The ASEAN Economic Community: Progress, Challenges, and Prospects

Abstract

The ASEAN Economic Community (AEC) was set up in 2003 with the objectives of creating a single market and production base, enhancing equitable economic development as well as facilitating the integration into the global economy. The AEC involves liberalization and facilitation of trade in goods, services, and investment, as well as protection and promotion of investment. The paper outlines the AEC Blueprint actions and the time lines for completion. The authors find that by end-2011 only an implementation rate of 67.5% had been achieved. While tariff elimination is found to be largely on schedule, there are difficulties with the removal of non-tariff barriers as well as with the liberalization of services and investment regimes.

Keywords: regional integration, regional cooperation, economic cooperation, trade, investment, goods, services, ASEAN economic community

JEL Classification: F13, F15, O19, O24