Australasia, encompassing Australia and New Zealand (ANZ), is geographically separate from Southeast Asia. But over the past few decades, the same forces that have driven globalization - faster and easier travel, trade, investment, communications, tourism and other exchanges of people, goods and services - have drawn the two regions much closer together. Their governments and citizens have increasingly become real life neighbours, by talking, visiting, doing business, extending a helping hand to those in difficulty, often squabbling, sometimes bitterly, but gradually learning to live in close proximity.

This has happened as Australia and New Zealand have bonded through the Closer Economic Relations (CER) agreement since it was formally signed in 1983. They have reached the point where their economies have become highly integrated. Meanwhile, the Association of Southeast Asian Nations (ASEAN), formed in 1967, has expanded its membership and broadened the scope of its cooperation to include trade and investment liberalization. From having five founding members – Indonesia, Malaysia, the Philippines, Singapore and Thailand – ASEAN has been enlarged to include Brunei and, more recently, Myanmar, Cambodia, Laos and Vietnam. These ten countries have launched the ASEAN Free Trade Area (AFTA).

Study Framework

This report is sponsored by the Institute of Southeast Asian Studies (ISEAS) in Singapore. It summarizes the state of relations between ANZ and Southeast Asia, then suggests ways to strengthen them. It deals with the interaction between ANZ and ASEAN, and between ANZ and several ASEAN members.

The report does not deal with the separate interests of Australia and Southeast Asia, or New Zealand and Southeast Asia, except when they are a formative influence on broader ties. Examples include Australia's relations with the United States and bilateral counter-terrorism cooperation between Australia and Southeast Asia.

But many country-specific interests of Australia and New Zealand in their relations with the ASEAN region, as well as those of Southeast Asian nations with Australia and New Zealand, are not covered in this report. These interests are often pursued at a bilateral level.