Is the ASEAN Economic Community Under Siege? The New Trajectory of the Asean Economic Community the two Mega-Regional Agreements; RCEP and TPP

Indra Kusumawardhana, Jeremiah Daniel
| Abstract views: 894 | views: 857

Abstract

The ASEAN Economic Community (AEC) was signed by the leading nations of Southeast Asia in Kuala Lumpur on 31, December 2015. This was a great achievement of regional integration, pointing members of the AEC towards a single market awakening. Despite this tremendous progress, the reality is that ASEAN members are now involved in two mega-regional agreements. One, which has the potential to protect ASEAN centrality, ASEAN+6 or the Regional Comprehensive Economic Partnership (RCEP); and the other, the US-led
Trans-Pacific-Partnership Agreement. This participation by ASEAN members with various economic partners outside ASEAN may result in dependency to global capitalism networks.

Departing from the above mentioned context, the core question then arises: Has the global economic structure provide an opportune precondition for the implementation of the ASEAN Economic Community (AEC)? To tackle this question, this essay will use Dependency Theory to analyze the global economic
structures which encase the AECs regional economic integration agenda and to reveal the ASEAN members dependence on global capitalism. This essay explores both the attempts of the ASEAN framework to create a comprehensive economic community; and the consequences of ASEAN integration with two mega-regional agreements in the region. It is argued that the dependency of ASEAN members on the structure of the global economy proves that it does not provide a proper pre-conditioning for the AEC to be implemented. Moreover, it will be hegemonic factors that challenge the existence of the AEC.

Keywords

ASEAN; Regional Economic Integration; ASEAN Economic Community; Dependency; Global Political Economy

Full Text:

PDF

References

Acharya, A., & Johnston, A. I. (2007). Comparing Regional Institutions: An Introduction. In Crafting Coop International Institutions in Comparative Perspective (pp. 15-16). Cambridge: Cambridge University Press.

Aggarwal, V. K., & Chow, J. T. (2010, May). The Perils of Consensus: How ASEAN’s Meta-Regime Undermines Economic and Environmental Cooperation. Review of International Political Economy, Volume 17 Issue 2, p. 267.

ASEAN. (2016, August 25). Fact Sheet 56 - ASEAN Economic Community. Retrieved from ASEAN Organization Website: http://www.asean.org/storage/2012/05/56.-December-2015-

ASEAN. (2016, September 23). Regional Comprehensive Economic Partnership (RCEP): Joint Statement. Retrieved from ASEAN's Web Site: http://www.asean.org/images/2013/other_documents/Joint_statement_1st_RCEP%20TNC_08May2013_final.pdf

Baldwin, D. A. (1993). Neorealism and Neoliberalism. New York: Columbia University Press.

Baldwin, R. (2006). Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade. The World Economy, Volume 29 Issue 11, 1451-1518.

Barnett, M., & Finnemore, M. (1999). The Politics, Power, and Pathologies of International Organizations. International Organization, Volume 53 Issue 4, pp. 699-732.

Capling, A., & Ravenhil, J. (2011). ,Multilateralising Regionalism: What Role for the Trans-Pacific Partnership Agreement? The Pacific Review, Volume 24 Issue 5, 553-575; 559-560.

Carleton University. (2016, August 30). Extension: What is Regional Integration? Retrieved from CARLETON UNIVERSITY CENTER FOR EUROPEAN STUDIES (CES): http://carleton.ca/ces/eulearning/introduction/what-is-the-eu/extension-what-is-regional-integration/

Das, S. B. (2013). RCEP and TPP: Comparisons and Concerns. ISEAS Perspectives, Singapore, No. 2, 2.

Das, S. B. (2016, September). Asia’s Regional Comprehensive Economic Partnership. Retrieved from East Asia Forum: http://www.eastasiaforum.org

Drysdale, P. (2013, January 7). Asia and the International Trade Regime. East Asia Forum, pp. 1-3.

Fergusson, I. F., Cooper, W. H., Jurenas, R., & Williams, B. R. (2013, August 21). The Trans- Pacific Partnership Negotiations and Issues for Congress’ (Summary). Retrieved from CRS Report for Congress: Congressional Research Service: http://www.fas.org/sgp/crs/row/R42694.pdf

Gwi-Ok Kim, ‘Building a Peaceful East Asian Community: Origins of a Regional Concept and Visions for a Global Age’, Asian Perspective, 37(2), April–June 2012, pp. 233–254.

Halperin, S. (2016, August 29). Development Theory. Retrieved from Encyclopædia Britannica: https://www.britannica.com/topic/development-theory#ref1181038

Hasan, Z. (2002). The 1997-98 Financial Crisis in Malaysia: Causes, Response, and Results. MPRA Paper.

Hicks, R., & Kim, S. Y. (2012). Reciprocal Trade Agreements in Asia: Credible Commitment to Trade Liberalization or Paper Tigers? Journal of East Asian Studies, Volume 12 Issue 1, 1-29.

Hsu, K. (2013). The RCEP: Integrating India into the Asian Economy. Indian Foreign Affairs Journal, Volume 8 Issue 1, 42.

HV, V., Thompson, F., & Tonby, O. (2014, May). Understanding ASEAN: Seven things you need to know.

Jeong, H.-G. (2012). South Korea: Which Way Will it Go on Asian Integration? In G. Rozman, Asia at a Tipping Point: Korea, the Rise of China, and the Impact of Leadership Transitions: Joint US–Korea Academic Studies, Vol. 23 (p. 221). Washington DC: Korea Economic Institute.

Kaneko, K. (2013, 04 20). Japan Wins Approval from Member Countries to Join Trans-Pacific Trade Talks. Retrieved from Reuters: http://www.reuters.com/article/2013/04/20/us-trade-asiapacific-japan idUSBRE93J09Y20130420

Khong, Y. F., & Neesadurai, H. E. (2007). Hanging Together, Institutional Design, and Cooperation in Southeast Asia: AFTA and ARF. In A. Acharya, & A. I. Johnstone, Crafting Cooperation: Regional International Institutions in Global Politics (pp. 33-82). New York: Cambridge University Press.

Krasner, S. D. (1983). International Regimes. New York: Cornell University Press.

McKinsey Global Institute. (2014, April). Global flows in a digital age. Retrieved from McKinsey: http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/global-flows-in-a-digital-age

Nair, D. (2011). ASEAN's Core Norms in the Context of the Global Financial Crisis. Asian's Survey, Vol. 51, Number 2, pp. 245-267.

Newschool. (2009). Economic Development. Retrieved from Newschool: http://homepage.newschool.edu/het/schools/develop.htm

Paal, D. (2013). The United States and Asia in 2012: Domestic Politics Takes Charge. Asian Survey, Volume 53 Issue 1, January–February 2013, 12-21.

Rodrik, D. (2007). The Inescapable Trilemma of The World Economy. Retrieved from Dani Rodrik's Weblog: http://rodrik.typepad.com/dani_rodriks_weblog/2007/06/the-inescapable.html

Strange, S. (1997). The Retreat of the State. New York: Cambridge University Press.

Wignaraja, G. (2016, September 29). Why Indian Business Should Embrace the RCEP. Retrieved from Asia Pathways: http://www.asiapathways-adbi.org/2013/07/why-indian-business-should-embrace-the-rcep/

Wilson, J. D. (2015). Mega-regional trade deals in the Asia-Pacific: Choosing between the TPP and RCEP? Journal of Contemporary Asia, 45(2), 345-353.

Copyright (c) 2017 Journal of Indonesian Social Sciences and Humanities
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Refbacks

  • There are currently no refbacks.