In this paper, the level of integration of ASEAN is systematically examined and prospects of further integration are assessed. Focusing on the dimension of international trade, it is shown that the establishment of a fully-fledged customs union in South East Asia is highly unlikely in the foreseeable future. Economic reality poses impenetrable limits to the harmonisation of member state policies, resulting in a significant gap between declared aims and actual integration processes among ASEAN nations. Furthermore, based on these findings and the experiences of the European Union it is argued that – at least from a certain level – economic integration is inevitably linked to political integration as the disparity of national preferences might render sole economic cooperation unstable.
ASEAN, Customs Union, Economic Integration, European Union, Heckscher-Ohlin-Model, Linder Hypothesis, Single Market, Supranationalism, Trade
