Asean Economic Community (Aec) 2015 and Its Implication on

4587 Words May 15th, 2013 19 Pages
ASEAN Economic Community (AEC) 2015 and its implication on APEC[1] Kuboon Charumanee[2]

The Association of Southeast Asian Nations (ASEAN) has been the representative of regional economic cooperation and integration among developing countries. As part of the structural changes of the world economy, ASEAN has implemented intra-regional economic cooperation since 1976. The new goal is the establishment of the ASEAN Community which consisted of three pillars; ASEAN Political-Security Community, ASEAN Economic Community, and ASEAN Socio-Cultural Community. Since ASEAN has also been an important axis of regional economic cooperation and free trade agreements (FTA) in Asia and Pacific’s. A big step toward realization of ASEAN
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The ASEAN Economic Community (AEC) is one of the three ASEAN Community Councils. It's goal is to seek regional economic integration by 2015. The areas of cooperation include • human resources development and capacity building • recognition of professional qualifications • consultation on economic and financial polices • trade financing • infrastructure and communications connectivity • electronic transactions through e-ASEAN • industrial integration to promote regional sourcing • enhancing private sector involvement for the building of AEC
In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labor, and freer flow of capital.

A key characteristic of the AEC is a single market and production base. Progress was made in this area with the signing of three key agreements: a) the ASEAN Trade in Goods Agreement, b) the Protocol to Implement the 7th Package of Services Commitments, and c) the ASEAN Comprehensive Investment Agreement, at the 14th ASEAN Summit in Thailand, 2009. These agreements provide a streamlined, consolidated, predictable and transparent set of rules to achieve the goal of a single market and production base by 2015.

Building a highly competitive economic region is another prominent feature of the AEC. To promote
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