ASEAN-Australia

1. During the Post Ministerial Conference (PMC) with Australia in July 1989, the ASEAN Ministers emphasized that more efforts were needed to narrow the trade gap between Australia and ASEAN and Australia and its other major trading partners (Japan, EC, USA and New Zealand). The Ministers noted that although the two-way trade had increased considerably, ASEAN's and Australia's shares in each other's global trade remained small.

2. In 1989, the Australian Government approved a report on the proposal to inspect imported goods submitted by its Inter-Departmental Working Group. Upon ASEAN's request for consultations, the Australian Department of Foreign Affairs and Trade (DFAT) officials met ASEAN Canberra Committee on 16 August 1989 and advised ASEAN to submit its concerns to the Australian Government before the implementation of the proposed programme, possible in April/May 1990. ASEAN identified the products likely to be affected by this programme and determine its possible trade impact on ASEAN food and beverage exports to Australia.

3. In response to ASEAN concerns over the Australia Trade Union's ban on the use of imported tropical plywood, Australia stated that such action on the part of the union was taken on a unilateral basis, and was in no way indicative of the Government's policies in relation to the issue of the import of tropical timbers.

4. Another matter of concern to ASEAN is Australia's revision of its legislation on controls of therapeutic goods which requires that imported pharmaceutical products and therapeutic devices met WHO standards. Australia advised that certification of therapeutic goods, not necessarily only WHO certification, would be acceptable from countries which have standards of manufacture at least equivalent to Australia's. The ASEAN Canberra Committee would liaise with the Therapeutic Goods Administration concerning this issue.

5. Altogether, 23 private sector representatives, of which 18 were from ASEAN- countries and 5 from Australia, took part in the 13th ASEAN-Australia Forum, held in Singapore, 17-18 May 1990. Members of the ASEAN-Australia Business Council (AABC) presented papers. The ASEAN Section identified some shortcomings in the trade and investment relations between ASEAN and Australia, the Australian sector on the other hand, viewed this relationship in the global context. The need for the dialogue which the private sector could press forward in concert with governments to improve trade and investment links was emphasized. Both the ASEAN and the Australian Sections of the AABC acknowledge that Asia Pacific trade was forecast to account for over 50% of world trade by the year 2000 thus creating considerable opportunities for the expansion of trade and investment between ASEAN and Australia, and to third countries.

6. ASEAN welcomed the opportunity for discussions with Australia on environmental cooperation at the ASEAN Australia Forum. ASEAN noted that Australia possessed the expertise and technology in environmental control and protection, such as chemical technology, waste management, water resources technology and environmental education programme. ASEAN and Australia noted that their proximity to each other reinforced the need for close cooperation in environmental issues. Both ASEAN and Australia considered it important that Asia-Pacific perspectives were fully taken into account in international discussions on those issues and agreed to explore the possibility of establishing consultations at experts level.

7. On the development cooperation, the ASEAN- Australia Economic Cooperation Programme Phase II (AAECP II), Australia reaffirmed its commitment to strengthening trade and investment links with ASEAN and noted the importance of the Trade and Investment Promotion Programme (TIPP) as a mechanism for this purpose. Although implementation of the TIPP had been largerly satisfactory, a comprehensive analysis should be undertaken by both sides after 1990/1991, in order to establish directions for future cooperation.

8. In the Second Meeting of the AAECP Joint Planning Committee, held in Singapore, 14-15 May 1990 a forward programming for AAECP II was agreed upon. This was considered to be an indicative guide to selection of activities for implementation in the later stages of Phase II. It was agreed that proposals to extend existing projects may provide some of the best options for programming years 4 and 5 of AAECP II.

9. Implementation of all agreed AAECP II projects has now commenced. Further necessary design work has been undertaken and project design documents are completed and agreed upon. Approval for all projects has been sought and obtained from the Australian Minister for Foreign Affairs and Trade and Australian project advisers have also been selected for each project.

10. Consistent with the 1988 ASEAN-Australia Memorandum of Understanding, the 1989/1990 budget for the Australian aid programme included allocation for AAECP Phase II totaling A$ 7 M (A$ l M for TIPP and A$6 M for other projects).

11. ASEAN and Australia noted the key role being played by telecommunications in economic and social growth and the rapid pace of both technological and policy development in this field, The Forum also noted that ASEAN countries and Australia are represented at the international meetings which are considering development of the institutional arrangements by which international telecommunications is governed, especially INTELSAT, the International Telecommunication Union and the General Agreement on Tariffs and Trade (GATT).

12. The Forum shared the view that there should be no Regional Standard Setting Organization separate from the International Telecommunications Union (ITU) and that the future of Asia Pacific Telecommunity (APT) was not a matter for discussion at the Forum. The Forum was of the view that there could be mutual benefits in appropriate exchanges of information regarding telecommunications issues of common interest to ensure that ASEAN countries and Australia are aware of each other's views.

13. ASEAN welcomed Australia's interest in broadening its contributions to human resource development and agreed that there was tremendous room for increased interaction in the fields of education, training and research. ASEAN noted with interest Australia's review of its overseas student policy and welcomed the latter's desire to encourage its institutions to promote programmes that would be more responsive to the special need of overseas students. ASEAN hoped that the Australian Government would also extend its scholarship schemes to all the ASEAN countries.

14. The successful completion of the first phase of the AAECP together with the innovative commercial values of the projects in the second phase will help boost the ASEAN-Australia Dialogue. The involvement of the private sectors in the dialogue could revitalise and energise the relationship, particularly in the trade and investment field. The timing of these developments is even more significant as events in Europe may temporarily detract the attention of world economic powers away from the region.