ASEAN's Importance

Strategic Water Straights in Southeast Asia - click to enlarge

Geostrategic Importance

ASEAN’s geostrategic importance stems from many factors, including: the strategic location of member countries, the large shares of global trade that pass through regional waters, and the alliances and partnerships which the United States shares with ASEAN member states.

Reflecting this, in July 2009, the United States signed ASEAN’s Treaty of Amity and Cooperation, which establishes guiding principles intended to build confidence among its signatories with the aim of maintaining regional peace and stability.

ASEAN Economy in Comparison with Asian Neighbors - click to enlarge

Economic Potential

ASEAN has the third-largest economy in Asia, after Japan and China. As a developing region, its per capita income is low but its GDP is rapidly growing: an almost 170% increase over the past decade.

US Trade with ASEAN and Other Asian Economies - click to enlarge

Trade

ASEAN accounts for 6% of all world trade. The United States is ASEAN’s third largest export market, comprising 12% of its exports, while exports to Japan make up 12%, China 10% and India 3%.

U.S. exports to ASEAN totaled $66
billion in 2008, up 62% from 2002.

Investment to and from U.S. from ASEAN and other Asian Economies - click to enlarge

Foreign Direct Investment (FDI)

U.S. foreign direct investment (FDI) into ASEAN totaled $130 billion in 2007, the largest destination for U.S. FDI in Asia, and has grown 55% since 2004. Investment from ASEAN into the United States ranks fourth among Asian sources, totaling $11 billion, up 385% since 2004.

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