What is the WTO?

The World Trade Organization (WTO) is the only global international

organization dealing with the rules of trade between nations. At its heart are
the WTO agreements, negotiated and signed by the bulk of the worlds
trading nations and ratified in their parliaments. The goal is to help producers
of goods and services, exporters, and importers conduct their business.
UNDERSTANDING THE WTO
Who we are
There are a number of ways of looking at the World Trade Organization. It is
an organization for trade opening. It is a forum for governments to negotiate
trade agreements. It is a place for them to settle trade disputes. It operates a
system of trade rules. Essentially, the WTO is a place where member
governments try to sort out the trade problems they face with each other.
The WTO was born out of negotiations, and everything the WTO does is the
result of negotiations. The bulk of the WTOs current work comes from the
198694 negotiations called the Uruguay Round and earlier negotiations
under the General Agreement on Tariffs and Trade (GATT). The WTO is
currently the host to new negotiations, under the Doha Development
Agenda launched in 2001.
Where countries have faced trade barriers and wanted them lowered, the
negotiations have helped to open markets for trade. But the WTO is not just
about opening markets, and in some circumstances its rules support
maintaining trade barriers for example, to protect consumers or prevent
the spread of disease.

The systems overriding purpose is to help trade flow as freely as possible

so long as there are no undesirable side effects because this is important
for economic development and well-being. That partly means removing
obstacles. It also means ensuring that individuals, companies and
governments know what the trade rules are around the world, and giving
them the confidence that there will be no sudden changes of policy. In other
words, the rules have to be transparent and predictable.
Trade relations often involve conflicting interests. Agreements, including
those painstakingly negotiated in the WTO system, often need interpreting.
The most harmonious way to settle these differences is through some
neutral procedure based on an agreed legal foundation. That is the purpose
behind the dispute settlement process written into the WTO agreements.
UNDERSTANDING THE WTO
What we do
The WTO is run by its member governments. All major decisions are made by
the membership as a whole, either by ministers (who usually meet at least
once every two years) or by their ambassadors or delegates (who meet
regularly in Geneva).
While the WTO is driven by its member states, it could not function without
its Secretariat to coordinate the activities. The Secretariat employs over 600
staff, and its experts lawyers, economists, statisticians and
communications experts assist WTO members on a daily basis to ensure,
among other things, that negotiations progress smoothly, and that the rules
of international trade are correctly applied and enforced.
Trade negotiations

At its heart are the WTO agreements, negotiated and signed by the bulk of
the worlds trading nations. These documents provide the legal ground rules
for international commerce. They are essentially contracts, binding
governments to keep their trade policies within agreed limits. Although
negotiated and signed by governments, the goal is to help producers of
goods and services, exporters, and importers conduct their business, while
allowing governments to meet social and environmental objectives.

The WTO agreements cover goods, services and intellectual property. They
spell out the principles of liberalization, and the permitted exceptions. They
include individual countries commitments to lower customs tariffs and other
trade barriers, and to open and keep open services markets. They set
procedures for settling disputes. These agreements are not static; they are
renegotiated from time to time and new agreements can be added to the

package. Many are now being negotiated under the Doha Development
Agenda, launched by WTO trade ministers in Doha, Qatar, in November
2001.
Implementation and monitoring

The WTO maintains regular dialogue with non-governmental organizations,

parliamentarians, other international organizations, the media and the
general public on various aspects of the WTO and the ongoing Doha
negotiations, with the aim of enhancing cooperation and increasing
awareness of WTO activities.

WTO agreements require governments to make their trade policies

transparent by notifying the WTO about laws in force and measures adopted.
Various WTO councils and committees seek to ensure that these
requirements are being followed and that WTO agreements are being
properly implemented. All WTO members must undergo periodic scrutiny of
their trade policies and practices, each review containing reports by the
country concerned and the WTO Secretariat.

UNDERSTANDING THE WTO

What we stand for

Dispute settlement

Non-discrimination

The WTOs procedure for resolving trade quarrels under the Dispute
Settlement Understanding is vital for enforcing the rules and therefore for
ensuring that trade flows smoothly. Countries bring disputes to the WTO if
they think their rights under the agreements are being infringed. Judgements
by specially appointed independent experts are based on interpretations of
the agreements and individual countries commitments.

A country should not discriminate between its trading partners and it should
not discriminate between its own and foreign products, services or nationals.

Building trade capacity

WTO agreements contain special provision for developing countries,
including longer time periods to implement agreements and commitments,
measures to increase their trading opportunities, and support to help them
build their trade capacity, to handle disputes and to implement technical
standards. The WTO organizes hundreds of technical cooperation missions to
developing countries annually. It also holds numerous courses each year in
Geneva for government officials. Aid for Trade aims to help developing
countries develop the skills and infrastructure needed to expand their trade.
Outreach

The WTO agreements are lengthy and complex because they are legal texts
covering a wide range of activities. But a number of simple, fundamental
principles run throughout all of these documents. These principles are the
foundation of the multilateral trading system.

