THE SIGNIFICANCE OF THE RATIFICATION OF ASEAN AGREEMENTS AND TREATIES

CONTENT

1.0 Introduction2

1.1 ASEAN History, Background and targets3

1.2 Definitions and Differences between Signature andRatification 4-5

1.3 List of Agreements under ASEAN Political-SecurityCommunity 5

1.4 List of Agreements under ASEAN Economic Community6-9

1.5 Listof Agreements under ASEAN Socio-Cultural Community 10

2.0 Significance of ratification of ASEAN agreements is toStrengthen

Ties between ASEAN member states 11-14

3.0 Significance of the ratification of ASEAN agreement is to

achieve

ASEAN Vision 2020 15-174.0 Ratification of ASEAN agreements does impact the Economic

Development

Of ASEAN member states by transforming ASEAN into a region with

Single

Market and Production Base, Competitive Economic Region,

Equitable

Economic Development and Integration with global Economy. 18-19

5.0 Conclusion 19

1

References

Name: Ali Al Rashid Bin Ali Al Tamas

Matric: QGD 140002

What is the significance of the ratification of ASEANa greements and treaties? How does it impact on economic

development of ASEAN countries?

2.0 Introduction

The significance of the ratification of ASEAN agreements and

treaties are very important to ensure the development of ASEAN

member states in various fields namely in the three main

pillars which is ASEAN Political Security Community (APSC),

ASEAN Economic Community (AEC) and ASEAN Socio-Cultural

Community (ASCC). Basically, the significance in this context

means the importance of ratification by each member states to

2

comply with any agreements or treaties that have been signed

before. Without ratification of an agreements, it is hard for

ASEAN to act as one and parallel to ASEAN motto which is ‘One

vision, One identity, One community”. Therefore, this paper

will discuss on the significance of the ratification of ASEAN

agreements and treaties is to strengthen ties between the

ASEAN member states with relevant examples, to achieve targets

of ASEAN vision 2020 and the ratification of ASEAN agreements

does impact the economic development of ASEAN member states by

transforming ASEAN into a region with single market and

production base, competitive economic region, equitable

economic development and integration with global economy.

1.1 ASEAN History, Background and Targets

ASEAN Secretariat Fact book (2011), stated that, ASEAN- the

Association of Southeast Asian Nations was established on

August 1967 in Bangkok Thailand with the signing of the ASEAN

Declaration also known as Bangkok Declaration by the founding

3

members of ASEAN, namely Indonesia, Malaysia, The Philippines,

Singapore and Thailand. Afterwards Brunei Darussalam joined on

8 January 1984, Vietnam on 28 July 1995, Lao PDR and Myanmar

on 23 July 1997, and Cambodia on 30 April 1999, making up what

is today the ten member States of ASEAN. The two pages ASEAN

Declaration contains the aims and purposes of the

Associations, which include corporation in the economic,

social, cultural, technical, educational and others field, and

in the promotion of regional peace and stability through

abiding respect for justice and the rule of law and adherence

to the principles of the United Nations Charter.

With a shared vision of ASEAN as a concert of Southeast Asian

nations, outward looking, living in peace, stability and

prosperity, bonded together in partnership in dynamic

development and in a community of caring societies, the ASEAN

leaders in 2003 resolved that an ASEAN Community shall be

established in 2020. In 2007, the leaders affirmed their

strong commitment to accelerate the establishment of an ASEAN

Community by 2015. The ASEAN Community is comprised of three

pillars, namely the ASEAN Political- Security Community, ASEAN

Economic Community and ASEAN Socio-Cultural Community, all

expected to work in tandem in establishing the ASEAN

Community.

To achieve the ASEAN Community, ASEAN is guided by the ASEAN

Charter, a firm foundation that provides a legal status and

institutional framework for the region. It codifies ASEAN

norms, rules and values, sets clear targets of ASEAN, and

present accountability and compliance. The Charter entered4

into force on 15 December 2008. With the entry into force of

the charter, ASEAN will henceforth operate under a new legal

framework and establish a number of new organs to boost its

community- building process.

1.2 Definition and Differences between Signature andRatifications

The Centre for Biomedical Ethics and Law (2008) define that

ratification and signature are both different names for the

process whereby a states indicates to the other contraction

parties its consent to be bound by the adopted international

agreement. But still there is a difference between both terms.

