Seventeenth ASEAN Economic Ministers Meeting (1985)

The Seventeenth Meeting of the ASEAN Economic ministers was, held in Kuala Lumpur Malysia on 7 - 9 February 1985. The Meeting was formally opened by H.E. Dato' Seri Mahathir Mohamad, the Prime Minister of Malaysia, and was preceded by a preparatory meeting of the ASEAN Senior Economic Officials on 4-5 February 1985.
The Meeting was attended by H.E. Pehin Dato Abd. Rahman Taib, Minister of Development of Brunei Darussalam; H.E. Prof. Dr. Ali Wardhana, Minister Coordinator for the Economy, Finance, Industry and Development Supervision of Indonesia; H.E. Mr. Rachmat Saleh, Minister of Trade of Indonesia: H.E. Mr. Hartarto, Minister of Industry of Indonesia, H.E. Tengku Razaaleigh Hamzah, Minister of Trade and Industry of Malaysia; H.E. Dato Paul Leong Khe Scong, Ministers of Primary Industries of Malaysia, H.E. Mr. Anwar Ibrahim, Minister of Agriculture of Malaysia, H.E. Datuk Leo Moggie Anak lrok, Minister of Energy of Malaysia; H.E. Mr. Muhyiddin bin Mohd. Yassin Deputy Minister of Trade and Industry of Malaysia., H.E. Dato Oo Gin Sun, Deputy Minister of Trade and Industry of Malaysia; H. E. Mr. Roberto V. Ongpin, Minister of Trade and Industry of the Phillipines, H.E. Dr. Vicente B. Vaidepnas, Jr, Minister of Economic Planning of the Phillipines, H.E. Mr. Edgardo. L. Tordesillas, Deputy Minister of Trade aid Industry of the Phillipines; H.E. Dr. Ricliard Hu, Minister of Trade and Industry of Singapore; H.E. Brig. Gen. (Res) Lee Hsien Loong, Minister of State for Trade and Industry and Minister of State for Defence of Singapore, H-E. Mr. Sommal Hoontrakool Minister of Finance of Thailand, H.E. Mr. Phairojana Jayaphorn Deputy Minister of Commerce of Thafland-, H.E. Dr. Chirayu Isarangkun Na. Ayuthaya, Deputy Minister of Industry of Thailand and their respective delegations.
H.E, Mr. Phan Wanamethee, the Secretary General of the ASEAN Secretariat and member of his staff were also present.
The Prime Minister in his keynote address noted that while ASEAN has made significant progress in the fields of Political, cultural and social cooperation, much more could be done the field f economic and trade cooperation. In calling upon ASEAN to reflect on what has been achieved so far th prime Minister drew attention to the fact that despite to proliferation of committees. and confening of countless meeting since the BaIi summit of 1976, trade among ASEAN countries is still relatively small accounting for 20% of ASEAN's, global trade.
The Prime Minister stressed that despite the competitive nature of ASEAN's economies, there are areas where ASEAN can achieve some degree of complementarity. He said that while there were several items which ASEAN needs and, which are produced by some member countries, it is regrettable that ASEAN should obtain them from outside the region. He went on to say that efforts should be made to identify items which member countries could literally exchange with each other. Towards this end the Prime Minister suggested that the ASEAN Secretariat should consider the setting up of a data bank to collect information ad to undertake reseach and analysis on the import and export trade of ASEAN, its economic indicators, tariffs, tax structures, and trade legislations etc.
Touching on the issue of commodities, the Prime Minister drew attention to the fact that while effective woud - wide commodity agreements are worth pursuing intra-ASEAN cooperation on conunodities should not be ignored. He added that the combined production of certain commodities by ASEAN is such that its voice carries considerable weight in commodity agreements and as such ASEAN should use its combied strength to influence trade in commodities.
Turning to the international economic arena, the Prime Minister noted that although the world economy is becoming increasingly interdependent, the developed countries which, are not only the main sources of achinery and equipment but also of teclnology and know-how for the ASEAN economies have resorted to inward-loking domestically palatable policies affecting both market access and investment capital. He added that the actions of these "free trader, of conveniece" are manifestation of the lack of political will on their part to Honour commitment to developing countries.
With regard to ASEAN's relations with third countries, the Prime Minister obeserved that while ASEAN's cooperative effort, witl, them have led to some progress in certain areas, these countries have yet to respond positively in the key area of improved market access for ASEAN's exports. In calling for a review of ASEAN's dialogue programmes, the Prime Minister noted that as ASEAN represents a market of well over US$ 70 billion, providing a readv market for all kind, of products and services, would be in the enlightened self interest dialogue partners to establish amutually beneficial relationship and to take more seriously their dialogue with ASEAN.
