ASEAN was and still remains principally an economic association.

Question

Read the following passage carefully and answer the questions: 

ASEAN was and still remains principally an economic association. While the ASEAN region as a whole is a much smaller economy compared to the US the EU, and Japan, its economy is growing much faster than all these. This accounts for the growth in its influence both in the region and beyond. The objectives of the ASEAN Economic Community are to create a common market and production base within ASEAN States and to aid social and economic development in the region. The Economic Community would also like to improve the existing ASEAN Dispute Settlement Mechanism to resolve economic disputes. ASEAN has focused on creating a Free Trade Area (FTA) for investment, labour, and services. The US and China have already moved fast to negotiate FTAs with ASEAN.

1. What is the objective of ASEAN Economic Community? 

2. Why did ASEAN establish Free Trade Areas (FTAs)? 

3. How ASEAN Economic Community would resolve economic disputes? 

4. Which countries have already moved fast to negotiate FTAs with ASEAN and why?

Answer 1

1. To create common market and production based activities within ASEAN states itself and to aid social and economic development. 

2. Free Trade Areas have been established for investment, labor and services. 

3. By improving the existing ASEAN Dispute Settlement Mechanism. 

4. ASEAN is rapidly growing into areas of the regional organization with its Vision 2020.