Signature is a process that has different legal meanings

depending on the circumstances in which it is performed. A

distinction is made between simple signature which is subject

to ratification and definitive signature which is not subject

to ratification. The simple signature applies to most

multilateral treaties. This means that when a state sin a

treaty, the signature is subject to ratification, acceptance

or approval. The state has not expressed its consent to be

bound by a treaty until it ratifies, accept or approve. In

that case, a state that sin a treaty is obliged to refrain, in

good faith, from acts that would defeat the object and purpose

5

of the treaty. Signature alone does not impose on the state

obligations under the treaty. For states this usually means

that the international agreement has to be put before the

national parliament for approval, thereby giving the people a

direct say in the external activities of the states. The

definitive signature, in contrary, occurs where a State

expresses its consent to be bound by a treaty by signing the

treaty without the need for ratification, acceptance or

approval. A State may definitively sign a treaty only when the

treaty so permits. To make the comparison, a definitive

signature has the same force as a simple signature, which is

followed by ratification.

Ratification in contrary to signature refers to the act

undertaken in the international plane, whereby a State

establishes its consent to be bound by a treaty. Usually

ratification involves two distinct procedural acts. The first

is related to the constitutional (internal) laws of a

contracting party. It involves the international procedure

that must be fulfilled before the state can assume the

international obligations enshrined in the international

agreement. In many instances this involves approval by the

national parliament. The second element deals with the

external (international) level. It is the process through

which the contracting party indicates its consent to be bound

to the other contracting parties.

Historically, ratification was intended to avoid that the

representative exceeded his powers or instructions with regard

to the making of a particular agreement. With the decline of6

absolute sovereigns and the increase of parliamentary

democracies the consent by ratification has acquired a new

meaning. Although it still gives the contracting parties the

chance to weigh and consider their options under the proposed

agreement, its most important role is to give the national

parliament, and therefore the citizens, a direct sat in the

public affairs of the state.

1.3 List of Agreements under ASEAN Political-Security

Community

No

.

Name of Agreement Signature Ratification Status

1 The ASEAN Declaration Bangkok(8 Aug 1967)

Nodescriptions

Nodescription

2 Agreement on theestablishment of the ASEANSecretariat

Bali(24 Feb 1976)

Ratified In Force(21 May1976)

3 Treaty of Amity andCorporation in SoutheastAsia

Bali(24 Feb 1976)

Ratified In Force(21 June1976)

4 Revised Memorandum ofUnderstanding on theestablishment of the ASEANFoundation

Bangkok(25 Jul 2000)

Ratified In Force(28 April2007)

5 Treaty on Mutual LealAssistance in CriminalMatters

Kuala Lumpur(29 Nov 2004)

Ratified In Force

6 Agreement for theestablishment of ASEANDevelopment Fund

Vientiane(26 Jul 2005)

Not Required In Force(26 July2005)

7 Treaty on the SoutheastAsia Nuclear Weapon-FreeZone

Bangkok(15 Dec 2005)

Ratified In Force(27 March1997)

8 ASEAN Framework Agreementon Visa Exemption

Kuala Lumpur(25 Jul 2006)

Not Ratified Not In Force

9 ASEAN Convention on The Ratified In Force

7

Counter Terrorism Philippines(13 Jan 2007)

(27 May2011)

10 Charter of the Associationof Southeast Asian Nations

Singapore(20 Nov 2007)

Ratified In Force(15 Dec2008)

11 Cha-Am Hua Hin Declarationon the Roadmap for anASEAN Community (2009-2015)

Thailand(1 March 2009)

Not Required NoDescription

12 Agreement on thePrivileges and Immunitiesof the ASEAN

Cha-Am Hua Hin(25 Oct 2009)

Not Ratified NoDescription

13 Protocol to the ASEANCharter on DisputeSettlement Mechanisms

Hanoi(8 April 2010)

Not Ratified Not In Force

14 Agreement between thegovernment of Indonesiaand the ASEAN on Hostingand ranting Privileges andImmunities to the ASEANSecretariat

Phnom-Penh(2 April 2012)

Ratified In Force

Retrieved from:

http://agreement.asean.org/search/by_pillar/1.html

1.4 List of Agreements under ASEAN Economic Community

No.

Name of Agreement Signature Ratification

Status

1 Agreement for thefacilitation of Searchfor Aircrafts in Distressand Rescue of Survivorsof Aircraft Accidents

Singapore(24 February1977)

NotRatified

Not In Force

2 Agreement for theFacilitation of Searchfor Ships in Distress andRescue of Survivors ofShip Accidents

Kuala Lumpur(15 May 1975)

NotRatified

Not In Force

3 Agreement on ASEANPreferential TradingAgreements

Manila(24 Feb 1977)

Ratified In Force

4 Agreement on the ASEANFood Security Reserve

New York(4 Oct 1979)

Ratified In Force

8


5 Basic Agreement on ASEANIndustrial Projects

Kuala Lumpur(6 March 1980)

