(a) Indonesia : Diesel engine (80 - 135 HP) motor cycle axles; rims for, motorcycle.

(b) Malaysia : Spokes and nipples; drive chair and timing chains; crown wheels and pinions; seat belts.

(c) Philippines : Body panels for passenger cars; transmissions/Transaxles (for, front wheel drive); rear ales (LCV) and below.

(d)Singapore : Universal joints; oil seals; V-belts.

(e)Thailand - Body panels for commercial vehicles of one ton and above; brake drums for trucks; heavy duty shock absorbers; stabilizers; bumpers and trunnion brackets.

16. The meeting agreed that a margin of preference for AIP products be set at 50%. Any member country may tend a higher margin of preference.


17. The Meeting agreed to amend the BAAIJV as initialed at the 14th AEM meeting in the form of a separate Supplementary Agreement which shall be first initialed by the AEM and subsequently signed together with the main Agreement by the Foreign Ministers. The Supplementary Agreement is subject to confirmation by member countries by 1 November 1983.


18. The Meeting also noted that member countries have started to exchange information on unfair business practices of suppliers and contractors, disputes on contract and equipment performance and other related matters.


19. The Meeting noted that all member countries have implemented the 20-25% across-the-board margin of tariff preference on items with import value of above US$ 2.5 million up to US$ 10 million either on 1 July or 1 August 1983.


20. The Meeting also noted that COTT ,would explore efforts at extending preferential trading arrangement in the food sector along comparable arrangements already made available to other product lines.


21. With regard to efforts at deepening MOP on food and non-food items already under the PTA and in future exchanges, the Meeting endorsed COTT's decision to deepen their MOP gradually to a maximum of 50% for implementation by 19 March 1984.


22. The Meeting also approved the trade preferences granted on bilaterally negotiated items at the fifteenth and the sixteenth meetings of COTT.


23. In order to promote intra ASEAN liner services, the Meeting agreed that the Joint Ad Hoc Working Group on Shipping (JAHWGS) study measures to facilitate private sector initiatives in this area.


24. The Meeting expressed concern over the announcement of the Far Eastern Freight Conference to implement a general freight increase of 12% with effect from I January 1984. The increase would have damaging effects on ASEAN's exports, Particularly at a time when the world economy has shown signs of an upturn. The Meeting further felt that since the world energy prices have been stabilized and inflation has generally slowed down worldwide, the increase is extremely unjustified and most untimely. The Meeting expressed its deep disappointment and urged the FEFC not to implement the increase.


25. The Meeting also noted that the third fink of the ASEAN Submarine Cable Project (M.S.T.) linking Malaysia, Thailand and Singapore has been completed on 27 September 1983.


26. The Meeting had an extensive exchange of views on the ASEAN Task Force’s recommendations and agreed to request the Secretary General of the ASEAN Secretariat to convene a special meeting of the Senior Economic Officials comprising, among others, the Chairmen of the Economic Committees in the third week of December 1983 to look into the recommendations of the Task Force and to submit its views to the ASEAN Economic Ministers.


27. The Meeting assessed recent developments in the world economic situation and noted that there were signs of an economic upturn in some major developed countries. The Meeting believed that for a global and sustained recovery to materialize, revitalization and acceleration of the development process of the developing countries would be imperative. Specifically, the fundamental problems which had continued to hamper the economic recovery f developed countries and retard the development of the developing countries could be attributed to the lack f a more efficient and stable functioning of the international monetary system, instability in the foreign exchange market and high interest rates, inadequate availability of international liquidity, and insufficient resources available and to be made available to existing international financial institutions including the IMF. Accentuating the present difficulties was the unrelenting resort to protectionism in developed countries which denied access to their market of products from the developing counties and justly transferred the burdens of adjustment to them. Urgent measures had to be taken to redress the recent collapse in commodity prices and this would best be achieved by a multi-pronged approach comprising national efforts, intraproducers cooperation and multilateral producer-consumer cooperation. Recognizing the interdependence of problems in key economic sectors such as trade, raw materials, energy, development and money and finance, the Meeting considered it highly urgent that constructive dialogues at a high political level be made to bring about solutions to all these problems in a global, integrated and comprehensive manner.


28. The Meeting noted that the effect of the collapse of commodity prices during the recession of the past years on ASEAN economies took on added significance in view of the important role played by primary commodity exports in the developing process of many developing countries including ASEAN. The Meeting also noted the fundamental changes in the world trading structure that had emerged in recent years in response to which a more effective and concerted approach by commodity producers to solve the commodity problems was necessary. The Meeting agreed that ASEAN should strengthen its multi-pronged approach to solve international commodity problems. This includes renewed national efforts, particularly to increase productivity, closer intra-produce, cooperation especially in the formation of producer associations where feasible, ad multilateral efforts at producer-consumer cooperation in areas such as the Common Fund and the effective implementation. of viable International Commodity Agreements. ASEAN member counties should continue to support the principles and objectives of the Integrated Programme for Commodities (IPC).


