Committee on Trade and Tourism

Trade Liberalization

Under the Preferential Trading Arrangements (PTA), the ASEAN Economic Ministers at their Sixteenth Meeting in May 1984 approved the recommendation of the Seventeenth COTT Meeting to apply the 20-25% across-the-board tariff cut to all items with import values beyond US$ 10 million with provision of new exclusion lists. Hitherto, the across-the-board tariff cut had been restricted by various ceilings. The latest move will increase substantially the extension of trade preferences among member countries.

Member countries agreed to implement as from 1 May 1984, the decision of the Fifteenth AEM Meeting on the deepening of margin of preference on food and non-food items already under the PTA and in future exchanges gradually up to a maximum of 50%.

Realizing the need to improve the effectiveness of the PTA, member countries agreed to adopt the following measures:

1. to review the existing exclusion lists with a view to negotiate the reductions under various modalities such as tariff quotas, sectoral approach, unilateral reduction, etc;

2. to ensure that preferences already accorded to items in the PTA are not nullified except under provisions specified in the PTA Agreement;

3. to review the mechanisms for the returning of Form "C" used in PTA exports; and

4. to study administrative barriers which were reducing PTA concessions with a view to minimizing administrative impediments to trade.

ASEAN also made another significant move when it agreed to make greater use of the PTA instruments in order to expand intra-ASEAN trade. The instruments identified are the long-term quantity contract and the preference in procurement by government entities.

Tourism

The year under review was another eventful one for the ASEAN tourism industry with the holding of the ASEAN Tourism Forum 84 in Singapore in March 1984. A total of 779 participants representing various spectra of the tourist industry in the six ASEAN countries took part in the 4-day forum to transact business, renew acquaintances and/or establish contacts.

The production of the ASEAN Travel Film was now in its final stage of preparation. When completed, the Film will be utilized as a major promotional instrument to attract worldwide attention to ASEAN as a regional tourist destination.

The Japanese Market Study had been completed and was being assessed and analyzed by the various ASEAN National Tourist Organizations. The study was expected to become a useful guide to attract more tourists from Japan to the ASEAN region.

The ASEAN Promotional Chapters in San Francisco, Sydney, Tokyo, London and Frankfurt continued to promote ASEAN as a tourist destination .

During the year under review, the Sub-Committee on Tourism (SCOT) held its Thirteenth Meeting in Penang in September 1983 and its Fourteenth Meeting in Singapore in March 1984. The Third Meeting of the ASEAN Heads of National Tourism Organizations (NTOs) was held in Jakarta in March 1984.

SCOT, at its Thirteenth Meeting, agreed to the establishment of a SCOT Central Fund for financing all approved sales-oriented projects to be undertaken by the ASEAN Promotional Chapters abroad. The Fund will be from contributions by the ASEAN NTOs and other sources.

International Economic Issues

The unabated global recession had underlined the need for concerted efforts by ASEAN in dealing with international commodity issues. At the Sixteenth ASEAN Economic Ministers Meeting in Jakarta in May 1984, ASEAN called for urgent measures to redress the commodity problems through multilateral producer - consumer cooperation. Concern was expressed over the rising interest rates in certain developed countries which, if unchecked, could hinder world economic recovery and retard development efforts of the developing countries. ASEAN felt that industrialised countries should pursue concerted economic policies to sustain economic recovery for the benefits of both developed and developing countries.

On the possibility of a new round of Multilateral Trade Negotiations (MTN), the Sixteenth Economic Ministers Meeting agreed to adopt a common position and would actively participate to safeguard their interests and influence the negotiations. ASEAN would press the industrialized countries before a new round is held, to implement their commitments to halt and reverse protectionist measures made at the Tokyo Round, the 1982 GATT Ministerial Meeting, the Williamsburg Summit, and UNCTAD VI. ASEAN would ensure that the new round would include topics of interest to ASEAN and other developing countries not adequately dealt with in the Tokyo Round and at the 1982 GATT Ministerial Meeting. Finally, ASEAN would press that the principle of special and differential treatment for developing countries be effectively observed.

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