Ratified In Force(16 Oct1981)

6 Basic Agreement on ASEANIndustrialComplementation

Manila(18 June 1981)

NotRatified

Not In Force

7 Agreement on theRecognition of Domesticdriving License Issued byASEAN Countries

Kuala Lumpur(9 July 1985)

Ratified In Force(7 Jan 1988)

8 ASEAN Agreement on theConversation of Natureand Natural Resources

Kuala Lumpur(9 July 1985)

Ratified In Force(16 Nov1997)

9 Agreement on ASEAN Energycooperation

Manila(24 June 1986)

Ratified In Force(1 Jan 1970)

10 Agreement of thepreferential Shortlistingof ASEAN Contractors

Jakarta(20 Oct 1986)

Ratified In Force(19 June1988)

11 Memorandum ofUnderstanding onStandstill and Rollbackon Non-Tariff Barriersamong ASEAN countries.

Manila Not-Required

In Force(15 Dec1987)

12 Agreement onEstablishment of theASEAN Tourism InformationCentre

Kuala Lumpur(26 Sep 1988)

Ratified In Force(22 Jan1990)

13 Memorandum ofunderstanding on- Brand-To- Brand Complementationon the AutomotiveIndustry Under the BasicAgreement on ASEANIndustrialComplementation

Pattaya(18 Oct 1988)

Not-Required

In Force(18 Oct1988)

14 Agreement on the CommonEffective PreferentialTariff (CEPT) Scheme forthe ASEAN Free Trade Area(AFTA)

Singapore(28 Jan 1992)

Not-Required

In Force(28 Jan1992)

15 Framework Agreement onEnhancing ASEAN EconomicCooperation

Singapore(28 Jan 1992)

Not-Required

In Force(28 Jan1992)

16 ASEAN Framework Agreementon Services


Ratified In Force(12 August1998)

9

17 ASEAN Framework Agreementon Intellectual PropertyCooperation


NotRatified

Not In Force

18 Basic Agreement on theASEAN IndustrialCooperation Scheme

Singapore(27 April1996)

Ratified In Force(10 Oct1996)

19 Ministerial Understandingon ASEAN Cooperation inFinance

Phuket(1 March 1997)

Not-Required

In- Force(1 March1997)

20 Memorandum ofUnderstanding on ASEANSea Turtle Conservationand Protection

Bangkok(12 Sep 1997)

Not-Required

In- Force(12 Sep1997)

21 Agreement on theestablishment of theASEAN Centre for energy

Manila(22 May 1998)

Ratified In- Force(31 Jan2000)

22 Agreement on theRecognition of CommercialVehicle InspectionCertificates for goodvehicles and publicservice Vehicle Issued byASEAN member countries

Singapore(10 Sep 1998)

Ratified In- Force(27 Nov2006)

23 Protocol on NotificationProcedures

Makati(7 Oct 1998)

Not-Ratified

Not-In-Force

24 ASEAN Framework Agreementon the Facilitation ofgoods in Transit

Hanoi(16 Dec 1998)

Ratified In-Force(2 Oct 2000)

25 ASEAN Framework Agreementon Mutual RecognitionArrangements

Hanoi(16 Dec 1998)

Ratified In-Force(6 Feb 2009)

26 Protocol on the SpecialArrangement for Sensitiveand Highly SensitiveProducts

Singapore(30 Sep 1999)

Ratified In-Force

27 E- ASEAN FrameworkAgreement


Not-Ratified

Not-In-Force

28 Ministerial Understandingon ASEAN Cooperation inTelecommunications andInformation Technology

Kuala Lumpur(13 Jul 2001)

Not-Required

In-Force(13 Jul2001)

29 ASEAN Sectorial MutualRecognition Arrangementfor Electrical andElectronic Equipment

Bangkok(5 April 2002)

Not-Required

In-Force(5 April2002

10

30 ASEAN Memorandum ofUnderstanding on theTrans-ASEAN Gas PipelineProject

Bali(5 JUL 2002)

Ratified In-Force(21 May2004)

31 ASEAN Tourism Agreement Phnom Penh(4 Nov 2002)

Ratified In- Force(21 Feb2007)

32 Protocol Governing theImplementation of theASEAN Harmonized TariffNomenclature

Makati(7 August2003)

Not-Required

In-Force(7 August2003)

33 Agreement on the ASEANHarmonized CosmeticRegulatory Scheme

Phnom Penh( 2 Sep 2003)

Not-Required

In-Force(2 Sep 2003)

34 ASEAN Framework Agreementfor the Integration ofPriority Sectors

Vientiane(29 Nov 2004)

Ratified In-Force(31 August2005)

