ASEAN Free Trade Association

   
 

Xmultiple's Engineering Department


The Association of Southeast Asian Nations (ASEAN) is a political and economic organization of ten countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia, Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to include Brunei, Cambodia, Laos, Myanmar (Burma) and Vietnam. Its aims include accelerating economic growth, social progress, sociocultural evolution among its members, protection of regional peace and stability, and opportunities for member countries to discuss differences peacefully.

ASEAN covers a land area of 4.46 million, which is 3% of the total land area of Earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. In 2012, its combined nominal GDP had grown to more than US$ 2.3 trillion. If ASEAN were a single entity, it would rank as the eighth largest economy in the world.

The members of the Association of Southeast Asian Nations will together become China's top trading partners in the future. During that time, trade between China and the association, also known as ASEAN, will increase at a faster rate than that between any two other major economies, said the China Council for the Promotion of International Trade.

"Thanks to zero tariffs, preferential trade policies and geographic advantages, both the increasing speed and scale of that trade will be in the forefront globally and ASEAN will become China's No 1 trading partner.

ASEAN is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

China has a free trade agreement with ASEAN. It established the third-largest free trade area in the world, just behind the European Union and the North American Free Trade Area.

ASEAN overtook Japan to become China's third-largest trading partner.

China's trade is increasing rapidly with emerging economies at a time that it is slowing down with developed countries.


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