More open
Lowering trade barriers is one of the most obvious ways of encouraging
trade; these barriers include customs duties (or tariffs) and measures such as
import bans or quotas that restrict quantities selectively.
Predictable and transparent
Foreign companies, investors and governments should be confident that
trade barriers should not be raised arbitrarily. With stability and
predictability, investment is encouraged, jobs are created and consumers can
fully enjoy the benefits of competition choice and lower prices.
More competitive
Discouraging unfair practices, such as export subsidies and dumping
products at below cost to gain market share; the issues are complex, and the

rules try to establish what is fair or unfair, and how governments can
respond, in particular by charging additional import duties calculated to
compensate for damage caused by unfair trade.
More beneficial for less developed countries
Giving them more time to adjust, greater flexibility and special privileges;
over three-quarters of WTO members are developing countries and countries
in transition to market economies. The WTO agreements give them
transition periods to adjust to the more unfamiliar and, perhaps, difficult
WTO provisions.
Protect the environment
The WTOs agreements permit members to take measures to protect not
only the environment but also public health, animal health and plant health.
However, these measures must be applied in the same way to both national
and foreign businesses. In other words, members must not use
environmental protection measures as a means of disguising protectionist
policies.
Overview
The World Trade Organization the WTO is the international
organization whose primary purpose is to open trade for the benefit of all.
The WTO provides a forum for negotiating agreements aimed at reducing
obstacles to international trade and ensuring a level playing field for all, thus
contributing to economic growth and development. The WTO also provides a
legal and institutional framework for the implementation and monitoring of
these agreements, as well as for settling disputes arising from their
interpretation and application. The current body of trade agreements
comprising the WTO consists of 16 different multilateral agreements (to
which all WTO members are parties) and two different plurilateral
agreements (to which only some WTO members are parties).

Over the past 60 years, the WTO, which was established in 1995, and its
predecessor organization the GATT have helped to create a strong and
prosperous international trading system, thereby contributing to
unprecedented global economic growth. The WTO currently has 162
members, of which 117 are developing countries or separate customs
territories. WTO activities are supported by a Secretariat of some 700 staff,
led by the WTO Director-General. The Secretariat is located in Geneva,
Switzerland, and has an annual budget of approximately CHF 200 million
($180 million, 130 million). The three official languages of the WTO are
English, French and Spanish.
Decisions in the WTO are generally taken by consensus of the entire
membership. The highest institutional body is the Ministerial Conference,
which meets roughly every two years. A General Council conducts the
organization's business in the intervals between Ministerial Conferences.
Both of these bodies comprise all members. Specialised subsidiary bodies
(Councils, Committees, Sub-committees), also comprising all members,
administer and monitor the implementation by members of the various WTO
agreements.
More specifically, the WTO's main activities are:
negotiating the reduction or elimination of obstacles to trade
(import tariffs, other barriers to trade) and agreeing on rules governing
the conduct of international trade (e.g. antidumping, subsidies, product
standards, etc.)
administering and monitoring the application of the WTO's agreed
rules for trade in goods, trade in services, and trade-related intellectual
property rights
monitoring and reviewing the trade policies of our members, as well
as ensuring transparency of regional and bilateral trade agreements
settling disputes among our members regarding the interpretation
and application of the agreements
building capacity of developing country government officials in
international trade matters
assisting the process of accession of some 30 countries who are not
yet members of the organization

 conducting economic research and collecting and disseminating

trade data in support of the WTO's other main activities
explaining to and educating the public about the WTO, its mission
and its activities.
The WTO's founding and guiding principles remain the pursuit of open
borders, the guarantee of most-favoured-nation principle and nondiscriminatory treatment by and among members, and a commitment to
transparency in the conduct of its activities. The opening of national markets
to international trade, with justifiable exceptions or with adequate
flexibilities, will encourage and contribute to sustainable development, raise
people's welfare, reduce poverty, and foster peace and stability. At the same
time, such market opening must be accompanied by sound domestic and
international policies that contribute to economic growth and development
according to each member's needs and aspirations.
THE WTO IN BRIEF: PART 1
The multilateral trading systempast, present and future
The World Trade Organization came into being in 1995. One of the youngest
of the international organizations, the WTO is the successor to the General
Agreement on Tariffs and Trade (GATT) established in the wake of the Second
World War.
So while the WTO is still young, the multilateral trading system that was
originally set up under GATT is well over 50 years old.

measures. The last round the 1986-94 Uruguay Round led to the WTOs
creation.
The negotiations did not end there. Some continued after the end of the
Uruguay Round. In February 1997 agreement was reached on
telecommunications services, with 69 governments agreeing to wide-ranging
liberalization measures that went beyond those agreed in the Uruguay
Round.
In the same year 40 governments successfully concluded negotiations for
tariff-free trade in information technology products, and 70 members
concluded a financial services deal covering more than 95% of trade in
banking, insurance, securities and financial information.
In 2000, new talks started on agriculture and services. These have now been
incorporated into a broader agenda launched at the fourth WTO Ministerial
Conference in Doha, Qatar, in November 2001.
The work programme, the Doha Development Agenda (DDA), adds
negotiations and other work on non-agricultural tariffs, trade and
environment, WTO rules such as anti-dumping and subsidies, investment,
competition policy, trade facilitation, transparency in government
procurement, intellectual property, and a range of issues raised by
developing countries as difficulties they face in implementing the present
WTO agreements.
The deadline for the negotiations is 1 January 2005.

The past 50 years have seen an exceptional growth in world trade.

Merchandise exports grew on average by 6% annually. Total trade in 2000
was 22-times the level of 1950. GATT and the WTO have helped to create a
strong and prosperous trading system contributing to unprecedented
growth.
The system was developed through a series of trade negotiations, or rounds,
held under GATT. The first rounds dealt mainly with tariff reductions but
later negotiations included other areas such as anti-dumping and non-tariff

The WTOs overriding objective is to help trade flow smoothly, freely, fairly
and predictably.
It does this by:

Administering trade agreements

Acting as a forum for trade negotiations
Settling trade disputes

Reviewing national trade policies

Assisting developing countries in trade policy issues, through
technical assistance and training programmes
Cooperating with other international organizations

How can you ensure that trade is as fair as possible, and as free as is
practical? By negotiating rules and abiding by them.
The WTOs rules the agreements are the result of negotiations between
the members. The current set were the outcome of the 198694 Uruguay
Round negotiations which included a major revision of the original General
Agreement on Tariffs and Trade (GATT).

