Extra-ASEAN Trade

CEIC Gallery/World Trend+ Database/Emerging Economies - January 21, 2016 Summary ASEAN has become considerably an important trade alliance and is now the third largest in the world after the European Union and the North American. The establishment of Free Trade Agreement, especially between ASEAN 6 countries (Indonesia, Malaysia, Philippines, Singapore, Thailand) and other Asian countries such as China, India and South Korea, are now radically changing the global sourcing and manufacturing landscape. As the data show a steady increase of total trade between ASEAN countries and both China and South Korea recently. Trade Dependencies With regards to the types of goods traded, ASEAN is very dependent on a few commodities, with the top 5 commodities exported and imported representing about one third of both imports and exports. These 5 commodities are: Import and export: crude oil, petroleum, electronics integrated circuits, telephone sets/cellular Import only: gold Export only: automatic data processing machines Furthermore, ASEAN is dependent on several of its different partners for the import and export of several specific goods and products that are almost exclusively traded certain partners. Chart 1 - 6 Chart 1 - 6 show the trends of Total Trade, Imports and Exports as well as comparisons of these indicators for AEC and Extra-ASEAN countries. For AEC, total imports and exports are each about 50% of the total trade. AEC total trade increased in the period of 2009-2011 followed by marginal increments from 2011-2014. In addition, both AEC imports and exports remain higher than Extra-ASEAN. This may be due to overall surging growth in Intra-ASEAN trade compared to Extra-ASEAN. Also, Extra-ASEAN imports and exports remain at similar levels for the aggregated ASEAN countries. Metadata From 1 July 1996, foreign currency securities sold under repurchase agreements are retained for accounting purposes as foreign currency investments in the Bank's balance sheet, in accordance with standard accounting treatment. For the purpose of reporting foreign exchange reserves, however, securities sold under repurchase agreements are excluded. Chart 7 - 8 Chart 7 & 8 display the trends in Extra-ASEAN imports and exports for the ASEAN member states. The three key leaders in Extra-ASEAN imports and exports are Singapore, Thailand and Malaysia. Singapore’s trade with the world was severely affected by the global financial crisis and decreased in 2009 from the year before, before recovered in the next year and continued remained steady. Among the member states, Singapore ranked the highest in both Extra-ASEAN imports and exports in 2005 - 2014. Chart 9 - 11 Chart 9 - 11 display the trends in exports to and imports from Extra-ASEAN countries. In 2014, the three leaders in Extra-ASEAN import origins were China, EU (28), and Japan respectively, meanwhile top export destinations were China, EU (28) and USA. In addition, ASEAN’s three major trade partners were China, EU (28) and USA respectively. ASEAN has made Free Trade Agreement with other nations as efforts to boost trade activity with extra-ASEAN countries. As a result, ASEAN is gaining more attraction from other countries. Chart 12 - 21 Chart 12 - 21 display the Extra-ASEAN export destinations for each of the ASEAN member states. ASEAN major trade partners in each ASEAN country are varied. The energy-hungry Japan and South-Korea are Brunei’s largest export destinations, with more than 50% of all Brunei exports destined for Japan and more than 16% destined for South-Korea in 2014. The main export destinations of Cambodian goods in 2014 were the EU and the US, respectively. About 23% of Indonesia’s exports in 2014 were destined for Japan, China, the EU, and the US.  Laos’s main export market in 2014 was China with around 75% of total extra-ASEAN exports, with minerals, electricity, manufactures, and agricultural products the main exported goods. For Myanmar, the largest Extra-ASEAN export destination was China with more than 60% of total extra-ASEAN exports. Furthermore, Philippines’ main exports markets in 2014 were Japan, the US, and China respectively. In 2014, Vietnam’s largest export destination in 2014 was the European Union, followed by the US. For Indonesia, Malaysia, Singapore and Thailand, their exports are slightly more diversified with no single partner country having a share of above 10%. Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog