*	Adviser to TDRI's International Economic Relations Program.

**	Research Associate with TDRI's International Economic Relations Program.

1	This paper was presented at an OECD informal workshop, "OECD Foreign Direct Investment Relations with the Dynamic Non-member Economies," held in Paris, July 12-13, 1993.

2	ASEAN's five founding members include Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Brunei did not become a member of ASEAN until 1984.

3

For example, due to conflicting claims over Sabah in the 1950s, high-level officials from Malaysia have yet to travel to the Philippines for official state visits. They do attend ASEAN and other meetings in the Philippines, but refuse to recognize these trips as the official conduct of bilateral relations. Nevertheless, this has not affected the economic climate in the region.

4	See Narongchai Akrasanee and David Stifel. 1992. "The Political Economy of the ASEAN Free Trade Area." In AFTA: The Way Ahead, Pearl Imada and Seiji Naya, eds. Singapore: Institute of Southeast Asian Studies.

5	Political leaders nevertheless have their say in the final approval of all AIC packages.

6	Hill, Hal. 1993. "Paying the Dues." Far Eastern Economic Review (hereafter FEER), 22 April: 44-46. See also Vatikiotis, Michael. 1993. "Market or Mirage." FEER, 15 April: 48-50.

7

It is worth pointing out, however, that the Philippine figure (at the HS 8-digit level) understates the number of items excluded relative to the other ASEAN countries (quoted at either the HS 9- or 10-digit level). Comparisons are further complicated by the fact that there is no accepted standard 8- to 10-digit classification among the ASEAN nations.

8	Narongchai and Stifel, op. cit. 1992.

9	Kumar, Sree. 1992. "Policy Issues and the Formation of the ASEAN Free Trade Area." In Imada and Naya, op. cit.