The Third ASEAN-US Dialogue (1980)

The Third Meeting of the ASEAN-United States Dialogue was held in Manila on September 10-12, 1980.
The Honorable Anthony C. Albrecht, Deputy Assistant Secretary, Bureau of East Asian and Pacific Affairs, Department of State, led the United States Delegation which included representatives from the Department of State, Commerce, Agriculture and Labor, from the office of the United States Trade Representative, from the Agency for international Development, from the International Communications Agency, and from the United States embassies in ASEAN.
The ASEAN Spokesman was Ambassador Sime D. Hidalgo, Director-General of ASEAN Philippines. The ASEAN Delegations were led by Mr. Umarjadi Njotowijono, Director-General, ASEAN-Indonesia, Mr. M. Yusof Hitam, Director- General, ASEAN-Malaysia, Mr. Aziz Mahmoud, Director-General, ASEAN-Singapore, and Mr. Vudhi Chuchom, Acting Director-General, ASEAN-Thailand. The Secretary General of the ASEAN Secretariat, Hon. Narciso G. Reyes was also in attendance.
The welcome remarks of Foreign Minister Carlos P. Romulo as the Chairman of the ASEAN Standing Comittee, were read by Mr. Hidalgo. Minister Romulo noted that the ASEAN-US partnership has succeeded in moving into a Commitment Stage" based upon "mutual respect and mutual interest".
He stressed that ASEAN and the United States share a long-range concern for the continued stability and sustained economic growth of the region. This is manifested by their common position in support of the UN resolution which calls for the withdrawal of all foreign forces from Kampuchea.
General Romulo expressed optimism that despite the political tension ASEAN has not veered from the course leading to its goal of self-reliance, economic strength, political cohesiveness and meaningful cooperation with third countries.
Noting the progress made in regional cultural, social and agriculture project as well as in energy cooperation, he urged the delegates to pursue the activities in energy-related cooperation as well as in small-scale industry and shipping.
Finally, stressing that more needs to be done in the face of a worsening world economic crisis, he specifically endorsed several of the strategies set forth by U.S. Secretary of State Edmund Muskie for industrial nations to follow. He suggested that these strategies might well serve as guidelines in broadening the base of this Dialogue.
The two sides reviewed with satisfaction the continuing growth of ASEAN-U.S. cooperation which complements their close bilateral relationships. During the meeting they reaffirmed the mutual value of the ongoing ASEAN-U.S. Dialogue as the forum for their consultation and collaboration in support of peace and stability and economic development in Southeast Asia. The Meeting examined all aspects of ongoing economic, social and cultural cooperation between ASEAN and the United States and exchanged views on ways to further develop these relations. A number of new project proposals were introduced and discussed and they will be further studied by ASEAN and the U.S.

Economic Cooperation
The discussion also covered a wide range of economic areas of mutual interest to ASEAN and the United States. Both sides agreed on the need for more intensive cooperative efforts to counter developments in the international economic environment which posed a threat to continuing economic growth. At the same time, they recognized the opportunities for renewed growth associated with expanded US-ASEAN cooperation.

Commodities
ASEAN and the United States expressed satisfaction that the ASEAN-U.S. Dialogue has played a helpful role in the successful Common Fund negotiations completed in June of this year. The Meeting also agreed to cooperate in the work of the forthcoming Preparatory Commission and particularly to elaborate positively operational aspects which will ensure a viable and effective Common Fund. ASEAN urged the U.S. to Support the Philippines bid for the site of the Common Fund Headquarters. The U.S. expressed appreciation for being informed of the ASEAN position and agreed to give it early consideration. The Meeting also discussed other measures to overcome international commodity problems.

These included the early establishment of international commodity agreements covering commodities of mutual interest. In noting the successful conclusions of negotiations on the International Natural Rubber Agreement (INRA), ASEAN expressed its appreciation to the U.S. for its support for Kuala Lumpur as the headquarters of INRA. Both sides agreed on the need for effective mechanisms to ameliorate the adverse effects of export earnings instability. The Meeting also exchange views on tin with a view to paving the way for successful negotiations for a viable and effective Sixth International Tin Agreement.

Multilateral Trade Negotiations (MTN)
The United States noted that bilateral agreements reducing tariff and non-tariff barriers have been concluded between the U.S. and each of the ASEAN countries within the framework of the Multilateral Trade Negotiations. The United States also urged the ASEAN countries to accede to the MTN codes and agreed to clarify the various questions raised- by ASEAN regarding the Codes and certain tariff consessions made by the U.S. in the MTN prior to the ASEAN meeting on the MTN scheduled in Manila on 24-26 September 1980.
The United States also agreed to consider ASEAN request for additional product-specific tariff concessions including some items previously discussed in the tropical products segment of the MTN. These discussions would take place in the context of bilateral negotiations which the U.S. is willing to undertake prior to 3 January 1982
In response to the ASEAN request for accelerated implementation of U.S. MTN tariff concessions, the U.S. reported that it had already made a maximum effort in the MTN to accelerate staging of its tariff concession to ASEAN but agreed to accept for review ASEAN country lists of those items which are not currently receiving accelerated implementation.

Protectionism
Both sides expressed concern about growing protectionist pressures and their potential adverse impact on world trade, and in particular the trade of developing countries. The United States reiterated its resolve to resist self-defeating protectionist pressures. It cited Secretary Muskie's speech at the UN Special Session in which he committed the U.S. to support a pledge by all countries to restrain protectionism and facilitate adjustment.

