INDEX 1. ASEAN in the world 2. Economic development of ASEAN countries 3. Peru relations with ASEAN

1. ASEAN and Peru
September 13, 2018
Carlos Aquino
Professor, Faculty of Economic Sciences
Universidad Nacional Mayor de San Marcos

2. Index
• 1. ASEAN in the world
• 2. Economic development of ASEAN countries
• 3. Peru relations with ASEAN

4. https://www.weforum.org/agenda/2018/09/can-asean-turn-geostrategic-and-technological-disruption-into-opportunity

5. Source: ASEAN Statistical Leaflet, Selected Key Indicators 2017
SOCIO DEMOGRAPHY

6. Source: ASEAN Statistical Leaflet, Selected Key Indicators 2017
ECONOMY AND TRADE

7. 1. ASEAN in the world
• As we can see ASEAN member countries are a diverse group, with
differences among them regarding geography, size of population, ethnic
groups, religions, economic and political systems.
• On the one hand there is Indonesia, a country with more than 1.9 million
km2, and Singapore with less than 800 km2, the first with plenty of natural
resources, the second with practically nothing.
• Indonesia has 258 million inhabitants, Brunei only 423 thousand. On the
one hand, there is Vietnam that has a population composed mostly of a
single ethnic group, while Singapore has Chinese, Malay and Tamil ethnic
groups (and in almost all ASEAN countries there is a population of Chinese
origin).
• The Philippines is a mostly Catholic country, while Malaysia and Indonesia
are mostly Muslim and Thailand is mostly Buddhist.

8. • Countries like Philippines and Indonesia have a system of representative
democracy, but Vietnam has a single-party, socialist system.
• Singapore is practically a industrialized, developed country, with a per
capita income of 52 thousand dollars a year, while Malaysia, Thailand,
Indonesia and the Philippines are mostly middle income countries, but
Cambodia and Myanmar have a per capita income lower than 1,500 dollars
• Some are countries with a capitalist market system, like the Philippines,
and others where the state still has a strong presence and elements of a
socialist economy (although open to foreign investment) such as Vietnam.
• Even with all these differences, ASEAN has advanced in its process of
economic and political integration

9. • ASEAN is the acronym in English of the Association of Southeast Asian
Nations. It is made up of 10 countries, with around 640 million inhabitants.
• Established on August 8, 1967, with five founding members: the
Philippines, Indonesia, Malaysia, Singapore and Thailand, over the years 5
more joined: Brunei, Cambodia, Laos, Myanmar and Vietnam.
• The aims and purposes of ASEAN, among others, are:
• "To accelerate the economic growth, social progress and cultural
development in the region; to promote regional peace and stability; to
promote active collaboration and mutual assistance on matters of common
interest in the economic, social, cultural, technical, scientific and
administrative fields; to maintain close and beneficial cooperation with
existing international and regional organizations with similar aims and
purposes".

10. • Among its fundamental principles are: "Mutual respect for the
independence, sovereignty, equality, territorial integrity, and national
identity of all nations; Non-interference in the internal affairs of one
another; Settlement of differences or disputes by peaceful manner".
• Among them they initiated the ASEAN Free Trade Agreement in 1992,
AFTA for its acronym in English.
• They created the ASEAN Community at the end of 2015, with three
pillars: the ASEAN Political-Security Community, the ASEAN Economic
Community, and the ASEAN Socio-Cultural Community.

11. 2. Economic development of ASEAN countries
• If the ASEAN group were just a single economy, it would be the sixth
largest in the world, with 2.55 trillion dollars (2017 data).
• There are many economic differences as seen between the ASEAN
countries but something they pursue in common is industrialization.
Governments have given policies to make this possible and one of
them is to attract foreign investment that is allowing this region to
become (along with China, South Korea and Japan) the world's
factory.
• The following graphs shows, for example, how several ASEAN
countries are part of the international network of production of
companies like Sony and Toyota.

12. https://www.weforum.org/agenda/2018/09/trade-entrepreneurship-and-the-future-of-asean

13. Source: ADBInstitute
East Asian Integration
Towards an East Asian Economic Community

15. • ASEAN as a group is very successful in advancing to achieve not only
economic integration among its members but also becoming a center
of economic integration in Asia.
• As a group, it has Free Trade Area agreements separately with China,
Japan, South Korea, India, Australia and New Zealand.
• As a group, it also wants to have a common FTA with all of them, to
form the Regional Comprehensive Economic Partnership, RCEP, which
can serve as a pillar, together with the TPP, to achieve the Free Trade
Area of the Asia-Pacific, FTAAP, (of 21 economies), what APEC
pursues.

16. 3. Peru relations with ASEAN
• Peru trades significantly only with some ASEAN countries. For example in
the year 2017 exports of goods to Thailand were 111 million dollars and
imports from it 453 million dollars (its biggest trade partner), to Vietnam it
exported 153 million dollars and imported 402 million dollars, to Indonesia
exported 35 million dollars and imported 351 million dollars, to Malaysia
exported 129 million dollars and imported from it 163 million dollars, and
to the Philippines sold 348 million dollars and imported from it 56 million
dollars. The biggest market in ASEAN for Peru exports was Philippines and
for its imports was Thailand.
• Peru mainly sell to ASEAN countries raw materials such as copper, fishmeal
and lately some agro industrial products (like grapes). We buy mainly
manufactured products such as clothing, footwear and electronic products.

17. Peru`s exports to ASEAN member countries
Source: Trademap

18. Peru`s imports from ASEAN member countries
Source: Trademap

19. Peru foreign trade by destinations
Source: MINCETUR: Reporte Mensual de Comercio,
Diciembre 2017

20. • Peru has free trade agreements with Singapore and Thailand, and expects
to start negotiations to achieve one with Indonesia. With the TPP11 it will
have trade agreements with Malaysia, Vietnam and also with Brunei.
• There are investments from some ASEAN countries to Peru, like from
Vietnam, of PetroVietnam and Viettel. From Peru, the AJE group with its
Big Kola drink has investments in several ASEAN countries such as
Indonesia, Thailand, Vietnam, etc.
• Peru has diplomatic relations with all of them but only has Embassies in
some of them, and also only some of those countries have Embassies in
Peru, such as Indonesia, Malaysia and Thailand.
• We have old diplomatic relations with several of these countries, such as
with Thailand since 1965, with Indonesia since 1975, with Malaysia from
1986, etc.

21. https://www.ajegroup.com/about-aje/a-worldwide-company/

22. • Little is known in Peru about ASEAN, there is a need to study more
that region.
• It is a growing region, with great market opportunities to export
goods and services, but also for investment.
• ASEAN is an example of economic integration, and have done better
than the Andean Community, which was created two years later.

23. Bibliography
• ADB: https://www.adb.org/publications/east-asian-integration-
towards-east-asian-economic-community
• ASEAN: http://asean.org/
• Ministerio de Relaciones Exteriores del Perú:
http://www.rree.gob.pe/SitePages/politica.aspx#asia

24. https://asia.nikkei.com/Opinion/Testing-times-for-Asia-s-emerging-markets