For the AEC to succeed, the creation of an ASEAN Customs Union (ACU) will be necessary. The goal of this paper is to analyze various economic and politicaleconomy-related issues associated with the process of creating an ACU. Inter alia, it finds that, relative tothe existing ASEAN Free-Trade Area, the potential benefits of an ACU are high, providing that the region succeeds in unifying commercial policies across these heterogeneous states under a liberal, outwardoriented regime.