Enterprise for ASEAN Initiative

The ten-member Association of Southeast Asian Nations (ASEAN) collectively ranks as the United States' fifth largest trading partner and fourth largest export market. ASEAN countries include Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam.

U.S. trade with ASEAN countries continues to grow steadily, with $182 billion in two-way goods trade in 2008. And robust economies and a total population of about 550 million, the ASEAN market still holds significant additional opportunities for U.S. companies.

The Enterprise for ASEAN Initiative (EAI), announced in October 2002, is intended to strengthen U.S. trade and investment ties with ASEAN members both as a region and individually.

Under the EAI, the United States offered the prospect of bilateral free trade agreements (FTAs) to ASEAN countries that are committed to the economic reforms and openness inherent in an FTA with the United States. The offer required potential FTA partner, to be WTO members and to have a Trade and Investment Framework Agreement (TIFA) with the United States.

Since the launch of the EAI, the United States concluded an FTA with Singapore in 2003, and started FTA negotiations with Thailand and Malaysia. The United States already had TIFAs with Indonesia and the Philippines, but concluded additional TIFAs with Brunei, Cambodia, and Vietnam.

The United States has regular meetings under these TIFAs to address bilateral trade issues, to further deepen trade and investment ties, and to coordinate regional and multilateral trade efforts.

In August 2006, the United States and ASEAN concluded a TIFA. This regional TIFA represents the commitment by both the United States and ASEAN countries to build upon already strong trade and investment ties to further enhance their economic relationship and promote ASEAN regional economic integration. The TIFA includes a work plan under which the two sides are working on priority projects, including the development of new cooperative projects for the coming year, including a joint agreement to pursue ASEAN-wide participation in the plurilateral Multi-Chip Integrated Circuit (MCP) Agreement, and services and investment initiatives.