The ASEAN Economic Community (AEC): Myths and Realities

2015 ◽  
Vol 14 (2) ◽  
pp. 71-90 ◽  
Author(s):  
Deunden Nikomborirak
Keyword(s):  
Professional Associations ◽  
Economic Community ◽  
Private Companies ◽  
Member States ◽  
Trade Area ◽  
The Status ◽  
Single Production ◽  
Service Sectors ◽  
Asean Economic Community ◽  
Economic Regions

ASEAN is considered one of the most successful economic regions, because it managed to dismantle many of the tariff barriers among the ten member states. Its more ambitious goal, however—of becoming not only a single trade area, but also a single production base by the year 2015—appears elusive. The investment liberalization goals stipulated in the ASEAN Economic Community Blueprint, a roadmap for regional economic integration, is meek, indicating unwillingness of member states to open up their cosseted and, at times, lucrative, service sectors. Moreover, current commitments of member states do not even match up with such goals. To be able to establish a regional production base, member states will have to stand up against local interest groups that benefit from the status quo, be they large domestic state and private companies operating in key service sectors such as telecommunications, energy and finance, or professional councils or professional associations that would like to reserve jobs exclusively for their members. If not, the region will certainly gradually but surely lose its economic flair.

scholarly journals The ASEAN WITHOUT A CUSTOMS UNION OR A SINGLE MARKET CONSEQUENCES OF THE ASEAN ECONOMIC COMMUNITY BLUEPRINT 2025

2020 ◽  
Vol 2 (1) ◽  
pp. 101-127
Author(s):  
Moh Firstananto Jerusalem
Keyword(s):  
Economic Integration ◽  
Free Trade Area ◽  
Single Market ◽  
Integration Theory ◽  
Customs Union ◽  
Economic Community ◽  
Trade Area ◽  
Market Economic ◽  
Asean Countries ◽  
Asean Economic Community

Abstract In the ASEAN Economic Community blueprint 2015 the term “single market” was used as a goal of economic community. Theoretically, single market is a level of economic integration after customs union. Under that blueprint, customs union could have a chance to be established as a necessary prerequisite for single market. However, the new blueprint 2025 does not adopt single market concept anymore. Different terms have been introduced namely “integrated and cohesive economy” and “unified market”. This article aims at assessing economic integration concept adopted in the ASEAN Economic Community blueprint by utilizing content analysis. It will review the change of concept by employing economic integration theory in order to indicate the direction of economic community goal. The finding is that the change of terms reflects the change of concept. As a result, ASEAN Economic Community will have a different direction in pursuing economic integration. Therefore, under the new blueprint ASEAN will not proceed to customs union and single market. However, it will remain at free trade area level of economic integration. In addition, ASEAN will not be a close trade block but tend to be an open regionalism in relation to non-ASEAN countries or regions. Keywords: ASEAN Economic Community, Customs Union, Single Market, Economic Integration, Open Regionalism.

scholarly journals SIAPKAH INDONESIA MENGHADAPI MEA?

2017 ◽  
Vol 8 (2) ◽  
pp. 81-90
Author(s):  
Christianus Yudi Prasetyo
Keyword(s):  
Global Economy ◽  
Statistical Data ◽  
Literature Survey ◽  
World Economic Forum ◽  
Economic Community ◽  
Fully Integrated ◽  
World Economic ◽  
Single Production ◽  
Asean Countries ◽  
Asean Economic Community

Countries that are members of the Association of South East Asian Nations (ASEAN) are facing an era where ASEAN turn into market and single production base, a highly competitive regional economic, equitable economic development, and a region fully integrated into global economy. That era is known as the ASEAN Economic Community (AEC), which take effect on January 2016. This literature survey was conducted to determine the position of Indonesia compared to other ASEAN countries based on existing statistical data so as to determine the readiness of Indonesia to face the AEC. Comparison is made on 6 ASEAN countries with the highest economic growth, namely: Singapore, Malaysia, Indonesia, Thailand, Philippines, and Brunei. It is important to know because many people are still not aware this intense competition in the era of AEC. Based on World Economic Forum, Indonesia is in 4th position after Singapore, Malaysia and Thailand in terms of competitiveness.

scholarly journals Indonesia dan Persaingan di Era Asean Economic Community

2018 ◽  
Vol 2 (2) ◽  
Author(s):  
Hendra Maujana Saragih
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Economic Opportunity ◽  
Economic Community ◽  
Trade Area ◽  
Asean Member ◽  
Systemic Impact ◽  
Strategic Position ◽  
Asean Countries ◽  
Asean Economic Community

Abstract This paper focusing on looking at Indonesia's readiness to deal with the Era of the Economic Community in ASEAN with the urgency that Indonesia's preparations should have a systemic impact on Indonesia's economic growth. The socialization that has been carried out continues and continues to be inflated by every child of the nation so as not to lose compete and be swallowed by the existence of regional countries that really use ASEAN Economic Community as a positive and constructive economic opportunity for each ASEAN member country officially. ASEAN Economic Community is one form of Free Trade Area (FTA) and located in Southeast Asia .ASEAN Economic Community which is formed with a mission to make the economy in ASEAN to be better and able to compete with countries whose economy is more advanced than the condition of ASEAN countries currently. The realization of ASEAN Economic Community, can make ASEAN a more strategic position in the international arena. Researchers expect that with the realization of the ASEAN economic community can open the eyes of all parties, resulting in an inter-sectoral dialogue that will also complement each other among the stakeholders of the economic sector in ASEAN countries and this is very inherent formally. Keywords: Competition, Free Trade Area, Opportunity, Challenge

scholarly journals KONSISTENSI HUKUM WORLD TRADE ORGANIZATION (WTO) MENGENAI PRINSIP MOST FAVORED NATION (MFN) ATAS REGIONALISME DAN PANDANGANNYA TERHADAP ASEAN ECONOMIC COMMUNITY (AEC)

2015 ◽  
Vol 1 (2) ◽  
Author(s):  
Marko Cahya Sutanto
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Single Market ◽  
Economic Community ◽  
Most Favored Nation ◽  
Trade Area ◽  
General Obligation ◽  
Trading Partners ◽  
Asean Economic Community ◽  
The Moment

In 2015, Indonesia and other ASEAN members have a commitment to establish a single market region, i.e. free flow of goods and service, termed ASEAN Economic Community (hereinafter ‘AEC’). This arrangement is contrary to Most Favored Nation (MFN) principle under the General Agreement on Tariffs and Trade 1994, (hereinafter ‘GATT’). This paper aims to address the said violation according to the WTO/GATT law by analyzing (1) the general obligations and exceptions under the WTO/GATT, (2) regionalism in general and its existence in Southeast Asia, and (3) the interpretation of WTO’s compromise to regionalism. Under the GATT, there is a general obligation for members to treat their trading partners equally and give the same benefits to other members. However, there is an exception to this principle under article XXIV of the GATT, which based on the notion that regional trade agreements are a building block for multilateral openness. Yet, before applying this exception to the case at hand, AEC’s form must be determined. AEC’ has a structure of Free-Trade Area (hereinafter ‘FTA’) with a single market adhere to it, which according to WTO’s database there is one in force at the moment, namely ASEAN Free Trade Area (hereinafter ‘AFTA’). AFTA is not the equivalent to AEC because it covers more than just goods. Thus, the answer to apply the exception to AEC is inconclusive because even though it fits normatively, it does not have the necessary legitimacy.

