The institute for global justice | igj ASEAN-watch Volume I, number 1, January 2009 Contents: OPINION Signing of ASEAN

Charter: Integration or Disintegration? NEWS IN BRIEF ASEAN Become Priority of Diplomacy this Year Puspanathan Sundram, New ASEAN Secretary General Deputy ASEAN Gets More Important for China EU expects solid response from ASEAN on FTA offers NOTES What is AFAS, ATIGA and ACIA ? Signing of ASEAN Charter: Integration or Disintegration? ASEAN (Association of South East Asian Nations) Charter has approved legally on December 15th 2008 in ASEAN Secretariat, Jakarta. Regional Cooperation and economic integration to develop ASEAN Community is a mission stated briefly in ASEAN Charter. Spirit of economy and trade liberalization is still being a fundamental basic of all agreement regulated in ASEAN Charter. Logical consequences by legalized of this pact is that entire member states have to apply in national context and to ratify for member. Some structural adjustment is also arranged in the Charter. One of them is establishment of Asian Economic Community Council. The council will hold summit twice per year by mandate to advance the building of ASEAN Economic Community. The council is to replace summit of ASEAN economic minister. Program of structural adjustment is maintained as mechanism bridging gap and also as new approach in executing business among member states. Beside, the structural adjustment is also chosen by many international financial institutions in organizing their programs. It is not more than an intervention mechanism violating principle of state sovereignty. Even realism scientist argue that conditions to be called as sovereign state have not been fulfilled by many states recently, developing countries particularly. Sovereign concept in this perspective is still measured by state territorial aspect. Signing of the Charter marks legalization of migration of capitalists. Principle of free flow of skilled labor shows us that new imperialism comes recently. Since slavery in a new methods is legalized through the Charter. This is the ideal of AEC purposed by ASEAN Charter. The critical perspective discerning asymmetrical relationship within international politics considers that the Charter is not more than a new way of imperialism where capitalists in international scale covered by economic growth ideas but exactly they practices oppression of cheaper labors in other countries. This motivation is hidden by diplomacy strategy that is as if benefiting more states, particularly developing countries. In fact, it just gives maximal profit for developed countries and just causing more problems both economic and social disaster for less development countries. Hence it is precise adversely called disintegration . For liberalization process just creates wider gap between rich and poor. Poverty resulting in lack access of health and education for

the poor will rise. It impacts many areas as domino effects, like financial crisis recently. Step of economics globalization rooting in capitalism system is considered as nation tie to make serious efforts in applying concept of borderless nation. The nations will lose their sovereign since they do not have opportunities to choose their own way in establishing political economic structure within their states. (veronica saraswati) ASEAN Become Priority of Diplomacy this Year Signing of ASEAN Charter officially prevails in the last of 2008. Activity of Indonesian diplomacy along 2009 will focus on infrastructure preparation of ASEAN beside respond over potential serious impact of financial crisis globally. Indonesian foreign affair minister Hassan Wirajuda in his annual press release on Thursday Januari 6th 2009 at Jakarta said that the preparation includes accomplishment of ASEAN Politic and Security Community blue print as well as ASEAN Socioculture Community. Besides, Indonesia as biggest country among other members and also as ASEAN host, is asked to take an important role in this transformation process. ASEAN Summit will be held on last of February 2009. The schedule is changed from December 2008 to February 2009 because of Thailand political situation. In the ASEAN Summit 2009 Chiang Mai Declaration on the Roadmap for an ASEAN Community 2009-2015 will be signed to replace Vientiane Plan of Action. (Kompas, January 7th 2009) Puspanathan Sundram, New ASEAN Secretary General Deputy Pushpanathan Sundram appoints as ASEAN Secretary General Deputy for ASEAN Economic Community (AEC). It starts to be effective on January 1st 2009 and the inauguration are going to be held in ASEAN Secretariat, Jakarta on Monday. Sundram is being responsible to assist ASEAN Secretary General in realizing AEC on 2015. His duty is like to supervise excecuting of the blue print of AEC going in the direction of establishment of Single Market and Production Base, that is competitive and global economic region. (www.kapanlagi. com Thursday January 13rd 2009) ASEAN Gets More Important for China China Ambassador for ASEAN Xue Hanqian considers role and existing of ASEAN have more important and strategic with the result that cooperation efforts and upgrading of bilateral affair of both side will advance continuously. In his view, ASEAN is a potential region so that the striving of cooperation advancing with member states wholly is intensely significant and urgent. One of ASEAN important proportions for China is showed by appointment of China ambassador for ASEAN, based on argument that to make more directed in advancing the relationship and bilateral affair in all sorts of fields of both sides. Hanqian said that he plans to visit all member states of ASEAN in close time, including Jakarta. He just settled stay in Beijing now. China is the sixth of ASEAN states dialogue partner appointing special envoy for ASEAN over USA, Australia, New Zealand, Japan and South Korea. Total trading of China with member states of ASEAN recently shows striking growth even straight expanding caused by China ASEAN Free Trade Area (CAFTA). On year of 2004 total trading China-ASEAN reachs 105.88 billion $ US and on the year of 2007 it has achieved 202.5 billion $ US. It means that annual average growth is 23.8%. This rate fulfills targeted amount determined by China-ASEAN leaders that is only 200 billion $ US. It is predicted that ASEAN will be the third biggest trading partner replacing Japan for China on 2010, after European Union and USA. (http://beritasore. com January 15th 2009)