35 ASEAN Protocol onEnhanced DisputeSettlement Mechanism


Not-Required

In-Force(29 Nov2004)

36 Ministerial Understandingon ASEAN Cooperation inMinerals

Kuching(4 August2005)

Not-Required

In-Force(4 August2005)

37 ASEAN Framework Agreementon Multimodal Transport


Ratified In-Force(1 Oct 2008)

38 Memorandum ofUnderstanding on theASEAN SWAP Arrangement

No-Description(17 Nov 2005)

Not-Required


39 ASEAN Mutual RecognitionArrangement onEngineering Services

Kuala Lumpur(9 Dec 2005)

Ratified In- Force(9 Dec 2005)

40 Agreement on the ASEANHarmonized Electrical andElectronic Equipment(EEE) Regulatory Regime


Ratified In- Force(17 Oct2012)

41 Agreement to Establishand Implement the ASEANSingle Window


Ratified In- Force(9 Dec 2005)

42 Agreement on theEstablishment of ASEANAnimal Health Trust Fund


Not-Required


43 ASEAN Mutual RecognitionArrangement on NursingServices

Cebu(8 Dec 2006)

Not-Required

In- Force(8 Dec 2006)

44 Protocol to Provide Makati City Not- In- Force

11

Special Consideration forRice and Sugar

(23 August2007)

Required (23 August2007)

45 Memorandum ofUnderstanding on theASEAN Power Grid

Singapore(23 August2007)

Ratified In- Force(19 March2009)

46 ASEAN Mutual RecognitionArrangement onArchitectural Services



47 ASEAN FrameworkArrangement for theMutual Recognition ofSurveying Qualifications



48 ASEAN Memorandum ofUnderstanding onCooperation Relating toAircraft Accident andIncident Investigation

Lapu-Lapu City(29 May 2008)

Not-Required

In- Force(29 May2008)

49 ASEAN Mutual RecognitionArrangement on MedicalPractitioners

Cha-Am(26 Feb 2009)

Ratified In- Force(26 August2009)

50 ASEAN Mutual RecognitionArrangement Framework onAccountancy Services

Cha-Am(26 Feb 2009)

Ratified In- Force(26 May2009)

51 ASEAN Mutual RecognitionArrangement on DentalPractitioners

Cha-Am(26 Feb 2009)

Ratified In- Force(26 August2009)

52 ASEAN ComprehensiveInvestment Agreement

Cha-Am(26 Feb 2009)

Ratified In- Force(29 March2012)

53 ASEAN Trade in GoodsAgreement

Cha-Am(26 Feb 2009)

Ratified In- Force(30 April2010)

54 ASEAN Petroleum SecurityAgreement

Cha-Am(1 March 2009)

Not-Ratified

Not In-Force

55 ASEAN Sectorial MutualRecognition Arrangementfor Good ManufacturingPractice (GMP) Inspectionof Manufacturers ofMedicinal Products

Pattaya(10 April2009)

Not-Required

In- Force(10 April2009)

56 ASEAN MultilateralAgreement on Air Services

Manila(20 May 2009)

Ratified(7 August2009)

In- Force(13 Oct2009)

57 ASEAN MultilateralAgreement on the FullLiberalisation of Air

Manila(20 May 2009)


12

Freight Services58 Memorandum of

Understanding on ASEANCooperation inAgriculture and ForestProducts Promotion Scheme

Bandar SeriBegawan(11 Nov 2009)

Not-Required

In- Force(11 Nov2009)

59 ASEAN Framework Agreementon the Facilitation ofInter-State Transport

Manila(10 Dec 2009)

Ratified In- Force(30 Dec2011)

60 ASEAN Memorandum ofUnderstanding onCooperation Relating toMarine Casualty andMarine Incident SafetyInvestigations

Hanoi(10 Dec 2009)

Not-Required

In- Force(10 Dec2009)

61 Memorandum ofUnderstanding between theGovernments of theParticipating MemberStates of the Associationof Southeast Asiannations (ASEAN) on thePilot Project for theImplementation of aRegional Self-Certification System

Da Nang(30 August2010)


62 ASEAN MultilateralAgreement on the FullLiberalisation ofPassenger Air Services


Ratified In- Force(30 June2011)

63 Memorandum ofUnderstanding on theAssociation of SoutheastAsian Nations’ AirServices Engagement withDialogue Partners


Not-Ratified

Not In-Force

64 ASEAN Agreement onCustoms

Phnom Penh(30 March 2012

Not-Ratified

Not In-Force

65 Memorandum ofUnderstanding among theGovernments of the

Siem Reap(29 August2012)

Not-Ratified

Not In-Force

66 ASEAN Mutual RecognitionArrangement on TourismProfessionals

Bangkok(9 Nov 2012)

Not-Ratified

Not In-Force

67 ASEAN Agreement on the Phnom Penh Not- Not In-Force

13

Movement of NaturalPersons

(19 Nov 2012) Ratified

68 Memorandum ofUnderstanding on ASEANCo-Operation inAgriculture and ForestProducts Promotion Scheme

Nay Pyi Taw(24 Sep 2014)

Not-Required

In- Force(24 Sep2014)

Retrieved from: http://agreement.asean.org/search/by_pillar/2.html

1.5 List of Agreements under ASEAN Socio-Cultural Community

No.