Structure
The WTO has about 160 members, accounting for about 95% of world trade.
Around 25 others are negotiating membership.
Decisions are made by the entire membership. This is typically by consensus.
A majority vote is also possible but it has never been used in the WTO, and
was extremely rare under the WTOs predecessor, GATT. The WTOs
agreements have been ratified in all members parliaments.
The WTOs top level decision-making body is the Ministerial
Conferencewhich meets at least once every two years.
Below this is the General Council (normally ambassadors and heads of
delegation in Geneva, but sometimes officials sent from members capitals)
which meets several times a year in the Geneva headquarters. The General
Council also meets as the Trade Policy Review Body and the Dispute
Settlement Body.
At the next level, the Goods Council, Services Council and Intellectual
Property (TRIPS) Council report to the General Council.
Numerous specialized committees, working groups and working partiesdeal
with the individual agreements and other areas such as the environment,
development, membership applications and regional trade agreements.

The WTO agreements

GATT is now the WTOs principal rule-book for trade in goods. The Uruguay
Round also created new rules for dealing with trade in services, relevant
aspects of intellectual property, dispute settlement, and trade policy reviews.
The complete set runs to some 30,000 pages consisting of about 30
agreements and separate commitments (called schedules) made by
individual members in specific areas such as lower customs duty rates and
services market-opening.
Through these agreements, WTO members operate a non-discriminatory
trading system that spells out their rights and their obligations. Each country
receives guarantees that its exports will be treated fairly and consistently in
other countries markets. Each promises to do the same for imports into its
own market. The system also gives developing countries some flexibility in
implementing their commitments.

Goods back to top

It all began with trade in goods. From 1947 to 1994, GATT was the forum for
negotiating lower customs duty rates and other trade barriers; the text of the
General Agreement spelt out important rules, particularly nondiscrimination.
Since 1995, the updated GATT has become the WTOs umbrella agreement
for trade in goods. It has annexes dealing with specific sectors such as
agriculture and textiles, and with specific issues such as state trading,
product standards, subsidies and actions taken against dumping.

Services back to top

Banks, insurance firms, telecommunications
companies, tour operators, hotel chains and
transport companies looking to do business
abroad can now enjoy the same principles of
freer and fairer trade that originally only applied
to trade in goods.
These principles appear in the new General
Agreement on Trade in Services (GATS). WTO
members have also made individual
commitments under GATS stating which of their
services sectors they are willing to open to
foreign competition, and how open those
markets are.
Intellectual property back to top
The WTOs intellectual property agreement amounts to rules for trade and
investment in ideas and creativity. The rules state how copyrights, patents,
trademarks, geographical names used to identify products, industrial designs,
integrated circuit layout-designs and undisclosed information such as trade
secrets intellectual property should be protected when trade is
involved.

disputes to the WTO if they think their rights under the agreements are being
infringed. Judgements by specially-appointed independent experts are based
on interpretations of the agreements and individual countries commitments.
The system encourages countries to settle their differences through
consultation. Failing that, they can follow a carefully mapped out, stage-bystage procedure that includes the possibility of a ruling by a panel of experts,
and the chance to appeal the ruling on legal grounds. Confidence in the
system is borne out by the number of cases brought to the WTO around
300 cases in eight years compared to the 300 disputes dealt with during the
entire life of GATT (194794).

Policy review back to top

The Trade Policy Review Mechanisms purpose is to improve transparency, to
create a greater understanding of the policies that countries are adopting,
and to assess their impact. Many members also see the reviews as
constructive feedback on their policies.
All WTO members must undergo periodic scrutiny, each review containing
reports by the country concerned and the WTO Secretariat.

Dispute settlement back to top

The WTOs procedure for
resolving trade quarrels under
the Dispute Settlement
Understanding is vital for
enforcing the rules and
therefore for ensuring that trade
flows smoothly. Countries bring

Secretariat

The WTO Secretariat, based in Geneva, has around 640 staff and is headed
by a director-general. Its annual budget is roughly 197 million Swiss francs. It
does not have branch offices outside Geneva. Since decisions are taken by
the members themselves, the Secretariat does not have the decision-making
role that other
international
bureaucracies are
given.
The Secretariats
main duties are to
supply technical support for the various councils and committees and the
ministerial conferences, to provide technical assistance for developing
countries, to analyze world trade, and to explain WTO affairs to the public
and media.
The Secretariat also provides some forms of legal assistance in the dispute
settlement process and advises governments wishing to become members of
the WTO.
Developing countries

Development and trade back to top

Over three quarters of WTO members are developing or least-developed
countries. All WTO agreements contain special provision for them, including
longer time periods to implement agreements and commitments, measures
to increase their trading opportunities and support to help them build the
infrastructure for WTO work, handle disputes, and implement technical
standards.
The 2001 Ministerial Conference in Doha set out tasks, including
negotiations, for a wide range of issues concerning developing countries.
Some people call the new negotiations the Doha Development Round.

Before that, in 1997, a high-level meeting on trade initiatives and technical

assistance for least-developed countries resulted in an integrated
framework involving six intergovernmental agencies, to help leastdeveloped countries increase their ability to trade, and some additional
preferential market access agreements.
A WTO committee on trade and development, assisted by a sub-committee
on least-developed countries, looks at developing countries special needs.
Its responsibility includes implementation of the agreements, technical
cooperation, and the increased participation of developing countries in the
global trading system

Technical assistance and training back to top

The WTO organizes around 100 technical cooperation missions to developing
countries annually. It holds on average three trade policy courses each year
in Geneva for government officials. Regional seminars are held regularly in all
regions of the world with a special emphasis on African countries. Training
courses are also organized in Geneva for officials from countries in transition
from central planning to market economies.
The WTO set up reference centres in over 100 trade ministries and regional
organizations in capitals of developing and least-developed countries,
providing computers and internet access to enable ministry officials to keep
abreast of events in the WTO in Geneva through online access to the WTOs
immense database of official documents and other material. Efforts are also
being made to help countries that do not have permanent representatives in
Geneva.