EU expects solid response from ASEAN on FTA offers "With the economic slowdown creeping in, there is an urgency for concluding the EU-ASEAN FTA talks," the EU has said (www.bilateral. org 5 January 2009). The European Union expects solid response from ASEAN countries to offers made for a possible EUASEAN Free Trade Agreement (FTA) at a meeting to be hosted by Malaysia in March. Strong efforts to liberalize soon ASEAN region is also triggered by other regional affair, namely European Union. As signing of ASEAN Charter on December 15th 2008 at Jakarta, EU immediately executes free trade agreement between two regions. Global financial crisis over and over is being a logic reason for establishment of political economic system based on capitalism. Principle of getting profit as much as possible has to be applied with more business partner. EU urge toward ASEAN to soon decide exactly in agreeing FTA (Free Trade Agreement) agenda is obviously seen that free trade logic is always keeping demand in looking for market for their products. It may be the overloaded products of producer country. Cooperation methods then is chosen by capitalists to camouflage their colonial spirit in oppressing labors in other country and obtaining maximal profits from other countries. "We should try to get this agreement going amid the global economic slowdown. Kuala Lumpur will host the next round of negotiations in March. We hope ASEAN countries will come out with solid response to EU offers," said Vincent Piket, the European Commission Ambassador and Head of Delegation in Malaysia. Piket said ASEAN countries had confirmed to broker an agreement that was in line with what the economic and trade ministers had agreed upon in the ASEAN-EU Summit two years ago. "With the economic slowdown creeping in, there is urgency for concluding the EU-ASEAN FTA talks. He said there were two considerations in the FTA talks. "Firstly, ASEAN is not a customized union. At the end of the day, you will have to sign individual agreements between EU and individual ASEAN members, that is one consideration, " he explained. The diverse and heterogeneous nature of ASEAN economies are the other consideration, he said. It was reported earlier that some ASEAN member states were ready to wrap up the agreement while countries like Laos, Myanmar and Cambodia would join the pact later. "Hence, the FTA will be concluded in two phases as some member states are ready to go on with the negotiation process while some of them are not, but the approach will be at a regional and group level."It will not be separated bilateral as it is not possible to negotiate regional FTA with individual member states," he said. Former EU Trade Commissioner Peter Mandelson said in May last year that the EU was introducing some flexibility in the region-to-region pact framework that would take into account the different levels of development within ASEAN. Their key positions in the Asia-Pacific region, its dedication to regional peace and stability and its important economic weight have made ASEAN a key partner for the European Union. What is AFAS, ATIGA and ACIA ? Some agreements below (in the frame of ASEAN Economic Community) briefly explain orderliness of capitalists all at once administrator in tricking every details of thousand million people of ASEAN needs. It also involves poor people fate of ASEAN. They are AFAS covering services sector, ATIGA regulating goods sector and ACIA ruling investment sector. Argument about the importance of economic integration is built as charm in expanding free trade power area. All details of the agreements is related and served one another. Even in realizing ASEAN Economic Community amount of terms is set as condition of trade freeing, investments up to skilled labor. Dense population of ASEAN region makes trade sectors being

an important economic buffer except agriculture. Accorded on 2006 that total population of ASEAN region is approximately 560 million by total area width is 4.5 million square. AFAS 7 (ASEAN Framework Agreement in Services) had signed on the last of 1995. AFAS 7 is an agreement to advance liberalization of 65 sub fields of services through directed schedule in fields of Priority Integration of Services Sectors. The agreement is aimed for liberalizing the trade in services sectors to facilitate realization of AFTA by completely removing of tariffs constraint among member states. This pact is considered urgent for ASEAN need to organize some more economy activities in the fields of services and investment. It is a significant components for acceleration of AEC establishing on 2015. ATIGA (ASEAN Trade in Goods Agreement) is collection of regional agreement regulating goods trade including program of tariffs reduction and completely removal and non tariffs coming close to 2010, and revise of origin rule and implementation of trading facilitation agenda, like National Single Window. As one of agreement pillar in building ASEAN Community, ATIGA is an important part to form market integration (single market) and production base characterized by free flow of goods. ATIGA complements efforts of member states in composing AEC. This agreement has legalized on November 20th 2007. ATIGA is proposed to minimize barriers and deepen relationship and network among member states, to reduce trade cost, to increase trade and investment and economic efficiency, to create wider market and greater business scale within broader economy of member states, and to create competitive investment area. ACIA (ASEAN Comprehensive Investment Agreement) is a regional agreement arranging all about investment. As one step forward of AIA Agreement (ASEAN Investment Area) and ASEAN Agreement for the Promotion and Protection of Investment signed at Philippine on December 15th 1987, this pact then approve some articles regulating internal investment of member states and with external side. Main purpose of ACIA, as stated in article 1 of the agreement is to establish opened and free investment regime in ASEAN in order to reach economic integration as final destination under AEC through progressive liberalization in investment regime. ASEAN-Watch is published by The Institute for Global Justice (IGJ) Director: Indah Suksmaningsih Editor: Veronica Saraswati, Bonnie Setiawan Contact: ASEAN-Watch - Institute for Global Justice (IGJ) Jl. Matraman 12A, Jakarta 10430, Indonesia Ph. 62-21-3107578, Fax. 62-21-3107586 Email: vero@globaljust. org Web: www.globaljust. org