Club divergence could suggest that differences in tax revenues between clubs could exist over a period of time. The potential adverse effects of a non-harmonized tax system include tax competition and harmful bidding wars between nations leading to a race to the bottom. The ASEAN and Asia Pacific and Oceania countries could follow the example of other regions which have been successful in tax policy cooperation. For example, Nordic tax cooperation is strongly aligned with the region’s overall cooperation objectives. The treaty on administrative assistance among these countries specifies the requirements for countries with respect to the exchange of information and tax collections (Jogarajan,2011). These countries could follow a similar practice to increase transparency and accelerate the process of tax cooperation. Similarly, ensuring that tax policies are tightly aligned with the objectives of these countries would permit maximizing the welfare gains from tax coordination.