The Prime Minister stressed that the private sector, spearheaded by the ASEAN Chambers of Commerce and Industry should provide an impartant linkage in supplementing and complementing the efforts of the government in enhancing intra ASEAN trade and in attracting the flow of investment and capital into the region.
H.E. Tengku Razaleigh Hamzah, leader of the Malaysian delegation and H.E. Mr. Roberto V. Ongpin, leader of the Philippine delegation were elected Chairman and Vice-Chairan of the Meeting espectively.
The Ministers reviewed the activities of the ASEAN Economic Committees toward the enhancement of economic cooperation and development in the ASEAN region.
On Industrial Cooperation, the Meeting approved the inclusion of the following products in the list of AIJV products.:
The Ministers also approvid the guidlines on the Preferential Shortlisting of pre-qualified ASEAN contractors bidding for certain projects in the ASEAN member counties.
The Ministers initiaIled the Agreemant on the Recognition of Domestic Driving Licences in ASEAN countries with a view to facilities and increas intra ASEAN tourism The Agreement once implemented would enable ASEAN' nationals to drive within ASEAN without having to secure local driving licences. However this facility cannot be used fo, comercial purpuses. The Ministers firmIy believed that increase in intra-ASEAN tourism will create better understanding among the peoples of ASEAN' and enhance the prospect of srtonger region cooperation.
Tha Ministers agreed that a study on new initiatives/ measures to promote greater intra-ASEAN trade be made In additions such study should identify product that could be trade amongst the ASEAN countries as well as complementary measure to supplement the PTA.
In reviewing the progress made in ASEAN operation, the Ministers noted that ASEAN member countries have agreed the application of 20 - 25 % margins of preference (MOP) on item,s with import values beyond USS 10 billion with prevision of eclusion lists effective April 1, 1985. As a step for the, towards improving trade cooperation within the region, the Ministers approved the application of 25% across-the-board tariff cut instead of the present 20-25% MOP levels on all items with import values above US$ 10 billion.
The Ministers also approved tie additional trade preferences negotiated bilaterally. The Ministers noted that the tariff concessions have been granted to those items.
The Minister, also revieved ASEAN actiities with its Dialoge Partners. While acknowledging the assistance extended thus far the Ministers nevertheles felt that the Dialogue Partners have been elusive on the question of market access. The Ministers, among others, expressed disappointment over the Japanese so-called "Market opening ,eausures" announced in.December 1984, for the developing countries. These measures did not addres the market opening measures requested by ASEAN and retaiterated over the years of dialogue with Japan. The Ministers, theirfor , strongly urged Japan to addres directly and substantially the market access problem, faced by ASEAN exports to the Japanese market. In the light of the above, the Ministers also agreed that a riview be undertaken with respect to all dialogue in particular those pertaining to trade matters.
The Ministers reiterated ASEAN's earlier concern over the new US Shipping Act 1984 that classified ASEAN carriers as "controlled-carriers" assurances made by the United States. The Ministers also expressed concern that the new US Shipping act 1984 does not contain provisions that will enable ASEAN Shipper's Councils to negotiate or be consulted by the US basedshipping conference on General Freight Rate Increases The Ministers agreed that this matter be purpuse further with the USA Administration .
The Ministers expressed their concern over the inequitable treatment accorded to ASEAN in the US countervalling duty (CVD) ivestigations on textiles and garments despite ASEAN's small shhare of global US imports of these items. The Ministers also agreed that on the question of accession to the GATT Code on Subsidies and Countervailing Duties, ASEAN coountries shouId not be obliged to assume commitments that are inconsistent with their competitive and development needs.
These views were conveyed to USTR Ambassador William Brock at an informal, ASEAN coountries shouId not be obliged to assume commitments that are inconsistent with their competitive and development needs.
The Ministers recognized the important role, ASEAN as a group of developing countries, has to play in world economic issues and the need to keep the developved countries mindful of the concerns of developing countries. The Ministers, therefore, agreed to continue to intensify efforts at various international fora in order to attain the objectives for developing countries as a whole. In this connection it was agreed that ASEAN submit its inputs to the forthcoming Bonn summit to be held in early May this year.
The delegations of Brunei Darussalam, Indonesia, the Philippines, Singapore and Thailand expressed appreciation to the Government and people of Malaysia for the warm hospitality extended to them and the excellent arrangements made for the Meeting. The Meeting also expressed appreciation to the ASEAN Secretariat for their most valuable assistance.
The Meeting was held in the traditional spirit of ASEAN cordiality and solidarity.