Sunday, December 8, 2013

The ASEAN Economic Community

By Felipe Salvosa II

In two years, the Association of Southeast Asian Nations (ASEAN) will reach a milestone—perhaps the most significant since the establishment of ASEAN itself nearly half a century ago. The 10-member regional group will become an “ASEAN Community” by 2015, standing on three pillars: the ASEAN Political and Security Community, the ASEAN Economic Community or AEC, and the ASEAN Socio-Cultural Community.

As it is, ASEAN is already an economic powerhouse, with a combined economic output of $2.2 trillion and a population in excess of 600 million people. Together with neighbors China, Japan, and South Korea, regional trade accounts for a quarter of world trade.



AEC will be the culmination of years of efforts to integrate the regional economy. The goal is to transform ASEAN into a single market and production base. ASEAN is envisioned as a regional economy with efficient production networks and high quality cross-border services such as air travel and healthcare run by a mobile and skilled workforce. Under the AEC vision, goods, investments, and capital flow freely, but growth is inclusive, with small and medium enterprises thriving despite competition.

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