ABSTRACT

The Association of Southeast Asian Nations (ASEAN) has grown into an important player in the world economy. The ASEAN Economic Community (AEC), formally established on 31 December 2015, is a framework of regional economic cooperation to facilitate regional growth through free trade and market integration. The establishment of this economic community is a key milestone for the ASEAN region as an emerging economy. The AEC Blueprint 2015 was initiated in 2007 with the following four strategic goals: Single market and production base; Competitive economic region; equitable economic development and Integration into global economy. ASEAN has been implementing strategic measures for the free flow of goods: elimination of tariff and non-tariff barriers, and trade facilitation. The development of transportation infrastructure and integration into global economy also facilitate the flow of goods by reducing the cost of private firms in supply chain and logistics. The chapter also presents an overview of the key concepts discussed in this book.