The Association of South East Asian Nations was established in 1967 for the primary purpose of accelerating economic growth as well as via cultural development and social progress by five nations of south-east Asian region including Indonesia, the Philippines, Malaysia, Thailand and Singapore via signature of the Bangkok Declaration. It still stays principally one economic community. Although the ASEAN area as one whole is much smaller in economy as compared to the European Union, Japan as well as the United States, however, its economy is growing more rapidly as compared to all these nations. This accounts for the growth observed in its influence both in the area as well as beyond.

The objectives of the ASEAN include creation of a common market as well as production base within ASEAN states. ASEAN also committed to enhancing the present ASEAN as one economic community and Dispute Settlement Mechanism for resolution of economic disputed. ASEAN has also focussed on forming a Free Trade Area for labour, services and investment. The United States as well as China have already negotiated this Trade Area with ASEAN.