ESTABLISHMENT

5.

To collaborate more effectively for the greater utilisation of their

agriculture and industries, the expansion of their trade, including

The Association of Southeast Asian Nations, or ASEAN, was established on 8

the study of the problems of international commodity trade, the

August 1967 in Bangkok, Thailand, with the signing of the ASEAN

improvement of their transportation and communications facilities

Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely

Indonesia, Malaysia, Philippines, Singapore and Thailand.

and the raising of the living standards of their peoples;

6.

To promote Southeast Asian studies; and

7.

To maintain close and beneficial cooperation with existing

Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995,

international and regional organisations with similar aims and

Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999,

purposes, and explore all avenues for even closer cooperation

making up what is today the ten Member States of ASEAN.

among themselves.
FUNDAMENTAL PRINCIPLES

AIMS AND PURPOSES

As set out in the ASEAN Declaration, the aims and purposes of ASEAN are:

In their relations with one another, the ASEAN Member States have adopted
the following fundamental principles, as contained in the Treaty of Amity and

1.

To accelerate the economic growth, social progress and cultural

Cooperation in Southeast Asia (TAC) of 1976:

development in the region through joint endeavours in the spirit of

equality and partnership in order to strengthen the foundation for a

1.

territorial integrity, and national identity of all nations;

prosperous and peaceful community of Southeast Asian Nations;

2.

To promote regional peace and stability through abiding respect for

2.

The right of every State to lead its national existence free from
external interference, subversion or coercion;

justice and the rule of law in the relationship among countries of the

3.

Mutual respect for the independence, sovereignty, equality,

region and adherence to the principles of the United Nations

3.

Non-interference in the internal affairs of one another;

Charter;

4.

Settlement of differences or disputes by peaceful manner;

To promote active collaboration and mutual assistance on matters

5.

Renunciation of the threat or use of force; and

of common interest in the economic, social, cultural, technical,

6.

Effective cooperation among themselves.

scientific and administrative fields;

4.

To provide assistance to each other in the form of training and

research facilities in the educational, professional, technical and
administrative spheres;

ASEAN COMMUNITY

The ASEAN Vision 2020, adopted by the ASEAN Leaders on the 30th

ASEAN CHARTER

Anniversary of ASEAN, agreed on a shared vision of ASEAN as a concert of

Southeast Asian nations, outward looking, living in peace, stability and

The ASEAN Charter serves as a firm foundation in achieving the ASEAN

prosperity, bonded together in partnership in dynamic development and in a

Community by providing legal status and institutional framework for ASEAN.

community of caring societies.

It also codifies ASEAN norms, rules and values; sets clear targets for ASEAN;
and presents accountability and compliance.

At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an
ASEAN Community shall be established.

The ASEAN Charter entered into force on 15 December 2008. A gathering of

the ASEAN Foreign Ministers was held at the ASEAN Secretariat in Jakarta to

At the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong

mark this very historic occasion for ASEAN.

commitment to accelerate the establishment of an ASEAN Community by

2015 and signed the Cebu Declaration on the Acceleration of the

With the entry into force of the ASEAN Charter, ASEAN will henceforth

Establishment of an ASEAN Community by 2015.

operate under a new legal framework and establish a number of new organs
to boost its community-building process.

The ASEAN Community is comprised of three pillars, namely the ASEAN

Political-Security Community,ASEAN Economic Community and ASEAN Socio-

In effect, the ASEAN Charter has become a legally binding agreement among

Cultural Community. Each pillar has its own Blueprint, and, together with

the 10 ASEAN Member States.

the Initiative for ASEAN Integration (IAI) Strategic Framework and IAI Work
Plan Phase II (2009-2015), they form the Roadmap for an ASEAN Community
2009-2015.

History

Please click here for the ASEAN Political-Security Community Video.

The Founding of ASEAN
Please click here for the ASEAN Economic Community Video.
Please click here for ASEAN Socio-Cultural Community Video.

On 8 August 1967, five leaders the Foreign Ministers of Indonesia,

Malaysia, the Philippines, Singapore and Thailand sat down together in the

Please click here for ASEAN History and Purposes.

main hall of the Department of Foreign Affairs building in Bangkok, Thailand

and signed a document. By virtue of that document, the Association of

Southeast Asian Nations (ASEAN) was born. The five Foreign Ministers who

the idea of forming another organization for regional cooperation with Adam

signed it Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun

Malik. Malik agreed without hesitation but asked for time to talk with his

Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of

government and also to normalize relations with Malaysia now that the

Thailand would subsequently be hailed as the Founding Fathers of probably

confrontation was over. Meanwhile, the Thai Foreign Office prepared a draft

the most successful inter-governmental organization in the developing world

charter of the new institution. Within a few months, everything was ready. I

today. And the document that they signed would be known as the ASEAN

therefore invited the two former members of the Association for Southeast

Declaration.

Asia (ASA), Malaysia and the Philippines, and Indonesia, a key member, to a
meeting in Bangkok. In addition, Singapore sent S. Rajaratnam, then Foreign

It was a short, simply-worded document containing just five articles. It

Minister, to see me about joining the new set-up. Although the new

declared the establishment of an Association for Regional Cooperation

organization was planned to comprise only the ASA members plus Indonesia,

among the Countries of Southeast Asia to be known as the Association of

Singapores request was favorably considered.

