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service, investment and labor mobility by harmonizing<br />

rules and regulations among ASEAN members. After 2000,<br />

Vietnam, Laos, Cambodia and Myanmar joined the AFTA.<br />

ASEAN was renamed the ASEAN Economic Community<br />

(AEC) <strong>with</strong> a total of 10 member countries. AEC will have an<br />

aggregate population of 580 million - more than the<br />

population in the European Union - <strong>with</strong> a total GDP of<br />

$US1.5 trillion. Looking at AEC as a product market <strong>with</strong><br />

high potential, in 2007 China, Japan and Korea joined AEC<br />

to form ASEAN+3. By 2018, Australia, New Zealand and<br />

India will also integrate into AEC to become ASEAN+6. This<br />

will make ASEAN a very influential economic zone because<br />

ASEAN+3 will have a population of 2 billion and ASEAN+6<br />

will have a population of over 3 billion. These countries have<br />

very high GDP growth rates. The AEC will result in greater<br />

concentration of production in the region. Trade between<br />

countries in Asia will increase and will counterbalance their<br />

trading between the US and the EU.<br />

The AEC involves the economic integration of 10<br />

countries. It covers the liberalization of capital movement,<br />

115<br />

Banja Junhasavasdikul, Ph.D.

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