REALIZING AN ASEAN ECONOMIC COMMUNITY: PROGRESS AND REMAINING CHALLENGE

2016 ◽  
Vol 62 (03) ◽  
pp. 681-702 ◽  
Author(s):  
JAYANT MENON ◽  
ANNA CASSANDRA MELENDEZ
Keyword(s):  
Southeast Asian ◽  
Viet Nam ◽  
Economic Community ◽  
Member States ◽  
The Real ◽  
Asean Economic Community ◽  
National Constitution ◽  
Political Solidarity ◽  
Real Test

Launched as a political bloc and security pact in the aftermath of the Viet Nam War, the Association of Southeast Asian Nations (ASEAN) has evolved to embrace an ambitious economic agenda. Its latest project was the establishment of the ASEAN Economic Community (AEC) on 31 December 2015. Fulfilling these commitments would promote predictability in ASEAN, as well as strengthen its credibility. But to what extent has ASEAN met this deadline? The blueprint for achieving the goal envisages the AEC standing on four pillars and meeting the deadline depends on progress on each of them. Each pillar presents a demanding set of challenges to be met before the AEC can be fully realized. We find that although ASEAN has come a long way toward realizing its goal, considerable challenges remain. Accommodating AEC accords will not be easy when they require changes to domestic laws or even the national constitution. The flexibility that characterizes ASEAN cooperation, the celebrated “ASEAN way”, may hand member states a convenient pretext for non-compliance. How to enforce the accords remains an issue. If the AEC is to be more than a display of political solidarity, ASEAN must find a way to give the commitments more teeth. The real test for the community, therefore, will lie in the years ahead.

The ASEAN Economic Community: Deep Integration or Just Political Window Dressing?

2016 ◽  
Vol 5 (1) ◽  
pp. 25-47 ◽  
Author(s):  
Jörn Dosch
Keyword(s):  
Economic Integration ◽  
Regional Economic Integration ◽  
Foreseeable Future ◽  
Economic Community ◽  
Member States ◽  
Asean Member ◽  
Regional Market ◽  
Asean Economic Community ◽  
Deep Integration ◽  
Made In

AbstractOn 31 December 2015, the Association of Southeast Asian Nations (ASEAN) announced the establishment of the ASEAN Economic Community (AEC). In theory, this agreement has produced association-wide economic integration. However, following the announcement and for the foreseeable future, ASEAN member states will continue to have significantly less than full regional economic integration. Why? Some observers believe that the AEC plans involve an overly ambitious timeline and too many ill-thought-out initiatives. Others point to ASEAN's traditional aversion to legally binding agreements. While progress has been made in reducing or eliminating intra-ASEAN trade tariffs, substantial non-tariff barriers to trade persist. However, for most member states, the ASEAN market is relatively small, while external markets, especially China, are growing rapidly. Given this outward orientation for ASEAN trade, is the lack of an unhindered regional market really a problem?

scholarly journals Integration Processes In The Global Economy: Current State And Prospects. The Cases Of The European Union, ASEAN Economic Community, And NAFTA

2016 ◽  
Vol 19 (4) ◽  
pp. 47-65 ◽  
Author(s):  
Janina Witkowska
Keyword(s):  
European Union ◽  
Global Economy ◽  
Global Financial Crisis ◽  
The European Union ◽  
Negative Consequences ◽  
Economic Community ◽  
Member States ◽  
Current State ◽  
Asean Economic Community ◽  
The Eu

The aim of the paper is to determine the current state of the integration processes in the global economy and prognosticate on the foreseeable changes in this phenomenon in the upcoming. Will they be divergence from or continuity with the past trends in the global economy in this field? The article examines three regional integration groupings, i.e. the European Union, ASEAN Economic Community, and NAFTA. The analysis makes it possible to conclude that all of these groupings/organizations are encountering some problems. In the case of the EU, these are mainly: the two – speed integration process as far as a monetary union is concerned; serious negative consequences of the global financial crisis for the socio-economic cohesion of the EU-28; as well as a worsening position in the world trade in goods and services and in the total global gross capital inflows. The problems of the ASEAN Economic Community seem to be connected with some discrepancies between the political will in favour of deepening integration among member states and the real economic difficulties involved in attaining higher stages of integration among a group of countries extremely differentiated in their economic development. NAFTA’s problems also lie in the asymmetrical development between member states, as well as in the lessening importance of the integration within the organization for the member states, which results from the putting into effect numerous other FTAs. The growing openness of all the analyzed integration groupings, being in line with the globalization process, seems to be a future characteristic of integration processes in the global economy.

