ASEAN

ASEAN, or the Association of Southeast Asian Nations, is a regional organization established on 8 August 1967 in Bangkok, Thailand, by Indonesia (1967), Malaysia (1967), the Philippines (1967), Singapore (1967) and Thailand (1967). Brunei joined in 1984, Viet Nam in 1995, Laos and Myanmar in 1997, Cambodia in 1999 and Timor-Leste in 2025. Papua New Guinea has observer status.

ASEAN's purpose is to promote economic growth, social progress and cultural development, as well as to strengthen peace, stability and cooperation in Southeast Asia. During the 1970s, the member states deepened their political cooperation after the end of the Vietnam War. The dynamic economic development of Southeast Asia strengthened the organization and enabled it to take a common position during the conflict in Cambodia in 1978-1979. ASEAN's first summit, held in Bali in 1976, concluded with the signing of the Treaty of Amity and Cooperation and the Declaration of ASEAN Concord.

Today, ASEAN is one of the world's most dynamic economic areas, with around 690 million people and a combined GDP of about US$3.8 trillion. As a group, ASEAN countries are the European Union's third-largest trading partner outside Europe, after China and the United States. In 2024, bilateral trade in goods between the EU and ASEAN reached €258.8 billion, confirming the sustained development of economic relations between the two sides.

Negotiations for a free trade agreement between the EU and ASEAN began in 2007, but in 2009 they were paused in favour of bilateral negotiations with individual member states. These bilateral agreements are viewed as a foundation for a future comprehensive trade agreement between the European Union and ASEAN.

All member states are parties to the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (Bangkok Treaty), signed in 1995, which prohibits the development, acquisition, deployment and testing of nuclear weapons on the territory of the member states. All member states are also parties to the ASEAN Convention on Counter Terrorism (ACCT), which promotes cooperation in preventing and countering terrorism.

Technical and research cooperation is also encouraged among the member states. Initiatives include environmental protection and biodiversity conservation through the ASEAN Centre for Biodiversity.

The economic growth of Southeast Asia has increased its importance as a trading partner not only for Europe, but also for the United States. Trade relations between Southeast Asia and the United States are strategically important for both sides. For the United States, ASEAN is one of the fastest-growing markets in the world. According to a number of international economic forecasts, with average annual growth of around 4-5%, ASEAN has the potential to become the fourth-largest economy in the world by the middle of the twenty-first century, surpassing the European Union and Japan. Demographic trends in Southeast Asia are expected to support this growth.

ASEAN's geopolitical significance has also increased. One example is Timor-Leste's accession as ASEAN's 11th member in 2025, the organization's first enlargement since the late 1990s. Another example is the signing of the Regional Comprehensive Economic Partnership (RCEP).

RCEP was signed in 2020 and entered into force on 1 January 2022. It includes all ASEAN member states (except Timor-Leste at the time of signing), as well as the ASEAN+3 countries (China, Japan and the Republic of Korea), Australia and New Zealand. Within 20 years of its entry into force, around 90% of tariffs on trade between participating countries are expected to be eliminated, while common rules are to be introduced in areas such as e-commerce, intellectual property and trade in goods.

Many products already benefit from significantly reduced tariffs or duty-free treatment, encouraging trade flows especially in agriculture, electronics and manufacturing. Intra-regional trade continues to grow, and by 2030 RCEP is expected to further increase exports, investment and incomes through deeper economic integration. RCEP also contains provisions that facilitate the temporary movement of business representatives.

According to economic estimates, the agreement could increase Malaysia's exports by around US$200 million, while the use of its preferential provisions contributes to the further expansion of trade. In October 2025, during the ASEAN Summit, Thailand and Cambodia signed an expanded ceasefire agreement following border tensions between the two countries, underscoring ASEAN's role as a platform for dialogue and mediation.

At the end of 2025, ASEAN energy ministers approved the ASEAN Plan of Action for Energy Cooperation (APAEC 2026-2030), which aims for renewable energy sources to reach 45% of total installed power generation capacity across the member states by 2030, along with significant improvements in energy efficiency. This demonstrates the stronger commitment of ASEAN countries to sustainable development and the energy transition.

Trade between China and ASEAN has increased more than 120-fold since the two sides established dialogue relations more than 30 years ago. China has remained ASEAN's largest trading partner for 17 consecutive years, and since 2020 ASEAN has also been China's largest trading partner, retaining that status in 2026. ASEAN has established Comprehensive Strategic Partnerships with both China (2021) and India (2022), the highest level of relations the organization offers to its dialogue partners.

ASEAN and India are also parties to the ASEAN-India Free Trade Agreement, signed in 2009, which significantly reduces tariffs and promotes deeper economic integration between the two sides.