Countries intended to be involved
The countries that were supposed to compose the East Asia Economic Caucus were:
The East Asia Economic Caucus (EAEC) or East Asia Economic Group (EAEG) was a regional free trade zone (FTA) proposed in 1997 by Malaysian Prime Minister Mahathir Mohamad and encompasses most nations of East and Southeast Asia (ESEA). However, Japan at the time refused participation due to the exclusion of the United States, which at the time had tariffs on each other, has an economy too deeply interlinked through trade, and was still reeling from the effects of the Japanese asset price bubble. They also added that they were already members of the Asia-Pacific Economic Cooperation (APEC) and many other notable regional organizations in ESEA. South Korea was also extremely dissatisfied with the idea of placing Japan at the center of the proposed organization due to historical connotations.
The EAEC was a reaction to ASEAN's integration into APEC by Mahathir, who is known for his strong Pan-Asian standpoint. His suggestion apparently articulated his dissatisfaction with ASEAN joining APEC, which includes Western nations, an idea he was strongly opposed to. Therefore, EAEC was basically an APEC without Northern America and Oceania. Nevertheless, it was never put into action officially.
When ASEAN+3 was institutionalized in 1999, it was considered the successor of EAEC, which prompted Malaysia to declare that the EAEC has nevertheless still been realized. In 2005, with Japan's support of the ASEAN+3 agreement, it was agreed in return to include Australia, New Zealand, and India into the East Asia Summit, a separate organization.
More recently, the Regional Comprehensive Economic Partnership (RCEP) has also been considered identical to the EAEC, except this time with the inclusion of Australia and New Zealand. The RCEP is the first free trade agreement which included China, Indonesia, Japan, and South Korea together, four of the five largest economies in ESEA. [1] The partnership is notable over the absence of the United States. Several analysts have predicted that the RCEP has the potential to leave the U.S. behind in economic and political affairs within the next few decades especially in the Asia-Pacific.
When the Uruguay Round of discussions to create more liberalized world trade was aborted in autumn 1997, the Malaysian Prime Minister Mahathir Mohammad attempted to create such a trade union in ESEA which was a much debated approach to institutionalizing regional ESEA structures. [2]
The Western-critical speech by Mahathir without consultations with his colleagues in other states resulted in some apprehension by some Asian countries from this idea. Japan especially, felt compromised by this due to its geopolitical situation. Mahathir tried to support the idea by stressing that the EAEC conforms with the General Agreement on Tariffs and Trade (GATT), but this step also brought hardly any results. The exclusion of Oceania was also found especially unfitting. Japan could not go along with this, not at least during the beginning of the 1990s, as it was re-orienting itself after the complete collapse of the Eastern Bloc amid the Revolutions of 1989 and the end of the Cold War.
As a result, the original concept of EAEC was very difficult to implement. Besides these difficulties, Mahathir's concept committed Japan to be the leading power. However, Japan could not afford such a perspective at the time, as it was closely allied to the United States since its defeat in World War II five decades prior, and as a result has an economy deeply linked through trade ever since. South Korea was also extremely dissatisfied with Japan being placed at the center of the proposed organization due to the historical connotations of Japan ruling over Korean economic affairs, and would not support the possibility of Japanese economic hegemony in the region.
The countries that were supposed to compose the East Asia Economic Caucus were:
ASEAN, an abbreviation for the Association of Southeast Asian Nations, is a political and economic union of 10 states in Southeast Asia. Together, its member states represent a population of over 600 million over a land area of 4.5 million km2 (1.7 million sq mi). The bloc generated a purchasing power parity (PPP) gross domestic product (GDP) of around US$10.2 trillion in 2022, constituting approximately 6.5% of global GDP (PPP). ASEAN member states include some of the fastest growing economies in the world.
Asia-Pacific Economic Cooperation is an inter-governmental forum for 21 member economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of ASEAN's series of post-ministerial conferences launched in the mid-1980s, APEC started in 1989, in response to the growing interdependence of Asia-Pacific economies and the advent of regional trade blocs in other parts of the world; it aimed to establish new markets for agricultural products and raw materials beyond Europe. Headquartered in Singapore, APEC is recognized as one of the highest-level multilateral blocs and oldest forums in the Asia-Pacific region, and exerts significant global influence.
The ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local trade and manufacturing in all ASEAN countries, and facilitating economic integration with regional and international allies. It stands as one of the largest and most important free trade areas (FTA) in the world, and together with its network of dialogue partners, drove some of the world's largest multilateral forums and blocs, including Asia-Pacific Economic Cooperation, East Asia Summit and Regional Comprehensive Economic Partnership.
