General Background

ASEAN and Japan first established informal relations in 1973. The ties were later formalised with the establishment of the ASEAN-Japan Forum in March 1977. Since then, the ASEAN-Japan Forum has met once every 18-24 months. In early August 1977, the Japanese Prime Minister H.E. Mr. Takeo Fukuda met with the ASEAN Heads of Government at the Second ASEAN Summit in Kuala Lumpur. The Japanese Prime Minister H.E. Mr. Noboru Takeshita met with his ASEAN counterparts in Manila during the Third ASEAN Summit in December 1987. At the meeting, ASEAN and Japan announced "a new partnership toward peace and prosperity".

On 14 July 1997, Japanese Prime Minister H.E. Mr. Ryutaro Hashimoto in his policy speech in Singapore called for a "broader and deeper partnership" between ASEAN and Japan. His proposals included the "broader and deeper exchanges between Japan and ASEAN at the top and all the other levels"; active cooperation between ASEAN and Japan "to preserve and restore cultural heritage and to maintain and develop unique cultures"; and joint initiatives to tackle problems confronting the international community such as "terrorism, the environment, enhancing health and welfare, food and energy shortages, population growth, AIDS, narcotics, and reinforcing the rule of law".

ASEAN welcomed the "Hashimoto Doctrine" and responded positively to this initiative. An ASEAN-Japan Summit, the third of its kind since the first two in 1977 and 1987, will be held in mid-December 1997 in Malaysia after the Second Informal ASEAN Summit.

Institutional Arrangements

Japan participates in a series of consultative meetings with ASEAN which includes the ASEAN Regional Forum (ARF), the Post Ministerial Conferences (PMC) 9+1 and 9+10, ASEAN Economic Ministers-Ministry for International Trade and Industry (AEM-MITI) Consultations, ASEAN-Japan Forum, Senior Economic Officers-Ministry for International Trade and Industry (SEOM-MITI) Consultations, Joint Planning Committee (JPC) Meeting, ASEAN-Japan Economic Council (AJEC), ASEAN-Japanese Businessmen's Meeting (AJBM). The ASEAN-Tokyo Committee also assist in conducting and maintaining the dialogue with Japan

At the apex of the dialogue process is Japan's participation in the PMC process immediately following the ASEAN Ministerial Meetings. The PMC 9+1 and 9+10 meetings offer an opportunity for the Japanese Foreign Minister to review contemporary political, security, economic and development cooperation issues affecting dialogue relations with the ASEAN Foreign Ministers. Japan also participates in the ARF which takes stock of key regional political and security issues that have the attention of the region. Regular Dialogue meetings such as the AEM-MITI Consultations and the ASEAN Japan Forum are held at the level of ASEAN's Economic and Foreign Ministers and Japan's Minister of International Trade and Industry and the Deputy Foreign Minister respectively to provide a more in-depth review of economic and functional cooperation.

During the 15th Forum Meeting in Tokyo in May 1997, it was agreed that the frequency of the Forum be increased to once every year in order to strengthen the dialogue process and develop closer ASEAN-Japan cooperation.

Economic Cooperation

Japan has been ASEAN's top trading partner for many years. In 1993, two-way trade between Japan and ASEAN amounted to nearly US$87 billion and in 1996, it rose to US$109.0 billion, representing nearly 21% of ASEAN's total external trade. On the other hand, Japan's trade with ASEAN accounted for about 15% of her total external trade.

Japan has also been a major investor in ASEAN. In 1993, Japanese foreign direct investment to ASEAN accounted for US$3.49 billion, representing 8.4% of Japan's total foreign direct investment overseas. This rose to US$5.14 billion (12%) in 1994 and US$5.15 billion (10.4%) in 1995.

A unique feature of ASEAN-Japan cooperation is the ASEAN Promotion Centre on Trade, Investment and Tourism in Tokyo. The Centre was set up in 1981 under the Agreement Establishing the ASEAN Promotion Centre on Trade, Investment and Tourism between ASEAN Member Countries and Japan. It is jointly funded by contributions from Japan and ASEAN Member Countries.

ASEAN and Japan have also set up a Working Group on Economic Cooperation in Cambodia, Laos and Myanmar. Under the guidance of the ASEAN Economic Ministers and Japan's MITI Minister, the Working Group initiates cooperation activities and assistance programmes for these transitional economies. ASEAN Member Countries also cooperate with Japan in the Forum for Comprehensive Development of Indochina and the Greater Mekong Subregion Conference on Economic Cooperation in which Japan plays a prominent role. Japan has also expressed interest in the ASEAN-Mekong Basin Development Cooperation.

