ASEAN-New Zealand

1. The Tenth Meeting of the ASEAN-New Zealand Dialogue held in Wellington, New Zealand, 10-11 May 1990, was marked by the business representatives participation in a joint Officials private sector session of the Dialogue. This was in line with.the call of the Third Meeting of ASEAN Heads of Government for greater private sector participation in the dialogue process.

2. In the past year ASEAN's economic growth and political stability has been important factors in the expansion of mutually beneficial cooperation among the ASEAN member countries. New Zealand as one of the developed countries has positively contributed to this cooperation, particularly in the economic and development fields. Increased mutual understanding and convergence of perceptions on certain regional and international political and issues of common interest have further strengthened ASEAN-New Zealand dialogue relations.

3. Although there has been quite a substantial growth in the ASEAN - New Zealand trade over the past year, the overall trade remained insignificant. The ASEAN-New Zealand Business Council (ANZBC) noted complementarities between the economies of ASEAN and New Zealand. There was a need for more joint ventures complementarities. The ANZBC identified a number of activities needing government support, to encourage trade and investment links: trade fairs, technology tours and executive exchanges.

4. In the field of tourism, the ASEAN-New Zealand flows of tourists increased significantly. At present, New Zealand visitors outnumbered ASEAN visitors to New Zealand. Departures to ASEAN countries by New Zealand residents increased by 39% in the year to March 1990 over the preceding year to reach a total of 38,000. Tourism was one of the major growth industries for both ASEAN and New Zealand.

5. The past year was characterised by main elements in the ASEAN-New Zealand relationships: New Zealand's market access regime which could be liberalised to enhance ASEAN-New Zealand investment in ASEAN compared with other countries : the necessity to implement the Trade and Investment Promotion Package, and other agreed projects without delay.

6. The New Zealand sector of the ANZBC reported that dairy products accounted for 75 percent of all New Zealand exports to ASEAN. The New Zealand Dairy Board not only provided bulk commodities but also increasingly established joint venture operations to market its own branded products. There was potential for growth in meat and livestock exports but there were access problems in some ASEAN markets. For the first time since 1982 New Zealand was able to export apples to all ASEAN markets. But New Zealand considered that high tariffs continued to hinder kiwifruit exports.

7. On the Uruguay Round, ASEAN mentioned its concern that progress in the negotiating group was imbalanced. Market access which is of great interest to developing countries notably in the areas of Agriculture, Tropical Products (TP) and Textile and Clothing (TC) had not been given the emphasis they deserve while the new issues had gained considerable impetus. It was urgent that progress be made in all areas of the Round.

8. New Zealand had studied the list of ASEAN exports which ASEAN believed were being effected by the ANZCERTA agreement. It was difficult to 'be definitive about the effects as the list did not contain tariff classifications, Nevertheless the list did seem to include a broad span of ASEAN's principal exports to New Zealand, Trade with ASEAN had increased by 52 percent over the three years since 1987 while New Zealand's trade with Australia had grown by 21 percent. Several of the items on the list such as petroleum, chemicals, wood simply worked and railway sleepers entered New Zealand duty-free from all sources.

9. New Zealand said that the development cooperation programmes was central to the dialogue relationship as shown by the following four points about the programme :
   i. New Zealand would meet its commitment of NZ$ 12 million for the five year period ending 1992.

   ii. In response to ASEAN concern, New Zealand had arranged to fund the Commerce Facility separately from the ASEAN regional programme from 1 July 1990. Additional funds would therefore be available for new and ongoing projects.

   iii. New Zealand was as anxious as ASEAN to see the IILP implemented quickly. Work should get underway with a target date of July 1990. LINCOLN International has been appointed as the project manager in June 1990.

   iv. The TIPP project would be the central focus of the cooperation for the next 3 years. It was important to ensure that the project was properly constructed at the beginning. A framework for the elaboration of the TIPP was agreed which would also take into account the proposals put forward by the ASEAN-New Zealand Business Council.