ASEAN & NAFTA

PRESENTED BY:
NUPUR SINHA
VISHNU SHARMA
TARIQUE KHAN
KUNAL SHEKHAR
 OVERVIEW
The Association of Southeast Asian Nations commonly abbreviated ASEAN
generally pronounced occasionally is a geo-political and economic organization
of 10 countries located in Southeast Asia.

It was formed on 8 August 1967 by Indonesia, Malaysia, Philippines, Singapore

and Thailand Since then, membership has expanded to include Brunei ,Burma
(Myanmar) Cambodia, Laos and Vietnam.

ASEAN spans over an area of 4.46 million km2.

 3% of the total land area of Earth, with a population of approximately 600

million people, 8.8% of the world population.

In 2010, its combined GDP had grown to USD $1.8 trillion.

If ASEAN was a single country, it would rank as the 9th largest economy in the
world and the 3rd largest in Asia in terms of GDP.
[OBJECTIVE]
Its aims include the acceleration of economic growth social progress cultural
development among its members, the protection of the peace and stability of
the region, and to provide opportunities for member countries to discuss
differences peacefully.

[CHARTER]
The ASEAN way can be traced back to the signing of the Treaty of Amity
and Cooperation in South East Asian. "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.

 [CONTINUED………

Settlement of differences or disputes by peaceful manner.

Renunciation of the threat or use of force.

Effective cooperation among themselves.

Non-interference in the internal affairs of ASEAN Member States.

Enhanced consultations on matters seriously affecting the common interest of

ASEAN.

Respect for fundamental freedoms, the promotion and protection of human

rights, and the promotion of social justice.

Respect for the different cultures, languages and religions of the peoples of
ASEAN.
[ASEAN SUMMIT]
 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.

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.

 In 2001, it was decided to meet annually to address urgent issues affecting the
region.

By December 2008, the ASEAN Charter came into force and with it, the
ASEAN Summit will be held twice in a year.
 [SUMMITS]
[1] 23–24 February 1976  Indonesia
[2] 4–5 August 1977  Malaysia
[3]14–15 Decemb1987  Philippines
[4] 27‒29 January 1992  Singapore
[5] 14‒15 December 1995 Bangkok
[6] 15‒16 December 1998  Vietnam
[7] 5‒6 November 2001  Brunei
[8] 4‒5 November 2002  Cambodia
[9] 7‒8 October 2003  Indonesia
[10] 29‒30 November 2004 Vietnam
[11] 12‒14 December 2005  Malaysia
[12] 11‒14 January 2007  Philippines
[13] 18‒22 November 2007  Singapore
[14] 10–11 April 2009  Thailand
[15] 23 October 2009  Thailand
[16] 8–9 April 2010  Vietnam
[17] 28-31 October 2010  Vietnam
[18] 2011 Indonesia
 [FREE TRADE AREA]

The foundation of the AEC is the ASEAN Free Trade Area (AFTA), a common
external preferential tariff scheme to promote the free flow of goods within
ASEAN.

The ASEAN Free Trade Area (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 when the AFTA
agreement was originally signed,
[ASEAN AND INDIA]

Since its start about a decade ago, the partnership between India and the
Association of South East Asian Nations (ASEAN) comprising Brunei,
Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore,
Thailand and Vietnam has been developing at quite a fast pace.

India became a sectoral dialogue partner of ASEAN in 1992. Mutual interest led
ASEAN to invite India to become its full dialogue partner during the fifth ASEAN
Summit in Bangkok in 1995. India also became a member of the ASEAN
Regional Forum (ARF) in 1996. India and ASEAN have been holding summit-
level meetings on an annual basis since 2002.
[CURRENT TRADE SCENARIO]
In August 2009, India signed a Free Trade Agreement (FTA) with the ASEAN
members in Thailand. Under the ASEAN-India FTA, ASEAN member countries
and India will lift import tariffs on more than 80 per cent of traded products
between 2013 and 2016.

India’s trade with ASEAN countries has increased from US$ 30.7 billion in
2006-07 to US$ 39.08 billion in 2007-08 and to US$ 45.34 billion in 2008-09. .
During April – September 2009-10, India’s trade with ASEAN was US$ 20.19
billion .
 NAFTA
North American Free Trade Agreement
Signed by which countries?
Mexico

United States

Canada
Mexican president Carlos Salinas de Gortari, United States president George Bush, and
Canadian prime minister Brian Mulroney, left to right, look on as their trade ministers initial
the North American Free Trade Agreement (NAFTA) in San Antonio, Texas, in 1992. Passage
of the treaty in 1993 counted as one of the Mulroney government’s most significant
achievements.
 What is NAFTA?

NAFTA is short for the North American Free Trade Agreement.

NAFTA covers Canada, the U.S. and Mexico making it the world’s largest free trade area
(in terms of GDP).

NAFTA was launched 15 years ago to reduce trading costs, increase business
investment, and help North America be more competitive in the global marketplace.

The agreement came into force on January 1, 1994.

As of January 1, 2008, all tariffs between the three countries were eliminated. Between
1993-2007, trade tripled from $297 billion to $1 trillion.
 When Was NAFTA Started?
NAFTA was signed by President George H.W. Bush, Mexican President Salinas, and
Canadian Prime Minister Brian Mulroney in 1992.

It was ratified by the legislatures of the three countries in 1993.

The House approved it by 234 to 200 on November 17 and the Senate by 60 to 38 on

November 20.

It was signed into law by President Bill Clinton on December 8, 1993 and entered force
January 1, 1994.

Although it was signed by President Bush, it was a priority of President Clinton's, and its
passage is considered one of his first successes.
 Why Was NAFTA Formed?
Article 102 of the NAFTA agreement outlines its purpose:

Eliminate barriers to trade and facilitate the cross-border movement of goods and
services.

Promote conditions of fair competition.

Increase investment opportunities.

Provide protection and enforcement of intellectual property rights.

Create procedures for the resolution of trade disputes.

Establish a framework for further trilateral, regional and multilateral cooperation to

expand NAFTA's benefits.
 Has NAFTA Fulfilled Its Purpose?
NAFTA has eliminated trade barriers, increased investment opportunities, and established
procedures for resolution of trade disputes.

Most important, it has increased the competitiveness of the three countries involved on
the global marketplace.

This has become especially important with the launch of the European Union. In 2007, the
EU replaced the U.S. as the world's largest economy.
 What Are the Advantages of NAFTA?
NAFTA created the world’s largest free trade area, linking 444 million people and producing
$17 trillion in goods and services annually.

Estimates are that NAFTA increases U.S. GDP by as much as 0.5% a year. That's because it
eliminates tariffs and creates agreements on international rights for business investors.

This reduces the cost of trade, which spurs investment and growth especially for small
businesses.

Eliminating tariffs also reduces inflation by decreasing the costs of imports.

Increased Trade
Boosted U.S. Farm Exports
Created Trade Surplus in Services
Reduced Oil and Grocery Prices
Stepped Up Foreign Direct Investment
 Disadvantages of NAFTA
NAFTA made possible for many U.S. manufacturers to move jobs to lower-cost Mexico.

The manufacturers in U.S. remained lowered wages to compete in those industries.

Many of Mexico's farmers were put out of business by U.S.-subsidized farm products.

NAFTA provisions for Mexican labour and environmental protection were not strong
enough to prevent those workers from being exploited.

U.S. Jobs Were Lost

U.S. Wages Were Suppressed
Mexico's Farmers Were Put Out of Business
Mexico's Environment Deteriorated
Thank
You