ASEAN-United States

International economic and trade issues, investments, the progress of development cooperation under the ASEAN - US Dialogue, ASEAN concern over market access for its exports, declining commodity prices, and the persistent problem of debt were the main subjects discussed at the Sixth ASEAN - US Dialogue, Washington, 2-3 April 1985. There was a consensus that ASEAN and the US could address these in the spirit of mutual cooperation. With regards to the various elements of the US Generalized System of Preferences (GSP) until 1993, ASEAN believes that these could have unsettling effects upon their trade and development efforts. Specifically, ASEAN referred to anti-dumping and countervailing duty laws, possible US retaliation against foreign trade barriers and the uncertainty surrounding new conditions attached to GSP eligibility. There was an agreement that consultations between the US and AWC-EEC would facilitate understanding of the technical provisions and of their repercussions on ASEAN - US trade. The US further stated that it would administer the Act in an equitable and transparent manner.

Both sides expressed their continued support for the GATT and its important role in expanding the world trading system through tariff reductions and removal of trade barriers. They also welcomed a new round of multilateral trade negotiations at an appropriate, early date and agreed on the need to fulfill the commitments of the Tokyo Round and the 1982 GATT Work Programme and to renegotiate the Multifibre Agreement.

On specific trade issues, ASEAN expressed its concern over the potential use of US Food and Drug Administration regulations and the Buy America Act of 1933 as market protectionist devices. The US provided results as a response on the same.

ASEAN also expressed its concern on some shipping issues particularly on freight rate negotiations and controlled carrier legislation. Both issues have remained unresolved for a long time. The US replied that the US administration is still exploring ways in which ASEAN shipping could be exempted from current laws, but indicated that there are unilateral measures which governments can take to change the coverage of the controlled carrier Act.

ASEAN stressed the need for more vigorous cooperation between ASEAN and US through investments, and also suggested a number of promotional activities for US consideration. The US expressed interest in the various ASEAN industrial schemes which have been established and suggested discussions on information on investment opportunities for the US private sector. The US, however, stressed the importance of investment agreements and national treatment provisions shown in attracting US investments, a concern also raised by the ASEAN - US Business Council.

On development cooperation, ASEAN�s proposals of some new and renewed project proposals covering cultural studies in ASEAN, teacher education, studies on drug problems additional support for the Agricultural Development Planning Centre, and the extension of the PLANTI projects would be reviewed by the US with funding possibilities to be determined.

The US approved, in principle, projects in the fields of energy, public health, agriculture, human resource development, 'narcotics control, research, and small and medium business support. The United States also agreed to refer ASEAN proposals in the area of culture and information, specifically some COCI projects to undertake comparative studies in folk arts and indigenous architecture in ASEAN countries, to the Smithsonian Institute, and to examine areas of assistance and cooperation in the field of Urban Redevelopment and Conservation of Historic Sites.

ASEAN was informed that AID expects to approve a marine sciences project and a third energy project in response to ASEAN requests made at the Fifth ASEAN - US Dialogue.

The US reiterated its support for INTELSAT and assured ASEAN that any separate satellite system approved for specialized tr6ffic would be consistent with US obligations to I NTE LSAT.

ASEAN and the US welcomed the new US- ASEAN Center for Technology Exchange funded by the US private sector, and which, inter alia, would assist the small business sector access to capital markets.