By 2015, ten countries in Southeast Asia plan to launch a single market for good

s, services, capital and labor, which has the potential to be one of the largest
economies and markets in the world. Here are 12 things to know about the ASEAN
Economic Community.
The Association of Southeast Asian Nations (ASEAN) is intensifying efforts to re
alize by 2015 the ASEAN Economic Community and implement the initiatives to achi
eve a single market and production base, allowing the free flow of goods, servic
es, investments, and skilled labor, and the freer movement of capital across the
region.
Source: Nay Pyi Taw Declaration, 24th ASEAN Summit, 11 May 2014.
If ASEAN were one economy, it would be seventh largest in the world with a combi
ned gross domestic product (GDP) of $2.4 trillion in 2013. It could be fourth la
rgest by 2050 if growth trends continue.
Source: ASEAN Integration and the Private Sector, speech by ADB Vice-President S
tephen Groff, 23 June 2014 in Berlin, Federal Republic of Germany.
With over 600 million people, ASEAN's potential market is larger than the Europe
an Union or North America. Next to the People's Republic of China and India, ASE
AN has the world's third largest labor force that remains relatively young.
Source: ASEAN Integration and the Private Sector, speech by ADB Vice-President S
tephen Groff, 23 June 2014 in Berlin, Federal Republic of Germany.
ASEAN is one of the most open economic regions in the world, with total merchand
ise exports of over $1.2 trillion - nearly 54% of total ASEAN GDP and 7% of glob
al exports.
Source: ADB publication ASEAN 2030: Toward a Borderless Economic Community
Created in 1967 mainly for political and security reasons, ASEAN is today a succ
essful model for regionalism, widely recognized globally.
Source: ADB publication ASEAN 2030: Toward a Borderless Economic Community
On its 40th anniversary in 2007, ASEAN adopted the ASEAN Economic Community Blue
print, which advanced the completion target to 2015 from 2020.
Source: Declaration on the ASEAN Economic Community Blueprint, Singapore, 20 Nov
ember 2007.
The ASEAN Economic Community is defined by four pillars: (i) creating a single m
arket and production base, (ii) increasing competitiveness, (iii) promoting equi
table economic development, and (iv) further integrating ASEAN with the global e
conomy.
Source: Declaration on the ASEAN Economic Community Blueprint, Singapore, 20 Nov
ember 2007.
In November 2007, ASEAN leaders also approved the Initiative for ASEAN Integrati
on Strategic Framework and Work Plan (2009-15), which is meant to bridge the per
ceived "development divide" between the older and economically more advanced mem
bers - Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand, known a
s the ASEAN-6, and the four newer ones - Cambodia (1999), Lao People's Democrati
c Republic (1997), Myanmar (1997), and Viet Nam (1995).
Source: ADB publication The ASEAN Economic Community: A Work in Progress
As of October 2013, 279 measures (79.7%) of the ASEAN Economic Community Bluepri
nt have been implemented.
Source: Chairman's Statement of the 23rd ASEAN Summit, Bandar Seri Begawan, Brun
ei Darussalam, 9 October 2013.
Under the ASEAN Free Trade Agreement, the Common Effective Preferential Tariff s
cheme has brought down tariff rates on goods coming from ASEAN members to virtua
lly zero for ASEAN-6. The four new ASEAN members have until 2015 to reduce their
tariff.
Source: ADB publication The ASEAN Economic Community: A Work in Progress
While progress has been made in lowering tariffs and some behind-the-border econ
omic hurdles, non-tariff barriers remain as major impediments to achieving a sin
gle market by 2015. The liberalization of trade in services has also been slow d
espite the industry's growing importance in the region.
Source: ADB publication The ASEAN Economic Community: A Work in Progress
An ADB Institute study finds that that the ASEAN Economic Community should be co

nsidered a stepping stone to deeper integration. With the appropriate policy mix
, ASEAN could triple per capita income by 2030, raising its citizens' quality of
life to levels enjoyed today by members of the Organisation for Economic Co-ope
ration and Development (OECD).