The economy of Asia comprises about 4.7 billion people living in 50 different nations. Asia is the fastest growing economic region, as well as the largest continental economy by both GDP Nominal and PPP in the world. Moreover, Asia is the site of some of the world's longest modern economic booms.
The East Asia Summit (EAS) is a regional forum held annually by leaders of, initially, 16 countries in the East Asian, Southeast Asian, South Asian and Oceanian regions, based on the ASEAN Plus Six mechanism. Membership expanded to 18 countries including Russia and the United States at the Sixth EAS in 2011. Since its establishment, ASEAN has held the central role and leadership in the forum. EAS meetings are held after the annual ASEAN leaders' meetings, and plays an important role in the regional architecture of Asia-Pacific. The first summit was held in Kuala Lumpur, Malaysia on 14 December 2005.
The East Asian Community (EAC) is a proposed trade bloc for the East and Southeast Asian (ESEA) countries that may arise out of either ASEAN Plus Three or the East Asia Summit (EAS).
The First East Asia Summit was held in Kuala Lumpur, Malaysia on December 14, 2005. The East Asia Summit (EAS) is a pan-Asia forum held annually by the leaders of 16 countries in the East Asian region. EAS meetings are held after annual ASEAN leaders' meetings.
The Second East Asia Summit was held in Mandaue, Metro Cebu, Philippines on January 15, 2007. The East Asia Summit (EAS) is a pan-Asia forum held annually by the leaders of 16 countries in the East Asian region. EAS meetings are held after annual ASEAN leaders' meetings.
The Economic Research Institute for ASEAN and East Asia or ERIA is an international organization established in Jakarta, Indonesia in 2008 by a formal agreement among Leaders of 16 countries in the East Asian region to conduct research activities and make policy recommendations for further economic integration in the East Asia. ERIA works very closely with both the ASEAN Secretariat and 16 Research Institutes to undertake and disseminate policy research under the three pillars, namely “Deepening Economic Integration”, ”Narrowing Development Gaps”, and “Sustainable Development” and provide analytical policy recommendations to Leaders and Ministers at their regional meetings. ERIA provides intellectual contributions to East Asian Community building and serves as a Sherpa international organization. ERIA Ranks 9th among the world's "Top International Economics Think Tanks" according to the 2020 Global Go To Think Tanks Index Report conducted by the University of Pennsylvania.
New Zealand is party to several free trade agreements (FTAs) worldwide.
The Comprehensive Economic Partnership for East Asia (CEPEA) is a Japanese led proposal for trade co-operation, free trade agreement, among the 16 present member countries of the East Asia Summit. All those movements and efforts were taken over by the following Regional Comprehensive Economic Partnership.
The ASEAN–China Free Trade Area (ACFTA) is a free-trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China.
The Berkeley APEC Study Center (BASC) is a research center at the University of California, Berkeley. Created in 1996 in response to an initiative by U.S. President Bill Clinton, the center undertakes research, disseminates information and facilitates discussion on APEC-related issues involving political, economic and business trends in the Asia-Pacific region.
The Regional Comprehensive Economic Partnership is a free trade agreement among the Asia-Pacific nations of Australia, Brunei, Cambodia, China, Indonesia, Japan, South Korea, Laos, Malaysia, Myanmar, New Zealand, the Philippines, Singapore, Thailand, and Vietnam. The 15 member countries account for about 30% of the world's population and 30% of global GDP, making it the largest trade bloc in history. Signed in November 2020, RCEP is the first free trade agreement among the largest economies in Asia, including China, Indonesia, Japan, and South Korea.
The East Asian Bureau of Economic Research (EABER) is a forum for economic research and analysis of the major issues facing the economies of East Asia.
The negotiations for the Trans-Pacific Partnership Agreement were held between 12 countries between 2008 and 2015. The negotiations were aimed at obtaining an agreement between the Trans-Pacific Strategic Economic Partnership Agreement parties Brunei, Chile, Singapore and New Zealand, as well as the Australia and the United States.
The Indo-Pacific Economic Framework for Prosperity (IPEF) is an economic initiative launched by U.S. President Joe Biden on May 23, 2022. The framework launched with fourteen participating founding member nations in the Indo-Pacific region with an open invitation for other countries to join.
Vietnam, although a relatively young and small nation, has successfully established trade relations with dozens of countries worldwide. This is especially evident in the number of free trade agreements (FTAs) that the country has signed and is participating in. Being part of the Association of Southeast Asian Nations (ASEAN), economic opportunities for Vietnam expands beyond bilateral trade agreements with specific countries to include multilateral trade agreements via the ASEAN Free Trade Area (AFTA).