Name of Agreement Signature Ratification

Status

1 Agreement for thePromotion of Cooperationin Mass Media andCultural Activities

CameronHighlands(17 Dec 1969)

Not-Required

In- Force(17 Dec1969)

2 Agreement on theEstablishment of theASEAN Cultural Fund

No Description(2 Dec 1978)

Not-Required

In- Force(2 Dec 1978)

3 Charter of the ASEANUniversity Network

(30 Nov 1995) ThisChartershall comeinto forceuponadoption bytheMinistersresponsiblefor HigherEducation

Non

14


of theASEANMemberCountries

4 Agreement on theAugmentation of the ASEANScience Fund

GentlingHighlands(8 April 2000)


5 ASEAN Agreement on Transboundary Haze Pollution

Kuala Lumpur(10 June 2002)


6 ASEAN Agreement onDisaster Management andEmergency Response

Vientiane(26 July 2005)

Ratified In- Force(24 Dec2009)

7 Agreement on theEstablishment of theASEAN Centre forBiodiversity

Bangkok(12 Sep 20050

Ratified In- Force(23 July2009)

8 Agreement on theEstablishment of theASEAN Co-ordinatingCentre for HumanitarianAssistance on DisasterManagement

Bali(17 Nov 2011)


Retrieved from: http://agreement.asean.org/search/by_pillar/3.html

15


2.0 Significance of ratification of ASEAN agreements is to

strengthen ties between ASEAN member states

Sim, (2003), the varying legal system of the ASEAN member

states shows the varying treatment of ASEAN agreements.

Agreements signed by Malaysia and Singapore Prime Ministers

which follow west minister’s parliamentary system could be

view as an act of government although some of the policy still

being debated in parliament but not take so many times to

comply or ratified any treaties or agreements. However, that

would not be the case for The Philippines, where the issues of

Senate ratification arise almost every time the Philippines

Presidents sign ASEAN agreements. The issues also come up less

frequently under Thai and Indonesian law. On the other hand,

Cambodia determines whether an agreement must be subject to

domestic ratification based on the nomenclature applied to

agreements. Ratification in ASEAN thus determined on a lowest

common denominator basis, with many agreements using specific

nomenclature or tailored subject matters to avoid domestic

ratification if possible. One would not view un-ratified but

signed agreements as binding under international law.

Nevertheless, such agreements still have binding force as

ASEAN commitments, if not binding international legal

commitments. Articles 7.2(a) of the ASEAN Charter stated that

the ASEAN Summit of national leaders is the supreme policy-

making body of ASEAN. Hence, decision and agreements made at

the ASEAN Summit represent the final word on ASEAN matters

that is until the ASEAN Summit decides otherwise at a later

meeting. That would mean that un-ratified but signed16

agreements are binding as ASEAN commitments but are subject to

later amendment or revision. This is not different from what

happens in all forms of government, where the state makes

policy decision which can and often are later revised or

amended. In either case, un-ratified but signed ASEAN

agreements can be invoked by other ASEAN member states and

should be allowed as the basis for invoking dispute

resolution.

In my point of view I think that ratification of agreements is

very important to strengthen ties between ASEAN member states.

For example, in the case of Trans boundary Haze Pollution

(THP) between Malaysia, Singapore and Indonesia. Singapore

government has welcomed the Indonesian Parliament’s decision

to ratify the ASEAN Agreement on Trans boundary Haze

Pollution. The decision to ratify the pacts comes 12 years

after it was first signed. It obliges Indonesia to strengthen

its policies and enforcement against forest fires and causes

of Trans boundary haze, as well as participate in regional

decision making on the issue. A statement from Singapore’s

Ministry of Environment and Water Resources (MEWR) on Tuesday

(16 Sep 2014) said the ratification is timely coming against

the backdrop of the recent escalation of hotspots in Sumatra

and Kalimantan. It’s also comes a day after air quality levels

in Singapore hits 113, in unhealthy range of the pollutant

Standard Index, due to increased hotspot activity in Sumatra.

