Effective Preferential Tariff (CEPT) scheme to promote the free flow of goods within ASEAN lead the ASEAN Free Trade Area (AFTA).[66] The AFTA is an agreement by the member nations of ASEAN concerning local manufacturing in all ASEAN countries. The AFTA agreement was signed on 28 January 1992 in Singapore.[68] When the AFTA agreement was originally signed, ASEAN had six members, namely, Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand. Vietnam joined in 1995, Laos and Burma in 1997, and Cambodia in 1999. The latecomers have not fully met the AFTA's obligations, but they are officially considered part of the AFTA as they were required to sign the agreement upon entry into ASEAN, and were given longer time frames in which to meet AFTA's tariff reduction obligations.[69]The next step is ASEAN Economic Community (AEC) with main objectives are to create a: single market and production base highly competitive economic region region of equitable economic development region fully integrated into the global economySince 2007, the ASEAN countries gradually lower their import duties among them and targeted will be zero for most of the import duties at 2015.[70]Since 2011, AEC has agreed to strengthen the position and increase the competitive edges of small and medium enterprises (SME) in the ASEAN region.[71]aseanblogger.com has agreed to set up online ASEAN community with aim to raise people's awareness on the issue of AEC by 2015. The content of the portal currently consisted of subjects varying from security to culinary and in the future will also touch tourist sites and local culture.[72][edit] Comprehensive Investment AreaThe ASEAN Comprehensive Investment Area (ACIA) will encourage the free flow of investment within ASEAN. The main principles of the ACIA are as follows[73] All industries are to be opened up for investment, with exclusions to be phased out according to schedules National treatment is granted immediately to ASEAN investors with few exclusions Elimination of investment impediments Streamlining of investment process and procedures Enhancing transparency Undertaking investment facilitation measuresFull realisation of the ACIA with the removal of temporary exclusion lists in manufacturing agriculture, fisheries, forestry and mining is scheduled by 2010 for most ASEAN members and by 2015 for the CLMV (Cambodia, Lao PDR, Burma, and Vietnam) countries.[73][edit] Trade in ServicesAn ASEAN Framework Agreement on Trade in Services was adopted at the ASEAN Summit in Bangkok in December 1995.[74] Under AFAS, ASEAN Member States enter into successive rounds of negotiations to liberalise trade in services with the aim of submitting increasingly higher levels of commitments. The negotiations result in commitments that are set forth in schedules of specific commitments annexed to the Framework Agreement. These schedules are often referred to as packages of services commitments. At present, ASEAN has concluded seven packages of commitments under AFAS.[75][edit] Single Aviation MarketThe ASEAN Single Aviation Market (SAM), proposed by the ASEAN Air Transport Working Group, supported by the ASEAN Senior Transport Officials Meeting, and endorsed by the ASEAN Transport Ministers, will introduce an open-sky arrangement to the region by 2015.[76] The ASEAN SAM will be expected to fully liberalise air travel between its member states, allowing ASEAN to directly benefit from the growth in air travel around the world, and also freeing up tourism, trade, investment and services flows between member states.[76][77] Beginning 1 December 2008, restrictions on the third and fourth freedoms of the air between capital cities of member states for air passengers services will be removed,[78] while from 1 January 2009, there will be full liberalisation of air freight services in the region, while[76][77] By 1 January 2011, there will be liberalisation of fifth freedom traffic rights between all capital cities.[79][edit] Free Trade Agreements With Other CountriesASEAN has concluded free trade agreements with China (expecting bilateral trade of $500billion by 2015),[44] Korea, Japan, Australia, New Zealand and most recently India.[80] The agreement with People's Republic of China created the ASEANChina Free Trade Area (ACFTA), which went into full effect on 1 January 2010. In addition, ASEAN is currently negotiating a free trade agreement with the European Union.[81] Republic of China (Taiwan) has also expressed interest in an agreement with ASEAN but needs to overcome diplomatic objections from China.[82][edit] ASEAN six majorsASEAN six majors refer to the six largest economies in the area with economies many times larger than the remaining four ASEAN countries.The ASEAN six majors are (GDP nominal 2010 based on IMF data. The figures in parentheses are GDP PPP.) Indonesia: 906.75 billions (1,333 billions) Thailand: 318.91 billions (589 billions) Malaysia: 237.96 billions (416 billions) Singapore: 222.70 billions (293 billions) Philippines: 199.59 billions (369 billions) Vietnam: 103.57 billions (277 billions)[edit] From CMI to AMRODue to Asian financial crisis of 1997 to 1998 and long and difficult negotiations with International Monetary Fund, ASEAN+3 agreed to set up a mainly bilateral currency swap scheme known as the 2000 Chiang Mai Initiative (CMI) to anticipate another financial crisis or currency turmoil in the future. In 2006 they agreed to make CMI with multilateralisation and called as CMIM. On 3 May 2009, they agreed to make a currency pool consist of contribution $38.4billion each by China and Japan, $19.2billion by South Korea and totally $24billion by all of ASEAN members, so the total currency pool was $120billion.[83] A key component has also newly been added, with the establishment of a surveillance unit.[84]The ASEAN+3 Macroeconomic and Research Office (AMRO) will start its operation in Singapore in May 2011.