Southeast Asian Nations (ASEAN) and spelled out the aims and purposes of
that Association. These aims and purposes were about cooperation in the

And so in early August 1967, the five Foreign Ministers spent four days in the

economic, social, cultural, technical, educational and other fields, and in the

relative isolation of a beach resort in Bang Saen, a coastal town less than a

promotion of regional peace and stability through abiding respect for justice

hundred kilometers southeast of Bangkok. There they negotiated over that

and the rule of law and adherence to the principles of the United Nations

document in a decidedly informal manner which they would later delight in

Charter. It stipulated that the Association would be open for participation by

describing as sports-shirt diplomacy. Yet it was by no means an easy

all States in the Southeast Asian region subscribing to its aims, principles and

process: each man brought into the deliberations a historical and political

purposes. It proclaimed ASEAN as representing the collective will of the

perspective that had no resemblance to that of any of the others. But with

nations of Southeast Asia to bind themselves together in friendship and

goodwill and good humor, as often as they huddled at the negotiating table,

cooperation and, through joint efforts and sacrifices, secure for their peoples

they finessed their way through their differences as they lined up their shots

and for posterity the blessings of peace, freedom and prosperity.

on the golf course and traded wisecracks on one anothers game, a style of
deliberation which would eventually become the ASEAN ministerial tradition.

It was while Thailand was brokering reconciliation among Indonesia, the

Philippines and Malaysia over certain disputes that it dawned on the four

Now, with the rigors of negotiations and the informalities of Bang Saen

countries that the moment for regional cooperation had come or the future

behind them, with their signatures neatly attached to the ASEAN Declaration,

of the region would remain uncertain. Recalls one of the two surviving

also known as the Bangkok Declaration, it was time for some formalities. The

protagonists of that historic process, Thanat Khoman of Thailand: At the

first to speak was the Philippine Secretary of Foreign Affairs, Narciso Ramos,

banquet marking the reconciliation between the three disputants, I broached

a one-time journalist and long-time legislator who had given up a chance to

be Speaker of the Philippine Congress to serve as one of his countrys first

General Soeharto that was steering Indonesia from the verge of economic

diplomats. He was then 66 years old and his only son, the future President

and political chaos. He was the Presidiums point man in Indonesias efforts

Fidel V. Ramos, was serving with the Philippine Civic Action Group in

to mend fences with its neighbors in the wake of an unfortunate policy of

embattled Vietnam. He recalled the tediousness of the negotiations that

confrontation. During the past year, he said, the Ministers had all worked

preceded the signing of the Declaration that truly taxed the goodwill, the

together toward the realization of the ASEAN idea, making haste slowly, in

imagination, the patience and understanding of the five participating

order to build a new association for regional cooperation.

Ministers. That ASEAN was established at all in spite of these difficulties, he

said, meant that its foundations had been solidly laid. And he impressed it on

Adam Malik went on to describe Indonesias vision of a Southeast Asia

the audience of diplomats, officials and media people who had witnessed the

developing into a region which can stand on its own feet, strong enough to

signing ceremony that a great sense of urgency had prompted the Ministers

defend itself against any negative influence from outside the region. Such a

to go through all that trouble. He spoke darkly of the forces that were

vision, he stressed, was not wishful thinking, if the countries of the region

arrayed against the survival of the countries of Southeast Asia in those

effectively cooperated with each other, considering their combined natural

uncertain and critical times.

resources and manpower. He referred to differences of outlook among the

member countries, but those differences, he said, would be overcome

The fragmented economies of Southeast Asia, he said, (with) each country

through a maximum of goodwill and understanding, faith and realism. Hard

pursuing its own limited objectives and dissipating its meager resources in

work, patience and perseverance, he added, would also be necessary.

the overlapping or even conflicting endeavors of sister states carry the seeds
of weakness in their incapacity for growth and their self-perpetuating

The countries of Southeast Asia should also be willing to take responsibility

dependence on the advanced, industrial nations. ASEAN, therefore, could

for whatever happens to them, according to Tun Abdul Razak, the Deputy

marshal the still untapped potentials of this rich region through more

Prime Minister of Malaysia, who spoke next. In his speech, he conjured a

substantial united action.

vision of an ASEAN that would include all the countries of Southeast Asia.
Tun Abdul Razak was then concurrently his countrys Minister of Defence and

When it was his turn to speak, Adam Malik, Presidium Minister for Political

Minister of National Development. It was a time when national survival was

Affairs and Minister for Foreign Affairs of Indonesia, recalled that about a

the overriding thrust of Malaysias relations with other nations and so as

year before, in Bangkok, at the conclusion of the peace talks between

Minister of Defence, he was in charge of his countrys foreign affairs. He

Indonesia and Malaysia, he had explored the idea of an organization such as

stressed that the countries of the region should recognize that unless they

ASEAN with his Malaysian and Thai counterparts. One of the angry young

assumed their common responsibility to shape their own destiny and to

men in his countrys struggle for independence two decades earlier, Adam

prevent external intervention and interference, Southeast Asia would remain

Malik was then 50 years old and one of a Presidium of five led by then

fraught with danger and tension. And unless they took decisive and collective

action to prevent the eruption of intra-regional conflicts, the nations of

S. Rajaratnam expressed the fear, however, that ASEAN would be

Southeast Asia would remain susceptible to manipulation, one against

misunderstood. We are not against anything, he said, not against

another.

anybody. And here he used a term that would have an ominous ring even
today: balkanization. In Southeast Asia, as in Europe and any part of the

We the nations and peoples of Southeast Asia, Tun Abdul Razak said, must

world, he said, outside powers had a vested interest in the balkanization of

get together and form by ourselves a new perspective and a new framework

the region. We want to ensure, he said, a stable Southeast Asia, not a

for our region. It is important that individually and jointly we should create a

balkanized Southeast Asia. And those countries who are interested,

deep awareness that we cannot survive for long as independent but isolated

genuinely interested, in the stability of Southeast Asia, the prosperity of

peoples unless we also think and act together and unless we prove by deeds

Southeast Asia, and better economic and social conditions, will welcome

that we belong to a family of Southeast Asian nations bound together by ties

small countries getting together to pool their collective resources and their

of friendship and goodwill and imbued with our own ideals and aspirations

collective wisdom to contribute to the peace of the world.

and determined to shape our own destiny. He added that, with the
establishment of ASEAN, we have taken a firm and a bold step on that road.