GSP
The United States reported that it has made substantial improvements in the U.S. Generalized Scheme of Preference since the last Dialogue. ASEAN expressed its appreciation to the U.S. for the inclusion of Indonesia as a beneficiary of the U.S. GSP and the liberalization of the cumulative rules of origin. ASEAN welcomed this positive contribution to improved developing country access to the U.S. market. ASEAN urged further improvement in certain features of the Program, specifically in product coverage, competitive need limitations, and rules of origin. The U.S. suggested that the ASEAN countries submit request during the annual product review to have additional products included in the list of eligible items. The U.S. also invited ASEAN to seek designation as a recognized regional association so as to qualify under the liberalized cumulative rules of origin. The U.S. also noted that ASEAN's GSP benefits continue to grow rapidly and indicated its willingness to send experts to the ASEAN countries to explain the GSP program.

Multi-Fiber Arrangement (MFA)
Both sides recognized that the MFA is an important instrument in the international trade in textiles and emphasized the need for cooperative action to arrive at meaningful solutions to the many pressing problems facing the international textile industry.
In this regard, ASEAN expressed the hope that solutions could be found to the problems faced by developing countries in their textile trade with developed countries.

ASEAN-U.S. Business Council
Both sides recognized the importance of the private sector in expanding ASEAN-U.S. economic relations and expressed satisfaction with the formation of the ASEAN-U.S. Business Council.
The Meeting expressed confidence that the Council's proposed program will lead to closer cooperation between the private sectors in ASEAN and the U.S.

Export Import Bank of the US
The United States delegation reaffirmed the deep interest of the Export Import Bank of the United States in the ASEAN countries, and its commitment to the expansion of economic and trade relations in support of ASEAN objectives.

They indicated the Bank would finance at least $2 billion in transactions with the ASEAN countries over the next five years including ASEAN Industrial Projects.

Overseas Private investment Corporation (OPIC)
Recognizing the important stimulus which the programs of the Overseas Private Investment Corporation afford to the flow of private American investment to ASEAN, the U.S. side noted OPIC's confidence and enthusiasm for assisting ASEAN entrepreneurs in locating appropriate U.S. partners and in supporting them in establishing and sustaining investments which will contribute to ASEAN's developmental goals. The U.S. side announced that a high level delegation from OPIC would visit the region in October, 1980.

Shipping
On shipping, both sides agreed that ASEAN and the other non-communist developing countries shipping lines be exempted from the constraints of the U.S. Ocean Shipping Act of 1978.

ASEAN-U.S. Development Cooperation
Both sides reviewed the status of ASEAN-U.S. development cooperation, and expressed satisfaction with the progress since the last Dialogue. The United States reiterated its strong commitment to regional development projects with ASEAN. In this connection, it announced that U.S. review of the ASEAN Plant Quarantine Project has been completed and the US is now ready to sign the formal project agreement. U.S. also expressed its commitment to continue working with ASEAN on the ASEAN Watershed Conservation and Management Research Program and announced the scheduled arrival of a U.S. advisory team on September 14, 1980.
ASEAN and the U.S. noted with satisfaction the signing of the Project Agreement on August 28, 1980 providing for U.S. assistance in the establishment of an ASEAN Agriculture Development and Planning Center in Bangkok, Thailand.
The United States also responded favorably to a new proposal presented by ASEAN for an ASEAN Scholarship Program for Applied Tropical Medicine and Public Health.

Energy Cooperation
Both sides noted that continued increases in the world oil price call for greater cooperation among industrial and developing countries in accelerating the transition to non-oil energy sources. Thus, the recent tour of ASEAN energy experts to U.S. energy facilities and organizations has served to stimulate ideas for greater collaboration in energy matters between ASEAN and the United States. As a first step in energy cooperation, ASEAN and the United States have agreed on a program of technical assistance, professional development, and formal exchange. The U.S. looks forward to working with ASEAN to develop the next phase of energy cooperation program over the next few months. The U.S. also proposed establishment of an ASEAN-U.S. consultative group on energy composed of senior officials and ASEAN agreed to look into this proposal.

Cooperation in Narcotics Control
The Meeting reviewed the useful joint projects concerning Drug Control in the fields of law enforcement, preventive education and treatment and rehabilitation undertaken since the Exchange of Notes at the 1979 Ministerial Meeting between ASEAN and the U.S. in Bali. They agreed to continue efforts to expand and improve this cooperation.

ASEAN - U.S. Economic Coordination Committee
In order to continue the effective dialogue on economic matters that has characterized the ongoing ASEAN-U.S. Dialogue both sides agreed to establish an Economic Coordination Committee, associated with the ASEAN Washington Committee, as a forum for discussing economic issues of mutual interest.
Both sides were pleased that agreement on the Committee had been reached, and considered its establishment a major achievement of the 3rd ASEAN - US Dialogue and a positive step in the strengthening of ASEAN - US consultations.

Date and Venue of Next Meeting
It was agreed that the 4th ASEAN-U.S. Dialogue would be held in the United States next year on dates to be mutually agreed upon.
The ASEAN and United States delegations thanked the government and people of the Philippines for the warm hospitality extended to them during their stay in the Philippines.
The Third ASEAN-U.S. Dialogue was concluded in an atmosphere of mutual understanding and friendship.