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In the 4th ASEAN Summit Meeting in 1992, ASEAN decided to establish the ASEAN Free Trade Area (AFTA) by the year 2008. Some time later, however, the time frame was reduced from 15 to 10 years.

The primary objective of AFTA is to enhance ASEAN’s position as a competitive production base geared towards servicing the global market. ASEAN is trying to achieve this by encouraging foreign direct investment and Intra-ASEAN investment.

At the same time, it is striving to achieve more effective utilization of the region’s agriculture and industries, expand its trade, study and overcome the problems of international commodity trade, improve its communication and infrastructure facilities and raise the living standards of citizens of its member countries.

In order to achieve all this, ASEAN has to co-operate with its member countries in the areas of:

Industrial Development

ASEAN has initiated cooperation in this area to enhance the industrial competitiveness of the region. Resource pooling and market sharing have been introduced to facilitate effective exploitation of Economics of scale and the region’s complementary location advantages.

? Finance and Banking

In March 1997, the First ASEAN Finance Ministers Meeting was held in Phuket. Two important documents were signed then, which were the Ministerial Understanding (MU) Finance Cooperation and the ASEAN Agreement on Customs.

The MU lays down the foundation for strengthening co-operation in Finance in which a customs agreement was signed to enhance ASEAN co-operation in customs activities. This was done to promote greater intra-regional trade and investment flow.

The Agreement also established joint efforts in anti-smuggling and cus-      tomscontrolled activities, mutual technical assistance, customs modernization, and upgrade of customs skills to meet present and future challenges.

Food, Agriculture and Forestry.

In 1968, a committee on Food Production, Supply and Fishery was formed to ensure wide production and supply of basic food         stuff. ASEAN also established a Food Security Reserve and ASEAN Emergency Rice Reserve in 1979.

Tourism

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