Trade Liberalisation

In its efforts to promote intra-ASEAN trade liberalisation, COTT explored the feasibility of the establishment of a Preferential Tariff Quota Scheme, the implementation of the ASEAN Preferential Tariff Arrangements (PTA) through a sectoral approach, initially on food and tyre products, and the reduction of non-tariff measures in member countries.

On the Preferential Tariff Quota Scheme, COTT had reached in principle agreement on the modalities, procedures and machinery for its implementation. The scheme would involve quota- exchanges through bilateral negotiations among member countries based on semi-sensitive items in the Exclusion List. The size of the quota and the margin of preference had been basically agreed upon. Products covered by the scheme would not be subject to non-tariff measures. The scheme would be effective for a fixed period initially, subject to its renewal before the end of the period, The details are expected to be finalized by COTT in time for the consideration of the ASEAN Economic Ministers (AEM) at their next meeting.

On tariff concession based on a sectoral approach, that on the food and tyre sectors had been decided by the 18th AEM in February 1986. A firm decision on the matter is expected soon.

In the exercise to liberalise non-tariff measures in member countries, information on their respective non-tariff measures had been ex- changed and Would be used as the basis for future bilateral negotiations.

International Economic Issues

Member countries continued to work closely on trade and other economic issues at international forums.

At the GATT Preparatory Committee Meeting for the New Round of Multilateral Trade Negotiations (NRMTN) in Geneva in November 1985, ASEAN participated actively in the preparations for the NRMTN. ASEAN has adopted a common position on the New Round. An ASEAN Senior Trade Officials (ASTO) Group on NRMTN has been established to formulate common strategy and positions on the various issues before and during the New Round.

On the Multifibre Arrangements (MFA), ASEAN presented its views at the GATT Textiles Committee meetings in October and December 1 985 that the M FA should be renewed, that there should be less restrictive elements in the new MFA, that market access should be improved for developing countries and that there was an urgent need to conclude a mutually acceptable agreement on MFA IV.

ASEAN presented a Memorandum to the Tokyo Economic Summit in May 1986 requesting the seven industrialized countries to provide greater market access, to stabilize prices of primary commodities, to work towards a fair world trading system and help solve other trade and economic issues of direct interest to ASEAN. ASEAN Foreign Ministers also presented an Aide Memoire on Economic Issues to President Ronald Reagan at their Meeting in Bali on I May 1986, stating ASEAN's views on the various international and bilateral and trade issues.

On trade and economic relations with third Countries, ASEAN held formal Dialogues with Australia, Canada, the EEC, New Zealand and the US, and trade consultations with Australia, the US and the EEC during the year under review. An ASEAN EC Ministerial Meeting on Economic Matters (AEEMM) was held in Bangkok in October i985 to exchange views on international and bilateral economic issues, and identify new areas of cooperation. The most significant decision of the AEEMM was the establishment of a High Level Working Party (HLWP) on investments, to identify the problems and recommend solutions to promote European investments in ASEAN.

Tourism

The 16th and 17th Meetings of the Sub- Committee on Tourism (SCOT) were held in Penang, Malaysia in October 1985 and Jakarta in February 1986, respectively.

SCOT agreed to recommend to the next meeting of the ASEAN Economic Ministers to establish an ASEAN Tourist information Centre in Kuala Lumpur.

On the ASEAN Circle Trip Fare, SCOT agreed on the need to improve the fare structure to more effectively promote intra-ASEAN tourism, and requested the ASEAN Committee on Transportation and Communications (COTAC) to consider such a proposal.

To further promote the ASEAN tourism industry and attract more foreign tourist to the ASEAN region, SCOT accorded greater priority to the promotional projects to be implemented by the ASEAN Chapters in North America, Australia/ New Zealand, UK, West Germany and Hongkong. It also decided to participate at the ITB Berlin 1987.

The 1985 ASEAN Tourist Forum was success- fully held in Jakarta in February 1986. A total of 730 participants from all ASEAN countries and 38 non-ASEAN countries representing a wide spectrum of the tourist industry participated at the four day Forum.