The goal of ASEAN, then, is to create, not to destroy. This, the Foreign
Minister of Thailand, Thanat Khoman, stressed when it was his turn to speak.

For his part, S. Rajaratnam, a former Minister of Culture of multi-cultural

At a time when the Vietnam conflict was raging and American forces seemed

Singapore who, at that time, served as its first Foreign Minister, noted that

forever entrenched in Indochina, he had foreseen their eventual withdrawal

two decades of nationalist fervor had not fulfilled the expectations of the

from the area and had accordingly applied himself to adjusting Thailands

people of Southeast Asia for better living standards. If ASEAN would succeed,

foreign policy to a reality that would only become apparent more than half a

he said, then its members would have to marry national thinking with

decade later. He must have had that in mind when, on that occasion, he said

regional thinking.

that the countries of Southeast Asia had no choice but to adjust to the
exigencies of the time, to move toward closer cooperation and even

We must now think at two levels, Rajaratnam said. We must think not

integration. Elaborating on ASEAN objectives, he spoke of building a new

only of our national interests but posit them against regional interests: that is

society that will be responsive to the needs of our time and efficiently

a new way of thinking about our problems. And these are two different

equipped to bring about, for the enjoyment and the material as well as

things and sometimes they can conflict. Secondly, we must also accept the

spiritual advancement of our peoples, conditions of stability and progress.

fact, if we are really serious about it, that regional existence means painful

Particularly what millions of men and women in our part of the world want is

adjustments to those practices and thinking in our respective countries. We

to erase the old and obsolete concept of domination and subjection of the

must make these painful and difficult adjustments. If we are not going to do

past and replace it with the new spirit of give and take, of equality and

that, then regionalism remains a utopia.

partnership. More than anything else, they want to be master of their own

to intra-ASEAN disputes, for soon the Philippines and Malaysia would have a

house and to enjoy the inherent right to decide their own destiny

falling out on the issue of sovereignty over Sabah. Many disputes between
ASEAN countries persist to this day. But all Member Countries are deeply

While the nations of Southeast Asia prevent attempts to deprive them of

committed to resolving their differences through peaceful means and in the

their freedom and sovereignty, he said, they must first free themselves from

spirit of mutual accommodation. Every dispute would have its proper season

the material impediments of ignorance, disease and hunger. Each of these

but it would not be allowed to get in the way of the task at hand. And at that

nations cannot accomplish that alone, but by joining together and

time, the essential task was to lay the framework of regional dialogue and

cooperating with those who have the same aspirations, these objectives

cooperation.

become easier to attain. Then Thanat Khoman concluded: What we have

decided today is only a small beginning of what we hope will be a long and

The two-page Bangkok Declaration not only contains the rationale for the

continuous sequence of accomplishments of which we ourselves, those who

establishment of ASEAN and its specific objectives. It represents the

will join us later and the generations to come, can be proud. Let it be for

organizations modus operandi of building on small steps, voluntary, and

Southeast Asia, a potentially rich region, rich in history, in spiritual as well as

informal arrangements towards more binding and institutionalized

material resources and indeed for the whole ancient continent of Asia, the

agreements. All the founding member states and the newer members have

light of happiness and well-being that will shine over the uncounted millions

stood fast to the spirit of the Bangkok Declaration. Over the years, ASEAN

of our struggling peoples.

has progressively entered into several formal and legally-binding

instruments, such as the 1976 Treaty of Amity and Cooperation in Southeast

The Foreign Minister of Thailand closed the inaugural session of the

Asia and the 1995 Treaty on the Southeast Asia Nuclear Weapon-Free Zone.

Association of Southeast Asian Nations by presenting each of his colleagues

with a memento. Inscribed on the memento presented to the Foreign

Against the backdrop of conflict in the then Indochina, the Founding Fathers

Minister of Indonesia, was the citation, In recognition of services rendered

had the foresight of building a community of and for all Southeast Asian

by His Excellency Adam Malik to the ASEAN organization, the name of which

states. Thus the Bangkok Declaration promulgated that the Association is

was suggested by him.

open for participation to all States in the Southeast Asian region subscribing
to the aforementioned aims, principles and purposes. ASEANs inclusive

And that was how ASEAN was conceived, given a name, and born. It had

outlook has paved the way for community-building not only in Southeast

been barely 14 months since Thanat Khoman brought up the ASEAN idea in

Asia, but also in the broader Asia Pacific region where several other inter-

his conversations with his Malaysian and Indonesian colleagues. In about

governmental organizations now co-exist.

three more weeks, Indonesia would fully restore diplomatic relations with
Malaysia, and soon after that with Singapore. That was by no means the end

The original ASEAN logo presented five brown sheaves of rice stalks, one for
each founding member. Beneath the sheaves is the legend ASEAN in blue.
These are set on a field of yellow encircled by a blue border. Brown stands
for strength and stability, yellow for prosperity and blue for the spirit of
cordiality in which ASEAN affairs are conducted. When ASEAN celebrated its
30th Anniversary in 1997, the sheaves on the logo had increased to ten
representing all ten countries of Southeast Asia and reflecting the colors of
the flags of all of them. In a very real sense, ASEAN and Southeast Asia would
then be one and the same, just as the Founding Fathers had envisioned.
This article is based on the first chapter of ASEAN at 30, a publication of the
Association of Southeast Asian Nations in commemoration of its 30th
Anniversary on 8 August 1997, written by Jamil Maidan Flores and Jun Abad.

