Aec Asian Economic Community

Topics: ASEAN, ASEAN Community, Economic integration Pages: 1 (279 words) Published: July 15, 2012
ASEAN Economic Community
ASEAN Economic Community (AEC) is one of the three integral pillars of the contemplated ASEAN Community. The other two are ASEAN Security Community and the ASEAN Socio-Cultural Community. AEC was agreed by ASEAN leaders at the Bali Summit in October 2003 that it should be the goal of regional economic integration by 2020. This agreement came about when the ASEAN leaders acknowledged the necessary to transform ASEAN into a stable, prosperous, and highly competitive region, and also to reduced poverty and socio-economic disparities. However, later at the 12th ASEAN Summit in January 2007, the leaders decided to accelerate the establishment of AEC bye 2015 due to the urge to have an integrated economy as soon as possible. In order to accomplish this goal, ASEAN members shall act in accordance to the principles of an open, outward-looking, inclusive, and market-driven economy with multilateral rules. Due to the external trade and threat, ASEAN feels that there is a need to have ASEAN Community in order to remain outward looking. It is decided that AEC should have the following key characteristics; a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy. The main idea that will be discusses here is about AEC transforming ASEAN into a single market and production base, which will make ASEAN more competitive and more dynamic in the growing economy of the world. This comprises of five core elements, which are; free flow of goods, free flow of services, free flow of investment, free flow of capital, and lastly, free flow of skilled labour.
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