scholarly journals Harmonization of Laws on Electronic Contracts Based on International Instruments for the ASEAN Economic Community

2021 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Andrew Betlehn
Keyword(s):  
Legal Framework ◽  
Business Practices ◽  
Technological Advancement ◽  
Economic Community ◽  
Member States ◽  
Governmental Organization ◽  
Electronic Contracts ◽  
New Business ◽  
Asean Economic Community ◽  
International Transactions

<p>Technological advancement has created new business practices such as utilizing electronic contracts. Utilization of electronic contracts, especially in international transactions, has pushed countries around the world to impose new regulations defining the legalities of electronic instruments. Challenges arise considering the global and borderless nature of electronic transactions faced with regulations of different countries that are not in sync with each other. This is especially apparent in Member States of the ASEAN Economic Community. This paper attempts to discover the ideal legal framework for electronic contracts in the ASEAN Economic Community. Based on the research and analysis, it has been found that there is a need for a harmonized legal framework regarding electronic commerce that can be adopted unaltered by Member States of the ASEAN Economic Community, which could be drafted by the ASEAN as an inter-governmental organization.</p>

scholarly journals Land Registration as a Legal Construction of Law in Order to Facing Asean Economic Communities

2018 ◽  
Vol 6 (2) ◽  
pp. 198-207
Author(s):  
Sri Ahyani
Keyword(s):  
Domestic Investment ◽  
Legal Certainty ◽  
Economic Community ◽  
Business World ◽  
Land Registration ◽  
Legal Norms ◽  
The Status ◽  
Legal Construction ◽  
The Government ◽  
Asean Economic Community

This article discusses the land registration as a legal construction of law in order to facing Asean economic communities The problems in this study are: (1) What is the Government's policy in solving the problem of land registration in Indonesia so that it can provide certainty for the business world in increasing domestic investment in welcoming the ASEAN Economic Community? (2) How is the implementation of state policies in land registration to provide an investment climate with legal certainty related to land issues? This research uses a normative juridical approach, by analyzing and interpreting theoretical matters concerning principles, conceptions, theories and legal norms relating to land registration. The results of the study show that the government needs to create legal certainty regarding land issues so that it can provide investment excitement for the business world in increasing domestic investment in the atmosphere of the ASEAN Economic Community. The guarantee of legal certainty to be realized in this land registration includes certainty of the status of land rights, certainty of legal subjects, and certainty of legal objects.

scholarly journals THE READINESS OF FOREIGN WORKERS REGULATIONS IN THE ENGINEERING AND MEDICAL PRACTITIONERS SECTOR ENTERING THE ASEAN ECONOMIC COMMUNITY

2016 ◽  
Vol 16 (1) ◽  
Author(s):  
Agusmidah . ◽  
Mahmul Siregar ◽  
Mohammad Eka Putra
Keyword(s):  
Free Market ◽  
Professional Associations ◽  
Public Works ◽  
Foreign Workers ◽  
Legal Analysis ◽  
Economic Community ◽  
Literature Study ◽  
Medical Practitioners ◽  
Asean Countries ◽  
Asean Economic Community

Protection of the domestic labor market and prevention of skilled foreign workers entry through negative list are not in accordance with free market principle of the ASEAN Economic Community (AEC) to be implemented in ASEAN countries such as Indonesia in the second half of 2015. However, restrictions are still practiced by some Indonesian government institutions, such as Ministry of Health for doctors, dentists, and nurses, the Ministry of Public Works for surveyors, and the Ministry of Tourism for tourism profesionals. Through literature study and legal analysis, it was found that foreign workers restriction by professional associations according to certain competency standards aims to prevent domestic work from being monopolized by skilled foreign workers in the AEC 2015 era.Keywords: ASEAN Economic Community (AEC), Indonesian regulation, skilled foreign workers

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