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ASEAN+3: MAIN PROJECTS AND OUTCOMES
Roman I. Fainshmidt
Department of World Economy and International Affairs,
National Research University ‘Higher School of Economics’
ASEAN is considered one of the most promising regions for economic growth and was
predicted to achieve an average GDP growth of 4.7% in 2016, with the highest rates in
countries such as Laos, Myanmar, the Philippines, and Cambodia (exceeding 6%)1.
Furthermore, ASEAN serves as a mechanism for addressing political and military issues
in the Asia-Pacific region. The region plays a crucial strategic role in the Asia-Pacific,
maintaining strong connections with major actors such as Australia, China, India, South
Korea, Japan, and the USA, as well as other economies.
International collaboration entails deep interactions, exemplified by Free Trade
Agreements and trade blocs like the Trans-Pacific Partnership (TPP), with Singapore,
Malaysia, and Vietnam participating, and Thailand, Indonesia, and the Philippines as
potential members. The Regional Comprehensive Economic Partnership (RCEP), built
upon ASEAN's existing free trade agreements, further demonstrates this trend. The
origins of this deep collaboration can be found in ASEAN’s institutionalized relationship
with three major Asian players – Japan, South Korea, and China – collectively known as
ASEAN+3.
Japan, China, and South Korea as key partners of ASEAN in the framework of
ASEAN+3
China, Japan, and South Korea are recognized as key economic actors not only in Asia
but also in the global economy, ranking 2nd, 3rd, and 13th, respectively in terms of
nominal GDP2. Moreover, these countries can be considered key actors that shape
processes in Asia and influence international affairs. Nevertheless, these three states
experience tensions in their relations due to differing political systems and historical
reasons.
Considering ASEAN’s political activity, it can be noted that the organization aims to
ensure political stability and enhance security in the region through ASEAN mechanisms
that foster interconnectedness among these three actors.
ASEAN+3 cooperation began at the inaugural summit in Kuala Lumpur in December
1997. In 1999, the Manila Joint Statement on East Asia Cooperation established the
partnership's principles, objectives, and eight priority areas:
Economic cooperation,
Monetary and financial cooperation,
1 Economic Snapshot for ASEAN// Focus Economics. URL:
http://www.focus-economics.com/regions/asean (accessed: 26.03.2016)
2 Gross domestic product 2014// World Bank URL:http://databank.worldbank.org/data/download/GDP.pdf
(accessed: 26.03.2016)
Development of human capital,
Scientific and technical cooperation,
Cultural and informational exchange,
Promotion of sustainable economic and social development,
Ensuring political security,
Solving transnational issues.
Key concerns within the ASEAN+3 framework include energy security (particularly
renewable sources and sustainable development), infrastructure and ICT cooperation,
trade intensification, increased investments, support for small and medium-sized
enterprises (SMEs), and expanded collaboration across various industries, including
agriculture. In 2005, the ‘Kuala Lumpur Declaration on the APT Summit’ was introduced
and regarded as a step toward the formation of an East Asian Community. In 2007, the
second Joint Statement on East Asia Cooperation, named ‘Building on the Foundations of
ASEAN Plus Three Cooperation’, was implemented. It noted the second phase of
ASEAN+3 evolution on a comprehensive and mutually beneficial basis, and the APT
Work Plan for the period from 2007 to 2017 defined the strategy of cooperation, adding 4
new fields such as gender equality, management of natural and industrial disasters, the
struggle with poverty and rural underdeveloped state, and mineral resource depletion.
One of the first outcomes of the ASEAN+3 collaboration was the Chiang Mai Initiative,
which arranged a system of bilateral swaps and currency repurchases for dealing with
economic crises and temporary liquidity shortages in one of the 13 countries. This
agreement was revised and expanded into a comprehensive multilateral currency swap
mechanism known as CMIM (Chiang Mai Initiative Multilateralization), amounting to
$240 billion. In 2003, it was agreed to follow the idea of elaborating regional bond
markets within the framework of the ‘Asian Bond Market Initiative’ (ABMI) to improve
the use of aggregate savings and reduce potential currency discrepancies. Also, the APT
planned to form regional monetary units in the long run. Nevertheless, the coordination
of monetary and financial policies aligns with broader economic strategies of member
countries. This rationale led to the establishment of the 'Economic Review and Policy
Dialogue' (ERPD), which identifies financial vulnerabilities among ASEAN+3 members
and facilitates timely remedial measures. To promote financial and economic stability
and balanced growth, the ASEAN+3 Macroeconomic Research Office (AMRO) was
established in 2011. AMRO conducts macroeconomic surveillance at both country and
regional levels, analyzing potential economic risks and informing decisions made under
the Chiang Mai Initiative Multilateralisation (CMIM). Other significant projects include
the APT Emergency Rice Reserve Agreement and the APT Comprehensive Strategy on
Food Security and Bio-energy Development.
The APT serves as an accelerator for deepening ASEAN’s economic relations with its
partners, as reflected in the development of Free Trade Agreements. During the 2000s,
China and ASEAN elaborated the Framework Agreement on Comprehensive Economic
Cooperation between ASEAN and China, which was followed by mechanisms that set
preferential tariffs for new ASEAN members (Laos, Cambodia, and Myanmar). As a
result, since 2010, the China-ASEAN free trade area has existed and is the largest one in
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terms of population. South Korea repeated the steps taken by China, signing agreements
and documents necessary for free trade area formation, including the Framework
Agreement on Comprehensive Economic Cooperation between ASEAN-Korea of 2015.
The ASEAN-Korea Free Trade Area (AKFTA) has been operating since 2009, including
liberalization of trade in goods and services and facilitation of investment allocation.
Meanwhile, the ASEAN-Japan Free Trade Agreement (AJFTA) entered into force in
2008 with a faster negotiation process.
Conclusion
Over its nearly 20-year history, the institutionalized ASEAN+3 group (ASEAN, Japan,
China, and South Korea) has pursued common objectives, particularly in economic and
monetary cooperation, which became crucial following the Asian financial crisis. It
formed a unified system of financial tools aimed at maintaining stability and avoiding
irregularities within member economies. Moreover, ASEAN took on the role of the
center, which signed free trade agreements with every other country of APT and
positioned itself as an actor responsible for implementing set goals and providing
political stability, security, and economic prosperity in Greater East Asia (the broader
East Asian region). The aforementioned actions and plans can be considered consistent
steps towards the formation of the East Asian Community in the long term.
Bibliography
1. ASEAN+3 Macroeconomic Research Office (AMRO). URL: http://www.amro-
asia.org/
2. Asia Regional Integration Center. URL: https://aric.adb.org/beta
3. Databank. World Bank. URL:http://databank.worldbank.org
4. Economic Snapshot for ASEAN// Focus Economics. URL:http://www.focus-
economics.com/regions/asean
5. Gavrilov V.V. Framework of the ASEAN Plus Three Mechanisms Operating in
the Sphere of Economic Cooperation. Discussion Paper №7. September, 2011.
URL: http://cale.law.nagoya-u.ac.jp/_src/sc597/CALE20DP20No.207-110826.pdf
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