question_answer

Why does ASEAN still remain principally an economic association?

Answer:

ASEAN still remains principally an economic association because:

(i) ASEAN region as a whole is a much smaller economy compared to the E.U, the US and Japan.

(ii) ASEAN economy is growing much faster than the E.U., the US and Japan.

(iii) Its objective is to create a common market and production base within ASEAN states.

(iv) It also wants to aid social and economic development in the region.

(v) It also likes to improve the existing ASEAN Dispute Settlement Mechanism to resolve economic disputes.

(vi) It has focused on creating a Free Trade Area (FTA) for investment, labour and services. The US and China have already moved fast to negotiate FTA s with ASEAN.