The Association of South East Asian Nations (ASEAN) is among several regional blocs that have received praise from economists for making significant progress towards developing intra- and extra-regional economic relationships. However, perspectives differ about the extent of ASEAN’s potential for integration. The growing importance of intra-regional trade and foreign direct investment during the last years has raised the issue of whether countries in East Asia are becoming more integrated. In order to answer this question, we have analyzed the trade performance of individual members as well as intra-regional trade performance. The opportunities and challenges surrounding the impending economic integration have been highlighted.