ASEAN - NEW ZEALAND

The issue of New Zealand’s withdrawal of two ASEAN countries from its GSP was resolved during the year under review. After consultations and appeals from ASEAN, the two affected countries graduated were reinstated in the New Zealand GSP beneficiary list, on a product-by-product basis at developing country preferential rates. ASEAN was appreciative of New Zealand's. flexibility exercised to provide an adjustment to its GSP policy.

On the future directions of ASEAN - New Zealand relations, ASEAN would like to strengthen economic and trade relations especially in transportation, tourism, two-way investment flow and market access for ASEAN's non-oil products. ASEAN would take advantage of the new opportunities offered arising from the major liberalisation steps taken by the new government in New Zealand on the removal of exchange controls speeding up the dismantling of import licensing and subsidy arrangements, increased focus on tariff reductions and removal of price and wage controls. New Zealand on the other hand, would be encouraged to exploit the potential of' ASEAN's large market for its products. In 1982 /1983 almost 20% of New Zealand dairy products and 30% of her cereal exports were to ASEAN countries.

At the Seventh ASEAN - New Zealand Dialogue held in Bandar Seri Begawan in December 1985, New Zealand expressed its concerns about market access to certain ASEAN countries for livestock products, customs valuation procedures and the discriminatory imports monopoly practice in the region which ASEAN noted for referral to the appropriate individual governments concerned for any bilateral discussions.

The success of the Veterinary Administration Development Programme has encouraged New Zealand to continue its involvement in the project. New Zealand has also indicated its willingness to consider assistance for a new data updating on the Survey on End-Uses of Timber. Furthermore, New Zealand also agreed to continue to support two Research Fellowships in ASEAN Affairs at the Institute of Southeast Asian Studies, and would investigate the possibility of financing more fellow- ships.

On their relations, both sides have increasingly achieved better understanding of each other's problems, and welcome the future directions in strengthening trade and economic, ties for mutual benefit.

ASEAN expressed appreciation for agreement the New Zealand government's on two new ASEAN project proposals namely: Prospects for Cooperation in Future Programmes, and Narcotic Detection and Investigation Programme. The two projects signified the importance New Zealand places on its development cooperation with ASEAN despite its budgetary constraints.