ASEAN: Regional Trends in Economic Integration, Export ... - USITC

egional economic integration would help them to attract foreign investment and develop
economically. The council noted, however, that this increased economic cooperation was
not accompanied by the structural and institutional reforms necessary to bring about real
regional economic integration. It was reported that one factor that had a positive impact
on ASEAN’s regional economic integration efforts was the Asian financial crisis in 1997,
which prompted stronger efforts by ASEAN countries to coordinate economic policies.
The council stated that the recent global recession has led to greater recognition by
ASEAN countries that regional economic integration is critical to succeeding in the
global economy, to competing successfully with India and China, and creating ASEAN
multinational companies.
The council noted that, although ASEAN’s regional economic integration presents
opportunities for U.S. companies, it also presents challenges for them. These challenges
include lost opportunities for U.S. firms to export to ASEAN nations as a result of
preferential trade agreements between ASEAN and other countries such as China, as well
as greater competition from ASEAN firms as they grow and become regional and global
businesses.
U.S. Chamber of Commerce 7
The U.S. Chamber of Commerce (Chamber) is the world’s largest business federation,
representing more than three million businesses and organizations in every major
classification of U.S. business—manufacturing, retailing, services, construction,
wholesaling, and finance. In addition, the Chamber has a substantial international reach,
with 112 American Chambers of Commerce abroad and an increasing number of
members engaged in importing and exporting goods and services. The Chamber favors
strengthened international competitiveness and opposes artificial U.S. and foreign
barriers to international business.
With 582 million consumers, ASEAN is the third largest market in Asia after China and
India. The Chamber’s submission states that not only would increased regional economic
integration benefit U.S. companies, but it would also boost growth, increase trade, and
create jobs in Southeast Asia. According to the Chamber, integration would stimulate
new consumer demand that U.S. firms would seek to meet, as well as provide new
investment opportunities for U.S. companies and increase ties between ASEAN member
countries and the United States.
The Chamber stated that through the ASEAN Free Trade Agreement (AFTA), the 10
member countries are moving toward an integrated regional market, principally by
eliminating tariffs on industrial and agricultural products. It asserted that fully
implementing AFTA is critical to the entry and long-term growth of business in the
region and providing U.S. businesses with the scale of production that will offer them
competitive cost efficiencies without having to establish a manufacturing presence in
each market.
The Chamber’s submission states that its member companies tell them that regional
integration is still at an early stage, and more work is required to remove barriers to trade
in goods and the free flow of capital and labor. Specifically, ASEAN needs to address
7 Unless otherwise specified, the source for this position of interested party is U.S. Chamber of
Commerce, written submission to the USITC, March 10, 2010.
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