[85] It will perform a key regional surveillance function as part of the $120billion of Chiang Mai Initiative Multilateralisation (CMIM) currency swap facility that was established by Finance Minister and Central Bank Governors of ASEAN countries plus China, Japan and South Korea in December 2009.[86]According to some analysts, the amount of $120billion is relatively small (cover only about 20 percent of needs), so coordination or help from International Monetary Fund is still needed.[87] On May 3, 2012 ASEAN+3 finance ministers agreed to double emergency reserve fund to $240 billion.[88][edit] Foreign Direct InvestmentIn 2009, realized Foreign Direct Investment (FDI) was $37.9billion and increase by two-fold in 2010 to $75.8billion. 22 percent of FDI came form the European Union, followed by ASEAN countries themselves by 16 percent and then followed by Japan and US. European Union and US has debt problems, while Japan should make tsunami recovery. China who helped Asia lead the global post-2008 recovery still grapples with 3-years high inflation. So, in the longterm all of the problems will give negative impact to ASEAN indirectly. There are possibility to push some programs of ASEAN Economic Community before 2015.[89][edit] Intra-ASEAN travelwith free visa among ASEAN countries, a huge intra-ASEAN travel occurred and on the right track to establish an ASEAN Community in the years to come. In 2010, 47 percent or 34 million from 73 million tourists were intra-ASEAN travel.[90][edit] Intra-ASEAN tradeUntil end of 2010, Intra-Asean trade were still low which mainly of them were mostly exporting to countries outside the region, except Laos and Myanmar were ASEAN-oriented in foreign trade with 80 percent and 50 percent respectively of their exports went to other ASEAN countries.[91][edit] CharterMain article: ASEAN CharterOn 15 December 2008 the members of ASEAN met in the Indonesian capital of Jakarta to launch a charter, signed in November 2007, with the aim of moving closer to "an EU-style community".[92] The charter turns ASEAN into a legal entity and aims to create a single free-trade area for the region encompassing 500 million people. President of Indonesia Susilo Bambang Yudhoyono stated that "This is a momentous development when ASEAN is consolidating, integrating and transforming itself into a community. It is achieved while ASEAN seeks a more vigorous role in Asian and global affairs at a time when the international system is experiencing a seismic shift," he added, referring to climate change and economic upheaval. Southeast Asia is no longer the bitterly divided, war-torn region it was in the 1960s and 1970s." "The fundamental principles include:a) respect for the independence, sovereignty, equality, territorial integrity and national identity of all ASEAN Member States;b) shared commitment and collective responsibility in enhancing regional peace, security and prosperity;c) renunciation of aggression and of the threat or use of force or other actions in any manner inconsistent with international law;d) reliance on peaceful settlement of disputes;e) non-interference in the internal affairs of ASEAN Member States;f) respect for the right of every Member State to lead its national existence free from external interference, subversion and coercion;g) enhanced consultations on matters seriously affecting the common interest of ASEAN;h) adherence to the rule of law, good governance, the principles of democracy and constitutional government;i) respect for fundamental freedoms, the promotion and protection of human rights, and the promotion of social justice;j) upholding the United Nations Charter and international law, including international humanitarian law, subscribed to by ASEAN Member States;k) abstention from participation in any policy or activity, including the use of its territory, pursued by and ASEAN Member State or non-ASEAN State or any non-State actor, which threatens the sovereignty, territorial integrity or political and economic stability of ASEAN Member States;l) respect for the different cultures, languages and religions of the peoples of ASEAN, while emphasising their common values in the spirit of unity in diversity;m) the centrality of ASEAN in external political, economic, social and cultural relations while remaining actively engaged, outward-looking, inclusive and non-discriminatory; andn) adherence to multilateral trade rules and ASEAN's rules-based regimes for effective implementation of economic commitments and progressive reduction towards elimination of all barriers to regional economic integration, in a market-driven economy".[93]However, the ongoing global financial crisis was stated as being a threat to the goals envisioned by the charter,[94] and also set forth the idea of a proposed human rights body to be discussed at a future summit in February 2009. This proposition caused controversy, as the body would not have the power to impose sanctions or punish countries who violate citizens' rights and would therefore be limited in effectiveness.[95] The body was established later in 2009 as the ASEAN Intergovernmental Commission on Human Rights (AICHR).[edit] Cultural activities

Logo of the S.E.A. Write AwardThe organisation hosts cultural activities in an attempt to further integrate the region. These include sports and educational activities as well as writing awards. Examples of these include the ASEAN University Network, the ASEAN Centre for Biodiversity, the ASEAN Outstanding Scientist and Technologist Award, and the Singapore-sponsored ASEAN Scholarship.[edit] S.E.A. Write AwardThe S.E.A. Write Award is a literary award given to Southeast Asian poets and writers annually since 1979. The award is either given for a specific work or as a recognition of an author's lifetime achievement. Works that are honoured vary and have included poetry, short stories, novels, plays, folklore as well as scholarly and religious works.