What does EAEC mean in Economy?

East Asia Economic Caucus

The East Asia Economic Caucus (EAEC) or East Asia Economic Group (EAEG) was a regional free trade zone (FTA) proposed in 1997 by Malaysian Prime Minister Dr. Mahathir bin Mohamad and encompasses the Association of Southeast Asian Nations (ASEAN) member states, China, Japan, and the Republic of Korea. Japan though refused participation due to the exclusion of the Western nations, which were already members of APEC and many other notable regional organizations in East Asia. The EAEC was a reaction to ASEAN's integration into the Asia-Pacific Economic Cooperation (APEC) by Dr. Mahathir, who is known for his strong Asian standpoint. His suggestion apparently articulated his dissatisfaction with ASEAN joining APEC, which includes Western nations, an idea he was strongly opposed to. Therefore, EAEC was basically an APEC without North America and Australia. Nevertheless, it was never put into action officially. Recently the ASEAN+3 rounds might be called the successor of EAEC, which prompted Malaysia to state that EAEC was a reality. In 2005, due to Japan's support of the agreement, ASEAN Plus Three (ASEAN+3 or APT) agreed to include Australia, New Zealand, and India during the East Asia Summit.

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