The Japan-Philippines Economic Partnership Agreement (-

) or in (Filipino: Kasunduang Pangkabuhayan ng

Hapon at Pilipinas) or commonly known as JPEPA is an economic partnership

improvement of business environment.

agreementconcerning bilateral investment and free trade agreement

between Japan and the Philippines. It was signed in Helsinki, Finland on

Promote competition by addressing anti-competitive activities and

cooperate in the field of competition.

Enhance protection of intellectual property and strengthen cooperation

September 9, 2006 by former Japanese Prime Minister Junichiro Koizumi and

in the field thereof to promote trade and investment

former Filipino PresidentGloria Macapagal-Arroyo. It is the first bilateral

between Japan and the Philippines.

trade treaty which the Philippines has entered since the Parity Right

Promote transparency in government procurement.

Agreement of 1946 with the United States. This treaty consists of 16

Increase investment opportunities and strengthen protection for

Chapters and 165 Articles, with 8 Annexes.

Contents

investments and investment activities in Japan and the Philippines.

[hide]

Establish a framework for further bilateral cooperation and

Facilitate the mutual recognition of the results of conformity assessment

procedures for products or processes.

To liberalize and facilitate trade in goods and services between Japan

1Aims & goal

2Controversy
3Ratification
4See also
5External links

Controversy[edit]

Aims & goal[edit]

bound to be violated if the agreement pushes through. Under the

and the Philippines.

Environmentalists cry foul over this provision, stating that various laws are
Constitution alone, it is imperative that the State promotes the people's right

Chapter 1 (General Provisions), Article 1 (Objectives) of the JPEPA, the

agreement has the following objective.

Create effective procedures for the implementation and operation of

this Agreement and for the resolution of disputes.

Promote transparency in the implementation of laws and regulations

respecting matters covered by this agreement.

to health (Article II, Section 15), and right to a balanced and healthful ecology
(Article II, Section 16). Other laws that may be violated include Republic Act
No. 6969 (Toxic Substance and Hazardous and Nuclear Waste Act of 1990)
which prohibits the entry of hazardous wastes into and their disposal within
the country for whatever purpose, and Republic Act No. 4653 (An Act to
Safeguard the Health of the People and Maintain the Dignity of the Nation by
Declaring it a National Policy to Prohibit the Commercial Importation of

Textile Articles Commonly Known as Used Clothing and Rags) wherein worn
clothing and other worn articles, used or new rags, scrap twine, cordage,
rope and cables and worn out articles of twine, cordage, rope or cables, of
textile materials are also prohibited from being imported into the Philippines.
Aside from local laws, one international treaty is also said to be a direct
contradiction to the JPEPA. The Basel Convention on the Control of
Transboundary Movements of Hazardous Wastes and their Disposal was
ratified in 1989 by 133 countries and is currently adopted by 170 countries,
including Japan and the Philippines. It is the most comprehensive global
environmental treaty on hazardous and other wastes, addressing cleaner
production, hazardous waste minimization and controls on the movement of
these wastes. One of the main concerns regarding JPEPA is the possibility of
having Japan export their waste products and hazardous materials to the
Philippines. Such products are included in Article 29 of the agreement, which
defines "originating goods. Under Article 18 of the agreement, both Japan
and the Philippines shall either "reduce or eliminate its customs duties
eliminate other duties or charges of any kind imposed on or in connection
with the importation and take part in "improving market access conditions
for originating goods.
Ratification[edit]
This treaty was ratified by Senate of the Philippines on 2008, after two side
agreements had been signed where Japan agreed to not send any toxic
waste to the Philippines and to avoid violating the Philippine Constitution.

The ASEAN Free Trade Area (AFTA)

gradually meet its CEPT commitment one year earlier than schedule.
Malaysia has previously been allowed to defer the transfer of 218 tariff lines

The ASEAN Free Trade Area (AFTA) has now been virtually established.

of CBUs and CKDs until 1 January 2005.

ASEAN Member Countries have made significant progress in the lowering of

intra-regional tariffs through the Common Effective Preferential Tariff (CEPT)

Products that remain out of the CEPT-AFTA Scheme are those in the Highly

Scheme for AFTA. More than 99 percent of the products in the CEPT Inclusion

Sensitive List (i.e. rice) and the General Exception List. The Coordinating

List (IL) of ASEAN-6, comprising Brunei Darussalam, Indonesia, Malaysia, the

Committee on the Implementation of the CEPTScheme for AFTA (CCCA) is

Philippines, Singapore and Thailand, have been brought down to the 0-5

currently undertaking a review of all the General Exception Lists to ensure

percent tariff range. [Figure 1]

that only those consistent with Article 9(b)1 of the CEPT Agreement are
included in the lists.

