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Association of Southeast Asian Nations (ASEAN) Fact Sheet released by the Bureau of East Asian and Pacific Affairs U.S. Department of State, July 21, 1998

The Association of Southeast Asian Nations (ASEAN) was formed in 1967 by Indonesia, Malaysia, the Philippines, Singapore, Thailand, and then-South Vietnam to promote political and economic cooperation. The Bali Treaty, signed in 1976 by ASEAN heads of state in Bali, Indonesia, and considered ASEAN's foundation document, formalized the principles of peace and cooperation to which ASEAN is dedicated. Brunei joined in 1984, shortly after its independence from the United Kingdom, and Vietnam joined ASEAN as its seventh state in 1995. Laos and Burma were admitted into full membership in July 1997 as ASEAN celebrated its 30th anniversary. Although Cambodia was also scheduled to join at that time, its admittance was postponed due to turmoil in that country.

The Association commands far greater influence on Asia-Pacific trade and political and security issues than its members could achieve individually. ASEAN's success has been based largely on its use of consultation, consensus, and cooperation. Its role in organizing international efforts to end conflict in Cambodia in 1978 led eventually to the 1993 democratic elections in Cambodia. In January 1993, ASEAN established the ASEAN Free Trade Area (AFTA) to eliminate most tariffs on manufactured goods between its member countries over the next 15 years.

ASEAN Regional Forum (ARF) and Post-Ministerial Conference (PMC)

Since 1977, ASEAN has established dialogue-partner relationships with other countries with interests in the region, including the United States. In 1993, ASEAN took the lead in proposing the formation of the ASEAN Regional Forum (ARF), to include the dialogue partners and some others. The inaugural ARF ministerial meeting, which was held July 25, 1994, in Bangkok, Thailand, successfully brought together foreign ministers from all the ASEAN countries, plus Australia, Canada, China, Japan, Laos, New Zealand, Papua New Guinea, Russia, South Korea, the United States, Vietnam, and 18 representatives from the European Union (EU), to discuss regional security concerns.

The Bangkok meeting established the ARF as the first region-wide multilateral forum for consultations at the government level on Asia-Pacific security issues. The 1994 Chairman's Statement, issued by consensus following the meeting, described the ARF as a useful instrument for contributing to regional security by easing tensions, reducing suspicions, and cultivating consultation habits.

Since the Bangkok meeting, the United States has encouraged an active ARF work program, focusing on confidence-building measures, defense transparency, and improved cooperation in other areas such as peacekeeping, search and rescue, and disaster relief. The U.S. sees the ARF as a useful forum for developing habits of consultation and dialogue to prevent future conflicts in the Asia-Pacific region.

ASEAN foreign ministers meet annually, usually in July, at the ASEAN ministerial meeting (AMM). The annual meeting of the ASEAN Regional Forum (ARF) foreign ministers follows the AMM. ASEAN then meets with its dialogue partners for a post-ministerial conference (PMC). Secretary Albright will lead the U.S. delegation to this year's meetings in Manila, the Philippines. The AMM is July 24-25, with the ARF on July 27 and the PMC July 28.

The ARF is an opportunity for members to address political and security issues in the region and internal ARF-related issues, as well as to approve recommendations made during the specific working groups of the past year. Initially, the PMC agenda focused on economic issues, but it now also includes political and security topics. With the advent of the ARF, the PMC has also begun to discuss extra-regional, transnational, and global issues, such as the terrorism, narcotics, and the environment.

In addition to the large annual meetings, ASEAN holds more than 260 other sub-dialogue and committee meetings during the year, as well as regular bilateral meetings with each of its dialogue partners. Intersessional ARF meetings on limited topics are also held throughout the year.

United States participation in the ARF and PMC offers an opportunity for regular and comprehensive review of matters of U.S. interest in the Asia-Pacific. It also provides a chance to underscore the importance of the region in U.S. foreign policy, while reaffirming our commitment to remain engaged.

At the 1998 ARF, the ministers are expected to approve a wide-ranging work plan for 1998-99. The plan calls for two working-level groups (official meetings involving government representatives):

-- Confidence-Building Measures; and
-- Disaster Relief Coordination.

Two former working groups are expected to continue at the technical expert level:

-- Search and Rescue; and
-- Peacekeeping Operations.

U.S. and the ARF

The United States is fully committed to remaining engaged in the Asia-Pacific region politically, economically, and strategically. The bedrock of U.S. engagement will continue to be its bilateral alliances and network of defense relationships and access arrangements. The U.S. seeks to complement its bilateral security ties and active engagement in resolving real threats with support for enhanced regional security dialogues. The ARF is the principal multilateral regional security dialogue in Asia, and the U.S. views it as complementary to U.S. bilateral ties.

Economics and Trade

The ASEAN countries plus Cambodia have a combined population of more than 450 million. Covering more than 2.4 million square miles, these countries straddle strategic sea routes linking the Pacific Ocean with the Middle East, Africa, and Europe. Rich in natural resources and with skilled work forces and market-oriented development policies, the ASEAN countries' economies grew rapidly in the 1980s and 1990s. In 1996, growth rates ranged from 6% for the Philippines to more than 9% for Vietnam, ranking ASEAN among the fastest-growing markets in the world.

The financial crisis of 1997 and 1998 has significantly affected ASEAN countries' growth, with several countries facing negative growth in 1998. The immediate challenges for the ASEAN countries are to restore macroeconomic stability, rebuild investor confidence, and strengthen their financial systems. In the long term, the economic fundamentals in the region offer promise for recovery and a return to sound economic growth.

U.S.-ASEAN Trade

U.S.-ASEAN two-way trade reached nearly $120 billion in 1997, an increase of more than 150% from 1990. Based on 1997 trade figures, ASEAN was the United States' fifth-largest trading partner. ASEAN is the second-fastest growing Asian market for U.S. exports. Leading U.S. exports include aircraft and parts, data processing equipment, electronic components, parts for office machinery, and telecommunications equipment. American companies located in ASEAN countries increasingly manufacture higher-technology products, particularly electronics, for re-export to the U.S. and to third-country markets.

ASEAN and the U.S. have established several consultative groups to increase cooperation as economic integration increases. Regular meetings include the U.S.-ASEAN Dialogue, the U.S. Trade Representative-ASEAN economic ministers meeting, the annual Trade Investment Coordinating Committee (TICC), and monthly Economic Cooperation Committee (ECC) meetings in Washington, DC. The U.S.-ASEAN Business Council has also been established to foster business relationships between the U.S. and the countries of ASEAN.

ASEAN Post-Ministerial Conference (PMC) Members

ASEAN: Brunei, Burma, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam

ASEAN "Dialogue Partners": Australia, Canada, China, European Union, India, Japan, Republic of Korea, New Zealand, Russia, United States

ASEAN Regional Forum (ARF) Members

Australia, Brunei, Burma, Cambodia, Canada, China, European Union, India, Indonesia, Japan, Republic of Korea, Laos, Malaysia, New Zealand, Papua New Guinea, Philippines, Russia, Singapore, Thailand, United States, Vietnam, Mongolia (expected in August 1998)

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