Dr. Vivian Balakrishnan (MEWR) reiterated Singapore’s stand

that there is a pressing need for more effective measures on

the round and looks forward to closer cooperation with the

17

Indonesian government and ASEAN partners to tackle this

recurrent problem (Channel News Asia, 2014)

After month of Indonesian-origin haze having shrouded Malaysia

and Singapore, and Indonesia President Bambang Yudhiyono

having to apologize to the ASEAN neighbours for the haze, the

Indonesia government announced that it had moved on ratifying

the 2002 ASEAN Agreement on Trans boundary Haze Pollution.

Indonesia Environment Minister Balthasar Kambuaya said that

the documents necessary for the ratification had been cleared.

First, the Haze Agreement itself will not empower ASEAN member

or the ASEAN institutions with authority to take action on the

ground in Indonesia and elsewhere to deal with the haze.

Article 4 of (THP) of the agreements sets forth of the

following general obligations for ASEAN members. 1;Co-operate

in developing and implementing measures to prevent and monitor

(THP) as a result of land and/or forest fires which should be

mitigated, and to control sources of fires, including by the

identification of fires, development of monitoring, assessment

and early warning systems, exchange of information and

technology, and the provision of mutual assistance. 2;When

(THP) originates from within their territories, respond

promptly to a request for relevant information or

consultations sought by a State or States that are or may be

affected by such (THP), with a view to minimising the

consequences of the (THP). 3; Take legislative, administrative

or other measures to implement their obligations under this

agreement. (asean.org/haze pollution agreement, pdf)

18

David, (2014) in other words, the Haze Agreement more or less

formalizes the cooperative efforts that take place already in

ASEAN. For example, assistance can only be given or more

accurately, assistance can be received with the consent of the

recipient state, and is subject to the direction and control

of the recipient state. Moreover, dispute resolution under

the Haze Agreement is limited to consultation or negotiation.

Arbitration is not an option. Hence retaliatory action on

Indonesian-origin goods or direct intervention in Indonesia

would not be allowed by the Haze Agreement.

Given the difficulty of obtaining ratification and the lack of

strong authority and enforcement powers in the Haze Agreement,

why should ASEAN members care strongly about its

ratification? Because at this point, more than 10 years after

its signing, ratification by Indonesia would send a strong

political message to the rest of ASEAN that it takes the issue

seriously. After ratification, continued haze problems will

become that much more embarrassing for the Indonesian

government. In other words, at this point the act of

ratifying the Haze Agreement has more meaning than the Haze

Agreement itself.

This, again, is the ASEAN Way. Masilamani & Petterson (2014),

without strong legal mechanisms or empowered regional

institutions, ASEAN must resort to peer pressure and diplomacy

to resolve many of its problems. Yet there is value in such

processes, when the haze first hit in 1997-98, there was

general official denial about the source of the haze. This

time, there was general acknowledgement of where the haze19

originated. The first step in dealing with a problem is to

accept that one exists. So the ASEAN Way does work, albeit

more slowly and less consistently than what would happen in

the West. By ratifying the (THP) agreement, although not yet

knowing that Indonesian government will act positively, but

still they do their best in complying this issues with other

ASEAN members states especially Singapore and Malaysia and

directly improves their ties and relationship.

20

Source: Online newspaper of the Brunei times from Google image

21

3.0 Significance of the ratification of ASEAN agreement is to

achieve ASEAN Vision 2020

In the course of time, ASEAN Vision has evolved over time and

the development of thought as well as the potential and the

need for ASEAN member states is in line with existing

challenges. Since its formation as the Bangkok Declaration in

1967 until a few decades later, the leaders have manages to

establish the ASEAN Vision 2020 which was announced at the

ASEAN Summit in Kuala Lumpur in 1997. ASEAN Vision 2020 as its

core emphasizes ASEAN as “a concert of Southeast Asian

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

prosperity, bonded together in partnership in dynamic

development and in a community of caring society”. So, in

order to achieve ASEAN Vision 2020, ASEAN member states must

come together and agree and ratify agreements so that any

related ASEAN project will be implemented as soon as possible.

I think that, in a attempt to increase the role of ASEAN in

the future or to create an ASEAN Community, therefore all

agreements that has been formulated shall be ratified and

implemented so that the impact can really be felt by people in

each ASEAN member country. In order to realize ASEAN

Community, there are at least four important aspects need to

be realized. It includes, food security related to rice

economy, energy security associated with the availability of

gas and electricity, service sectors related with people to

people linkages and infrastructure and transportation to

accelerate of ASEAN connectivity.