ASEANs newer members, namely Cambodia, Laos, Myanmar and Viet Nam,
are not far behind in the implementation of their CEPT commitments with

ASEAN Member Countries have also resolved to work on the elimination of

almost 80 percent of their products having been moved into their respective

non-tariff barriers. A work programme on the elimination of non-tariff

CEPT ILS. Of these items, about 66 percent already have tariffs within the 0-5

barriers, which includes, among others, the process of verification and cross-

percent tariff band. Viet Nam has until 2006 to bring down tariff of products

notification; updating the working definition of Non-Tariff Measures

in the Inclusion List to no more than 5 percent duties, Laos and Myanmar in

(NTMs)/Non-Tariff Barriers (NTBs) in ASEAN; the setting-up of a database on

2008 and Cambodia in 2010.

all NTMs maintained by Member Countries; and the eventual elimination of

unnecessary and unjustifiable non-tariff measures, is currently being

Following the signing of the Protocol to Amend the CEPT-AFTA Agreement

finalized.

for the Elimination of Import Duties on 30 January 2003, ASEAN-6 has

committed to eliminate tariffs on 60 percent of their products in the IL by the

In an effort to improve and strengthen the rules governing the

year 2003. As of this date, tariffs on 64.12 percent of the products in the IL of

implementation of the CEPT Scheme, to make the Scheme more attractive to

ASEAN-6 have been eliminated. The average tariff for ASEAN-6 under the

regional businessmen and prospective investors, the CEPT Rules of Origin and

CEPT Scheme is now down to 1.51 percent from 12.76 percent when the

its Operational Certification Procedures have been revised and implemented

tariff cutting exercise started in 1993.

since 1 January 2004. Among the features of the revised CEPT Rules of Origin
and Operational Certification Procedures include: (a) a standardized method

The implementation of the CEPT-AFTA Scheme was significantly boosted in

of calculating local/ASEAN content; (b) a set of principles for determining the

January 2004 when Malaysia announced its tariff reduction for completely

cost of ASEAN origin and the guidelines for costing methodologies; (c)

built up (CBUs) and completely knocked down (CKDs) automotive units to

treatment of locally-procured materials; and (d) improved verification

registered an increase of 4.2 and 1.6 percent for exports and imports

process, including on-site verification.

respectively. [Figures 2,3 & 4]

In order to promote greater utilization of the CEPTAFTA Scheme, substantial

ASEAN Trade with Selected Trading Partners

transformation has also been adopted as an alternative rule in determining

origin for CEPT products. The Task Force on the CEPT Rules of Origin is

The United States, the European Union and Japan continued to be ASEANs

currently working out substantial transformation rules for certain product

largest export markets. Japan, followed by the U.S. and EU, were the largest

sectors, including wheat flour, iron and steel and the 11 priority integration

sources of ASEAN imports. During the first half of 2002-2003, ASEAN-6 trade

sectors covered under the Bali Concord II. Direction of Trade ASEANs exports

with major markets as a whole increased by 11.71 percent for exports and

had regained its upward trend in the two years following the financial crisis

6.91 percent for imports. However, ASEAN exports to the U.S. and India and

of 1997- 1998 reaching its peak in 2000 when total exports was valued at US$

imports from Canada and India declined during the same period. [Figure 5]

408 billion. After declining to US$ 366.8 billion in 2001, as a result of the
economic slowdown in the United States and Europe and the recession in
Japan, ASEAN exports recovered in 2002 when it was valued at US$ 380.2
billion. The upward trend for ASEAN-6 continued up to the first two quarters
of 2003. Intra-ASEAN trade for the first two quarters of 2003 registered an
increase of 4.2 and 1.6 percent for exports and imports respectively. [Figures
2, 3 & 4]
Direction of Trade
ASEANs exports had regained its upward trend in the two years following
the financial crisis of 1997-1998 reaching its peak in 2000 when total exports
was valued US$ 408 billion. After declining to US$ 366.8 billion in 2001, as a
result of the economic slowdon in the United States and Europe and the
recession in Japan, ASEAN expots recovered in 2002 when it was valued at
US$ 380.2 billion. The upward trend for ASEAN-6 continued up to first two
quaters of 2003. Intra-ASEAN trade for the first two quarters of 2003

About ASEAN-KOREA FTA

Parties

Overview

Parties to the ASEAN-Korea FTA are Brunei Darussalam, Cambodia,

Indonesia, Lao PDR, Malaysia, Myanmar, The Philippines, Singapore,
Thailand, Vietnam and Korea.

Korea is the second Dialogue Partner with whom ASEAN has forged a free
trade agreement. In 2005, ASEAN and Korea signed the Framework
Agreement on Comprehensive Economic Cooperation (Framework
Agreement), and subsequently, signed four (4) more agreements that form
the legal instruments for establishing the ASEAN-Korea Free Trade Area
Entry into Force
(AKFTA).
The establishment of the AKFTA creates an opportunity for the 670 million
Three major Agreements under the ASEAN-Korea FTA have been entered
people of ASEAN and Korea with a combined GDP of USD 2.9 trillion through
into force and implemented by ASEAN andKorea.
a more liberal, facilitative market access, and investment regimes among the i.
The ASEAN-Korea Trade in Goods Agreement entered into force in
Parties of the AKFTA.
June 2007
Seven Important Facts of ASEAN-Korea Economic Relations
ii.
The ASEAN-Korea Trade in Services Agreement entered into force in
o ASEAN and Korea first initiated sectoral Dialogue relations in 1989 and
May 2009
Korea became full Dialogue Partner of ASEAN in 1991
iii.
The ASEAN-Korea Investment Agreement entered into force in June
o ASEAN and Korea maintain close political cooperation on bilateral,
2009
regional, and international issues through existing mechanisms such
as, among others, the ASEAN Regional Forum (ARF), ASEAN Plus Three
(APT), East-Asia Summit (EAS), ASEAN-ROK Summit, and Ministerial
Meetings
o ASEAN and Korea are also members of organizations such as the AsiaPacific Economic Cooperation (APEC), East Asia-Latin America
Cooperation (EALAF) and the Asia-Europe Meeting (AEM)
o Bilateral trade volume between Korea and ASEAN nearly tripled from
2001-2010 from US$32 billion to US$98.1 billion
o In the first year period of ASEAN Korea Trade in Goods
implementation, trade volume increased over 23%
o In 2010, Korea remains as ASEAN's fifth largest trading partner, while
ASEAN was the second largest trading partner of Korea
o Korean visitors to ASEAN countries increased several folds from 1.1
million in 1995 to 3.285 million in 2010.