Development Cooperation

In addition to being one of ASEAN's most important economic partners, Japan is a major contributor to development cooperation activities in ASEAN. She has contributed substantially to the ASEAN Cultural Fund which was established in December 1978. The Fund finances projects and activities on culture and information that are designed to promote cultural interaction with Japan and awareness among the peoples of ASEAN.

Japan has provided technical assistance to ASEAN through several programmes, such as the Japan-ASEAN Cooperation Promotion Programme (JACPP), the Intra-ASEAN Technical Exchange Programme (IATEP) and the Japan-ASEAN Exchange Programme (JAEP). Established in 1983, the JACPP is aimed at promoting economic cooperation between Japan and ASEAN as well as the transfer of technology from Japan to ASEAN. The IATEP was launched in 1987 to the promote exchange of technical/scientific personnel among ASEAN Member Countries. The JAEP was launched in 1988 to promote awareness and appreciation of ASEAN among the Japanese and ASEAN studies in Japan through academic exchanges.

Japan also provides funds for ASEAN youth development activities in the form of the Japan Scholarship Fund and ASEAN-Japan Friendship Programme for the 21st Century which was started in 1984. From 1984-1993, a total of 7,893 youths from ASEAN visited Japan on short study tours and home-stay visits with Japanese families under a programme organised by the Japan International Cooperation Agency (JICA). The programme has been extended for another five years from 1994 - 1998.

On closer cultural cooperation, Japan has proposed the formation of a "multinational cultural mission" comprising experts from ASEAN Members and Japan. These experts would tour ASEAN and formulate recommendations on how to increase cultural and intellectual exchanges and cooperation between ASEAN and Japan. ASEAN has agreed to the proposal and a mission is tentatively scheduled for September-October 1997. The project will be coordinated by a joint ASEAN-Japan Secretariat based in Singapore.

Current ASEAN-Japan Relationship

In January 2002, Japanese Prime Minister Junichiru Koizumi visited a number of ASEAN countries and proposed several new initiatives for cooperation.  These include the designation of 2003 as the Year of ASEAN-Japan Exchange, reinforced cooperation in education and HRD, solidifying the security relations between Japan and ASEAN, the ASEAN-Japan Comprehensive Economic Partnership (CEP), and the “Initiative for Development in East Asia:  IDEA.”  Consultations to carry out these initiatives are proceeding.

The recent establishment of the Japan-ASEAN General Exchange Fund (JAGEF) has generated a number of cooperation activities in support of greater ASEAN integration.  The most significant of the initial activities are workshops on the Initiative for ASEAN Integration, held in Phnom Penh and Vientiane, to identify measures to facilitate the integration of Cambodia, Laos, Myanmar, and Viet Nam into ASEAN.   The first batch of officials from CLMV participated in a JAGEF-funded attachment program at the ASEAN Secretariat.  A series of training sessions for officials of the Ministries of Foreign Affairs of the CLMV countries and training of trainers workshops were conducted.

ASEAN-Japan economic cooperation takes place within the framework of the ASEAN Economic Ministers meeting with Japan’s Minister of Economy, Trade and Industry (AEM-METI) as well as in the context of the AEM+3 process.  The ASEAN-Japan CEP Experts Group is working out measures to further enhance economic cooperation and integration between the two sides.

ASEAN-Japan development cooperation continued to support further sectoral linkages in the areas of customs, environment, science and technology, and transportation.

Marking the 30th year of ASEAN and Japan relations, the year 2003 has been designated as the ASEAN-Japan Year of Exchange.  Activities to mark the  ASEAN-Japan Year of Exchange would be pursued throughout the year, with Japan being the key coordinator for January and December while each ASEAN Member Country would take turns being the key coordinator for the remaining ten months.  The activities will include artistic performances and exhibitions, trade and investment missions, tourism promotion activities and will offer opportunities for experts to assemble and discuss the need for creating a number of new institutions in various economic, political and social fields.  The ASEAN-Japan Commemorative Summit will be held in Tokyo on 11-12 December 2003. 

The ASEAN-Japan Summit, held in Phnom Penh on 5 November 2002, issued a Joint Declaration endorsing the development of a framework for Comprehensive Economic Partnership, including elements of a possible FTA.  (More information on this can be found in Chapter 2 of this Annual Report).

Through its active support for a series of workshops that eventually produced the Work Plan for the Initiative for ASEAN Integration (IAI), Japan has helped catalyse further development efforts for the IAI.  With the IAI Work Plan in place, support for IAI projects through the ASEAN-Japan Solidarity Fund, held in trust at the ASEAN Foundation, is under active consideration. 

While the Japan’s Ministry of Foreign Affairs remains the main channel for Japanese ODA to ASEAN, other Japanese agencies have also actively pursued development efforts with ASEAN.