22

Firstly, food security especially rice is very important for

ASEAN considering most of ASEAN population consumes rice and

ASEAN population is expected to reach 600 million by 2020. As

for the provision of the rice requires considerable time to

produce it compared to the need of time consuming. Besides the

issues of the time, considering factor related to the food

supply is supply and demand, then by itself has the

sensitivity to inflation because it is a strategic commodity

trade (Hartarto, 2011). Food security is therefore an

important agenda for ASEAN to anticipate in the event of a

crisis situation as occurred during the financial crisis in

2008 that also have affected to food security in most ASEAN

countries. As concrete step, it needs to be determined the

division of the barn storage and mechanism or distribution

protocol in case of crisis. As an illustration of the ratio

between productions of rice with their use in any ASEAN

country can be seen in the table below, it shows that the use

of the rice is higher than the production. Therefore any

agreements related to food security should be fastened and

ratify in order to sustain food availability especially in

ASEAN countries.

Ratio table of rice production 2011

Items 2009 2010 2011 Change2010 over

2011Quanti

ty%

Supply(milliontons)

150.05 154.60 159.76 5.16 3.34

23

Beginningstock

20.79 24.00 26.67 2.67 11.13

Production 125.72 126.92 130.91 3.99 3.14Import 3.53 3.68 2.18 -1.50 -

40.76Demand(milliontons)

150.05 154.60 159.76 5.16 3.34

Domesticutilization

107.34 109.34 110.54 1.20 1.10

Export 16.92 18.60 19.42 1.32 7.10

Ending Stock 25.79 26.67 29.80 2.63 9.86

Self-Sufficiencyratio (%)

117.13 116.08 118.43 2.35 2.02

FoodSecurityratio (%)

19.37 21.95 24.13 2.18 9.93

Source: ASEAN Food Security Information (AFSIS) 2011

Secondly, energy security associated with the availability of gas

and electricity. Agreement and cooperation of ASEAN countries to

build and explore potential energy sources need to be intensified by

inviting the private sector to invest in the ASEAN energy sector.

Some plans that have been proclaimed as the development project of

Trans ASEAN Gas Pipeline (TAGP) and the ASEAN Power Grid projects

need to be realized such as, the Sarawak region can complement the

use of electric power in Sumatra (Hartarto, 2011) Likewise with the

gas use, with the construction of gas pipeline from fellow ASEAN

countries, it will co-exist if there is shortage of supply in one

territory and it will be more efficient because it does not require

vehicle. It can be realized by creating a pilot project of gas

pipeline between Sumatra to the Malay Peninsula, considering Sumatra

24

has a gas source which is sufficient to be supplied to Malaysia. In

order to realize this, not only agreement but must have ratification

from related parties to pursuit the projects and people of ASEAN

will directly benefit from the project.

Thirdly, Hartarto (2011), the service sectors play an important role

in improving overall economic performance. Based on WTO data in

2007, trade in service sector reached USD 3.5 Billion which the

average per-year growth since 1980 of 8.5%. To increase the mobility

of the provision of the service sector among ASEAN countries, then

on December 15, 1995 in Bangkok, ASEAN Economic Ministers signed the

ASEAN Framework agreement in Services (AFAS). This agreement is made

with a belief that liberalization of service sectors can benefit

ASEAN member countries through efficiencies and greater growth from

good trade liberalization. With the liberalization of service sector

through the removal of barriers to entry permit application for

every profession or employment in any ASEAN member countries will

provide spill over benefits in the form of movement of capital and

labour that will simultaneously increase productivity and ultimately

increase higher economic growth. With regard to above, it should be

immediately carried out a wider an clearer setting of the service

sector given the reality of the labour of the each country both

skilled and unskilled in fact already practice in each country. For

example, Indonesian worker in Malaysia, Singapore and Thailand.

Finally, Hartarto (2011), Infrastructure and Transportation

associated with ASEAN connectivity. To realize the ASEAN

connectivity which has been implemented by the European Union,

therefore several plan which have been proposed by ASEAN in several

agreements. It includes ASEAN Framework agreement on the

Facilitation of Good Transit (AFAFGIT), ASEAN Framework agreement on25

Multimodal Transport (AFAMT), ASEAN Framework agreement on

Facilitation of Interstate Transport (AFAFIST) and ASEAN cooperation

in Information and Communication Technology (ICT). Some plan that

have been found at short notice such as making- joint project

Railway Singapore-Kunming Rail Link (SKRL), the ASEAN Highway

Network Project (AHN) with route Singapore- Malaysia- Thailand-

Cambodia- Vietnam- China (Kunming). ASEAN Community sooner or later

will be happened, therefore it required the readiness of each ASEAN

member states to internally support the regions big plans. The key

to success of the big plans are on the seriousness and commitment of

the leaders and citizens of each ASEAN member.

