Positive progress was evident during the
period under review on the ASEAN Cooperation
with the European Community (EC). This has been
reflected in the increase in trade flows between the
two region particularly for industrial products. The
cooperation agreement between ASEAN and EC
have also been extended since October 1989 for
another period of two years.
The 8th ASEAN-EC Ministerial Meeting held
in Kuching, Sarawak, Malaysia, 16-17 February
1990 reaffirmed that the extension of the cooperation
agreement demonstrated the strong commitment
of both sides to strengthen further their
relation. However, while recognizing that the
ASEAN-EC relations have diversified and registered
impressive progress, both sides agreed that a
review of existing cooperation was needed to chart
the course of ASEAN-EC relations to meet the
challenges of the 90s, notably on the one hand by
strengthening the impact of economic, financial and
industrial cooperation, human resources development
and science and technology programmes and
by increasing trade flows and investments and by
encouraging participation of the private sector, and
on the other hand, continuing to focus on assistance
to the poor segment of the rural population,
with special attention given to the participation
of women in the development process and environmental
protection.
On the development cooperation, despite
some delays due two "differential treatment"
accorded by EC in implementing some of the
regional projects, two regional cooperation projects
have become operational during the period under
review, i.e. :
i. The ASEAN-EC Aquaculture Development
and Coordination Programme (AADCP), with
the main objectives of improving the productivity
through know-how and technology
transfer in fish farming, and
ii. ASEAN-EC Industrial Standards and Quality
Control Programme.
During the 8th AEMM, the ASEAN Ministers
expressed their appreciation for the important contribution
by the EC in the field of development
cooperation and hoped that this cooperation would
be expanded both in scope and depth in regional
projects open to all its member states.
The Foreign Ministers of ASEAN and the Dialogue Partners
at the end of the Post Ministerial Conferences, Bandar Seri
Begawan, 8 July 1989.
On the market access and trade promotion
from ASEAN to EC, while some positive progress
has been achieved during the period under review,
ASEAN needs to intensify its efforts to take advantage
of the new opportunities available such as
through the acquisition of the EC GSP Scheme as
an important tool to diversify and increase ASEAN
exports to the EC. Differences in opinion still exist
on both sides on the market access question and
it should be noted that during the 8th AEMM, both
Ministers agreed that problems or shortcomings
in bilateral trade relation should be taken up
by ASEAN-EC Joint Trade Experts Group at next
JCC Meetings.
Another important recent development which
need serious attention in ASEAN-EC relations is the
establishment of the European Single Market in
1992. During the 8th AEMM, the ASEAN Ministers
while welcoming the trade and investment opportunities
created as a result of the removal of internal barriers,
also expressed concern over possible
adverse impact of the Single Market on ASEAN
trade with EC. However, the EC Ministers assured
them that the EC would remain open to its trading
partners because of its commitment at the multilateral
trading system and that the Single Market
would lead to an improvement of EC Competitiveness
and further stimulate the liberalization of world
trade. The ASEAN Ministers welcomed this
assurance and agreed that ASEAN and the EC were
dependent on export-led growth and therefore any
move towards liberalising trade could only be
beneficial to both regions. Fur thermore, both sides
agreed that sector specific workshops on the
impact and opportunity of the Single Market on
ASEAN's trade and investments with the EC, be
held in an ASEAN Capital.