29. In view of the problem of oversupply for a wide range of commodities which, became evident during the current prolonged period of recession, the Meeting agreed .n the need to implement concerted supply management policies as essential complements to stocking arrangements for achieving the fundamental objectives of commodity price stabilisation. The Meeting agreed that member countries would seek that this provision be included in existing International Commodity Agreements like the INRA which do not have this provision.


30. The Meeting Congratulated the ASEAN Ministers with responsibility for tin for having successfully initiated and created the ATPC on 29 September 1983 in Bangkok. The Meeting expressed confidence that the ATPC will complement the effective functioning of the International Tin Agreement. The Meeting stressed the fact that this Producers' Association ,ill provide an important avenue for producer-consumer, cooperation besides enhancing intra-producer cooperation in marketing of tin ad in strengthening research and development activities, designed to reverse the decline in tin consumption by improving the competitive position of tin vis-a-vis synthetics and substitutes.


31. On the Common Fund, the Meeting urged the developed consuming counties, in particular the US and the Eastern Bloc Countries to ratify the Common Fund Agree ment to ensure that it will operate as soon as possible as an effective, equitable, viable and financially stable institution with commodity focus.


32. The Meeting noted the progress of ASEAN coope. tion with its dialogue partners.


33. The Meeting urged the EEC to join ASEAN reversing protectionistic tendencies which tend to hamper growth of world trade. In this content the meeting called on the EEC not to impose the new tax on the consumption of ASEAN vegetable oils in the EEC. This issue was discussed by the recent ASEAN - EEC Joint Cooperation Committee Meeting in Brussels. It was confirmed that there is a recommendation to levy a consumption tax for vegetable oils and fats within the context of reforms to the, EEC Common Agriculture Policy (CAP) and budgetary considerations. Based on current prices the new tax would make the cumulative duties on ASEAN vegetable oils in the EEC to be prohibitive, especially since ASEAN vegetable oils already face sizeable tariff walls in the EEC. The Ministers agreed on a joint ASEAN plan of response should the EEC proceed with its tax proposal.


34. The Meeting stressed the importance of convening a meeting of Economic Ministers between ASEAN and Japan to discuss various pressing issues of mutual concern and interest.


35. The Meeting also endorsed the proposed ASEAN-US Memorandum of Understanding between ASEAN and the United States of America on the Release of Surplus Tin by the US GSA. The Meeting also recommended that the document be presented to the forthcoming Meeting of the ASEAN Foreign Ministers in Jakarta for formal acceptance. Thereafter the ASEAN Washington Committee and the US Administration would proceed to implement the terms of the memorandum of understanding.


36. The Meeting agreed that the ASEAN-US Dialogue Meeting scheduled for December 1983 in Manila be upgraded to Ministerial level in view of the importance of various outstanding issues such as countervailing duties, GSP graduation., shipping, commodities and the Carribean Basin Initiative.


37. The Meeting requested the Coordinating Countries to evaluate the progress, of ASEAN Dialogues and directed the Secretary General of the ASEAN Secretariat to coordinate the matte, by convening a meeting of Chairmen of various Economic Committees and Directors General of ASEAN National Secretariats. This meeting should also set priority for the various projects under consideration with dialogue' countries.


38. The Meeting reaffirmed its desire to see the Globe Negotiations launched as soon as possible and agreed to urge developed counties to cooperate constructively in the efforts to launch the Global Negotiations at the current United Nations General Assembly Session.


39. Indonesia informed the Meeting of the official opening of the Aceh Fertilizer Plant, first of the ASEAN Industrial Projects to reach completion in early January next year and extended an invitation to all AEM heads of delegation to attend the function.


40. The Meeting aged provisionally that the Sixteenth Meeting of the ASE Economic Ministers be held on 21-23 May 1984 with a preparatory meeting of Senior Economic Officials on 18-19 May 1984 in Indonesia.


41. The Delegations of Indonesia, Malaysia, the Philippines and Singapore and the Observe, Delegation from Brunei expressed their sincere appreciation to the Government and people of Thailand for the warm hospitality accorded to them and the excellent arrangements made for the Meeting. The Meeting also expressed appreciation to the ASEAN Secretariat for their most valuable assistance.


42. The Meeting was held in the traditional spirit of ASEAN cordiality and solidarity.