MAKING OF THE ASEAN COMMUNITY: ECONOMIC INTEGRATION AND ITS IMPACT ON WORKERS IN SOUTHEAST ASIA

Abstract

This paper examined the ASEAN integration and its impacts on the workers in the region. It used the theories of economic integration to explain how the economic integration would effect the employment situations and working conditions of the workers in the ASEAN countries. It is interesting to note that it took more than 40 years to create the Free Trade Area (FTA) in the region after the establishment of ASEAN in 1967. Moreover, it is very well-known fact that the AFTA still have not adopted the Common External Tariff (CET). The free movement of goods and services under the FTA tends to have least direct effects on the workers in the FTA member countries. Furthermore, in 2003, ASEAN leaders agree to establish the ASEAN Community by 2020. However, ASEAN leader carefully excluded the free movement of labour under this “incomplete” Common Market named ASEAN Community. In short, these facts seem to indicate that ASEAN integration would have some indirect impacts on the employment situations and working conditions through foreign direct investment or international trade. However, ASEAN integration, so far, would have minimum direct impact on workers in ASEAN countries because the free movement of workers was carefully excluded from discussion and negotiation of making ASEAN Community.