ASEAN SECRETARIAT
JAKARTA
INDONESIA

NEWS RELEASE

5 NOVEMBER 2002

ASEAN and Japan Deal for Economic Partnership

PHNOM PENH (Nov 5) -- ASEAN and Japan today signed a Joint Declaration on the Comprehensive Economic Partnership (CEP) at the ASEAN-Japan Summit in Cambodia. The implementation of measures for the realization of the economic cooperation, including elements of a possible  Free Trade Area (FTA), is to be completed as soon as possible and within ten years, taking into account the economic levels and sensitive sectors of each country.

Special and differential treatment would be provided to the developing members of ASEAN in accordance with the World Trade Organisation agreements with flexibility accorded to the new members of ASEAN.

The leaders agreed that the CEP would open up new opportunities for their countries with the creation of larger and newer markets, enabling businesses to enjoy economies of scale. They expressed confidence that this partnership would bring about greater stability and prosperity to the region, besides promoting a sense of community between ASEAN and Japan.

Both sides noted the need for cooperation in trade and investment liberalization, customs procedures, standards and conformance, non-tariff measures and cooperation in financial services, information and communications technology, human resource development, small and medium enterprises, tourism, transport, energy and food security.

The CEP is expected to expand trade and boost growth between ASEAN and Japan. By 2020, the export value from ASEAN to Japan is projected to increase by US$20.6 billion,
which would be equivalent to 44 per cent of the export value in the base year, 1997. At the same time, the export value from Japan to ASEAN is estimated to rise by US$20 billion, which would be equivalent to 27.5 per cent of that in 1997.

The CEP would promote the liberalization and facilitation of trade in goods and services addressing areas where implementation can be accelerated. Technical assistance and capacity building programmes will be extended to ASEAN countries particularly to the newer members like Cambodia, Laos, Vietnam and Myanmar to improve their competitiveness.

 ENDS//

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Issued by:

GERALDINE GOH
Senior Officer
Public Information
ASEAN SECRETARIAT

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