Dialogue relationship between ASEAN and the U.S. was started in 1977 and has progressively improved since. U.S. is a major economic partner for ASEAN; the U.S. remains ASEAN’s largest source of foreign direct investment and second largest trading partner. In 2024, total two-way trade between ASEAN and U.S. reached USD 453.19 billion making the United States the ASEAN’s second largest trading partners. U.S. is also ASEAN’s largest external source of foreign direct investment in 2024, with total FDI inflows amounting to USD 42.13 billion, accounting for 18.64% of ASEAN’s total FDI. U.S.’s investments have played a critical role in supporting innovation, capacity-building, and job creation in ASEAN, which has contributed to peace, stability, and prosperity in the Indo-Pacific region.

As one of ASEAN’s important trading partner, economic cooperation between ASEAN and the US is stipulated under the Trade and Investment Framework Arrangement (TIFA). The TIFA was signed by ASEAN Economic Ministers and United States Trade Representatives (USTR) on 25 August 2006, in Kuala Lumpur and serves as a mechanism to strengthen ASEAN-US economic ties. TIFA Work Plans are discussed and agreed on annually by both sides.

At the U.S.-ASEAN Leaders Sunnylands Summit on 15–16 February 2016, President Obama announced the U.S.-ASEAN Connect initiative. Following this announcement, ASEAN Connect Center in Jakarta and strategic Connect locations in Singapore and Bangkok were operationalised in September 2016. These Connect locations provide opportunities for ASEAN and the U.S. to stay connected through better access to information and resources in the four areas of business, energy, innovation, and policy.

The U.S. development assistance under the economic pillar is currently channelled through the Inclusive Growth in ASEAN through Innovation, Trade and E-Commerce (ASEAN-USAID IGNITE). Since the completion of the IGNITE project during the Q1 2024, the activities under the ASEAN-U.S. TIFA have been supported under the successor programme, which are the U.S.-ASEAN Connect and the ASEAN-US Partnership Program (AUPP). The AUPP is covered by the Regional Development Cooperation Agreement (RDCA), which has been extended through 2029.