4.0 Ratification of ASEAN agreements does impact the Economic

Development of ASEAN member states by transforming ASEAN into a

region with Single Market and Production Base, Competitive

Economic Region, Equitable Economic Development and Integration

with global Economy.

ASEAN Fact book (2011), with the ratification of all ASEAN Economic

Community blueprints agreements, ASEAN will transform into a region

with single market and production base, competitive economic region,

26

equitable economic development and integration with global economy.

Firstly, the establishment of ASEAN as a single market and

production base will make ASEAN more dynamic and competitive with

new mechanism and measures to strengthen the implementation of its

existing economic initiatives, accelerating regional integration in

priority sectors, facilitating movement of business persons, skilled

labour and talents and strengthening the institutional mechanism of

ASEAN. An ASEAN single market production base comprises five core

elements. It includes free flow of goods, free flow of services,

free flow of investments, free flow of capital and free flow of

skilled labour. Industrial sector includes agro based products, air

travel, automotive, e-ASEAN, electronics, fisheries, healthcare,

rubber based products, textiles and apparel, tourism, wood based

products and logistics as well as the food, agriculture and forestry

sectors. A single market for goods and services will facilitate the

development of productions networks in the region and enhance ASEAN

capacity to serve as a global production centre as a part of the

global supply chain. Tariffs will be eliminated and non-tariff

barriers will be gradually phased out. Simple, harmonised and

standardised trade and customs are expected to reduce transaction

cost. There will be a free movement of professionals. ASEAN

investors will be free to invest in sectors and services sectors

will be opened up.

Secondly, the creation of a stable, prosperous, and highly

competitive economic region is the goal of ASEAN economic

integration. There are six core elements under the competitive

economic region. It includes competition policy, consumer

protection, intellectual property rights, infrastructure

development, taxation and e-commerce. ASEAN member states has

committed themselves to introduce nation-wide competition policy and

27

laws (CPL) to ensure a level playing field and incubate a culture of

fair business competition for enhanced regional economic performance

in the long run.

Thirdly, under equitable economic development there are two

elements. It includes Small and Medium Enterprise (SME) development

and Initiatives for ASEAN Integration. These initiatives move

towards bridging the development divide both at the SME level and

enhance economic integration of Cambodia, Lao PDR, Myanmar and

Vietnam (CLMV) to enable all member states to move forward in a

unified manner and to enhance ASEAN competitiveness as a region as

well for all to benefit from the integration process.

Finally, ASEAN operates in an increasingly inter-connected and

highly networked global environment, with interdependent markets and

globalised industries. In order ASEAN businesses to compete

internationally, to make ASEAN a more dynamic and mainstream global

supplier and to ensure that the internal markets remain attractive

for foreign investment. ASEAN has to look beyond the AEC border. Two

approaches taken by ASEAN in integrating with the global economy are

a coherent approach towards external economic relations through Free

Trade Agreement and Close Economic Partnership (CEPT) and enhanced

participation in global supply networks.

5.0 CONCLUSION

ASEAN is committed to fulfil the 2007 plead to implement the ASEAN

Community by the end of 2015. That said many of ASEAN agreements and

treaties have already been realised between 2007 and now and ASEAN

people are already enjoying the fruits of greater ASEAN integration

as a results. ASEAN has now focused its attention on the

implementation of remaining agreements and treaties under APSC, AEC

and ASCC. While there are challenges that ASEAN will face in

28

completing the tasks, ASEAN commitment to ratify and implementing

the APSC, AEC and ASCC remain undiminished. ASEAN community 2015

will not be the end of ASEAN integration efforts. At their annual

summit meeting in Brunei Darussalam in 2013, the ASEAN head of state

committed to create a post-2015 vision that built on the blueprints

for an ASEAN Community and the master plan on ASEAN Connectivity

(ASEAN AEC, 2014). The leader goals is to realise a community that

is politically cohesive, economically integrated, socially

responsible and a truly people-oriented, people centred and rules-

based ASEAN. The heads of state, leaders under the private sectors

and other experts know that regional integration and the building of

the single market for the AEC is just the beginning. It will

continue past 2015 as barriers are lowered, connectivity is

enhanced, infrastructure is built and legal framework is refined to

fit the community. New situations will emerge, fears must be

overcome, unforeseen consequences will be encountered and solutions

will be found. ASEAN people in all their diversity and creativity

are the most crucial factor on ASEAN journey.

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Documents

THE SIGNIFICANCE OF THE RATIFICATION OF ASEAN AGREEMENTS AND TREATIES